Bill Text: HI SB1373 | 2021 | Regular Session | Amended
Bill Title: Relating To Wage Garnishment.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Introduced - Dead) 2021-02-18 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC. [SB1373 Detail]
Download: Hawaii-2021-SB1373-Amended.html
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THE SENATE |
S.B. NO. |
1373 |
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THIRTY-FIRST LEGISLATURE, 2021 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO WAGE GARNISHMENT.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 127A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§127A- Wage
garnishment protection. (a) It
shall be unlawful, during a covered period and for sixty days following the
termination of that covered period, for a creditor to initiate or to continue proceedings
to garnish wages in a manner consistent with chapter 652 due to past-due moneys
owed on debt; provided that the past or present moneys owed for child support shall
be exempt from this section.
(b) After the covered period and the sixty days following
the termination of the covered period, for six months thereafter, it shall be unlawful
for a creditor to garnish an amount exceeding ten per cent of the debtor's wages;
provided that the creditor and debtor may come to a mutual agreement as to a payment
plan on any debt owed.
(c) Remedies provided under this section are cumulative
and do not preclude any remedies available to debtors under any other law.
(d) A creditor who willfully violates this section
shall be liable to the debtor in a civil action for the following:
(1) Actual damages to
the debtor; and
(2) Reasonable attorney's
fees arising from the civil action.
(e) For the purposes of this section:
"Child support" means
payment for the necessary support and maintenance of a child as required by law
that includes but is not limited to spousal support when being enforced in
conjunction with child support or medical support when a court or
administrative order requires the debtor parent to pay an amount in lieu of providing
medical insurance coverage or to reimburse for maternity and delivery expenses
incurred when the debtor parent's child was born.
"Covered period" means the
period during which a state of emergency declared by governor's emergency proclamation
is in effect.
"Creditor" means the following:
(1) Any person or entity
that offers or extends credit creating a debt;
(2) Any person or entity
that is owed payment arising out of any obligation or agreement;
(3) Any lessor of real
or personal property;
(4) Any provider of
utility services; and
(5) Any debt collector.
"Debt" means any
obligation or alleged obligation of a person to pay money arising out of any
transaction, whether or not the obligation has been reduced to judgment; provided
that debt does not include any moneys owed out of a past or present child support
obligation.
"Debtor" means any individual
obligated or allegedly obligated to pay any debt who can establish they have been
negatively financially impacted by the coronavirus disease 2019 pandemic.
"Debt collector" means a
creditor, any person or entity that engages in the collection of debt, including
the state government or any agency of this State, irrespective of whether the debt
is allegedly owed to that person or entity.
"Emergency proclamation"
means an emergency proclamation issued by the governor pursuant to this chapter
in relation to the coronavirus disease 2019 pandemic."
SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050 and shall repeal six months after the expiration of the governor's emergency proclamation as defined in section 1 of this Act, or on December 31, 2021, whichever occurs first.
Report Title:
Wage Garnishment; Moratorium; Emergency Proclamation
Description:
Prohibits a creditor from initiating or continuing any action to garnish wages from a debtor during the period of an emergency proclamation in relation to the coronavirus disease 2019 pandemic and some time thereafter. Prohibits a creditor from garnishing more than ten per cent of a debtor's wages for six months thereafter. Effective 7/1/2050. Repeals 12/31/2021. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
