HB1407 HD1

HOUSE OF REPRESENTATIVES	H.B. NO.	1407
THIRTY-THIRD LEGISLATURE, 2025		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.

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

SECTION 1. The legislature finds that there is a need to bolster business innovation and economic development in the State by partnering with the private sector. The legislature also finds that the chambers of commerce in Hawaii, with their vast membership of small businesses, are in an excellent position to develop and cultivate greater entrepreneurship and serve a public purpose of bolstering the local economy and workforce and helping businesses and the workforce prepare for and transition to shifts in markets, take advantage of new opportunities, and ultimately support thriving commerce throughout the State.

The purpose of this Act is to require the department of business, economic development, and tourism to establish a chamber of commerce competitive grant program for entrepreneurs.

SECTION 2. Chapter 201, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201- Chambers of commerce; competitive grant program. (a) The department shall establish and administer a chamber of commerce competitive grant program to provide funding to qualifying chambers of commerce.

(b) The qualifying standards and conditions related to the receipt of funds under chapter 42F shall not apply to funds received by qualifying chambers of commerce who are awarded grants under the chamber of commerce competitive grant program.

(c) Requests for grants shall be submitted to the department in accordance with administrative rules adopted by the department to administer the grant program. Each request shall, at a minimum, include:

(1) The name of the chamber of commerce requesting grant funds; and

(2) Measurable outcomes from the use of the grant to include entrepreneur mentoring, workshops conducted, new businesses created, and specific skills developed.

(d) Each applicant for a grant shall provide proof to the department that the applicant:

(1) Serves at least three hundred businesses;

(2) Has raised at least one-fifth of the grant amount requested, to be used for the same purposes as a grant awarded through the chamber of commerce competitive grant program;

(3) Complies with all other federal, state, or county statutes, rules, or ordinances necessary to conduct the activities or provide the services for which a grant is awarded;

(4) Complies with all applicable federal and state laws prohibiting discrimination against a person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, or disability;

(5) Satisfies any other standards that may be required by the source of funding; and

(6) Meets all other standards prescribed in rules adopted by the department to implement the grants awarded under this section.

(e) Every request for grant funds shall be submitted to the department on an application form provided by the department and shall at a minimum contain the information required by subsections (c) and (d). The department shall review each request to determine whether the applicant is eligible to receive grants funds and shall make a final decision on each request. Upon approval of the request, the department shall award an applicant a grant of up to $100,000. The department shall inform each grant applicant of the disposition of the applicant's request.

(f) Each chamber of commerce applicant who, after meeting the requirements of subsection (d), receives grant funds from the department shall provide a $1 match for every $5 of grant funds received and shall use the funds for developing and cultivating entrepreneurs, with a focus on mentoring, workshops, and skill development. Funds may also be used for critical needs, including additional staffing, technical assistance, essential software, or technology upgrades. A chamber of commerce who receives grant funds pursuant to this section shall submit to the department an annual report detailing the use of funds.

(g) The department shall adopt rules without regard to chapter 91 to administer the grant program, including but not limited to rules to establish an appeals process for any denial of a grant request."

SECTION 3. 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 chamber of commerce competitive grant program.

The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 3000.