HB 1407: RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.

A BILL FOR AN ACT

RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.

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

     SECTION 1.  The legislature finds that there is a need to bolster business innovation and economic development in the State by partnering with the private sector.  The legislature also finds that the chambers of commerce in Hawaii, with their vast membership of small businesses, are in an excellent position to develop and cultivate greater entrepreneurship and serve a public purpose of bolstering the local economy and workforce and helping businesses and the workforce prepare for and transition to shifts in markets, take advantage of new opportunities, and ultimately support thriving commerce throughout the State.

     The purpose of this Act is to require the department of business, economic development, and tourism to establish a chamber of commerce competitive grant program for entrepreneurs.

     SECTION 2.  Chapter 201, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§201-     Chambers of commerce; competitive grant program.  (a)  The department shall establish and administer a chamber of commerce competitive grant program to provide funding to qualifying chambers of commerce.

     (b)  The qualifying standards and conditions related to the receipt of funds under chapter 42F shall not apply to funds received by qualifying chambers of commerce who are awarded grants under the chamber of commerce competitive grant program.

     (c)  Requests for grants shall be submitted to the department in accordance with administrative rules adopted by the department to administer the grant program.  Each request shall, at a minimum, include:

     (1)  The name of the chamber of commerce requesting grant funds; and

     (2)  Measurable outcomes from the use of the grant to include entrepreneur mentoring, workshops conducted, new businesses created, and specific skills developed.

     (d)  Each applicant for a grant shall provide proof to the department that the applicant:

     (1)  Serves at least three hundred businesses;

     (2)  Has raised at least one-fifth of the grant amount requested, to be used for the same purposes as a grant awarded through the chamber of commerce competitive grant program;

     (3)  Complies with all other federal, state, or county statutes, rules, or ordinances necessary to conduct the activities or provide the services for which a grant is awarded;

     (4)  Complies with all applicable federal and state laws prohibiting discrimination against a person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, or disability;

     (5)  Satisfies any other standards that may be required by the source of funding; and

     (6)  Meets all other standards prescribed in rules adopted by the department to implement the grants awarded under this section.

     (e)  Every request for grant funds shall be submitted to the department on an application form provided by the department and shall at a minimum contain the information required by subsections (c) and (d).  The department shall review each request to determine whether the applicant is eligible to receive grants funds and shall make a final decision on each request.  Upon approval of the request, the department shall award an applicant a grant of up to $100,000.  The department shall inform each grant applicant of the disposition of the applicant's request.

     (f)  Each chamber of commerce applicant who, after meeting the requirements of subsection (d), receives grant funds from the department shall provide a $1 match for every $5 of grant funds received and shall use the funds for developing and cultivating entrepreneurs, with a focus on mentoring, workshops, and skill development.  Funds may also be used for critical needs, including additional staffing, technical assistance, essential software, or technology upgrades.  A chamber of commerce who receives grant funds pursuant to this section shall submit to the department an annual report detailing the use of funds.

     (g)  The department shall adopt rules without regard to chapter 91 to administer the grant program, including but not limited to rules to establish an appeals process for any denial of a grant request."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the chamber of commerce competitive grant program.

     The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

Department of Business, Economic Development, and Tourism; Chambers of Commerce; Grant Program; Appropriation

Description:

Requires the Department of Business, Economic Development, and Tourism to establish a Chamber of Commerce Competitive Grant Program.  Appropriates funds.  Effective 7/1/3000.  (HD1)

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

A BILL FOR AN ACT

relating to the department of business, economic development, and tourism.

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

     SECTION 1.  The legislature finds that there is a need to bolster business innovation and economic development in the State by partnering with the private sector.  The legislature also finds that the chambers of commerce in Hawaii, with their vast membership of small businesses, are in an excellent position to develop and cultivate greater entrepreneurship.

     The purpose of this Act is to require the department of business, economic development, and tourism to establish a chamber of commerce grant program for entrepreneurs.

