HOUSE OF REPRESENTATIVES

H.B. NO.

491

THIRTY-SECOND LEGISLATURE, 2023

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO A LEAVE GRANT PROGRAM.

 

 

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

 

     SECTION 1.  (a)  There is established within the department of business, economic development, and tourism a leave grant pilot program to help small businesses offer their employees paid:

     (1)  Family leave; and

     (2)  Sick leave.

     (b)  Grants shall be used to cover expenses associated with paid family leave and paid sick leave.

     (c)  To receive a grant, an applicant shall:

     (1)  Be:

          (A)  A for-profit corporation incorporated under the laws of the State;

          (B)  A nonprofit community-based organization determined to be exempt from federal income taxation by the Internal Revenue Service; or

          (C)  A cooperative association;

     (2)  In the case of a nonprofit organization:

          (A)  Have a governing board whose members have no material conflict of interest and serve without compensation;

          (B)  Have bylaws or policies that describe the manner in which business is conducted and policies relating to nepotism and management of potential conflict of interest situations; and

          (C)  Employ or contract with no more than one member of a family or kin of the first or second degree of consanguinity, unless specifically permitted by the department;

     (3)  Agree to make available to the department all records the applicant may have relating to the operation of the applicant's activity, business, or enterprise, to allow the department to monitor the applicant's compliance with the purpose of this Act;

     (4)  Establish, to the satisfaction of the department, that sufficient funds are available for the effective operation of the activity, business, or enterprise for the purpose for which the grant is awarded; and

     (5)  Demonstrate compliance with Hawaii compliance express, or any successor program established to facilitate compliance with section 103D-310(c), Hawaii Revised Statutes.

     (d)  Every grant shall be:

     (1)  Monitored by the department to ensure compliance with this Act and the purposes and intent of the grant; and

     (2)  Evaluated annually to determine whether the grant attained the intended results in the manner contemplated.

     (e)  Grant moneys shall be provided to each grantee on a set payment schedule; provided that the grantee has submitted sufficient documentation to verify relevant expenses incurred for the purposes of subsection (b).

     (f)  Chapters 42F and 103D, Hawaii Revised Statutes, shall not apply to the leave grant pilot program, except to the extent necessary for the purposes of subsection (c)(5).

     (g)  The pilot program shall commence on July 1, 2023, and terminate on June 30, 2025.

     (h)  No later than twenty days prior to the convening of the regular sessions of 2024, 2025, and 2026, the department shall submit reports to the legislature.  Each report shall provide, at minimum:

     (1)  Information regarding effectiveness of the pilot program;

     (2)  A review of the fiscal needs of the pilot program; and

     (3)  Any recommendations, including proposed legislation, for a permanent leave grant program.

     (i)  The department shall adopt rules without regard to chapter 91, Hawaii Revised Statutes, necessary for the purposes of this Act.

     (j)  For purposes of this section:

     "Department" means the department of business, economic development, and tourism.

     "Small business" means an entity that complies with subsection (c) and:

     (1)  Is domiciled and authorized to do business in Hawaii;

     (2)  Is owned and operated independently from any other business entity, except as authorized by subsection (c); and

     (3)  Employs fewer than fifty full-time or part-time employees.

     SECTION 2.  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 the purpose of funding grants for the leave grant pilot program established pursuant to section 1 of this Act.

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

     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 administrative expenses, including personnel wages and salaries, for the leave grant pilot program established pursuant to section 1 of this Act.

     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 June 30, 3000.

 

 

Report Title:

DBEDT; Paid Family Leave; Paid Sick Leave; Grants; Pilot Program; Appropriations

 

Description:

Establishes within the department of business, economic development, and tourism a two-year leave grant program to help small businesses offer their employees paid family leave and paid sick leave.  Requires reports to the legislature.  Appropriates moneys.  Effective 6/30/3000.  (HD1)

 

 

 

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