STAND.
COM. REP. NO. 1471
Honolulu, Hawaii
, 2025
RE: S.B. No. 1048
S.D. 2
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1048, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO SOLICITATION OF FUNDS FROM THE PUBLIC,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Clarify the standards and safeguards in online crowdfunding as enacted by Act 205, Session Laws of Hawaii 2024 (Act 205); and
(2) Extend the effective date of Act 205 to June 30, 2026.
Your Committee finds that Act 205 was enacted in response to concerns over potentially fraudulent online fundraising platforms following the August 2023 Maui wildfires. Act 205 improved and expanded the Department of the Attorney General's enforcement of charitable fundraising activities, including regulation of charitable fundraising on online platforms. However, the provisions of Act 205 may also hamper the ability of charities to fundraise in the State. This measure seeks to strike a balance in order to target unscrupulous actors while providing charities with the necessary flexibility to raise funds for their charitable causes.
Your Committee has amended this measure by:
(1) Consolidating all of the requirements applicable to platform charities under one section, which creates a separate registration, reporting, and fee requirements for platform charities to address the potential for duplication of these requirements;
(2) Clarifying when certain definitions are applicable to charitable fundraising platforms and platform charities;
(3) Consolidating all of the requirements applicable to charitable fundraising platforms under one section, which creates a separate registration, reporting, and fee requirements specific to charitable fundraising platforms to address the potential for duplication of these requirements;
(4) Deleting language that allowed, for purposes of documenting contributions received over the Internet, the use of electronic mail addresses and internet protocol addresses;
(5) Extending the effective date of Act 205 to July 1, 2026, and making such extension effective July 1, 2025;
(6) Inserting a savings clause; and
(7) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
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 S.B. No. 1048, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1048, S.D. 2, H.D. 1, and be referred to your Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,
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____________________________ SCOT Z. MATAYOSHI, Chair |
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