HB 2211: HTDC; Small Businesses; Artificial Intelligence; Advanced Digital Tools; Technology Enablement; Report; Appropriation

A BILL FOR AN ACT

relating to technology enablement.

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

     SECTION 1.  The legislature finds that the tourism sector, a pillar of the State's economy, is highly seasonal and increasingly exposed to global economic volatility, natural disasters, public health emergencies, and rapid technological disruption.  These dynamics create uneven revenue streams and heighten operating risks for small businesses, many of which operate on thin margins and lack the internal capacity to continuously adapt to changing market conditions.

     The legislature further finds that the accelerated adoption of advanced digital tools, including artificial intelligence, data analytics, automation, and digital marketing technologies, is reshaping how tourism-related businesses manage operations, reach customers, price services, forecast demand, and respond to disruptions.  Artificial intelligence-enabled tools are increasingly used across the visitor industry to optimize bookings, personalize visitor experiences, manage labor and inventory, detect fraud, automate customer service, and improve decision-making in real time.  Small businesses that lack access to these tools risk falling behind competitors within and outside the State.

     The legislature additionally finds that for Hawaii-based small businesses, particularly those in the tourism sector, access to artificial intelligence-enabled and digital technologies is critical to overcoming geographic isolation, workforce constraints, and rising operating costs.  Strategic technology enablement can improve productivity, reduce administrative burdens, expand market reach, support remote and hybrid business models, and enhance resilience during economic or environmental shocks.  Failure to proactively support technology and artificial intelligence adoption will exacerbate existing vulnerabilities, limit competitiveness, and constrain long-term economic growth.

     The legislature also finds that the Hawaii technology development corporation was established to foster innovation, economic diversification, and technology adoption statewide.  With decades of experience administering state-funded programs, the Hawaii technology development corporation has demonstrated expertise in managing competitive grants, supporting small businesses and startups, facilitating public-private partnerships, and deploying advanced technologies across multiple industries.  This experience positions the corporation to effectively support responsible, practical, and outcome-driven adoption of artificial intelligence and related technologies tailored to Hawaii's unique economic and workforce needs.

     Accordingly, the purpose of this Act is to promote economic development and strengthen the resilience and competitiveness of Hawaii's tourism sector by appropriating funds to the Hawaii technology development corporation to assist small businesses, including those related to the tourism sector, with technology enablement, including the adoption of artificial intelligence and advanced digital tools.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $300,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii technology development corporation to assist small businesses, including those related to the tourism sector, with technology enablement, including the adoption of artificial intelligence and advanced digital tools.

     The sum appropriated shall be expended by the Hawaii technology development corporation for the purposes of this Act.

     SECTION 3.  (a)  The Hawaii technology development corporation may collaborate with other state or county agencies as necessary for the implementation of any projects using the funds appropriated pursuant to this Act.

     (b)  The Hawaii technology development corporation shall submit a report to the legislature on the status of assisting small businesses, including those related to the tourism sector, with technology enablement using the funds appropriated pursuant to this Act no later than twenty days prior to the convening of the regular session of 2027.

     SECTION 4.  This Act shall take effect on July 1, 2026.

Report Title:

HTDC; Small Businesses; Artificial Intelligence; Advanced Digital Tools; Technology Enablement; Report; Appropriation

Description:

Appropriates funds to the Hawaii Technology Development Corporation to assist small businesses, including those related to the tourism sector, with technology enablement, including the adoption of artificial intelligence and advanced digital tools.  Requires the Hawaii Technology Development Corporation to submit a report to the Legislature.

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