HB449 • 2026

RELATING TO ECONOMIC DEVELOPMENT.

Budget Labor Technology

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: ILAGAN
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on how the technology enablement funds will be distributed.

Economic Development Act

This act establishes a technology enablement program for small tourism-related businesses in Hawaii and funds the INNOVATE Hawaii program to develop and promote local products.

What This Bill Does

Establishes a technology enablement program for small tourism-related businesses in Hawaii.
Appropriates $500,000 each year from 2025-2026 and 2026-2027 to the INNOVATE Hawaii program for developing and promoting local products.
Requires the Hawaii Technology Development Corporation to report on the technology enablement program's progress before the start of the next regular session.

Who It Names or Affects

Small tourism-related businesses in Hawaii
The Hawaii Technology Development Corporation

Terms To Know

Technology Enablement: Strategic use of technology to improve a business's operations, increase efficiency, and drive innovation.
INNOVATE Hawaii Program: A program that helps develop and promote products made in Hawaii.

Limits and Unknowns

The act does not specify how the technology enablement funds will be distributed.
It is unclear what specific recommendations or proposed legislation may come from the reports required by this act.
This bill has been carried over to the next session and its final status is unknown.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment appropriates funds from the state's general revenues to support the INNOVATE Hawaii program, which helps small businesses develop and promote 'Made in Hawaii' products.

Appropriates money for fiscal years 2025-2026 and 2026-2027 to assist with the development and promotion of Hawaii-manufactured products through the INNOVATE Hawaii program.

The exact amount of funds appropriated is not specified.
The effective date listed (July 1, 3000) seems incorrect or symbolic and needs clarification.

SD1

Hawaii published version SD1

Plain English: This amendment requires the Hawaii Technology Development Corporation to prioritize funding for small Hawaii-based manufacturers and submit annual reports detailing the program's impact, while appropriating funds for technological upgrades, workforce training, marketing, and research.

The Hawaii Technology Development Corporation must now prioritize funding for businesses with fewer than one hundred employees that focus on local product development, advanced manufacturing, and workforce training.
Annual reports are required to be submitted detailing the number of businesses assisted, funding allocated, economic impacts, challenges encountered, and recommendations for future adjustments.
Funds will be appropriated for technological upgrades, workforce training, marketing Hawaii-made products, and research and development.

The exact amount of funds to be appropriated is not specified in the amendment text.
The effective date listed as July 1, 3000 appears incorrect and may need clarification.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-03-21 S
Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
2025-03-21 S
Reported from EDT (Stand. Com. Rep. No. 1326) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
2025-03-20 S
The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EDT were as follows: 5 Aye(s): Senator(s) DeCoite, Wakai, Fukunaga, Kim, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
2025-03-17 S
The committee(s) on EDT has scheduled a public hearing on 03-20-25 1:00PM; Conference Room 229 & Videoconference.
2025-03-06 S
Referred to EDT, WAM.
2025-03-06 S
Passed First Reading.
2025-03-06 S
Received from House (Hse. Com. No. 239).
2025-03-04 H
Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate.
2025-02-28 H
Reported from FIN (Stand. Com. Rep. No. 1116), recommending passage on Third Reading.
2025-02-26 H
The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 15 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Alcos, Reyes Oda; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Ward.
2025-02-26 H
Bill scheduled for decision making on Wednesday, 02-26-25 11:00AM in conference room 308 VIA VIDEOCONFERENCE.
2025-02-25 H
The committee(s) on FIN recommend(s) that the measure be deferred until 02-26-25.
2025-02-21 H
Bill scheduled to be heard by FIN on Tuesday, 02-25-25 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
2025-02-05 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Ward excused (2).
2025-02-05 H
Reported from TOU/ECD (Stand. Com. Rep. No. 157) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
2025-01-30 H
The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Templo, Todd, Matsumoto; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.
2025-01-30 H
The committee on TOU recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Tam, Templo, Holt, Hussey, Ilagan, Todd, Matsumoto; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.
2025-01-27 H
Bill scheduled to be heard by TOU/ECD on Thursday, 01-30-25 9:00AM in House conference room 423 VIA VIDEOCONFERENCE.
2025-01-27 H
Re-referred to TOU/ECD, FIN, referral sheet 4
2025-01-21 H
Referred to TOU, ECD, FIN, referral sheet 2
2025-01-21 H
Introduced and Pass First Reading.
2025-01-17 H
Pending introduction.

