RELATING TO SMALL BUSINESSES.

HB1361

HOUSE OF REPRESENTATIVES

H.B. NO.

1361

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to small businesses
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION
1.
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The legislature finds that small
businesses are the backbone of Hawaii's
economy, providing employment opportunities and contributing to the State's
unique cultural and economic landscape.
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However,
the high cost of starting a business can deter entrepreneurship and innovation.
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The legislature finds that the State should
be encouraging the establishment of new small businesses to spur economic
growth.

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Accordingly, the purpose of this Act is to establish
a small business fee waiver program
to waive certain fees for applicants
registering a new small business in the State for the first time.

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SECTION 2.
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(a)
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There is established within the
business
registration division of the department of commerce and consumer affairs
a
small business fee waiver program to waive certain fees for applicants
registering a new small business in the State for the first time.

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(b)
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To qualify for fee waivers under this section,
an applicant shall:

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(1)
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Be registering a new business entity in the
State for the first time;

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(2)
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Be classified as a small business, as defined
in section 211D-1, Hawaii Revised Statutes; and

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(3)
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Provide an affidavit attesting that the
applicant is not currently or has not previously registered as the owner of a
small business in the State.

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(c)
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Applicants shall be eligible for the
following fee waivers:

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(1)
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Initial business registration filing fees for
corporations, limited liability companies, partnerships, and sole
proprietorships;

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(2)
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Trade name, trademark, and service mark
registration fees; and

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(3)
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Any other applicable registration fees as
determined by the department of commerce and consumer affairs.

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(d)
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The small business fee waiver program shall
not apply to:

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(1)
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Annual business renewal fees; or

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(2)
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Penalties, fines, or fees for late filings or
non-compliance.

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(e)
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The department of commerce and consumer
affairs shall:

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(1)
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Develop an outreach program to inform the
public about the small business fee waiver program; and

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(2)
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Provide guidance and resources to assist new
business owners with the business registration process.

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(f)
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The department of commerce and consumer
affairs 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 each regular session.
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The report shall include:

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(1)
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The number of businesses that utilized the
small business fee waiver program;

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(2)
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The total amount of fees waived; and

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(3)
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Recommendations for continuing or improving
the program.

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(g)
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The small business fee waiver program shall
end on .

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SECTION
3.
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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 to implement
the small business fee waiver program.

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The sum

appropriated shall be expended by the
department of commerce and consumer affairs for the purposes of this Act.

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SECTION 4.
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This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

DCCA;
Small Businesses; Registration Fees; Fee Waiver; Appropriation

Description:

Establishes
and appropriates funds for a small business fee waiver program
within the Business Registration Division of the Department
of Commerce and Consumer Affairs to waive certain fees for applicants
registering a new small business in the State for the first time.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.