| 47 | | - | SECTION 1. The legislature finds that while new business formations have grown by thirty-seven per cent in Hawaii since the beginning of 2020, this rate is well below the national average and among the bottom ten nationally. In the latest comprehensive entrepreneurial study from the Kauffman Foundation, the early survival rate for startups in Hawaii is the lowest in the country. Self-employment in Hawaii has consistently been lower than in the United States as a whole, and in 2020, Hawaii ranked fortieth for the percentage of self-employed. The legislature further finds that tax rates are a factor in business investment decisions and often affect the movement of individuals. Recent reports show both companies and individuals are more likely to move to a location with lower taxes. Hawaii currently ranks the sixth highest for state and local taxes per capita and was ranked forty-second for business climate by the Tax Foundation. The purpose of this Act is to establish a task force to identify methods to improve Hawaii's general economic competitiveness and business climate, including by mitigating regulatory and tax burdens. SECTION 2. (a) There is established a business revitalization task force within the department of business, economic development, and tourism for administrative purposes. (b) The task force shall consist of the following members: (1) The director of business, economic development, and tourism or the director's designee, who shall serve as chair of the task force; (2) The director of commerce and consumer affairs or the director's designee; (3) The director of taxation or the director's designee; (4) The director of labor and industrial relations or the director's designee; (5) A member of the small business regulatory review board, to be appointed by the chair of the board; (6) The dean of the university of Hawaii at Manoa Shidler college of business or the dean's designee; and (7) The director of each county agency with jurisdiction over economic development or each respective director's designee. (c) The chair of the house of representatives standing committee with primary jurisdiction over economic development and the chair of the senate standing committee with primary jurisdiction over economic development shall each invite the following persons to join the task force: (1) One representative of the construction industry; (2) One representative of the agriculture industry; (3) One representative of the visitor industry; (4) One representative of the food industry; (5) One representative of the retail industry; (6) One representative of the high technology industry; and (7) One representative of the regional and ethnic chambers of commerce. (d) The task force shall: (1) Identify methods to improve Hawaii's general economic competitiveness and business climate, including by mitigating regulatory and tax burdens; and (2) Develop and recommend legislation to increase Hawaii's general economic competitiveness. (e) The task force shall meet no less than quarterly. (f) The task force shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than forty days prior to the convening of the regular session of 2026. (g) The task force shall be dissolved on June 30, 2026. SECTION 3. This Act shall take effect on July 1, 3000. |
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| 47 | + | SECTION 1. The legislature finds that while new business formations have grown by thirty-seven per cent in Hawaii since the beginning of 2020, this rate is well below the national average and among the bottom ten nationally. In the latest comprehensive entrepreneurial study from the Kauffman Foundation, the early survival rate for startups in Hawaii is the lowest in the country. Self-employment in Hawaii has consistently been lower than in the United States as a whole, and in 2020, Hawaii ranked fortieth for the percentage of self-employed. The legislature further finds that tax rates are a factor in business investment decisions and often affect the movement of individuals. Recent reports show both companies and individuals are more likely to move to a location with lower taxes. Hawaii currently ranks the sixth highest for state and local taxes per capita and was ranked forty-second for business climate by the Tax Foundation. The purpose of this Act is to establish a task force to identify methods to improve Hawaii's general economic competitiveness and business climate, including by mitigating regulatory and tax burdens. SECTION 2. (a) There is established a business revitalization task force within the department of business, economic development, and tourism for administrative purposes. (b) The task force shall consist of the following members or their designees: (1) The director of commerce and consumer affairs; (2) The director of business, economic development, and tourism; (3) The chair of the house of representatives standing committee with primary jurisdiction over economic development; (4) The chair of the senate standing committee with primary jurisdiction over economic development; (5) Two members of the local business community, to be appointed by the speaker of the house of representatives; and (6) Two members of the local business community, to be appointed by the president of the senate. (c) The task force shall: (1) Identify methods to improve Hawaii's general economic competitiveness and business climate, including by mitigating regulatory and tax burdens; and (2) Develop and recommend legislation to increase Hawaii's general economic competitiveness. (d) The task force 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. (e) The task force shall be dissolved on June 30, 2026. SECTION 3. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________ |
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