Bill Text: HI HB1006 | 2012 | Regular Session | Amended

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Bill Title: Charitable Organizations; Solicitation of Funds from the Public

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [HB1006 Detail]

Download: Hawaii-2012-HB1006-Amended.html

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STAND. COM. REP. NO.  395

 

Honolulu, Hawaii

                , 2011

 

RE:   H.B. No. 1006

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred H.B. No. 1006 entitled:

 

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

 

beg leave to report as follows:

 

     The purpose of this bill is to amend Hawaii's charitable solicitation law by, among other things:

 

     (1)  Establishing the Department of the Attorney General (AG) as the default agent for service of process in investigations and other proceedings, when the organization does not have a registered agent with the Department of Commerce and Consumer Affairs (DCCA);

 

     (2)  Allowing the AG to issue a cease and desist order to any charitable organization found to be soliciting contributions in violation of the law;

 

     (3)  Clarifying requirements for the filing of annual financial reports and fiscal records and fees; and

 

     (4)  Exempting certain charitable educational institutions from the registration and financial disclosure requirements.

 

     DCCA, Hawaii Association of Independent Schools, and The Nature Conservancy of Hawaii testified in support of this bill.  The AG supported this measure with amendments.

 

     Your Committees have amended this bill by:

 

     (1)  Clarifying that charitable organization financial reports are based on the total amount of gross revenues, rather than income and receipts;

 

     (2)  Decreasing the amounts of filing fees, based on gross revenues, as follows:

 

          (A)  $300 to $250, for gross revenues between $1,000,000 and less than $2,000,000;

 

          (B)  $500 to $350, for gross revenues between $2,000,000 and less than $5,000,000; and

 

          (C)  $750 to $600, for gross revenues $5,000,000 or more;

 

     (3)  Adding the National Association for the Education of Young Children to the list of organizations that license or accredit educational institutions that are exempt from the registration and financial disclosure requirements; and

 

     (4)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

 

     As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1006, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1006, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

 

 

____________________________ GILBERT KEITH-AGARAN, Chair		____________________________ ROBERT N. HERKES, Chair