THE SENATE	S.B. NO.	1299
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

relating to tourism.

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

SECTION 1. The legislature finds that the tourism sector is a pillar of the State's economy. However, the tourism industry is highly seasonal and vulnerable to global economic shifts, natural disasters, and pandemics, leaving small businesses with inconsistent revenue streams and heightened risks. These compounded pressures have forced many small enterprises to operate with razor-thin margins, highlighting the necessity for resilience and adaptability.

The legislature further finds that technology adoption for small business in the State, particularly the tourism sector, is vital for the businesses to overcome these critical challenges and remain competitive in an increasingly digital marketplace. Leveraging digital tools such as booking systems, online marketing platforms, and data analytics can 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 and bolsters their resilience and contributions to the long-term economic sustainability of the State's communities, while inaction would exacerbate economic vulnerabilities in the State.

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

Accordingly, the purpose of this Act is to promote economic development and tourism in the State by requiring the Hawaii technology development corporation to implement technology enablement projects for small businesses related to the tourism sector.

SECTION 2. (a) The Hawaii technology development corporation shall establish and implement projects to assist small businesses related to the tourism sector with technology enablement. The Hawaii technology development corporation may collaborate with other state or county agencies as necessary to implement the technology enablement projects.

(b) The Hawaii technology development corporation shall submit a report of its findings and recommendations, including the status of establishing and implementing technology enablement projects to assist small businesses related to the tourism sector and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2026.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $250,000 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 the establishment and implementation of projects to assist small businesses related to the tourism sector with technology enablement.

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

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

INTRODUCED BY:

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Report Title:

HTDC; Tourism; Technology Enablement; Small Businesses; Report; Appropriations

Description:

Requires the Hawaii Technology Development Corporation to establish and implement projects to assist small businesses related to the tourism sector with technology enablement. Requires HTDC to submit a report to the Legislature. 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.