STAND. COM. REP. NO. 2246

Honolulu, Hawaii

RE: S.B. No. 2983

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Public Safety and Intergovernmental and Military Affairs and Commerce and Consumer Protection, to which was referred S.B. No. 2983 entitled:

"A BILL FOR AN ACT RELATING TO SOLICITATION OF FUNDS FROM THE PUBLIC,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Regulate charitable fundraising platforms and activities of platform charities during declared federal disasters;

(2) Include provisions relating to the misuse of funds;

(3) Impose vicarious liability upon a platform charity for a charitable fundraising platform's misuse of funds, and vice versa; and

(4) Exempt national disaster charitable organizations from its provisions.

Your Committees received testimony in support of this measure from the Department of the Attorney General, Hawaiʻi Emergency Management Agency, and one individual.

Your Committees received comments on this measure from the Hawaiʻi Alliance of Nonprofit Organizations.

Your Committees find that the Maui wildfires have sparked the United States Department of Justice to issue a warning of potential fraudulent activity around donations and contributions masquerading as Maui fire relief. According to testimony received by your Committees, the State needs to improve and expand enforcement of charitable fundraising activities, including regulating charitable fundraising on internet platforms. This measure will ensure the prevention of fraudulent and predatory charitable fundraising behavior.

Your Committees have amended this measure by:

(1) Inserting an effective date of January 1, 2042, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Public Safety and Intergovernmental and Military Affairs and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2983, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2983, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committees on Public Safety and Intergovernmental and Military Affairs and Commerce and Consumer Protection,

________________________________ JARRETT KEOHOKALOLE, Chair

________________________________ GLENN WAKAI, Chair