STAND. COM. REP. NO. 2045

Honolulu, Hawaii

RE:    S.B. No. 2250

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2250 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Require certain disclosures on collection boxes by for-profit and nonprofit organizations;

     (2)  Facilitate electronic registration and reporting by registered professional solicitors;

     (3)  Clarify existing law regulating charitable sales promotions by commercial co-venturers; and

     (4)  Make other technical or housekeeping amendments to chapter 467B, Hawaii Revised Statutes.

     Your Committee received testimony in support of this measure from the Department of the Attorney General.

     Your Committee finds that this measure provides greater protections for consumers and donors by requiring new disclosure requirements at collection bins operated by for-profit and nonprofit organizations.  This measure also facilitates the Attorney General's transition to electronic registration systems and provides greater clarity to registered charitable organizations, commercial co-venturers, and professional solicitors.

     Your Committee further finds that all professional solicitors are for-profit entities or enterprises; therefore, the amendment in this measure to the definition of "professional solicitor" is not necessary.  Your Committee additionally finds that the Attorney General is not authorized under section 467B-2.5, Hawaii Revised Statutes, to grant extensions for filing of financial reports; therefore, language in this measure granting such extensions is also unnecessary.

     Accordingly, your Committee has amended this measure by:

     (1)  Specifying that professional solicitors shall be classified as for-profit organizations for the purposes of collection box disclosures;

     (2)  Deleting language that would have amended the definition of "professional solicitor";

     (3)  Deleting language referring to an extension of time for filing of financial reports;

     (4)  Clarifying that the fine of $20 for failure to file a financial report shall be imposed for each day during which the violation occurs or continues; and

     (5)  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 and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2250, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2250, S.D. 1, and be referred to the Committee on Judiciary and Labor.

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

____________________________

ROSALYN H. BAKER, Chair