STAND. COM. REP. NO. 3313
Honolulu, Hawaii
RE: H.B. No. 1644
H.D. 2
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Sir:
Your Committee on Energy and Intergovernmental Affairs, to which was referred H.B. No. 1644, H.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO CONSUMER PROTECTION,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Require purchase, lease, and power purchase agreements for residential solar energy devices to include a cover page with certain required disclosures;
(2) Require any person or entity that markets, sells, leases, or solicits a residential solar energy device or markets, sells, or solicits power purchase agreements to comply with consumer protection laws;
(3) Prohibit any person or entity from installing, marketing, offering financing, or engaging in customer acquisition for a residential solar energy device without holding a contractor’s license or having a contractual affiliation with a licensed contractor;
(4) Allow for rescission or cancellation of the agreement; and
(5) Specify that agreements in violation of the law are voidable.
Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Hawaii Solar Energy Association, Kauaʻi Island Utility Cooperative, and Hawaiian Electric.
Your Committee finds that the installation of solar energy devices, which are inherently large financial investments, often involves complex financing and ownership models. These complexities, in addition to the complicated and technical nature of solar sales that often involve industry jargon and technical terms, make the solar market particularly susceptible to violations of consumer protection laws. Your Committee further finds that requiring solar contract disclosures about system prices can provide customers with critical information to avoid misleading or inaccurate sales representations. By seeking to strengthen consumer protections, ensure regulatory parity, and preserve legitimate sales activity, this measure supports the State's commitment to transition to renewable energy.
Your
Committee acknowledges the
concerns raised in testimony by the Department of
Commerce and Consumer Affairs regarding the ambiguity of the requirements
for the Department's development of a standardized cover page for purchase,
lease, and power purchase agreements for residential solar energy devices. Your Committee also notes that providing
greater specificity, including a starting date for publication of the cover
page template, and allowing flexibility, including by authorizing outside
consultations, will support the Department's commitment to protecting local
consumers. Therefore, amendments to this
measure are necessary to address this concern.
Accordingly, your
Committee has amended this measure by:
(1) Clarifying that the Department of Commerce and Consumer Affairs shall publish and make available free of charge the template for the mandatory cover page for certain transactions involving residential solar energy devices by January 1, 2027;
(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 Energy and Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1644, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1644, H.D. 2, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Judiciary.
Respectfully submitted on behalf of the members of the Committee on Energy and Intergovernmental Affairs,
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________________________________ GLENN WAKAI, Chair |
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