S.R. No. 121 Summary

• Recognizes the fourth sector of the economy (for-benefit organizations) as complementary to traditional public, private, and nonprofit sectors and affirms their role in sustainable and equitable economic development.

• Requests the Department of Commerce and Consumer Affairs to convene a Fourth Sector Working Group composed of the DCCA Director (chair), University of Hawaii faculty, four legislators (two from each chamber), and private/public sector representatives, not to exceed 15 members total.

• Directs the Working Group to develop a long-term strategic plan addressing research, policy, financial support, education, accountability mechanisms, and ecosystem development for for-benefit enterprises in Hawaii.

• Requires the Working Group to submit a preliminary report by 20 days before the 2024 legislative session and a final report with proposed legislation by 20 days before the 2025 legislative session, then dissolve on June 30, 2025.

• Defines for-benefit enterprises to include purpose-driven businesses, social enterprises, Native Hawaiian culturally-informed businesses, cooperatives, community-owned enterprises, public benefit corporations, community development banks, and regenerative businesses.