STAND. COM. REP. NO. 1476

Honolulu, Hawaii

RE:    H.B. No. 1028

       H.D. 2

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 1028, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CHARITABLE ORGANIZATIONS,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Clarify the Attorney General's regulatory authority over charitable organizations and charitable assets;

     (2)  Establish procedures for deactivations of registrations for charities no longer operating in Hawaii;

     (3)  Clarify requirements for financial reports for solicitation campaigns and charitable organizations' annual reports; and

     (4)  Make housekeeping amendments related to exemptions from registration and reporting requirements.

     Your Committee received testimony in support of this measure from the Department of the Attorney General, Association of Fundraising Professionals Aloha Chapter, and Hawai‘i Alliance of Nonprofit Organizations.

     Your Committee finds that, as currently drafted, this measure makes several amendments to the State's law governing charitable organizations and activities, including:

     (1)  Adding a definition of "property", as that term relates to the protection of charitable assets;

     (2)  Specifying procedures for deactivations of registrations for charitable organizations; and

     (3)  Clarifying requirements and procedures for the filing of financial and annual reports.

This measure also assists the Department of the Attorney General in its oversight of charitable organizations and fundraising activities and clarifies regulatory procedures for the nonprofit sector.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1028, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

________________________________

GILBERT S.C. KEITH-AGARAN, Chair