STAND. COM. REP. NO.  1764-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 3171

      S.D. 2

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 3171, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CHARITABLE TRUSTS AND NONPROFIT ORGANIZATIONS,"

begs leave to report as follows:

     The purpose of this bill is to strengthen oversight of charitable organizations in Hawaii by, among other things:

     (1)  Requiring certain charitable organizations to register with the Department of Commerce and Consumer Affairs (DCCA);

     (2)  Requiring charitable organizations with gross revenue exceeding $50,000 to file annual financial reports with DCCA and pay a filing fee;

     (3)  Establishing requirements for the filing and terms of written consents related to charitable sales promotions conducted by a commercial co-venturer using the name of a charitable organization;

     (4)  Prohibiting charitable organizations from using the services of unregistered professional solicitors or professional fundraising counsel;

     (5)  Authorizing electronic filing and signatures; and

     (6)  Appropriating funds to provide the Attorney General with additional staff.

     The Attorney General and Children's Alliance of Hawaii supported this bill. The Hawaii Government Employees Association opposed this bill.

     Your Committee has amended this measure by:

     (1)  Changing its effective date to July 1, 2020, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     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. 3171, 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. 3171, S.D. 2, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair