[§443B-3.5]  Exempt out-of-state collection
agency.  (a)  A collection agency licensed or registered as a collection
agency in another state, may apply for designation as an exempt out-of-state
collection agency and conduct business in this State pursuant to this section. 
A collection agency granted designation as an exempt out-of-state collection
agency shall be exempt from registration and other regulatory requirements
under this chapter except as provided in this section.



(b)  A collection agency may apply for
designation as an exempt out-of-state collection agency; provided that the
collection agency:



(1)  Is licensed or registered as a collection agency
under the laws of a state that:



(A)  Regulates collection agencies; and



(B)  Does not require a Hawaii collection
agency to obtain a license or register to collect debts in that state if the
activities of the Hawaii collection agency are limited to those described in
paragraphs (2), (3), and (4);



(2)  Is collecting debts on behalf of an out-of-state creditor;



(3)  Does not solicit or engage in collection
activities for clients in this State; and



(4)  Only collects debts in this State using
interstate communication methods, including telephone, facsimile, or mail.



(c)  An applicant for designation as an exempt
out-of-state collection agency shall submit the following:



(1)  An application for an out-of-state collection
agency exemption as prescribed by the director;



(2)  Verification that:



(A)  The collection agency holds a current
license, permit, or registration to conduct business as a collection agency in
another state;



(B)  Is in good standing with and has complied
with the laws of that state, including the maintenance of a bond, if required,
and in the amount required by the state; and



(C)  The collection agency's state of licensure
does not require Hawaii collection agencies to register or become licensed in
that state before collecting debts in that state;



(3)  An agreement in writing to comply with the
requirements of sections 443B-9, 443B-15, 443B-16, 443B-17, 443B-18, and
443B-19; and



(4)  Payment of the following nonrefundable fees:



(A)  With the application, an application fee
of $25; and



(B)  Upon approval of an out-of-state
collection agency exemption, the compliance resolution fund fee for collection
agencies.



(d)  An exempt out-of-state collection agency
may renew the exemption biennially by June 30 of each even-numbered year
pursuant to subsection (c).



(e)  An out-of-state collection agency shall
not collect or  attempt to collect any money or any other form of indebtedness
alleged to be due and owing from any person who resides or does business in
this State without first registering under this chapter or receiving an
exemption pursuant to this section.



(f)  An exempt out-of-state collection agency
shall be subject to sections 443B-9, 443B-15, 443B-16, 443B-17, 443B-18, and
443B-19, and all remedies provided by this chapter and by any other law. [L
2000, c 135, §1]