REPORT TITLE:
Collection Agencies 

DESCRIPTION:
Permits an out-of-state collection agency to operate in the State
without complying with all of the licensing requirements, subject
to certain conditions and limitations.  (HB2017 CD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2017
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                S.D. 1
STATE OF HAWAII                                            C.D. 1
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO COLLECTION AGENCIES.


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 443B, Hawaii Revised Statutes, is
 
 2 amended by adding a new section to be appropriately designated
 
 3 and to read as follows:
 
 4      "443B-      Exempt out-of-state collection agency.  (a)  A
 
 5 collection agency licensed or registered as a collection agency
 
 6 in another state, may apply for designation as an exempt out-of-
 
 7 state collection agency and conduct business in this State
 
 8 pursuant to this section.  A collection agency granted
 
 9 designation as an exempt out-of-state collection agency shall be
 
10 exempt from registration and other regulatory requirements under
 
11 this chapter except as provided in this section.
 
12      (b)  A collection agency may apply for designation as an
 
13 exempt out-of-state collection agency; provided that the
 
14 collection agency:
 
15      (1)  Is licensed or registered as a collection agency under
 
16           the laws of a state that:
 
17           (A)  Regulates collection agencies; and
 
18           (B)  Does not require a Hawaii collection agency to
 
19                obtain a license or register to collect debts in
 
20                that state if the activities of the Hawaii
 

 
Page 2                                                     2017
                                     H.B. NO.           H.D. 1
                                                        S.D. 1
                                                        C.D. 1

 
 1                collection agency are limited to those described
 
 2                in paragraphs (2), (3), and (4);
 
 3      (2)  Is collecting debts on behalf of an out-of-state
 
 4           creditor;
 
 5      (3)  Does not solicit or engage in collection activities for
 
 6           clients in this State; and
 
 7      (4)  Only collects debts in this State using interstate
 
 8           communication methods, including telephone, facsimile,
 
 9           or mail.
 
10      (c)  An applicant for designation as an exempt out-of-state
 
11 collection agency shall submit the following:
 
12      (1)  An application for an out-of-state collection agency
 
13           exemption as prescribed by the director;
 
14      (2)  Verification that:
 
15           (A)  The collection agency holds a current license,
 
16                permit, or registration to conduct business as a
 
17                collection agency in another state;
 
18           (B)  Is in good standing with and has complied with the
 
19                laws of that state, including the maintenance of a
 
20                bond, if required, and in the amount required by
 
21                the state; and
 
22           (C)  The collection agency's state of licensure does
 
23                not require Hawaii collection agencies to register
 

 
Page 3                                                     2017
                                     H.B. NO.           H.D. 1
                                                        S.D. 1
                                                        C.D. 1

 
 1                or become licensed in that state before collecting
 
 2                debts in that state;
 
 3      (3)  An agreement in writing to comply with the requirements
 
 4           of sections 443B-9, 443B-15, 443B-16, 443B-17, 443B-18,
 
 5           and 443B-19; and
 
 6      (4)  Payment of the following nonrefundable fees:
 
 7           (A)  With the application, an application fee of $25;
 
 8                and
 
 9           (B)  Upon approval of an out-of-state collection agency
 
10                exemption, the compliance resolution fund fee for
 
11                collection agencies.
 
12      (d)  An exempt out-of-state collection agency may renew the
 
13 exemption biennially by June 30 of each even-numbered year
 
14 pursuant to subsection (c).
 
15      (e)  An out-of-state collection agency shall not collect or
 
16 attempt to collect any money or any other form of indebtedness
 
17 alleged to be due and owing from any person who resides or does
 
18 business in this State without first registering under this
 
19 chapter or receiving an exemption pursuant to this section.
 
20      (f)  An exempt out-of-state collection agency shall be
 
21 subject to sections 443B-9, 443B-15, 443B-16, 443B-17, 443B-18,
 
22 and 443B-19, and all remedies provided by this chapter and by any
 
23 other law."
 

 
Page 4                                                     2017
                                     H.B. NO.           H.D. 1
                                                        S.D. 1
                                                        C.D. 1

 
 1      SECTION 2.  New statutory material is underscored.
 
 2      SECTION 3.  This Act shall take effect upon its approval.