HB1810

SECTION 1. The legislature finds that individuals who donate tangible property using collection bins or receptacles may reasonably believe that the tangible property is donated directly to charitable organizations, and may also reasonably believe they are entitled to a federal income tax credit deduction for the value of the donated property.

The legislature also finds that in some cases, the entities operating collection bins or receptacles on behalf of the charity will pay the charity based on the weight of the donated items received, which can be as low as two to five cents per pound, and then re-sell the donated property at for-profit retail locations. Most donors are not aware of these arrangements between the collection bin operator and associated charitable organizations.

The legislature further finds that chapter 467B, Hawaii Revised Statutes, does not adequately address this charitable solicitation business model.

Accordingly, the purpose of this Act is to regulate professional solicitors that operate collection bins or receptacles to solicit and accept donation of non-perishable tangible property, purportedly to benefit charitable organizations, but then process or re-sell the donated tangible property in for-profit retail or thrift stores.

SECTION 2. Section 467B-1, Hawaii Revised Statutes, is amended as follows:

1. By amending the definition of "contribution" to read:

""Contribution" means the promise or grant of any money or property of any kind or value, including [~~the~~] non-perishable tangible property, or a promise to pay[,] or pledge, except payments by members of a charitable organization for membership fees, dues, fines, or assessments, or for services rendered to individual members, if membership in the charitable organization confers a bona fide right, privilege, professional standing, honor, or other direct benefit, other than the right to vote, elect officers, or hold offices, and except money or property received from any governmental authority, or a grant or subsidy from any organization exempt from taxation under section 501(c)(3) of the Internal Revenue Code."

2. By amending the definition of "solicit" and "solicitation" to read:

""Solicit" and "solicitation" mean a request directly or indirectly for money, credit, property, financial assistance, or thing of value on the plea or representation that the money, credit, property, financial assistance, or thing of value, or any portion thereof, will be used for a charitable purpose or to benefit a charitable organization. These terms shall include the following:

(1) Any oral or written request;

(2) The making of any announcement to any organization for the purpose of further dissemination, including announcements to the press, over the radio or television, or by telephone, telegraph, or facsimile, concerning an appeal or campaign by or for any charitable organization or purpose;

(3) The distribution, circulation, posting, or publishing of any handbill, written advertisement, or other publication that directly or by implication seeks to obtain public support;

(4) Where the sale or offer or attempted sale, of any advertisement, advertising space, book, card, tag, coupon, device, magazine, membership, merchandise, subscription, flower, ticket, candy, cookies, or other tangible item in connection with which any appeal is made for any charitable organization or purpose; or where the name of any charitable organization is used or referred to in any appeal as an inducement or reason for making any sale; or where in connection with any sale, any statement is made that the whole or any part of the proceeds from any sale will be used for any charitable purpose or to benefit any charitable organization; and

(5) A request made through the use of receptacles for contributions, including non-perishable tangible property, such as honor boxes, vending machines, wishing wells, contribution boxes, [~~and~~] novelty machines, and collection bins or containers, where a charitable appeal is used or referred to or implied as an inducement or reason to contribute.

A solicitation occurs whether or not the person making the solicitation receives any contribution. However, the term shall not include the submission of a grant or subsidy proposal or application to a governmental authority or any organization exempt from taxation under section 501(c)(3) of the Internal Revenue Code."

SECTION 3. Section 467B-2.5, Hawaii Revised Statutes, is amended to read as follows:

"§467B-2.5 Professional solicitor financial reports; contribution account. (a) A professional solicitor shall file with the attorney general a financial report for any charitable solicitation campaign, including gross revenue from Hawaii donors and national gross revenue and an itemization of all expenses incurred on a form prescribed by the attorney general no more than ninety days after the end of the solicitation campaign and, for solicitation campaigns lasting more than one year, within ninety days after each anniversary of the commencement of the solicitation campaign and within ninety days after the end of the solicitation campaign.

