STAND. COM. REP. NO. 824

Honolulu, Hawaii

, 2001

RE: S.B. No. 423

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Judiciary, to which was recommitted S.B. No. 423, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CIVIL PROCEEDINGS,"

begs leave to report as follows:

The purpose of this measure is to clarify the definition of government beneficiary and the attachment of salaries for purposes of garnishment of government beneficiaries, and require the filing of a nonhearing or hearing motion to extend the life of a domestic judgment or decree.

Your Committee heard testimony in support of the measure from the Collection Law Section of the Hawaii State Bar Association, Hawaii Financial Services Association, Lynn A.S. Araki, Attorney at Law, Credguard Corporation, Credit Associates of Maui, Ltd., Honolulu Collection Corporation, Island Wide Collections, Maui Collection Services, Inc., Pacific Board of Trade, Inc., Select Consulting Service, State Wide Collections, and 13 private individuals.

Your Committee finds that governmental entities may be garnished by judgment creditors for wages paid to their employees. This measure would extend the same protection to judgment creditors whose judgments are against judgment debtors who obtain moneys through selling their services to the governmental entities instead of working for them full time. This would prevent the now-common practice of judgment debtors using this loophole to have the State and Counties insulate them from paying their debts.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 423, S.D. 1, and recommends that it pass Third Reading.

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

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BRIAN KANNO, Chair