SB 981: RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2025-02-07
Current Status:
Failed
(2025-12-08: Carried over to 2026 Regular Session.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Requires the Research and Economic Analysis Division of the Department of Business, Economic Development, and Tourism to study the impacts of the incremental minimum wage increases pursuant to Act 114, Session Laws of Hawaii 2022, on businesses and other employers. Requires a report to the Legislature. Appropriates funds. Effective 7/1/2050. (SD1)
Requires the Research and Economic Analysis Division of the Department of Business, Economic Development, and Tourism to study the impacts of the Act 114, Session Laws of Hawaii 2022, minimum wage increases on businesses and other employers. Requires a report to the Legislature. Appropriates moneys.
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THE SENATE |
S.B. NO. |
981 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 1 |
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STATE OF HAWAII |
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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:
(1) The number of businesses or other employers in the State that:
(A) Are subject to section 387-2, Hawaii Revised Statutes, and have been impacted by the minimum wage increases implemented pursuant to Act 114, Session Laws of Hawaii 2022; and
(B) The number of businesses or other employers that closed or shut down due to increased labor costs, including an analysis of other factors that contributed to business closures; and
(2) Comparative research of other states that have set a higher minimum wage rate than Hawaii, including impacts on businesses and other employers in those states.
(b) The division shall 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 2026.
SECTION 2. 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 for the purposes of this Act.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 3. This Act shall take effect on July 1, 2050.
Report Title:
DBEDT; Study; Minimum Wage; Increases; Impact on Businesses and Other Employers; Report; Appropriation
Description:
Requires the Research and Economic Analysis Division of the Department of Business, Economic Development, and Tourism to study the impacts of the incremental minimum wage increases pursuant to Act 114, Session Laws of Hawaii 2022, on businesses and other employers. Requires a report to the Legislature. Appropriates funds. Effective 7/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
981 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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|
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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:
(1) The number of businesses or other employers in the State that:
(A) Are subject to section 387-2, Hawaii Revised Statutes, and have been impacted by the minimum wage increases implemented pursuant to Act 114, Session Laws of Hawaii 2022; and
(B) The number of businesses or other employers that closed or shut down due to increased labor costs, including an analysis of other factors that contributed to business closures; and
(2) Comparative research of other states that have set a higher minimum wage rate than Hawaii, including impacts on businesses and other employers in those states.
(b) The division shall 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 2026.
SECTION 2. 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 for the purposes of this Act.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 3. This Act shall take effect on July 1, 2025.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
DBEDT; Minimum Wage; Increases; Impact on Businesses; Employers; Appropriation
Description:
Requires the Research and Economic Analysis Division of the Department of Business, Economic Development, and Tourism to study the impacts of the Act 114, Session Laws of Hawaii 2022, minimum wage increases on businesses and other employers. Requires a report to the Legislature. Appropriates moneys.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Feb 10, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. |
| Feb 10, 2025 | Reported from EDT (Stand. Com. Rep. No. 124) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. |
| Jan 30, 2025 | The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EDT were as follows: 3 Aye(s): Senator(s) DeCoite, Wakai, Kim; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Fukunaga, Awa. |
| Jan 27, 2025 | The committee(s) on EDT has scheduled a public hearing on 01-30-25 1:00PM; Conference Room 229 & Videoconference. |
| Jan 23, 2025 | Referred to EDT, WAM. |
| Jan 21, 2025 | Passed First Reading. |
| Jan 17, 2025 | Introduced. |
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Date
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Description
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Location
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Votes
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| Jan 30, 2025 | The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Economic Development and Tourism |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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| Hawaii Food Industry Association | ** Support |
STAND. COM. REP. NO. 124
Honolulu, Hawaii
RE: S.B. No. 981
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Economic Development and Tourism, to which was referred S.B. No. 981 entitled:
"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Require the Research and Economic Analysis Division of the Department of Business, Economic Development, and Tourism to study the impacts of the minimum wage increases pursuant to Act 114, Session Laws of Hawaii 2022, on businesses and other employers and submit a report to the Legislature; and
(2) Appropriate funds.
Your Committee received testimony in support of this measure from the Hawaii Food Industry Association.
Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism.
Your Committee finds that Act 114, Session Laws of Hawaii 2022 (Act 114) established an incremental increase of the State's minimum wage by $2.00 every two years, raising the minimum wage from $10.00 per hour to $18.00 per hour beginning January 1, 2028. The current minimum wage is $14.00 per hour. Your Committee further finds that any minimum wage increase can cause nebulous effects throughout the economy, potentially obscuring the direct and most prevalent realities that an increase could have on Hawaii's economy. This measure will allow the Legislature to evaluate the effects that the minimum wage increase has had on businesses and employers and take action if necessary.
Your Committee has amended this measure by:
(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
Your Committee notes that this measure, as amended, contains an unspecified appropriation amount. Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it considers inserting an appropriation amount of $200,000 for the study and report.
As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 981, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 981, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,
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________________________________ LYNN DECOITE, Chair |
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Date
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Testimony PDF
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| Jan 30, 2025 | SB981_TESTIMONY_EDT_01-30-25_.PDF |
Discussed in Hearing
5MIN
Senate Standing Committee on Economic Development and Tourism
Bill Author
Bill Co-Author(s):
