STAND. COM. REP. NO. 627

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1233

       S.D. 2

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 1233, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE SOLICITATION OF FUNDS FROM THE PUBLIC,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to amend the current law governing the solicitation of funds from the public to:

 

     (1)  Allow service of process by substitute service;

 

     (2)  Allow the Attorney General to accept assurances of discontinuance and to issue cease and desist orders for violations of the law;

 

     (3)  Clarify charity registration exemptions; and

 

     (4)  Clarify the time period for the filing of a charity's annual financial report.

 

     Your Committee received testimony in support of this measure from Robert Witt, Executive Director, Hawaii Association of Independent Schools; The Nature Conservancy of Hawaii; and Holly J. Huber.  Your Committee received comments on this measure from the Department of the Attorney General.

 

     Your Committee finds that there are over 1,670 charitable organizations that solicit funds from Hawaii donors currently registered with the Department of the Attorney General.  Your Committee also finds that only thirty-five per cent of these registered charities are domiciled in the State.  Your Committee further finds that the provisions of this measure will assist the Department of the Attorney General with its oversight of charitable organizations soliciting funds and benefit both the people of this State and the charities themselves.

 

     Your Committee has amended this measure by:

 

     (1)  Changing the amounts of certain charitable organizations filing fees to unspecified amounts;

 

     (2)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

 

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

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1233, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1233, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DAVID Y. IGE, Chair