Opportunity Window: Influence 2026 Hawaii Legislation Before Adjournment

The 2026 Hawaii legislative session has officially commenced, creating a time-sensitive opportunity for businesses across all sectors to actively participate in shaping the regulatory and economic landscape of the state. Historically, engaged stakeholders have successfully influenced policy outcomes, as demonstrated by the passage of the "green fee" legislation, which saw significant public testimony shaping its final form to support natural resource protection and climate resilience.

This session's engagement period is crucial for any business concerned with operational costs, future development, market access, or regulatory compliance. The urgency stems from the approaching committee deadlines and potential adjournment, after which significant legislative changes impacting business operations will be enacted for the remainder of the year and beyond. Ignoring this window means forfeiting the chance to address potential legislative headwinds or champion beneficial policies proactively.

Who's Affected

• Small Business Operators: With legislative proposals potentially affecting minimum wage, employee benefits, permitting processes, and local tax structures, active participation is vital. Businesses can advocate for policies that reduce administrative burdens, stabilize operating costs, and foster a supportive environment for local commerce. Failure to engage could result in increased compliance costs or unfavorable labor regulations.
• Real Estate Owners: Zoning changes, new development requirements, property tax adjustments, and rental regulations are frequently debated during legislative sessions. Owners and developers can influence these decisions by providing testimony on bills related to land use, housing policy, and environmental impact assessments, ensuring that new laws support sustainable development and investment. Delaying engagement risks facing new regulations without adequate recourse.
• Tourism Operators: The viability of the tourism sector is directly tied to legislative decisions regarding visitor infrastructure, environmental protections, short-term rental laws, and potential new fees or taxes. Operators have a clear opportunity to advocate for policies that support sustainable tourism growth, manage visitor impacts, and ensure a competitive market.
• Entrepreneurs & Startups: Legislation impacting economic development incentives, venture capital access, workforce development programs, and technology infrastructure can significantly affect the startup ecosystem. Entrepreneurs should monitor and engage on bills that could foster innovation, attract talent, or simplify regulatory hurdles for new ventures.
• Agriculture & Food Producers: Key concerns for this sector include land use policies, water rights, agricultural incentives, and logistics for both inter-island and export markets (including Jones Act considerations). Producers can use testimony to advocate for policies that bolster local food security, support sustainable farming practices, and improve the efficiency of agricultural supply chains.
• Healthcare Providers: The healthcare sector faces ongoing legislative scrutiny concerning licensing requirements, insurance mandates, patient privacy laws, and the expansion of telehealth services. Providers can influence these areas to ensure that regulations promote quality care, patient access, and operational efficiency, rather than creating undue administrative burdens or limiting service delivery.

Second-Order Effects

• Policy Inertia Impact: Delays in engaging with legislative proposals can lead to enacted policies that are poorly tailored to Hawaii's unique economic constraints. For instance, poorly conceived labor law changes in isolation could strain small businesses, leading to reduced hiring and potentially lower service quality, which then impacts tourism competitiveness and increases the cost of goods for all residents.
• Regulatory Uncertainty → Investment Hesitation: When businesses cannot effectively influence upcoming regulations, uncertainty about future operating costs and compliance requirements can deter new investment and expansion within the state. This can slow job growth and limit the development of new industries, creating a drag on overall economic diversification.
• Resource Constraints on New Mandates: The state's limited resources mean that new mandates, such as environmental compliance or infrastructure upgrades, must be carefully implemented. Business input can ensure these mandates are practical and cost-effective, preventing scenarios where overzealous regulations strain already tight supply chains or drive up consumer prices disproportionately.

What to Do

Action: Engage with the 2026 Legislative Session

The 2026 Hawaii Legislative Session is an active engagement period. Businesses that fail to participate risk facing the consequences of legislation crafted without their input. Proactive engagement is essential to protect interests and potentially shape favorable policies.

• For Small Business Operators: Monitor the Hawaii State Legislature website (www.capitol.hawaii.gov) for bills related to labor, taxes, and permitting under committees like Labor & Public Employment, Finance, and Commerce & Economic Development. Submit testimony supporting bills that offer tax credits for small businesses or streamlining of permit processes, and opposing those that increase operating costs without clear benefit. Aim to submit testimony at least 48 hours before a scheduled committee hearing to ensure it is considered.

• For Real Estate Owners: Track bills concerning zoning, housing development, and property taxes in committees such as Housing, Planning, and Finance. Engage on proposals that impact development timelines or affordability requirements. Review upcoming bills for changes to land use ordinances or construction standards and provide feedback on their feasibility and economic impact before committee votes.

• For Tourism Operators: Monitor committees like Tourism, Water & Land, and Finance for legislation affecting visitor infrastructure, environmental fees, and short-term rental regulations. Advocate for policies that support sustainable tourism and protect natural resources, providing data on economic impact and visitor experience. Highlight the downstream effects of rental restrictions on guest accommodation availability and pricing.

• For Entrepreneurs & Startups: Identify bills related to innovation, technology, economic development, and workforce training in committees like Higher Education & Technology, Commerce & Economic Development, and Finance. Advocate for legislation that provides startup capital incentives, simplifies business registration, or supports skilled workforce development. Seek out opportunities to speak on panels or provide written testimony regarding the needs of emerging businesses.

• For Agriculture & Food Producers: Closely follow committees such as Agriculture, Water & Land, and Finance for legislation concerning water rights, agricultural land preservation, and food production incentives. Submit testimony on bills that promote local sourcing, provide agricultural grants, or address supply chain challenges. Ensure your input reflects the practical realities of farming and food production in Hawaii.

• For Healthcare Providers: Stay informed on bills in committees like Health, Human Services, & Housing, and Commerce & Economic Development that pertain to licensing, insurance, and telehealth. Provide input on proposed telehealth regulations to ensure they support patient access and provider flexibility, while also commenting on any changes to medical practice acts or insurance reimbursement policies.

General Guidance: Register to provide testimony via the Hawaii State Legislature's website. Familiarize yourself with the bill tracking system and committee schedules. Early submission of well-researched testimony increases its impact. Deadlines for testimony submission are determined by individual committee schedules and vary significantly, so vigilance is required throughout the session, which typically runs from January through April/May. For issues requiring broader policy change, consider joining industry associations that actively lobby and testify, such as the Hawaii Chamber of Commerce or specific sector associations.