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Senators Move to Modernize Cooperative Law, Allowing Worker and Multi‑stakeholder Co‑ops
Summary
The Senate passed SB 2922 with amendments to expand chapter 421C from consumer cooperatives to a general cooperative associations act, recognizing worker, producer, and multi‑stakeholder co‑ops; committees defected the effective date to July 1, 2050 to continue deliberations.
Supporters told the Commerce Committee SB 2922 is intended to modernize Hawaii’s cooperative statute to permit formation of worker, producer, and multistakeholder cooperatives without forcing them to use a consumer cooperative framework.
Kean DeFranco of the Purple Maia Foundation and Hawaii Coop Hui said the amended bill would expand chapter 421C rather than create a new regulatory structure, noting that other states have modernized similar statutes. Kelly Timi of Enliven Cooperative and Hunter Hevelin of the Hawaii Farmers Union described growing demand across islands—agriculture, housing, energy and water sectors—and urged a legal framework to support cooperative formation.
DCCA (business registration division) asked clarifying questions and offered comments; supporters said they had drafted amended language to ensure the statute builds on chapter 421C.
The committee adopted amendments reflecting stakeholder testimony, passed the bill with those amendments, and defected the effective date to July 1, 2050 to allow further coordination and review in downstream committees.
What happens next: With committee passage, SB 2922 will continue to the next committees with amended language intended to broaden cooperative incorporation options and reduce legal ambiguity for nonconsumer cooperatives.
