Hawaii 2025 Regular Session

Hawaii House Bill HB521 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	HOUSE OF REPRESENTATIVES H.B. NO. 521 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT relating to Office of Entrepreneurship. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
2	2
3	3	HOUSE OF REPRESENTATIVES H.B. NO. 521
4	4	THIRTY-THIRD LEGISLATURE, 2025
5	5	STATE OF HAWAII
6	6
7	7	HOUSE OF REPRESENTATIVES
8	8
9	9	H.B. NO.
10	10
11	11	521
12	12
13	13	THIRTY-THIRD LEGISLATURE, 2025
14	14
15	15
16	16
17	17	STATE OF HAWAII
18	18
19	19
20	20
21	21
22	22
23	23
24	24
25	25
26	26
27	27
28	28
29	29
30	30
31	31	A BILL FOR AN ACT
32	32
33	33
34	34
35	35
36	36
37	37	relating to Office of Entrepreneurship.
38	38
39	39
40	40
41	41
42	42
43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
44	44
45	45
46	46
47	47	SECTION 1. The legislature finds that entrepreneurship is vital to the State's economic innovation. Recent data evaluated an uptick in the rate of entrepreneurship. In 2020, 4.1 out of every one thousand adults became entrepreneurs in a given month. However, high fees, complicated requirements, and delayed permitting create barriers to starting a new business in the State. According to a 2019 Bureau of Labor Statistics study, fifty per cent of Hawaii businesses close within the first six years. More than twenty-five per cent of businesses in Hawaii failed in their first year. This is the highest first-year failure rate in the nation. The purpose of this Act is to establish the office of entrepreneurship and create a partnership program with the Hawaii film and creative industries development special fund. SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows: "Chapter Office of entrepreneurship § -A Definitions. For the purpose of this chapter: "Business" means any corporation, partnership, company, cooperative, sole proprietorship, or other legal entity organized or operating for pecuniary or nonpecuniary gain. "Entrepreneur" means a person who initiates and assumes the financial risk of a business. "Office of entrepreneurship" means the office of entrepreneurship created by section -B. "State agency" means an agency, bureau, board, commission, department, division, or any other unit of the executive department of the state government. § -B Office of entrepreneurship; director; general functions, duties, and powers. (a) There is established an office of entrepreneurship that shall be temporarily placed within the office of the governor; provided that on July 1, 2027, the office of entrepreneurship shall be permanently established within the department of business, economic development, and tourism for administrative purposes only. (b) The head of the office of entrepreneurship shall be known as the director of the office of entrepreneurship, hereinafter referred as director. The director shall: (1) Be nominated by the governor and, by and with the advice and consent of the senate, appointed by the governor without regard to chapter 76; (2) Have professional training in the field of business, marketing, community economic development, or other relevant fields, preferably holding an academic degree in one of the fields listed above; (3) Have experience in programs or services related to business, marketing, community economic development, or other relevant fields; (4) Have recent experience in a supervisory, consultative, or administrative position; (5) Be paid a salary set by the governor; (6) Be included in any benefit program generally applicable to the officers and employees of the State; and (7) Report to the director of business, economic development, and tourism and not be required to report directly to any other principal executive department. (c) The director shall be responsible for: (1) Serving as the principal officer in state government responsible for the performance, development, and control of programs, policies, and activities under the jurisdiction of the office; (2) Supervising and directing the performance of the director's subordinates in various activities, including planning, evaluation, and coordination of office programs; (3) Administering funds allocated for the office and applying for, receiving, and disbursing grants and donations from all sources for office programs and services; (4) Assessing the policies and practices of other agencies impacting economic development and conducting advocacy efforts for entrepreneurship; (5) Advising agencies on new legislation, programs, and policy initiatives relating to entrepreneurship; (6) Employing and retaining staff as may be necessary for the purposes of this section; and (7) Contracting for services that may be necessary for the purposes of this section, including through master contracts, memoranda of understanding, and memoranda of agreement with other state agencies receiving federal and state funds for programs and services for entrepreneurship, and purchase of service agreements with appropriate agencies. § -C Responsibilities. (a) The office of entrepreneurship shall: (1) Work to strengthen policies and programs supporting the growth of entrepreneurship in the State, including, without limitation, across demographic segments and geographic areas; (2) Work with stakeholders and organizations supporting entrepreneurship to