STAND. COM. REP. NO.  956-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2361

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2361, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO DEBT COLLECTION,"

begs leave to report as follows:

The purpose of this measure is to transfer debt collection efforts to the Attorney General for all executive departments, with the exception of the University of Hawaii and Department of Taxation, for accounts delinquent for more than 90 days.

An individual testified in support of this measure.  The Department of the Attorney General, Department of Taxation, and Department of Commerce and Consumer Affairs provided comments on this measure.

     Your Committee has amended this measure by:

     (1)  Amending the definition of "uncollectible account" to clarify that the debt must be discharged in bankruptcy;

     (2)  Changing the effective date to July 1, 2030, for the purposes of facilitating further discussion; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     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. 2361, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2361, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair