REPORT TITLE:
Delinquent fees


DESCRIPTION:
Authorizes the Board of Education to establish fees for the
administrative costs of collecting fees for overdue or lost
books, for use of materials requiring special equipment, and
library sponsored seminars and workshops. (HB1170 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1170
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO COST-RECOVERY FEES FOR DELINQUENT LIBRARY ACCOUNTS.



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

 1      SECTION 1.  The legislature finds that the Hawaii state
 
 2 public library system is responsible to the taxpayers and its
 
 3 customers and supporters for the efficient utilization and
 
 4 accounting of tax revenues and public donations of moneys and
 
 5 properties and the maintenance and protection of library
 
 6 equipment and materials.  An important area of accountability is
 
 7 the customers' delinquencies in the return of books and other
 
 8 library materials and the payment of fees and fines, currently
 
 9 amounting to approximately $3,000,000.  In addition, a
 
10 substantial amount of time is required to process the overdue
 
11 books, to credit adjustments, and for other administrative
 
12 activities related to the collection of delinquent customer
 
13 accounts.
 
14      The legislature finds that some library customers need
 
15 incentives to return borrowed materials in a timely manner so
 
16 that other library customers can enjoy using these materials.  If
 
17 they do not return materials when due, these customers need to
 
18 pay their fines and fees on a timely basis before cost-recovery
 
19 fees are imposed and referred to a collection agency.
 

 
Page 2                                                     1170
                                     H.B. NO.           H.D. 2
                                                        
                                                        

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

 
Page 3                                                     1170
                                     H.B. NO.           H.D. 2
                                                        
                                                        

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

 
 
 
Page 4                                                     1170
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (4)  The amount of the fees that may be assessed and charged
 
 2           to a library patron;
 
 3      (5)  The accumulated amount of lost library material costs,
 
 4           fines, or fees; and
 
 5      (6)  The period of time that the lost library materials
 
 6           costs, fines, or fees shall remain unpaid before they
 
 7           may be referred to a collection agency for collection
 
 8           pursuant to rules adopted under chapter 91.
 
 9      (e)  The state librarian may waive any fee imposed by the
 
10 Hawaii state public library system under chapter 312 in cases of
 
11 hardship as prescribed by rules adopted under chapter 91.
 
12      (f)  Upon its collection, the cost-recovery fee shall be
 
13 deposited into the special fund established by section 312-3.6
 
14 and shall be expended as prescribed by law."
 
15      SECTION 3.  Section 312-3.6, Hawaii Revised Statutes, is
 
16 amended by amending subsections (a) and (b) to read as follows:
 
17      "(a)  There is established in the state treasury a libraries
 
18 special fund into which shall be deposited all moneys collected
 
19 pursuant to [section] sections 312-3.5[.] and 312-    .
 
20      (b)  The fund shall be administered by the state librarian
 
21 who shall, unless otherwise directed by the library advisory
 
22 committee, disburse to each public library[,] the amount
 
23 commensurate with the moneys received from the library under
 

 
Page 5                                                     1170
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 [section] sections 312-3.5 and 312-    over the previous fiscal
 
 2 period.  Allocations shall be made in quarterly installments
 
 3 within thirty days of the end of each calendar quarter."
 
 4      SECTION 4.  Section 443B-9, Hawaii Revised Statutes, is
 
 5 amended by amending subsection (b) to read as follows:
 
 6      "(b)  This section shall not prohibit a collection agency
 
 7 from collecting, or attempting to collect, from a debtor, a
 
 8 commission authorized under:
 
 9      (1)  [a] A contract with the University of Hawaii pursuant
 
10           to section 304-93(b)[.]; or
 
11      (2)  A contract with the board of education pursuant to
 
12           section 312-   ."
 
13      SECTION 5.  Statutory material to be repealed is bracketed.
 
14 New statutory material is underscored.
 
15      SECTION 6.  This Act shall take effect upon its approval.