enhance the learning and skills of, provide technical support to, and expand access to resources for entrepreneurs across the State; (3) Serve as a point of contact to assist businesses that have been in operation for not more than five years in their interactions with state agencies and, where appropriate, refer businesses to other state or local agencies that provide assistance to businesses; and (4) Encourage five per cent of the total number of state contracts to be awarded to businesses that have been in operation for not more than five years and whose principal place of business is in this State; (5) Serve as a liaison to provide resources to help entrepreneurs navigate regulatory requirements; and (6) Advocate entrepreneurs in the legislative and administrative rule-making process. § -D Annual report. (a) At least twenty days prior to the convening of each regular session of the legislature beginning two years after the creation of the office of entrepreneurship, and annually thereafter, the office of entrepreneurship shall submit to the legislature a report that includes, without limitation: (1) The number and total dollar amount of state contracts awarded to businesses that have been in operation for not more than five years, including, without limitation, a breakdown by demographic segments and geographical areas throughout the State; (2) The percentage of the number of state contracts awarded to businesses that have been in operation for not more than five years compared to the total number of contracts awarded; (3) The number of businesses owned by women, minorities, or veterans that have been in operation for not more than five years and have been awarded a state contract; (4) The percentage of the total dollar amount of state contracts awarded to businesses that have been in operation for not more than five years compared to the total dollar amount of contracts awarded; (5) The types of businesses awarded a state contract; (6) Recommendations on improving access to state contracts for businesses that have been in operation for not more than five years, including, without limitation, those businesses in statistically underrepresented demographic segments and geographic areas of Hawaii; (7) Recommendations on improving overall entrepreneurship in this State including, without limitation, identifying regional challenges to entrepreneurship; and (8) Any additional information deemed necessary by the office of entrepreneurship to provide an accurate depiction of the condition of entrepreneurship in Hawaii." SECTION 3. Section 201-113, Hawaii Revised Statutes, is amended to read as follows: "§201-113 Hawaii film and creative industries development special fund. (a) There is established in the state treasury the Hawaii film and creative industries development special fund into which shall be deposited: (1) Appropriations by the legislature; (2) Donations and contributions made by private individuals or organizations for deposit into the fund; (3) Grants provided by governmental agencies or any other source; (4) Effective January 2, 2023, all revenues, fees, and charges from the processing of the motion picture, digital media, and film production income tax credit pursuant to section 235-17; and (5) Effective July 1, 2022, all existing and future revenues, fees, and income received by the department from its management of public facilities that support media and entertainment workforce and business development, with the exception of the Hawaii film studio. (b) The fund shall be used by the department to provide for: (1) A program to provide seed capital for film, media, electronic sports, and creative industries intellectual property development projects for export, as determined by the department; (2) Programs that expand the skills of the Stateʹs resident workforce in the film, media, and creative industries; (3) Marketing programs that attract business opportunities in the film, media, and creative industries in the State; [and] (4) A program in partnership with the office of entrepreneurship; and [(4)] (5) Repair, maintenance, and related costs of the department's management of public facilities that support media and entertainment workforce and business development." SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the purpose of establishing an office the office of entrepreneurship. The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act. SECTION 5. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act. SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 7. This Act shall take effect on July 1, 2025. INTRODUCED BY: _____________________________
48	48
49	49	SECTION 1. The legislature finds that entrepreneurship is vital to the State's economic innovation. Recent data evaluated an uptick in the rate of entrepreneurship. In 2020, 4.1 out of every one thousand adults became entrepreneurs in a given month. However, high fees, complicated requirements, and delayed permitting create barriers to starting a new business in the State.
50	50
51	51	According to a 2019 Bureau of Labor Statistics study, fifty per cent of Hawaii businesses close within the first six years. More than twenty-five per cent of businesses in Hawaii failed in their first year. This is the highest first-year failure rate in the nation.
52	52
53	53	The purpose of this Act is to establish the office of entrepreneurship and create a partnership program with the Hawaii film and creative industries development special fund.
54	54
55	55	SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
56	56
57	57	"Chapter
58	58
59	59	Office of entrepreneurship
60	60
61	61	§ -A Definitions. For the purpose of this chapter:
62	62
63	63	"Business" means any corporation, partnership, company, cooperative, sole proprietorship, or other legal entity organized or operating for pecuniary or nonpecuniary gain.
64	64
65	65	"Entrepreneur" means a person who initiates and assumes the financial risk of a business.
66	66
67	67	"Office of entrepreneurship" means the office of entrepreneurship created by section -B.
68	68
69	69	"State agency" means an agency, bureau, board, commission, department, division, or any other unit of the executive department of the state government.
70	70
71	71	§ -B Office of entrepreneurship; director; general functions, duties, and powers. (a) There is established an office of entrepreneurship that shall be temporarily placed within the office of the governor; provided that on July 1, 2027, the office of entrepreneurship shall be permanently established within the department of business, economic development, and tourism for administrative purposes only.
72	72
73	73	(b) The head of the office of entrepreneurship shall be known as the director of the office of entrepreneurship, hereinafter referred as director. The director shall:
74	74
75	75	(1) Be nominated by the governor and, by and with the advice and consent of the senate, appointed by the governor without regard to chapter 76;
76	76
77	77	(2) Have professional training in the field of business, marketing, community economic development, or other relevant fields, preferably holding an academic degree in one of the fields listed above;
78	78
79	79	(3) Have experience in programs or services related to business, marketing, community economic development, or other relevant fields;
80	80
81	81	(4) Have recent experience in a supervisory, consultative, or administrative position;
82	82
83	83	(5) Be paid a salary set by the governor;
84	84
85	85	(6) Be included in any benefit program generally applicable to the officers and employees of the State; and
86	86
87	87	(7) Report to the director of business, economic development, and tourism and not be required to report directly to any other principal executive department.
88	88
89	89	(c) The director shall be responsible for:
90	90
91	91	(1) Serving as the principal officer in state government responsible for the performance, development, and control of programs, policies, and activities under the jurisdiction of the office;
92	92
93	93	(2) Supervising and directing the performance of the director's subordinates in various activities, including planning, evaluation, and coordination of office programs;
94	94
95	95	(3) Administering funds allocated for the office and applying for, receiving, and disbursing grants and donations from all sources for office programs and services;
96	96
97	97	(4) Assessing the policies and practices of other agencies impacting economic development and conducting advocacy efforts for entrepreneurship;
98	98
99	99	(5) Advising agencies on new legislation, programs, and policy initiatives relating to entrepreneurship;
100	100
101	101	(6) Employing and retaining staff as may be necessary for the purposes of this section; and
102	102
103	103	(7) Contracting for services that may be necessary for the purposes of this section, including through master contracts, memoranda of understanding, and memoranda of agreement with other state agencies receiving federal and state funds for programs and services for entrepreneurship, and purchase of service agreements with appropriate agencies.
104	104
105	105	§ -C Responsibilities. (a) The office of entrepreneurship shall:
106	106
107	107	(1) Work to strengthen policies and programs supporting the growth of entrepreneurship in the State, including, without limitation, across demographic segments and geographic areas;
108	108
109	109	(2) Work with stakeholders and organizations supporting entrepreneurship to enhance the learning and skills of, provide technical support to, and expand access to resources for entrepreneurs across the State;
110	110
111	111	(3) Serve as a point of contact to assist businesses that have been in operation for not more than five years in their interactions with state agencies and, where appropriate, refer businesses to other state or local agencies that provide assistance to businesses; and
112	112
113	113	(4) Encourage five per cent of the total number of state contracts to be awarded to businesses that have been in operation for not more than five years and whose principal place of business is in this State;
114	114
115	115	(5) Serve as a liaison to provide resources to help entrepreneurs navigate regulatory requirements; and
116	116
117	117	(6) Advocate entrepreneurs in the legislative and administrative rule-making process.
