Hawaii 2024 Regular Session

Hawaii House Bill HB604

Introduced
1/23/23  
Refer
1/27/23  
Introduced
1/23/23  

Caption

Relating To Hotel Workers.

Impact

Under the provisions of this Act, the Department of Business, Economic Development, and Tourism is tasked with creating a program that provides matching grant funds to hotel employees seeking to buy their hotel or establish cooperatives. This funding would require a dollar-for-dollar match from the employees or the employee-owned entity, ensuring that the initiative promotes investment from those directly involved in the hotels' operations. The program is framed to not only support workforce stability but also enhance economic participation by providing employees with ownership stakes in their workplaces.

Summary

House Bill 604, introduced in the Hawaii State Legislature, focuses on providing a pathway for hotel workers to become owners of their businesses through the establishment of employee-owned cooperatives. The bill recognizes the significant role of the accommodation and food services sector in Hawaii's economy, which employed over 113,000 individuals as of 2020. It aims to prevent unemployment among hotel staff particularly in instances of hotel bankruptcies by empowering employees to purchase and operate the hotels they work for.

Contention

The bill is notable for its potential to shift the economic dynamics within Hawaii's hospitality industry, particularly in mitigating the influence of multinational corporations on local employment. While the concept of employee ownership may be lauded for promoting job security and community ties, concerns about the feasibility and operational effectiveness of such cooperatives could arise. Critics may question the ability of workers, often lacking business management experience, to successfully run large hospitality operations. Therefore, as the bill moves forward, discussions will likely involve a balance between regulatory support and the encouragement of robust cooperative management practices.

Companion Bills

HI HB604

Carry Over Relating To Hotel Workers.

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