The National Federation of Independent Business in Hawaii released on May 20 its report on the recently concluded 2026 state legislative session, outlining key developments and outcomes for small businesses.
The summary is significant for Hawaii’s small business community, which accounts for more than half of the private-sector workforce, according to the official website.
Michael Iosua, state director for NFIB in Hawaii, said that over the course of the session, a total of 3,132 bills were introduced by both chambers. By the midpoint crossover deadline, 478 bills had moved from the Senate to the House and 560 from the House to the Senate. Ultimately, Iosua said that “268 bills were passed by both chambers and transmitted to Gov. Josh Green for signature.” The governor has until July 11 to sign or veto these measures or allow them to become law without his signature.
Iosua said that “the NFIB Hawaii legislative team actively engaged throughout the session with committee chairs and members to defer negative legislation impacting small business members, while also supporting measures that benefit the Hawaii business community.” He added that their efforts helped ensure “hundreds of harmful measures have been amended or otherwise prevented from advancing.”
Among deferred proposals were increases in minimum wage (HB 2506/SB 3235), new requirements related to healthy workplaces (SB 2017), expansion of collective bargaining rights (SB 2460), employment protections regarding medical cannabis use (SB 2998), paid leave provisions (SB 3186 and HB 2360), job listing transparency rules (HB 2367/SB2386), unemployment insurance changes (HB2165), data privacy updates (SB3016), permitting reforms (HB2140 superseded by SB2671) and income tax bracket adjustments (HB2306 superseded by SB3125).
Several notable bills have been transmitted or enrolled with Governor Green. These include consumer protection against misleading mail tactics (HB1511); regulation on artificial intelligence-generated imitations (HB2137); creation of a micro-lending program for small businesses through DBEDT support (HB2583); pricing transparency requirements for ticketed events and lodging businesses (SB2031); equity accommodations in public buildings after July 2027 (SB2268); reaffirmation limiting artificial persons’ powers regarding political spending (SB2471); general fund deposits into emergency reserves (SB2600); county pilot programs aimed at improving permit processing efficiency (SB2671); establishment of statewide permitting data standards (SB2673); modifications to income tax rates along with changes affecting renewable energy credits (SB3125); and authorization allowing cash transactions rounding within five cents under certain exemptions (SB3255).
Looking ahead toward next year’s legislative agenda, Iosua noted: “We expect many of the same priority issues to emerge once again.” Bills not advancing this year are considered dead but may be reintroduced during future sessions.
The National Federation of Independent Business maintains an office at Fort Street Mall in Honolulu as part of its advocacy efforts across Hawaii’s small business sector according to its official website. The organization typically represents enterprises employing fewer than ten people with annual sales around $500,000 while providing policy insights directly relevant at both statehouse hearings and broader economic discussions.