(b) The attorney general may require the financial report required by subsection (a) to be submitted electronically and may require the use of electronic signatures. This report shall be signed by the professional solicitor, or an authorized officer or agent of the professional solicitor who shall certify that the statements therein are true and correct to the best of the solicitor's, officer's, or agent's knowledge subject to penalties imposed by section 710‑1063. If a financial report required under this section is not filed in a timely manner, taking into account any extension of time for filing, unless it is shown that the failure is due to reasonable cause, an initial late filing fee of $100 shall be imposed, and an additional late filing fee of $20 per day shall be imposed, for each day during which the violation continues; provided that the total fee amount imposed under this subsection shall not exceed $1,000. The attorney general may waive all or part of the late filing fee imposed by this subsection if there is a reasonable cause for the failure to timely file. The professional solicitor shall provide a copy of the financial report to the charitable organization to which the financial report pertains within ten days of its submission of the report to the attorney general.

(c) A professional solicitor shall maintain during each solicitation campaign and for not less than three years after the completion of that campaign the following records, which shall be available for inspection upon demand by the attorney general:

(1) The date and amount of each contribution received and the name and address of each contributor;

(2) The name and residence of each employee, agent, or other person involved in the solicitation;

(3) Records of all revenue received and expenses incurred in the course of the solicitation campaign; and

(4) The location and account number of each bank or other financial institution account in which the professional solicitor has deposited revenue from the solicitation campaign.

(d) Any material change in any information filed with the attorney general pursuant to this section shall be reported in writing by the professional solicitor to the attorney general not more than seven days after the change occurs.

(e) Each contribution in the control or custody of the professional solicitor in its entirety and within five days of its receipt, shall be deposited in an account at a bank or other federally insured financial institution, which shall be in the name of the charitable organization. The charitable organization shall maintain and administer the account and shall have sole control of all withdrawals.

(f) If the professional solicitor, directly or indirectly, sells donated or collected tangible non-perishable property, the professional solicitor shall deposit the full amount owed to the charitable organization by the professional solicitor in an account at a bank or other federally insured financial institution, which shall be in the name of that charitable organization, within forty-five days after the sale.

(g) If the professional solicitor, directly or indirectly, sells donated or collected non-perishable tangible property and compensates a charitable organization based on the weight of donor contributions, the professional solicitor's financial report shall include:

(1) The amount paid by the professional solicitor to any charitable organization during the applicable period;

(2) The gross weight of all contributions by donors to the professional solicitor, on behalf of each respective charitable organization, during the applicable period; and

(3) The dollar amount of compensation per pound or other weight measurement paid by the professional solicitor to each charitable organization."

SECTION 4. Section 467B-9, Hawaii Revised Statutes, is amended to read as follows:

"§467B-9 Prohibited acts. (a) No person, for the purpose of soliciting contributions from persons in the State, shall use the name of any other person except that of an officer, director, or trustee of the charitable organization by or for which contributions are solicited, without the written consent of the other persons.

A person shall be deemed to have used the name of another person for the purpose of soliciting contributions if the latter person's name is listed on any stationery, advertisement, brochure, or correspondence in or by which a contribution is solicited by or on behalf of a charitable organization or the latter person's name is listed or referred to in connection with a request for a contribution as one who has contributed to, sponsored, or endorsed the charitable organization or its activities.

(b) No charitable organization, professional solicitor, professional fundraising counsel, commercial co-venturer, charitable fundraising platform, or platform charity soliciting contributions shall use a name, symbol, or statement so closely related or similar to that used by another charitable organization or governmental agency that the use thereof would tend to confuse or mislead the public.

(c) No person, in connection with any solicitation or sale, shall misrepresent or mislead anyone by any manner, means, practice, or device whatsoever, to believe that the solicitation or sale is being conducted on behalf of a charitable organization or that the proceeds of the solicitation or sale will be used for charitable purposes, if that is not the fact.

(d) No professional solicitor, charitable fundraising platform, or platform charity, and no agent, employee, independent contractor, or other person acting on behalf of the professional solicitor, charitable fundraising platform, or platform charity, shall solicit in the name of or on behalf of any charitable organization unless the charitable fundraising platform or platform charity has obtained written consent pursuant to section 467B-2.3(e) or:

(1) The professional solicitor has obtained the written authorization of two officers of the organization, which authorization shall bear the signature of the professional solicitor and the officers of the charitable organization and shall expressly state on its face the period for which it is valid, which shall not exceed one year from the date of issuance, and has filed a copy of the written authorization with the attorney general before the solicitation; and

(2) The professional solicitor and any person who, for compensation, acts as an agent, employee, independent contractor, or otherwise on behalf of the professional solicitor, carries a copy of the authorization while conducting solicitations, and exhibits it on request to persons solicited or police officers or agents of the department.

