Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 2927 entitled:

begs leave to report as follows:

The purpose of this measure is to eliminate the burden placed on the creditor who is required to deliver duplicate receipts each time a payment is received under the garnishment process.

Testimony in support of this measure was submitted by the Collection Law Section of the Hawaii State Bar Association. No testimony in opposition was received by your Committee.

Under section 652-14, Hawaii Revised Statutes, a creditor is required to provide duplicate receipts to a garnishee when a payment is received through the garnishment process. Your Committee finds that this requirement is outdated since its original enactment in 1939 pre-dated copy machines, and as current employment and banking practices in which the payment of funds through garnishment is well-documented by the garnishee-employer or bank.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2927 and recommends that it pass Second Reading and be referred to the Committee on Judiciary and Hawaiian Affairs.