HB1612 HD1

SECTION 1. The legislature finds that Hawaii ranks among the least competitive states for business in national assessments, including CNBC's America's Top States for Business, which ranked Hawaii fiftieth in 2024 and forty-ninth in 2025. Businesses in Hawaii face high regulatory burdens, elevated costs, and slow governmental processes, which collectively hinder economic growth and threaten the long-term prosperity of the State and its residents.

The legislature further finds that the business revitalization task force, created by Act 142, Session Laws of Hawaii 2024, was established to identify strategies to improve Hawaii's business climate. In the business revitalization task force's November 2025 report, the task force recommends the creation of a permanent framework to advance business competitiveness through sustained policy development and stakeholder engagement.

Accordingly, the purpose of this Act is to establish a business competitiveness goal for the State to be nationally ranked in the top thirty states for business climate by 2050, with interim goals.

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

"Part . hawaii business competitiveness GOAL

§201- Definitions. As used in this part, "ranking metric" means the CNBC's America's Top States for Business. The CNBC ranking scores each state using one hundred thirty-five metrics in ten broad categories of competitiveness. The categories are:

(1) Economy: Measures economic strength through gross domestic product and job growth, fiscal stability, credit ratings, real estate health, business diversity, trade exposure, and new business survival;

(2) Infrastructure: Assesses transportation networks, utilities, broadband, site readiness, land availability, market access, and climate resiliency;

(3) Workforce: Evaluates skilled labor availability, education levels, migration of talent, productivity, training programs, and labor flexibility;

(4) Cost of doing business: Examines tax competitiveness, wages, utilities, property and insurance costs, and business incentives;

(5) Business friendliness: Focuses on regulatory and legal environments, permitting efficiency, land-use rules, and support for emerging industries;

(6) Quality of life: Measures livability, including safety, environment, health care, child care, worker rights, inclusiveness, and reproductive freedoms;

(7) Technology and innovation: Captures innovation capacity via patents, research funding, research and development support, and participation in semiconductor and artificial intelligence sectors;

(8) Education: Assesses K–12 and higher education systems, funding, access, and workforce alignment through partnerships with community colleges;

(9) Access to capital: Measures availability of venture capital, bank lending, state-backed financing, and foreign direct investment; and

(10) Cost of living: Evaluates affordability through housing, consumer goods, and insurance costs, factoring in inflation and overall living expenses.

§201- Business climate improvement; state goals. It shall be the goal of the State to achieve a ranking among the top thirty states in the nation for business climate by 2050, as measured by the ranking metric. The interim goals shall include:

(1) Ranking of forty-fifth or better by 2035;

(2) Ranking of fortieth or better by 2040;

(3) Ranking of thirty-fifth or better by 2045; and

(4) Ranking of thirtieth or better by 2050;

provided that if the ranking metric is discontinued, the department shall identify and recommend an alternative national ranking metric that provides a comprehensive and balanced assessment of state business climates.

§201- Annual report. The department shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session until the regular session of 2050, which shall include:

(1) The status and progress toward the State's business competitiveness goals pursuant to this part; and

(2) Legislative options to improve Hawaii's business climate."

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 2026-2027 for the costs of independent research, staffing, travel, and other administrative expenses necessary for the purposes of this Act.

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

SECTION 4. 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 2026-2027 for the establishment of full-time equivalent ( FTE) positions.

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

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

HOUSE OF REPRESENTATIVES	H.B. NO.	1612
THIRTY-THIRD LEGISLATURE, 2026		H.D. 1
STATE OF HAWAII