STAND. COM. REP. NO.  22-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 2027

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2027 entitled:

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

begs leave to report as follows:

     The purpose of this bill is to clarify that payees or holders in due course may assess a service charge up to $30 for a dishonored check.

     The Retail Merchants of Hawaii and the Consumer Data Industry Association testified in support of this bill.  The Department of Commerce and Consumer Affairs provided comments.

     Your Committee finds that clarifying how much a business may assess for a dishonored check will make it easier for them to recoup the costs associated in collecting on a returned check.

     Your Committee has amended this bill by:

(1)  Changing the effective date to July 1, 2020, to encourage further discussion; and

(2)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2027, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2027, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROBERT N. HERKES, Chair