STAND. COM. REP. NO. 1266-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 2839

S.D. 2

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2839, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SOLICITATION OF FUNDS FOR CHARITABLE PURPOSES,"

begs leave to report as follows:

The purpose of this bill is, among other things, to:

(1) Transfer, from the Department of Commerce and Consumer Affairs to the Department of the Attorney General (AG), the duty to oversee the registration of charitable organizations and their professional solicitors and professional fundraising counsel;

(2) Require professional solicitors to file, within 90 days of the completion of a fundraising campaign and on the anniversary of a campaign's commencement for those lasting more than one year, a financial report that includes the gross revenue and an itemization of all expenses incurred;

(3) Permit the AG to refuse to register, suspend a registration, or revoke a registration when a charitable organization, professional fundraising counsel, or professional solicitor violates a requirement of chapter 467B, Hawaii Revised Statutes, (chapter 467B), fails to produce required records or disclose required information, or makes a material false statement in any required application, statement, or report;

(4) Permit the AG to invoke various penalties and restrictions when a person commits an act as specified in paragraph (2);

(5) Create a Solicitation of Funds for Charitable Purposes Special Fund to enforce chapter 467B and disseminate information to the general public;

(6) Require that contracts between charitable organizations and professional fundraising counsel or professional solicitors be written and filed with the AG no less than ten business days prior to the performance of any service, and that no solicitation or service begin before the contract is filed;

(7) Require that these contracts shall contain certain specified provisions;

(8) Specify that professional fundraising counsel and professional solicitors must be registered with the AG before contracting with charitable organizations, or else the charity may void the contract;

(9) Enumerate the record-keeping duties of solicitors with respect to ticket sales of charitable events; and

(10) Prohibit a person from acting as a professional solicitor if that person or the person's agent has been convicted of any felony by any federal or state court, or of any misdemeanor involving dishonesty or arising from conduct of a solicitation for a charitable organization or purpose; and

(11) Increase the existing bond requirement from $5,000 to $25,000 and registration and renewal fees from $50 to $250.

The Department of the Attorney General, National Association of State Charity Officials, Myerberg Shain & Associates, and two concerned individuals supported this bill.

 

Your Committee has amended this bill by:

(1) Changing its effective date to July 1, 2010, to promote further discussion; and

(2) Making technical, nonsubstantive amendments for clarity and to conform to drafting style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2839, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2839, S.D. 2, H.D. 2.

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

 

____________________________

DWIGHT Y. TAKAMINE, Chair