STAND. COM. REP. NO.  762

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1207

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1207 entitled:

"A BILL FOR AN ACT RELATING TO DISHONORED PAYMENTS,"

begs leave to report as follows:

     The purpose of this bill is to improve the procedures for dishonored payments made to the State from accounts which are insufficiently funded.  This bill:

     (1)  Standardizes the service charge amount and increases it       to $25 for all dishonored payments;

     (2)  Provides the option of collecting the dishonored payment      and service charge by a collection agency; and

     (3)  Deletes the additional charge for interest on the              penalty.

     The Judiciary testified in support of this bill.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1207 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair