STAND. COM. REP. NO. 2102

Honolulu, Hawaii

RE: S.B. No. 2748

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2748 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 amend the State's charitable solicitations law by:

(1) Substituting the term "total revenue" for the term "gross revenue" and term "total receipts" for the term "gross receipts";

(2) Clarifying when professional solicitors must file financial reports;

(3) Clarifying when commercial co-venturers must provide a charitable organization with an accounting and the benefit of a charitable sales promotion;

(4) Eliminating the requirement for certain charitable organizations to submit an audit report; and

(5) Making housekeeping amendments.

Your Committee received testimony in support of this measure from the Department of the Attorney General; Association of Fundraising Professionals - Aloha Chapter; Hawaii Association of Independent Schools; Hawaii Council of Private Schools, LLC; and Hawai‘i Alliance of Nonprofit Organizations.

Your Committee finds that this measure makes several amendments to the State's law governing charitable solicitations, including clarifying the operating and reporting requirements for charitable organizations, ensuring charitable organizations report to the Attorney General in a timely fashion, and clarifying reporting process requirements for solicitation campaigns and events. This measure also assists the Department of the Attorney General in its oversight of charitable organizations and fundraising activities, clarifies regulatory procedures for the nonprofit sector, and provides additional disclosures for the public.

Your Committee has amended this measure by:

(1) Reinserting the Hawaii Council of Private Schools into the Department of the Attorney General's list of authorized licensing or accrediting organizations that are exempted from registration and financial disclosure requirements, as this organization was mistakenly removed from the list by legislation passed during the Regular Session of 2017; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2748, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2748, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

________________________________

ROSALYN H. BAKER, Chair