Hawaii Senate Bill SB498

Hawaii 2022 Regular Session

• Introduced: 1/22/21
• Refer: 1/27/21
• Refer: 2/5/21

Caption

Relating To Cooperatives.

Impact

The introduction of SB498 is expected to have a significant impact on state laws regarding business structures, particularly in acknowledging the unique status of cooperatives. This adjustment will provide a legal foundation for communities to establish cooperatives that can operate independently from traditional for-profit businesses. Advocates for the bill believe that facilitating the formation of cooperatives can lead to increased self-sufficiency in local economies, and contribute to community empowerment.

Summary

SB498, titled 'Relating to Cooperatives', aims to provide a regulatory framework for the establishment and operation of cooperatives within the state. This bill seeks to enhance the role of cooperatives in economic development, particularly in rural areas. By outlining clear guidelines for formation and governance, SB498 is set to facilitate the growth of cooperative businesses, enabling communities to leverage collective resources for local economic sustainability.

Contention

While the bill has gained support from various agricultural and economic development groups, there are notable points of contention. Some legislators express concerns regarding the implications of cooperatives on competition with existing businesses. They fear that the establishment of cooperatives may disrupt the market dynamics by providing subsidized competition, which could negatively affect small private enterprises. The discussions have highlighted the need for careful consideration of how cooperatives are integrated into the current economic landscape.