Hawaii House Bill HB1303

Hawaii 2022 Regular Session

• Introduced: 1/27/21
• Refer: 2/1/21

Caption

Relating To Cooperatives.

Impact

The proposed legislation introduces significant changes to existing statutes, creating a dedicated section in the Hawaii Revised Statutes for cooperatives. This would clarify operational structures, governance, and member rights, potentially leading to a growth in cooperative entities across the state. The law encourages the organizing of both agricultural and non-agricultural cooperatives, which could diversify and strengthen local economies while providing a pathway for individuals to engage in democratic self-management through these entities.

Summary

House Bill 1303 aims to enhance the legal framework surrounding cooperatives in Hawaii, particularly focusing on the establishment and operation of worker cooperatives. It emphasizes the creation and maintenance of sustainable jobs while promoting wealth generation among worker-members. The bill seeks to provide clear definitions and legal provisions that facilitate the formation of various types of cooperatives, ensuring they can operate democratically and contribute to community and local development.

Contention

Concerns may arise around the implications of shifting governance responsibilities and member liabilities as cooperatives become distinct legal entities under the new law. Debate could focus on balancing the need for member protection against fostering a dynamic cooperative environment. Additionally, the bill's provisions regarding capital contributions, patronage distribution, and the limitations on liability for directors could spark discussions among stakeholders regarding accountability and the financial health of these enterprises.