STAND. COM. REP. NO. 138

Honolulu, Hawaii

, 2019

RE: H.B. No. 945

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 945 entitled:

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

begs leave to report as follows:

The purpose of this measure is to make clarifying amendments to Hawaii's charitable solicitations laws by:

(1) Clarifying that professional solicitors must file financial reports for long-term fundraising campaigns annually and after the completion of the campaign or event;

(2) Requiring commercial co-venturers to deliver an accounting and the benefit to the charitable organization within a specified timeframe; and

(3) Conforming statutory language to that used by the Internal Revenue Service and in other state statutes.

The Department of the Attorney General, University of Hawai‘i Foundation, and Hawai‘i Alliance of Nonprofit Organizations testified in support of this measure.

Your Committee has amended this measure by:

(1) Relieving registered charitable organizations that receive more than $500,000 in contributions but are not otherwise required to obtain an audit report by any other party from the requirement to submit an audit report to the Attorney General; and

(2) Changing its effective date to July 1, 2050, to promote further discussion.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 945, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 945, H.D. 1, and be referred to your Committee on Judiciary.

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

____________________________

ROY M. TAKUMI, Chair