§40-82  Uncollectible accounts.  (a) The directors, boards, or executive heads of executive departments, from timeto time, may prepare and submit for the review of the attorney general a listof all uncollectible accounts in their departments.  Such accounts as theattorney general finds to be uncollectible shall be entered in a special recordand be deleted from the accounts receivable records of the departments, whichshall thereupon be relieved from any further accountability for theircollection; provided that no account shall be so deleted until it shall havebeen delinquent for at least two consecutive years.  Any account entered in thespecial record shall be transferred back to the current accounts receivable ifthe attorney general finds that the facts as alleged and presented to theattorney general were not true, or that the account has become collectible.

As used in this section, "uncollectibleaccount" means an account with regard to which:

(1)  The debtor or party causing damage to property belongingto the State is no longer within the jurisdiction of the State;

(2)  The debtor or party causing damage to propertybelonging to the State cannot be located;

(3)  The party causing damage to property belonging tothe State is unknown or cannot be identified;

(4)  The debtor has filed for bankruptcy and haslisted the State as a creditor; or

(5)  Any other account as may be deemed by theattorney general to be uneconomical or impractical to collect.

(b)  The judiciary, from time to time, mayprepare lists of all delinquent receivables that in its judgment areuncollectible.  The delinquent receivables that the judiciary finds to beuncollectible shall be entered in a special record and be deleted from theother books kept by the judiciary, and the judiciary shall thereupon bereleased from any further accountability for their collection; provided that noaccount shall be so deleted until it has been delinquent for at least twoyears.  Any delinquent receivables so written off may be transferred back tothe judiciary's accounts receivable if the judiciary finds that the facts asalleged and previously presented to it were not true, or that the delinquentreceivables are in fact collectible, or that the delinquent receivables havebecome collectible.  Nothing in this subsection shall preclude a person to whomrestitution is owed from pursuing collection of the debt.

As used in this section, "delinquentreceivables" means fines, restitution, monetary assessments, fees,surcharges, penalties, sanctions, court costs, and other payment that is pastdue.

(c)  The University of Hawaii, from time totime, may prepare for the review of the university general counsel a list ofall uncollectible accounts.  Such accounts as the university general counselfinds to be uncollectible shall be entered into a special record and be deletedfrom the accounts receivable records of the university, which shall thereuponbe relieved from any further accountability for their collection; provided thatno account shall be so deleted until it shall have been delinquent for at leasttwo consecutive years.  Any account entered in the special record shall betransferred back to the current accounts receivable if the university generalcounsel finds that the account has become collectible.

(d)  The university shall submit an annualreport to the legislature, no later than twenty days prior to the convening ofeach regular session, that shall summarize the types and amounts ofuncollectible delinquent accounts that either were:

(1)  Entered in a special record and deleted from theuniversity's other books; or

(2)  Transferred back to the university's accountsreceivable. [L 1965, c 63, §1; Supp, §34-15.5; HRS §40-82; gen ch 1985; am L1998, c 264, §1; am L 2001, c 243, §4; am L 2005, c 102, §1 and c 154, §2; am L2006, c 38, §2]