(e) No charitable organization, professional fundraising counsel, professional solicitor, commercial co-venturer, charitable fundraising platform, or platform charity subject to this chapter shall use or exploit the fact of filing any statement, report, professional fundraising counsel contracts, written consents, professional solicitor contracts, charitable fundraising platform contracts, or platform charity contracts and written consents, or other documents or information required to be filed under this chapter or with the department so as to lead the public to believe that the filing in any manner constitutes an endorsement or approval by the State of the purposes or goals for the solicitation by the charitable organization, professional fundraising counsel, professional solicitor, commercial co-venturer, charitable fundraising platform, or platform charity; provided that the use of the following statement shall not be deemed a prohibited exploitation: "Information regarding this organization has been filed with the State of Hawaii department of the attorney general. Filing does not imply endorsement or approval of the organization or the public solicitation for contributions."

(f) No person, while soliciting, shall impede or obstruct, with the intent to physically inconvenience the general public or any member thereof in any public place or in any place open to the public.

(g) No person shall submit for filing on behalf of any charitable organization, professional fundraising counsel, professional solicitor, commercial co-venturer, charitable fundraising platform, or platform charity, any statement, financial statement, report, attachment, or other information to be filed with the department that contains information, statements, or omissions that are false or misleading.

(h) No person shall solicit contributions from persons in the State or otherwise operate in the State as a charitable organization, an exempt charitable organization, professional fundraising counsel, professional solicitor, commercial co-venturer, charitable fundraising platform, or platform charity unless the person has filed the information required by this chapter with the department in a timely manner.

(i) No person shall aid, abet, or otherwise permit any persons to solicit contributions from persons in the State unless the person soliciting contributions has complied with the requirements of this chapter.

(j) No person shall fail to file the information and registration statement, annual or financial reports, and other statements required by this chapter or fail to provide any information demanded by the attorney general pursuant to this chapter in a timely manner.

(k) No person shall employ in any solicitation or collection of contributions for a charitable organization, any device, scheme, or artifice to defraud or obtain money or property by means of any false, deceptive, or misleading pretense, representation, or promise.

(l) No person, in the course of any solicitation, shall represent that funds collected will be used for a particular charitable purpose, or particular charitable purposes, if the funds solicited are not used for the represented purposes.

(m) No person shall receive compensation from a charitable organization for obtaining moneys or bequests for that charitable organization if that person has also received compensation for advising the donor to make the donation; provided that compensation may be received if the person obtains the written consent of the donor to receive compensation from the charitable organization.

(n) No person shall act as a professional solicitor, charitable fundraising platform, or platform charity if the person, any officer, any person with a controlling interest therein, or any person the professional solicitor, charitable fundraising platform, or platform charity employs, engages, or procures to solicit for compensation, has been convicted by any federal or state court of any felony, or of any misdemeanor involving dishonesty or arising from the conduct of a solicitation for a charitable organization or purpose.

(o) No charitable organization shall use the services of an unregistered professional solicitor, professional fundraising counsel, charitable fundraising platform, or platform charity.

(p) No professional solicitor, who directly or indirectly sells any donated non-perishable tangible property, shall fail to:

(1) Prominently disclose in writing on any collection bin, container, or receptacle used by a professional solicitor to receive donated non-perishable tangible property that:

(A) The bin, container, or receptacle is operated and used by a paid professional solicitor;

(B) The professional solicitor resells the donated property at retail stores and that a charitable organization is either paid a percentage of the sale proceeds or an amount based on the weight of the donated tangible property, whichever is applicable;

(C) Donated non-perishable tangible property is not a tax-deductible charitable contribution under the Internal Revenue Code of 1986, as amended, if applicable;

(D) The professional solicitor is registered with the attorney general; and

(E) The professional solicitor's registration form and contracts with the charity benefited by the collection is available for public inspection and copying;

(2) Provide complete and timely payment of the amount owed to a charitable organization within forty-five days after the sale of non-perishable tangible property;

(3) Provide complete and timely annual financial reports to the charitable organization and the attorney general, as required by section 467B-6.5; and

(4) Include in the contract with the charitable organization the terms required by section 467B-12.5."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2026.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1810
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII