Hawaii Senate Bill SCR177

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 instructs the Department of Commerce and Consumer Affairs to convene a Fourth Sector Working Group, which will consist of various stakeholders, including government officials, faculty from the University of Hawaii, and members from the public and private sectors involved in developing the fourth sector. The Working Group is tasked with developing a long-term strategic plan to address opportunities and challenges related to the fourth sector, aimed at enhancing this emerging economic model's effectiveness and reach within Hawaii. This strategic plan will require consideration of various facets such as regulatory environments, educational opportunities, and the development of tailored policies targeting for-benefit businesses.

Summary

SCR177, a Senate Concurrent Resolution from the 32nd Legislature of Hawaii, acknowledges the importance of the fourth sector of the economy as a complementary area to the traditional three sectors (primary, secondary, and tertiary). This resolution emphasizes the growth and development of 'for-benefit organizations'—entities that aim primarily to achieve social or environmental benefits while generating revenue. In light of Hawaii's economic challenges, particularly heightened by the COVID-19 pandemic, SCR177 aims to promote a more resilient and sustainable economic model that fosters local ownership and investment.

Reporting

SCR177 mandates that the Fourth Sector Working Group report back to the legislature in advance of future sessions, with a preliminary report due by 2024 and a final report, including potential legislative proposals, due by 2025. This timeline emphasizes the urgent need for the state to transition toward this new economic model aligned with broader goals of sustainability and social equity.

Contention

While the bill aims to establish a supportive ecosystem for fourth sector entities—like social enterprises and cooperatives—it may face challenges related to systemic change within Hawaii's established economic structures. Critics could argue that the movement towards the fourth sector, while socially beneficial, requires a careful balancing act to ensure that it does not inadvertently disrupt established industries or create new forms of inequity. It would also be important for the Working Group to engage broadly with communities to ensure that the unique cultural and economic needs of diverse populations in Hawaii are met.