STAND. COM. REP. NO. 3802

Honolulu, Hawaii

RE: H.B. No. 1810

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 1810, H.D. 2, S.D. 1, 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) Establish prompt payment and financial reporting requirements for professional solicitors that sell donated or collected non-perishable tangible property on behalf of charitable organizations; and

(2) Prohibit professional solicitors from failing to:

(A) Visibly display certain signage;

(B) Comply with prompt payment, financial reporting, and contract term requirements; or

(C) Prominently disclose certain information on any collection bin, container, or receptacle used to receive donated or collected property.

Your Committee received testimony in support of this measure from Retail Merchants of Hawaii and Goodwill Hawaii.

Your Committee finds that many nonprofit organizations and thrift retailers rely on donated clothing and household goods to support funding for job training programs, workforce development initiatives, and community services.  However, some donation collection bins or receptacles may be operated by for-profit entities that resell donated items while compensating charitable partners based on weight or other arrangements of which donors may be unaware or misunderstand.  When the public cannot be sure that donations are used for charitable causes, confidence in legitimate charitable organizations and nonprofit retailers declines.  This measure will ensure that donors receive clear information about how their contributions are used to promote transparency, ensuring that donors can make informed decisions and charitable organizations can maintain the public trust.

Your Committee has amended this measure by:

(1) Moving language establishing certain prohibitions on professional solicitors from section 467B-2.5, Hawaii Revised Statutes, relating to professional solicitor financial reports, to section 467B-9, Hawaii Revised Statutes, relating to prohibited acts;

(2) Specifying that no professional solicitor, who directly or indirectly sells any donated or collected non‑perishable tangible property, shall fail to provide complete and timely financial reports to the charitable organization and the attorney general, as required by chapter 467B, Hawaii Revised Statutes; and

(3) 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 Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1810, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1810, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

________________________________

KARL RHOADS, Chair