STAND. COM. REP. NO. 863

Honolulu, Hawaii

RE: S.B. No. 1316

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1316, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO COURT-ORDERED PAYMENTS,"

begs leave to report as follows:

The purpose and intent of this measure is to clarify the State's laws regarding victim restitution and other court-ordered payments in response to the Hawaii Supreme Court's decision in State v. Fay (2024).

More specifically, the measure:

(1) Requires the Judiciary to contract with a collection agency or licensed attorney to collect delinquent court‑ordered fees, fines, sanctions, and court costs;

(2) Repeals the Judiciary's authority to contract with a collection agency or licensed attorney to collect delinquent restitution;

(3) Authorizes courts to specify a time period or establish installments for the payment of court-ordered fees and restitution;

(4) Establishes requirements for district courts to hold payment compliance hearings until all fees, fines, and restitution are paid in full; and

(5) Requires a defendant in district court to appear and show cause if the defendant fails to pay three consecutive installment payments.

Your Committee received written comments in support of this measure from the Department of the Attorney General and one individual.

Your Committee received written comments on this measure from the Judiciary.

Your Committee finds that, as interpreted by the Hawaii Supreme Court, the existing law allows the court to order a compliance hearing for restitution payments only if the defendant is on probation or after the defendant defaults on payments. Your Committee believes that clarifying the court procedures for court‑ordered restitution will help ensure that convicted defendants comply with orders for restitution and that victims are properly compensated for their losses.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1316, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair