STAND. COM. REP. NO. 1378-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2032

S.D. 2

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 Energy & Environmental Protection, to which was referred S.B. No. 2032, S.D. 2, 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 any person or entity marketing or contracting for a residential solar energy device to provide a standardized disclosure form to the consumer;

(2) Require the Department of Commerce and Consumer Affairs to design, publish, and update a template of the disclosure form;

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

(4) Prohibit a person or entity that does not hold an active contractor's license from representing that the person or entity is authorized to install a residential solar energy device, contracting for the installation of a residential solar device, or engaging in certain marketing activities for a residential solar energy device.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs; Hawaiʻi Green Infrastructure Authority; Kauaʻi Island Utility Cooperative; Hawaiian Electric; Hawaii Solar Energy Association; Energy Advisors; Alternate Energy Inc; PV Tech; Independent Energy; Solartech Hawaii LLC; Sol-Ark; EP Cube; Sunspear Energy; LegaSea Energy; and seven individuals. Your Committee received comments on this measure from the Hawaii Credit Union League.

Your Committee finds that deceptive or misleading solar sales practices undermine consumer confidence, impose hardship on homeowners, and impede the State's clean energy goals. Your Committee further finds that the Hawaiʻi Green Infrastructure Authority has received a number of consumer reports of imposter door-to-door salespeople claiming to represent the Authority and offering the sale of solar energy systems. This measure seeks to deter such practices by establishing certain requirements and mandating disclosures for persons or entities selling residential solar energy systems.

Your Committee has amended this measure by:

(1) Deleting its contents and inserting the contents of H.B. No. 1644, H.D. 2 (Regular Session of 2026), previously passed by the House, which:

(A) Requires purchase, lease, and power purchase agreements for residential solar energy devices to include a cover page with certain required disclosures;

(B) Requires 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;

(C) Prohibits 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;

(D) Allows for rescission or cancellation of the agreement without penalty or obligation with a certain time period; and

(E) Specifies that agreements in violation of the law are voidable by the purchaser, lessee, or host customer;

(2) Changing the effective date to July 1, 3000, to encourage further discussion; and

(3) 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 Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2032, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2032, S.D. 2, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

NICOLE E. LOWEN, Chair