If passed, HB313 would amend the existing guidelines for state enterprise zones, not only by designating homestead lots as eligible for these zones but also by exempting them from existing qualification requirements. This could significantly boost entrepreneurial activities in areas where such development is most needed, thereby enabling lessees of Hawaiian home lands to start and grow businesses that could otherwise be disadvantaged by the lack of fiscal support.
Summary
House Bill 313 aims to address the economic disparities faced by native Hawaiians by expanding the state's enterprise zone program to include eligible homestead lots. The bill finds that the current structure of state enterprise zones does not include many homestead lots, which prevents businesses located on these lots from accessing essential incentives like tax exemptions and business permits. The purpose of this legislation is to stimulate local economic development by ensuring that businesses can thrive within Hawaiian communities, thus keeping economic activity localized.
Contention
The bill acknowledges a notable income disparity, where the median income of lessees on Hawaiian home lands was significantly lower than that of the broader state population. Proponents of HB313 argue that establishing enterprise zones in these communities would help to lift residents out of poverty by creating local job opportunities and increasing household incomes. However, there may be concerns among some stakeholders regarding how these changes could impact land use and the preservation of cultural values within Hawaiian communities.