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HB1612
HOUSE OF REPRESENTATIVES
H.B. NO.
1612
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to economic development
.
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 Hawaii
ranks among the least competitive states for business in national assessments,
including CNBC's America's Top States for Business, which ranked Hawaii fiftieth
in 2024 and forty-ninth in 2025.
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Businesses in Hawaii face high regulatory burdens, elevated costs, and
slow governmental processes, which collectively hinder economic growth and
threaten the long-term prosperity of the State and its residents.
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The
legislature further finds that the business revitalization task force, created
by Act 142, Session Laws of Hawaii 2024, was established to identify strategies
to improve Hawaii's business climate.
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In
the business revitalization task force's November 2025 report, the task force recommends
the creation of a permanent framework to advance business competitiveness
through sustained policy development and stakeholder engagement.
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Accordingly,
the purpose of this Act is to establish
a
business competitiveness goal for the State to achieve a ranking of being in
the top thirty states in the United States for business climate by 2045, with
interim goals
.
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SECTION 2.
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Chapter 201, Hawaii Revised Statutes, is
amended by adding a new part to be appropriately designated and to read as
follows:
"
Part .
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hawaii business competitiveness GOAL
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201-
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Definitions.
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As used in this part:
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"Ranking
metric" means the CNBC's America's Top States for Business.
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The CNBC ranking scores each state using one
hundred thirty-five metrics in ten broad categories of competitiveness.
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The categories are:
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(1)
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Economy:
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Measures economic strength through GDP and job
growth, fiscal stability, credit ratings, real estate health, business
diversity, trade exposure, and new business survival;
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(2)
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Infrastructure:
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Assesses transportation networks, utilities,
broadband, site readiness, land availability, market access, and climate
resiliency;
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(3)
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Workforce:
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Evaluates skilled labor availability,
education levels, migration of talent, productivity, training programs, and
labor flexibility;
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(4)
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Cost of doing business:
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Examines tax competitiveness, wages,
utilities, property and insurance costs, and business incentives;
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(5)
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Business friendliness:
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Focuses on regulatory and legal environments,
permitting efficiency, land-use rules, and support for emerging industries;
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(6)
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Quality of life:
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Measures livability, including safety,
environment, health care, child care, worker rights, inclusiveness, and
reproductive freedoms;
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(7)
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Technology and innovation:
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Captures innovation capacity via patents,
research funding, research and development support, and participation in
semiconductor and artificial intelligence sectors;
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(8)
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Education:
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Assesses K�12 and higher education systems,
funding, access, and workforce alignment through community colleges
partnerships;
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(9)
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Access to capital:
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Measures availability of venture capital, bank
lending, state-backed financing, and foreign direct investment; and
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(10)
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Cost of living:
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Evaluates affordability through housing,
consumer goods, and insurance costs, factoring in inflation and overall living
expenses.
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201-
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Business climate improvement; state goals.
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It shall be the goal of the State to achieve
a ranking among the top thirty states in the nation for business climate by
2045, as measured by the ranking metric.
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The interim goals shall include:
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(1)
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Ranking of forty-fifth or better by 2030;
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(2)
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Ranking of fortieth or better by 2035;
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(3)
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Ranking of thirty-fifth or better by 2040; and
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(4)
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Ranking of thirtieth or better by 2045;
provided that if the ranking metric is discontinued,
the department shall identify and recommend an alternative national ranking
metric that provides a comprehensive and balanced assessment of state business
climates.
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�201-
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Annual report.
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(a)
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The department shall submit an annual report to the legislature no later
than twenty days prior to the convening of each regular session, which shall
include:
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(1)
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The status and progress toward the State's business
competitiveness goals pursuant to this part; and
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(2)
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Legislative options to improve Hawaii's
business climate.
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(b)
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The legislature shall deliberate on the
department's proposals submitted in the department's report and enact
legislation to advance the goals set forth in this part."
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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 $300,000 or so much thereof
as may be necessary for fiscal year 2026-2027 for the costs of independent
research, staffing, travel, and other administrative expenses necessary for the
purposes of this Act.
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The sum
appropriated shall be expended by the department of business, economic
development, and tourism for the purposes of this Act.
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SECTION 4.
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This Act shall take effect on July 1, 2026.
INTRODUCED BY:
_____________________________
Report Title:
Department
of Business, Economic Development, and Tourism; Business Competitiveness Goals;
Reports; Appropriation
Description:
Establishes
a business competitiveness goal for the State to achieve a ranking of being in
the top thirty states in the United States for business climate by 2045, with
interim goals.
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Requires the Department
of Business, Economic Development, and Tourism to submit annual reports on
progress in meeting the business competitive goals.
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Appropriates funds.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.