HOUSE OF REPRESENTATIVES	H.B. NO.	604
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

A BILL FOR AN ACT

relating to hotel workers.

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

SECTION 1. The legislature finds that, according to the university of Hawaii, the accommodation and food services sector of the State's economy employed 113,417 people in 2020. Throughout the State, hotels are privately owned by multinational corporations having directors, executives, and shareholders that are not residents of the State. Hotels are bought and sold on the open market regularly and numerous industries throughout the United States operate successfully as cooperatives.

The legislature believes that developing a process for employees of a bankrupt hotel to purchase and operate that hotel as a cooperative business could prevent increased unemployment in the State. The Priory Hotel in Scotland, the hotels of Quaintance-Weaver Restaurants and Hotels in North Carolina, and the hotels of TPI Hospitality in Minnesota are some of the many successful employee-owed hotels.

Accordingly, the purpose of this Act is to provide grants to match funds for hotel employees to buy hotels and establish employee-owned hotel cooperatives.

SECTION 2. (a) The department of business, economic development, and tourism shall establish a program to provide grants for hotel employees or entities entirely owned by hotel employees to purchase hotels and convert the properties into employee-owned hotel cooperatives; provided that no funds shall be made available to any hotel employee or entity entirely owned by hotel employees unless that hotel employee or entity entirely owned by hotel employees provides matching funds on a dollar‑for-dollar basis.

(b) The department of business, economic development, and tourism shall adopt rules in accordance with chapter 91, Hawaii Revised Statutes, as may be necessary to effectuate the program established under this section.

(c) The program established by this section shall terminate on June 30, 2033.

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 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for grants to hotel employees to purchase hotels and convert these properties into employee-owned hotel cooperatives; provided that the moneys appropriated pursuant to this section shall not lapse at the end of the fiscal year for which the moneys have been appropriated; provided further that any moneys appropriated pursuant to this section that are unencumbered as of June 30, , shall lapse on that date.

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

SECTION 4. This Act shall take effect on July 1, 2023.

INTRODUCED BY:

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Report Title:

Hotel Workers; DBEDT; Employee-Owned Cooperative; Grant; Appropriation

Description:

Requires the Department of Business, Economic Development, and Tourism to develop a program to provide grants to match funds for hotel employees to buy hotels and establish employee-owned hotel cooperatives. Appropriates moneys.

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