RELATING TO NONPROFITS.

Plain English Breakdown

The official source material does not provide details on the specific actions or requirements of the Attorney General beyond initiating an investigation.

Rules for Investigating Nonprofits

This bill allows the Hawaii Attorney General to investigate nonprofits to ensure they comply with state laws and federal tax rules.

What This Bill Does

• Gives the Attorney General permission to look into nonprofit groups on their own or when asked by the Department of Taxation.

Who It Names or Affects

• Nonprofit corporations in Hawaii
• The Attorney General of Hawaii

Terms To Know

Attorney General

A government official who is the chief lawyer for a state and can make legal decisions.

Tax-exempt status

When an organization does not have to pay certain taxes, usually because it serves a public purpose like charity or education.

Limits and Unknowns

• The bill does not specify the consequences for nonprofits that do not follow the rules.
• It is unclear how often investigations will be conducted and under what circumstances they will occur.

Official Summary Text

RELATING TO NONPROFITS.
Nonprofit Corporations; Attorney General; Investigation
Authorizes the Department of the Attorney General to initiate an investigation into a nonprofit corporation for compliance with the Hawaii Nonprofit Corporations Act and its tax exempt status under the Internal Revenue Code.

Current Bill Text

HB1637

HOUSE OF REPRESENTATIVES

H.B. NO.

1637

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to nonprofits
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION
1.
�
Chapter 414D, Hawaii Revised
Statutes, is amended by adding a new section to be appropriately designated and
to read as follows:

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"
�414D-
�
Attorney general; authority to
investigate.
�
The attorney general may, on its own
initiative or at the request of the department of taxation, investigate a
corporation to ensure the corporation is in compliance with the provisions of
this chapter and those of section 501(c) of the Internal Revenue Code of 1986,
as amended.
"

����
SECTION
2.
�
New statutory material is
underscored.

����
SECTION 3.
�
This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Nonprofit
Corporations; Attorney General; Investigation

Description:

Authorizes
the Department of the Attorney General to initiate an investigation into a
nonprofit corporation for compliance with the Hawaii Nonprofit Corporations Act
and its tax exempt status under the Internal Revenue Code.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.