118	118
119	119	§ -D Annual report. (a) At least twenty days prior to the convening of each regular session of the legislature beginning two years after the creation of the office of entrepreneurship, and annually thereafter, the office of entrepreneurship shall submit to the legislature a report that includes, without limitation:
120	120
121	121	(1) The number and total dollar amount of state contracts awarded to businesses that have been in operation for not more than five years, including, without limitation, a breakdown by demographic segments and geographical areas throughout the State;
122	122
123	123	(2) The percentage of the number of state contracts awarded to businesses that have been in operation for not more than five years compared to the total number of contracts awarded;
124	124
125	125	(3) The number of businesses owned by women, minorities, or veterans that have been in operation for not more than five years and have been awarded a state contract;
126	126
127	127	(4) The percentage of the total dollar amount of state contracts awarded to businesses that have been in operation for not more than five years compared to the total dollar amount of contracts awarded;
128	128
129	129	(5) The types of businesses awarded a state contract;
130	130
131	131	(6) Recommendations on improving access to state contracts for businesses that have been in operation for not more than five years, including, without limitation, those businesses in statistically underrepresented demographic segments and geographic areas of Hawaii;
132	132
133	133	(7) Recommendations on improving overall entrepreneurship in this State including, without limitation, identifying regional challenges to entrepreneurship; and
134	134
135	135	(8) Any additional information deemed necessary by the office of entrepreneurship to provide an accurate depiction of the condition of entrepreneurship in Hawaii."
136	136
137	137	SECTION 3. Section 201-113, Hawaii Revised Statutes, is amended to read as follows:
138	138
139	139	"§201-113 Hawaii film and creative industries development special fund. (a) There is established in the state treasury the Hawaii film and creative industries development special fund into which shall be deposited:
140	140
141	141	(1) Appropriations by the legislature;
142	142
143	143	(2) Donations and contributions made by private individuals or organizations for deposit into the fund;
144	144
145	145	(3) Grants provided by governmental agencies or any other source;
146	146
147	147	(4) Effective January 2, 2023, all revenues, fees, and charges from the processing of the motion picture, digital media, and film production income tax credit pursuant to section 235-17; and
148	148
149	149	(5) Effective July 1, 2022, all existing and future revenues, fees, and income received by the department from its management of public facilities that support media and entertainment workforce and business development, with the exception of the Hawaii film studio.
150	150
151	151	(b) The fund shall be used by the department to provide for:
152	152
153	153	(1) A program to provide seed capital for film, media, electronic sports, and creative industries intellectual property development projects for export, as determined by the department;
154	154
155	155	(2) Programs that expand the skills of the Stateʹs resident workforce in the film, media, and creative industries;
156	156
157	157	(3) Marketing programs that attract business opportunities in the film, media, and creative industries in the State; [and]
158	158
159	159	(4) A program in partnership with the office of entrepreneurship; and
160	160
161	161	[(4)] (5) Repair, maintenance, and related costs of the department's management of public facilities that support media and entertainment workforce and business development."
162	162
163	163	SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the purpose of establishing an office the office of entrepreneurship.
164	164
165	165	The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
166	166
167	167	SECTION 5. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
168	168
169	169	SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
170	170
171	171	SECTION 7. This Act shall take effect on July 1, 2025.
172	172
173	173
174	174
175	175	INTRODUCED BY: _____________________________
176	176
177	177	INTRODUCED BY:
178	178
179	179	_____________________________
180	180
181	181
182	182
183	183
184	184
185	185	Report Title: Small Business Caucus; Entrepreneurship; Appropriation Description: Establishes the Office of Entrepreneurship. Creates a program in partnership with the Hawaii film and creative industries development special fund. Appropriates moneys to establish the Office of Entrepreneurship. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
186	186
187	187
188	188
189	189
190	190
191	191	Report Title:
192	192
193	193	Small Business Caucus; Entrepreneurship; Appropriation
194	194
195	195
196	196
197	197	Description:
198	198
199	199	Establishes the Office of Entrepreneurship. Creates a program in partnership with the Hawaii film and creative industries development special fund. Appropriates moneys to establish the Office of Entrepreneurship.
200	200
201	201
202	202
203	203
204	204
205	205
206	206
207	207	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.