Official Summary Text

RELATING TO ECONOMIC DEVELOPMENT.
HTDC; Economic Development; Hawaii-Manufactured Products; Reports; Appropriations ($)
Requires the Hawaii Technology Development Corporation to prioritize funding for certain Hawaii-based businesses. Appropriates funds to assist in the development and promotion of Hawaii-manufactured products through the INNOVATE Hawaii program. Requires reports to the Legislature. Effective 7/1/3000. (SD1)

Current Bill Text

Read the full stored bill text

HB449

HOUSE OF REPRESENTATIVES

H.B. NO.

449

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to economic development
.

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

����
SECTION
1.
�
The legislature finds that technology
adoption for small businesses in Hawaii is vital for these businesses to remain
competitive in an increasingly digital marketplace.
�
Leveraging technology can help small businesses
optimize operations, reduce costs, and expand their reach beyond the
islands.
�
Digital tools such as booking
systems, online marketing platforms, and data analytics can help reduce costs,
expand market reach, and help tourism-based businesses attract and retain
customers while enhancing the overall visitor experience.

����
Furthermore,
technology mitigates the risks of geographic isolation by enabling remote work,
virtual services, and e-commerce opportunities.
�

Supporting small businesses with technology adoption ensures their
ability to innovate and adapt, bolstering their resilience and contributing to
the long-term economic sustainability of Hawaii's communities.
�
At the same time, non-action would exacerbate
Hawaii's economic vulnerabilities.

����
The
legislature further finds that the Hawaii technology development corporation
was established to foster innovation and economic diversification by supporting
the growth and development of Hawaii's technology sector.
�
With decades of experience implementing
technology-driven initiatives, the Hawaii technology development corporation
has successfully facilitated numerous projects funded by the State and ensured
effective use of state resources, with a proven track record of fostering
innovation and economic diversification through state-funded initiatives,
demonstrating expertise in administering grants, supporting startups, and promoting
public-private partnerships, which has empowered local businesses and driven
economic progress.
�
The Hawaii technology
development corporation's expertise spans a wide range of industries, enabling
the effective implementation of cutting-edge technologies tailored to Hawaii's
unique challenges and opportunities.
�
Its
commitment to leveraging state funding for impactful technology projects
underscores its role as a critical catalyst for innovation and competitiveness
in Hawaii's economy.

����
Therefore,
the purpose of this Act is to promote economic development by:

����
(1)
�
Establishing a
program that provides technology enablement for small businesses related to the
tourism industry in the State; and

����
(2)
�
Appropriating funds for assisting in the
development and promotion of Hawaii-manufactured products through the INNOVATE
Hawaii program.

����
SECTION
2.
�
(a)
�

The Hawaii technology development corporation shall establish a program
for technology enablement for small businesses related to the tourism industry
in the State.

����
(b)
�
The Hawaii technology development corporation
shall submit a report on the status of the program, including the number of
small businesses participating in the program, and recommendations, including
any proposed legislation, to the legislature no later than twenty days prior to
the convening of the regular session of
2026.

����
(c)
�

For the purposes of this section, "technology enablement"
means the strategic use of technology to improve a business's operations,
increase efficiency, and drive innovation.

����
SECTION
3.
�
There is appropriated out of the
general revenues of the State of Hawaii the sum of $500,000 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 assisting in the
development and promotion of Hawaii-manufactured products through the INNOVATE
Hawaii program.

����
The sums

appropriated shall be expended by the
Hawaii technology development corporation for the purposes of this Act.

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

INTRODUCED BY:

_____________________________

Report Title:

Economic
Development; Technology Enablement; Hawaii-manufactured Products; Hawaii
Technology Development Corporation; Appropriation

Description:

Establishes a program that provides technology enablement
for small businesses related to tourism in the State.
�
Appropriates funds for assisting in the
development and promotion of Hawaii-manufactured products through the INNOVATE
Hawaii program.

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