HOUSE OF REPRESENTATIVES	H.C.R. NO.	46
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

REQUESTING A SUNRISE REVIEW ON THE REGistration OF providers of debt-management services.

     WHEREAS, debt-management services refer to services as an intermediary between an individual and a creditor of the individual for the purpose of obtaining from the creditor a concession to have the repayment of a debt restructured along terms more favorable to an individual than are the terms of the governing contract between the individual and a creditor, but does not include legal services, accounting services, or financial planning services; and

     WHEREAS, debt-management services are generally comprised of two kinds of services, specifically, the providing of counseling coupled with assisting debtors in establishing programs to pay off debts over an extended time, and the providing of consolidation and management services, in which agreements are reached with creditors to settle on a percentage of debt; and

     WHEREAS, debt-management services have been criticized for attempting to steer debtors away from bankruptcy when bankruptcy might have been more advantageous and less costly to the debtor; and

     WHEREAS, H.B. No. 184, introduced during the regular session of 2006, will prohibit some persons from holding themselves out as providers of debt-management services unless they are registered with the Director of Commerce and Consumer Affairs; and

     WHEREAS, the Auditor is required pursuant to section 26H-6, Hawaii Revised Statutes, to conduct sunrise reviews of specific measures identified through a concurrent resolution; now, therefore,

     BE IT RESOLVED by the House of Representatives of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2007, the Senate concurring, that the Auditor is respectfully requested to conduct a sunrise review on the registration of providers of debt-management services as contemplated under H.B. No. 184, introduced during the regular session of 2007; and

     BE IT FURTHER RESOLVED that if the Auditor determines that registration of debt management services providers is appropriate, the Auditor is also requested to recommend whether for profit entities should be prohibited from providing debt-settlement services, or credit-counseling services, or both; and

     BE IT FURTHER RESOLVED that the Auditor is requested to submit findings and recommendations, including any proposed legislation, not later than twenty days prior to the convening of the regular session of 2008; and

     BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Auditor.

OFFERED BY:

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Report Title: 

Sunrise Reviews