     SECTION 2.  Chapter 201, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§201-     Chambers of commerce; grant program.  (a)  The department shall establish and administer a chamber of commerce grant program to provide funding to qualifying chambers of commerce.

     (b)  Requests for grants shall be submitted to the department in accordance with administrative rules adopted by the department to administer the grant program.  Each request shall, at a minimum, state:

     (1)  The name of the chamber of commerce requesting grant funds; and

     (2)  Measurable outcomes from the use of the grant to include entrepreneur mentoring, workshops conducted, new businesses created, and specific skills developed.

     (c)  Each applicant for a grant shall provide proof to the department that the applicant:

     (1)  Serves at least three hundred businesses;

     (2)  Complies with all other federal, state, or county statutes, rules, or ordinances necessary to conduct the activities or provide the services for which a grant is awarded;

     (3)  Complies with all applicable federal and state laws prohibiting discrimination against a person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, or disability;

     (4)  Satisfies any other standards that may be required by the source of funding; and

     (5)  Meets all other standards prescribed in rules adopted by the department to implement the grants awarded under this section.

     (d)  Every request for grant funds shall be submitted to the department on an application form provided by the department and shall at a minimum contain the information required by subsection (c).  The department shall review each request to determine whether the applicant is eligible to receive grants funds and shall make a final decision on each request.  Upon approval of the request, the department shall award an applicant a grant of up to $100,000.  The department shall inform each grant applicant of the disposition of the applicant's request.  The department shall adopt rules to establish an appeals process for any denial of a request.

     (e)  Each chamber of commerce applicant who, after meeting the requirements of subsection (c), receives grant funds from the department shall use the funds for developing and cultivating entrepreneurs, with a focus on mentoring, workshops and skill development.  Funds shall also be used for critical needs, including additional staffing, technical assistance, essential software, or technology upgrades.  A chamber of commerce who receives grant funds pursuant to this section shall submit to the department an annual report detailing the use of funds.

     (f)  The department shall adopt rules without regard to chapter 91 to administer the grant program."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2025.

Report Title:

Department of Business, Economic Development, and Tourism; Chambers of Commerce; Grant Program

Description:

Requires the Department of Business, Economic Development, and Tourism to establish a Chamber of Commerce Grant Program.

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

STAND. COM. REP. NO.  495

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1407

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Economic Development & Technology, to which was referred H.B. No. 1407 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM,"

begs leave to report as follows:

     The purpose of this measure is to require the Department of Business, Economic Development, and Tourism to establish a Chamber of Commerce Grant Program.

     Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; one member of the Kauaʻi County Council; Hawaii Food Industry Association; NFIB, Hawaii Chapter; Hawaiʻi Island Chamber of Commerce; Chamber of Commerce Hawaii; Hawaiʻi Farm Bureau; Charter Communications; Kapolei Chamber of Commerce; Japanese Chamber of Commerce & Industry of Hawaii; Maui Chamber of Commerce; and five individuals.

     Your Committee finds that there is a need to bolster business innovation and economic development in the State.  Your Committee further finds chambers of commerce, with their vast networks of small businesses, are well positioned to support new entrepreneurs in the State.  Your Committee believes that this measure will help encourage economic development in the State by establishing the Chamber of Commerce Grant Program to provide qualifying chambers of commerce with grants for developing and cultivating entrepreneurs, with a focus on mentoring, workshops, and skill development.

     Your Committee has amended this measure by:

     (1)  Clarifying that the program is a competitive grant program and that certain standards and conditions under chapter 42F, Hawaii Revised Statutes, do not apply to funds received under the program;

     (2)  Requiring applicants to provide proof that they have raised at least one-fifth of the grant amount requested, to be used for the same purposes as a grant awarded through the program and, upon receipt of grant funds, provide a $1 match for every $5 of grant funds received;

     (3)  Adding an appropriation for an unspecified sum;

     (4)  Changing the effective date to July 1, 3000, to encourage further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1407, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1407, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,