STAND. COM. REP. NO. 2174

Honolulu, Hawaii

RE: S.B. No. 2032

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 S.B. No. 2032 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 any person or entity selling a residential solar energy device to comply with consumer protection laws;

(2) Prohibit the sale of a residential solar energy device without a contractor's license or contractual affiliation with a licensed contractor; and

(3) Require a standardized disclosure form to be developed by the Department of Commerce and Consumer Affairs for use in all residential solar proposals and contracts.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs; Hawaii Green Infrastructure Authority; Hawaii Solar Energy Association; Inter-Island Solar Supply and Solaray Corporation; Kauaʻi Island Utility Cooperative; Sunrun; Photonworks Engineering; Holo Hou Energy; LegaSea Energy; Green Power Projects LLC; Alternate Energy, Inc.; and six individuals.

Your Committee received comments on this measure from the Contractors License Board, Carbon Cashback Hawaii, and one individual.

Your Committee finds that there have been recorded reports of deceptive sales practices regarding the sale of residential solar energy devices. As the solar market and installation of solar systems is a complex process, third-party sales, marketing, lead-generation, and financing driven entities increasingly participate in customer acquisition, which can lead to a gap in consumer protection regulation. Your Committee further finds that common-sense measures can be taken to ensure ethical sales and disclosure standards. Therefore, this measure will support legal solar sales practices by enhancing consumer protection laws and increasing enforcement mechanisms.

Your Committee acknowledges the concerns raised in testimony by the Department of Commerce and Consumer Affairs that mandating the disclosure of the cash price and the financed price for solar contracts may enhance the consumer protection goals of this measure. Your Committee also acknowledges the comments raised in testimony by Carbon Cashback Hawaii that the disclosure requirements for solar energy devices in this measure would also apply to inexpensive plug-in solar devices. Your Committee believes that, given their small scale and low cost, these devices do not require the same level of consumer protection as large systems. Therefore, amendments are necessary to address these concerns.

Accordingly, your Committee has amended this measure by:

(1) Requiring the disclosure form required for the sale of a residential solar energy device to include both the total system cash price and financing price;

(2) Exempting small portable solar generation devices from the disclosure requirements for solar energy devices; and

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

Your Committee acknowledges the testimony of the Contract License Board expressing concerns regarding the ambiguity of the term "contractual affiliation". Your Committee finds that this issue raises concerns that merit further consideration and requests further examination by your Committee on Commerce and Consumer Protection.

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 S.B. No. 2032, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2032, S.D. 1, and be referred to your Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committee on Energy and Intergovernmental Affairs,

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GLENN WAKAI, Chair