STAND. COM. REP. NO. 2228

Honolulu, Hawaii

RE: S.B. No. 2436

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 Commerce and Consumer Protection, to which was referred S.B. No. 2436 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to regulate professional solicitors that operate collection bins or receptacles to solicit donations then process or re-sell the donated tangible property in for-profit retail or thrift stores.

Your Committee received testimony in support of this measure from Goodwill Hawaii, YWCA Oʻahu, Hawaiʻi Alliance of Nonprofit Organizations, National Kidney Foundation of Hawaii, and one individual.

Your Committee received comments on this measure from the Department of the Attorney General.

Your Committee finds that some entities in the State operate collection bins or receptacles on behalf of charities, pay the charity based on the weight of the donated items received, then re-sell the donated property at for-profit retail locations. This arrangement between the collection bin operator and associated charitable organizations can be confusing for donors, as sometimes, only a small fraction of the proceeds are provided to the charity advertised to donors on the bin. This measure would make this charitable solicitation business model more equitable for charities and increase transparency and public trust.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(2) 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 Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2436, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2436, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

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JARRETT KEOHOKALOLE, Chair