HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that the Hawaii state
 2 public library system is responsible to the taxpayers, customers,
 3 and supporters for the efficient utilization and accounting of
 4 tax revenues, maintenance and protection of library equipment and
 5 materials, and public donations of moneys and properties.  An
 6 important area of accountability is the customers' delinquencies
 7 in the return of books and other library materials and payment of
 8 fees and fines, currently amounting to approximately $3,000,000.
 9 In addition, a substantial block of time is required to process
10 the overdue books and credit adjustments and administrative costs
11 to collect these delinquent customers accounts.
12      The legislature finds that these library customers need
13 incentives to return the borrowed materials so that other library
14 customers will enjoy using these materials and to pay their fines
15 and fees on a timely basis before cost-recovery fees are imposed
16 and referred to a collection agency.
17      The purpose of this Act is to provide the board of education
18 the authority to make rules, rates and set procedures for the
19 public library system can recover delinquent library materials

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 1 and administrative costs in its efforts to collect delinquent
 2 accounts from patrons.
 3      SECTION 2.  Chapter 312, Hawaii Revised Statutes, is amended
 4 by adding a new section to be appropriately designated and to
 5 read as follows:
 6      "312-     Cost-recovery fees for the administration of
 7 Hawaii state public library system.  (a)  The board of education
 8 may charge and add a fee to any amount due in accordance with its
 9 duties and powers under section 312-1 for:
10      (1)  Any cost or expense incurred by the Hawaii state public
11           library system as a result of any action taken to
12           enforce the collection of costs of lost books and any
13           overdue fines and fees charged to that patron after the
14           public library system has mailed written notice
15           demanding payment and advising that continued failure
16           to pay the amount due may result in collection action
17           being taken, including the imposition of cost-recovery
18           fees pursuant to this section.  Any such cost-recovery
19           fee charged against the patron for costs, fees, and
20           other charges may include collection agency fees,
21           attorneys' fees, court filing fees, and similar fees
22           incurred by the Hawaii state public library system in
23           connection with the collection action;

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 1      (2)  Hawaii public library system sponsored seminars or
 2           workshops, including educational materials in various
 3           media format; and
 4      (3)  Research and reference materials published on magnetic
 5           media, CD-ROM, or other machine-readable form.
 6      (b)  Interest shall not accrue with respect to any fee under
 7 this section.
 8      (c)  Notwithstanding any other provisions under this
 9 chapter, whenever a patron makes a partial payment of a
10 particular delinquent amount, the amount received by the Hawaii
11 state public library system shall first be credited to the fees
12 charged under this section, in the order the fees were charged.
13      (d)  The board of education shall prescribe the procedures
14 relating to:
15      (1)  The charging of fees;
16      (2)  The waiver of fees;
17      (3)  The documents, materials, and services for which fees
18      may be charged;
19      (4)  The amount of the fees that may be assessed and charged
20           to a library patron;
21      (5)  The accumulated amount of lost library material costs,
22           fines, or fees; and
23      (6)  The period of time that such lost library materials

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 1           costs, fines, or fees must remain unpaid before they
 2           may be referred to a collection agency for collection
 3           pursuant to rules adopted under chapter 91.
 4      (e)  The state librarian may waive any fee imposed by the
 5 Hawaii state public library system under chapter 312 in cases of
 6 hardship as prescribed by rules adopted under chapter 91.
 7      (f)  Upon its collection, the cost-recovery fee shall be
 8 deposited into the special fund established by section 312-3.6
 9 and shall be expended as prescribed by law."
10      SECTION 3.  New statutory material is underscored.
11      SECTION 4.  This Act shall take effect upon its approval.
13                           INTRODUCED BY:  _______________________

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