REQUESTING THE DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS TO EVALUATE REGISTRATION, REPORTING, AND TRANSPARENCY MECHANISMS FOR TRUSTS FORMED UNDER CHAPTER 554G, HAWAII REVISED STATUTES, AND OTHER LARGE PRIVATE TRUSTS.

SCR193

THE SENATE

S.C.R. NO.

193

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

SENATE CONCURRENT

RESOLUTION

REQUESTING THE DEPARTMENT OF COMMERCE AND CONSUMER
AFFAIRS TO EVALUATE REGISTRATION, REPORTING, AND TRANSPARENCY MECHANISMS FOR TRUSTS
FORMED UNDER CHAPTER 554G, HAWAII REVISED STATUTES, AND OTHER LARGE PRIVATE
TRUSTS
.

����
WHEREAS, Chapter
554G, Hawaii Revised Statutes (Chapter 554G), authorizes permitted transfers in
trust, including self-settled asset protection trusts that allow a settlor to
transfer assets into trust while retaining certain beneficial interests; and

����
WHEREAS, trusts
formed under Chapter 554G may hold significant assets and are designed, in
part, to provide creditor protection, wealth preservation, and estate-planning
advantages; and

����
WHEREAS, the
Department of Taxation has confirmed that trusts formed pursuant to Chapter
554G are not currently tracked or classified in a manner that permits aggregate
reporting regarding their number, assets, or income-reporting status; and

����
WHEREAS, the
absence of a tracking or reporting mechanism limits the State's ability to
evaluate the scale, fiscal implications, and broader economic impact of these
trust structures; and

����
WHEREAS,
legislation introduced during the Regular Session of 2026, including House Bill
No. 2368, reflects legislative concerns regarding large private trusts,
perpetual or long-duration trusts, and the need for transparency mechanisms
sufficient to inform sound public policy; and

����
WHEREAS, this
body has a responsibility to ensure that statutory frameworks authorizing
sophisticated trust structures are accompanied by appropriate oversight,
reporting, and accountability mechanisms consistent with revenue integrity and
the public interest; and

����
WHEREAS, the
Department of Commerce and Consumer Affairs administers registration,
licensing, and regulatory oversight for certain fiduciaries, financial
entities, and business actors operating in the State; now, therefore,

����
BE IT
RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii,
Regular Session of 2026, the House of Representatives concurring, that the
Department of Commerce and Consumer Affairs is requested to:

����
(1)
�
Identify any existing registration, licensing,
reporting, or regulatory requirements applicable to trusts formed under Chapter
554G, including requirements applicable to trustees, trust companies, or other
fiduciaries administering such trusts;

����
(2)
�
Evaluate whether existing law provides
sufficient authority to require registration or periodic reporting of large
private trusts formed under Chapter 554G, including reporting of aggregate
asset ranges or threshold-based disclosures that would not reveal confidential
beneficiary information but would provide policymakers with insight into scale;

����
(3)
�
Assess whether statutory amendments would be
required to establish a reporting framework for large private trusts exceeding
specified asset thresholds, including potential annual registration or
reporting obligations; and

����
(4)
�
Provide recommendations regarding the
feasibility of implementing transparency mechanisms for large or long-duration
private trusts consistent with the public-policy objectives reflected in House
Bill No. 2368 (Regular Session of 2026); and

����
BE IT FURTHER
RESOLVED that the Department of Commerce and Consumer Affairs is requested to submit
a report of its findings and recommendations, including any proposed
legislation, to the Legislature no later than twenty days prior to the
convening of the Regular Session of 2027; and

����
BE IT FURTHER
RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the
Director of Commerce and Consumer Affairs.

OFFERED BY:

_____________________________

Report Title:
�

Trusts;
Chapter 554G, Hawaii Revised Statutes; Department of Commerce and Consumer
Affairs