STAND. COM. REP. NO. 1043-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1644

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1644, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONSUMER PROTECTION,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require a person or entity marketing or contracting for a residential solar energy device to provide the consumer a one-page standardized disclosure form;

(2) Require any person or entity marketing, selling, or soliciting a residential solar energy device or financing product to comply with certain consumer protection laws; and

(3) Prohibit any person or entity from selling a residential solar energy device without holding a contractor's license or having a contractual affiliation with a licensed contractor.

Your Committee received testimony in support of this measure from the Hawaiʻi Green Infrastructure Authority; Kauaʻi Island Utility Cooperative; Alternate Energy Inc.; Sunrun Inc.; Symbium Corp.; Green Power Projects LLC; Solaray Corporation; Hawaiian Electric; Hawaii Solar Energy Association; Malama Solar; International Brotherhood of Electrical Workers Local 1186, AFL CIO; and eight individuals. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Contractors License Board; and Hawaii Credit Union League.

Your Committee finds that the field of residential solar energy devices is complex with complicated financing and ownership models. The average consumer often lacks understanding of the intricacies of installing residential solar energy devices. It can be particularly hard to understand the differences between products since agreements typically involve industry-specific jargon and technical terms. These issues make the solar market particularly susceptible to unscrupulous practices, which disproportionately affect kupuna, first-time homeowners, and other consumers unfamiliar with complex financial arrangements. This measure bolsters consumer protections by requiring certain disclosures and requiring installations to be made by certain licensed professionals, which will ensure customers have access to key information and will guard against misleading or inaccurate representations.

Your Committee has amended this measure by:

(1) Specifying that, for purposes of the existing law related to disclosures for sales of solar energy devices, the disclosures must be in writing;

(2) Specifying that the required disclosure is to be the cover page of the purchase or lease agreement or power purchase agreement involving the residential solar energy device;

(3) Requiring the cover page to include a notice that details specific information, including:

(A) The right to rescind or cancel the agreement and the means to effectuate the rescission or cancellation; and

(B) The right to confirm that there are no representations, offers, or promises other than what is in the agreement;

(4) Clarifying that the mandated compliance with certain consumer protection requirements does not apply to financial institutions, as this measure is directed toward the practices of persons marketing, selling, or soliciting residential solar energy devices;

(5) Deleting language that conflicted with the Contractors Licensing Board's administrative rule requiring persons who perform work on behalf of more than one contractor to also be licensed as a contractor;

(6) Deleting unnecessary language relating to the interpretation of the statute;

(7) Specifying that a purchaser, lessee, or host customer has the authority to rescind or cancel the agreement without any penalty or obligation by providing notice within three business days;

(8) Providing that an agreement that fails to comply with the requirements under the law relating to residential solar energy devices is voidable by the purchaser, lessee, or host customer;

(9) Inserting definitions for "financial institution", "host customer", and "power purchase agreement"; and

(10) 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 H.B. No. 1644, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1644, H.D. 2.

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

____________________________

SCOT Z. MATAYOSHI, Chair