STAND. COM. REP. NO 42

Honolulu, Hawaii

RE:    S.B. No. 758

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 758 entitled:

"A BILL FOR AN ACT RELATING TO SERVICE BY PUBLICATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to specify that the method of service of process for all civil cases under chapter 634, Hawaii Revised Statutes, when personal service is unsuccessful, includes publication in a newspaper of general circulation three times or publication on a state website together with publication in a newspaper of general circulation at least once.

     Your Committee received testimony in support of this measure from the Collection Law Section of the Hawaii State Bar Association and Hawaii Bankers Association.  Your Committee received testimony in opposition to this measure from the Honolulu Star-Advertiser.  Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs Office of Consumer Protection.

     Your Committee finds that under existing law, service of process, when personal service is unsuccessful, requires service by publication in a newspaper of general circulation.  According to testimony received by your Committee, the cost for publication of summons in a newspaper in connection with a collection action typically exceeds $2,000 - a cost that is passed on to the debtor-consumer.  In comparison, electronic publication of foreclosure notices of public sale costs $300 per notice on the Department of Commerce and Consumer Affairs' website.  Your Committee further finds that this measure would permit electronic publication in all civil actions, consistent with existing provisions related to publication of foreclosure notices.

     Your Committee has amended this measure by:

     (1)  Inserting an effective date of July 1, 2020, to encourage further discussion; and

     (2)  Making a technical, nonsubstantive amendment for the purpose of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 758, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 758, S.D. 1, and be referred to the Committee on Judiciary and Labor.

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

____________________________

ROSALYN H. BAKER, Chair