Hawaii Senate Bill SR121

Hawaii 2023 Regular Session

• Introduced: 3/10/23
• Refer: 3/15/23

Caption

Recognizing The Importance Of The Fourth Sector Of The Economy As Complement To The Three Traditional Sectors, And The Growth And Development Of For-benefit Organizations In Promoting Sustainable And Equitable Economic Development.

Impact

The resolution calls for the establishment of a Fourth Sector Working Group to advance the development of for-benefit enterprises. This group will work to identify opportunities and challenges, formulate policies, and create a supportive ecosystem for businesses dedicated to social purposes. The implementation of SR121 could bolster economic resilience in Hawaii by promoting locally-owned initiatives and addressing systemic economic issues brought to light by recent global events.

Summary

Senate Resolution 121 (SR121) recognizes the importance of the fourth sector of the economy in Hawaii as a complement to the three traditional sectors: primary, secondary, and tertiary. It aims to facilitate the growth and development of for-benefit organizations which focus on achieving social and environmental objectives while generating revenue. The resolution acknowledges the impacts of the COVID-19 pandemic in highlighting structural flaws in Hawaii's economy, advocating for a transition towards a more resilient, inclusive, and sustainable economic model.

Contention

There may be discussions surrounding the definition and classification of for-benefit organizations, along with the potential regulatory frameworks that could govern them. As for-benefit enterprises come in various forms such as social enterprises, cooperatives, and public benefit corporations, there may be points of contention regarding how best to support varied models while ensuring accountability and transparency in their operations. Ultimately, the effectiveness of the proposed Fourth Sector Working Group will depend on its ability to create actionable strategies that align diverse stakeholder interests.