STAND. COM. REP. NO. 1327-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2436

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 Economic Development & Technology, to which was referred S.B. No. 2436, S.D. 2, 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 organizations; and

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

Your Committee received testimony in support of this measure from the Hawaiʻi Alliance of Nonprofit Organizations; Aloha United Way; Goodwill Hawaii; National Kidney Foundation of Hawaii; and one individual.

Your Committee finds that individuals who donate tangible property using collection bins or receptacles may reasonably believe that the tangible property is donated directly to charitable organizations. Your Committee further finds that in many cases, entities operating collection bins or receptacles on behalf of the charity will pay the charity based on the weight of the donated items received and then re-sell the donated property at for-profit retail locations. Your Committee recognizes that many donors are not aware of these arrangements and this measure establishes prompt payment and financial reporting requirements for these entities and mandates certain disclosures to donors.

Your Committee has amended this measure by:

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

(2) 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 Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2436, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2436, 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 Economic Development & Technology,

____________________________

GREGGOR ILAGAN, Chair