STAND. COM. REP. NO. 296-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1810

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred H.B. No. 1810 entitled:

"A BILL FOR AN ACT RELATING TO CHARITABLE SOLICITATION,"

begs leave to report as follows:

The purpose 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 organization; and

(2) Prohibit professional solicitors that sell donated or collected non-perishable tangible property from failing to comply with prompt payment, financial reporting, and contract term requirements or prominently disclose certain information on any collection bin, container, or receptacle used to receive donated property.

Your Committee received testimony in support of this measure from the Hawaiʻi Alliance of Nonprofit Organizations; Goodwill Hawaii; Big Brothers Big Sisters Hawaii, Inc.; Aloha United Way; National Kidney Foundation; and one individual. Your Committee received comments on this measure from the Department of the Attorney General.

Your Committee finds that individuals who donate tangible property using collection bins may believe that the property is donated directly to charitable organizations and that their donations may entitle them to federal income tax deductions. Your Committee further finds that some entities operating collection bins on behalf of charitable organizations will pay the organizations based on the weight of the donated items received and then resell the donated items at for-profit retail locations, leaving only a small fraction of the proceeds advertised to donors on the collection bins. This measure ensures that funds from the donation of tangible property are provided to charitable organizations in a timely manner and increases transparency requirements for professional solicitors to ensure donors have clear and accurate information regarding the charitable missions they support.

Your Committee has amended this measure by:

(1) Requiring professional solicitors to visibly display a sign that states the percentage of non-perishable tangible property that is donated to charitable organizations;

(2) Requiring the amended definitions for "contribution" and "solicitation", as well as certain deposit and reporting requirements to take effect January 1, 2027;

(3) Changing its effective date to July 1, 3000, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

Your Committee respectfully requests your Committee on Consumer Protection & Commerce, should it deliberate on this measure, to consider adding an appropriation to provide additional staffing and resources to the Department of the Attorney General to address the anticipated increase in reporting review and enforcement workload as a result of this measure.

As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1810, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1810, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

____________________________

GREGGOR ILAGAN, Chair