REPORT TITLE:
Small Business


DESCRIPTION:
Makes the law enacting the small business regulatory flexibility
act and the small business defender permanent.  Moves the small
business regulatory review board and the defender position to the
department of budget and finance for administrative purposes.
Appropriates funds to the small business defender.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1956
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                S.D. 1
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO SMALL BUSINESS.


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The purpose of this Act is to assist small
 
 2 businesses in this State by:
 
 3      (1)  Making the law enacting the Small Business Regulatory
 
 4           Flexibility Act and the small business defender
 
 5           permanent;
 
 6      (2)  Transferring the small business regulatory review board
 
 7           and the small business defender position to the
 
 8           department of budget and finance for administrative
 
 9           purposes; and
 
10      (3)  Appropriating funds to the small business defender.
 
11      SECTION 2.  Act 168, Session Laws of Hawaii 1998, is amended
 
12 by amending subsection (a) of section    -5 of the chapter
 
13 established in section 2 of the Act to read as follows:
 
14      "(a)  There shall be established within the department of
 
15 [business, economic development, and tourism,] budget and finance
 
16 for administrative purposes, a small business regulatory review
 
17 board to consider any request from small business owners for
 
18 review of any rule adopted by a state agency and to make
 
19 recommendations to the agency or the legislature regarding the
 
20 need for a rule change or legislation.  For requests regarding
 

 
Page 2                                                     1956
                                     H.B. NO.           H.D. 1
                                                        S.D. 1
                                                        

 
 1 county ordinances, the board may make recommendations to the
 
 2 county council or the mayor for appropriate action."
 
 3      SECTION 3.  Act 168, Session Laws of Hawaii 1998, is amended
 
 4 by amending section    -1 of the chapter established in section 3
 
 5 of the Act to read as follows:
 
 6      "§   -1 Small business defender.(a)  There is established
 
 7 within the [legislature] department of budget and finance for
 
 8 administrative purposes a small business defender.  The small
 
 9 business defender shall be appointed by the [senate president and
 
10 speaker of the house of representatives.  The senate president
 
11 and speaker of the house of representatives shall determine the
 
12 salary of the small business defender.  The senate president and
 
13 speaker of the house of representatives may also appoint
 
14 administrative support personnel who shall assist and support the
 
15 small business defender.] governor, subject to section 26-34 but
 
16 without regard to chapters 76 and 77, and shall serve at the
 
17 pleasure of the governor.  The small business defender's salary
 
18 shall be within the range of salaries paid to directors of the
 
19 departments of the state government.  The small business defender
 
20 shall be a member of the state employees' retirement system and
 
21 shall be eligible to receive the benefits of any state or federal
 
22 employee benefit program generally applicable to officers and
 
23 employees of the State.
 

 
Page 3                                                     1956
                                     H.B. NO.           H.D. 1
                                                        S.D. 1
                                                        

 
 1      (b)  In carrying out its duties under this section, the
 
 2 small business defender may request staff assistance from the
 
 3 department of budget and finance and other appropriate state
 
 4 agencies.  The small business defender may also employ, without
 
 5 regard to chapters 76 and 77, and at pleasure dismiss such
 
 6 persons as it finds necessary for the performance of its
 
 7 functions and fix their compensation.
 
 8      [(b)] (c)  Unless otherwise specifically provided by law,
 
 9 and upon written request by a small business, the small business
 
10 defender may represent, defend, and provide legal representation
 
11 to any small business, during any adjudicatory or contested
 
12 proceeding involving any civil citation issued by a state or
 
13 county agency in which the small business is a party; provided
 
14 that the small business shall seek its own legal representation
 
15 whenever the potential remedies against the small business may
 
16 include fines or penalties that exceed $25,000 or may result in
 
17 the suspension or revocation of a license.  The small business
 
18 defender shall have the discretion to accept or refuse any case
 
19 for good cause.  The small business defender may also engage in
 
20 the following activities:
 
21      (1)  Advocate and negotiate, upon consultation with the
 
22           small business regulatory review board, with federal,
 
23           state, and county agencies and officials on any matter
 

 
Page 4                                                     1956
                                     H.B. NO.           H.D. 1
                                                        S.D. 1
                                                        

 
 1           relating to and promoting the interests of small
 
 2           business;
 
 3      (2)  Conduct investigations to secure information useful in
 
 4           the lawful administration of any provision in this
 
 5           chapter;
 
 6      (3)  Refer any appropriate matter to the auditor or
 
 7           ombudsman for examination or investigation; and
 
 8      (4)  Do any and all things necessary to effectuate the
 
 9           purposes of this chapter.
 
10      [(c)] (d)  Each small business shall waive and release any
 
11 and all claims, damages, causes of action, and any request for
 
12 relief made against the small business defender or staff, the
 
13 State or counties, their officers, employees, or agents, and
 
14 arising from the legal representation of the small business by
 
15 the small business defender provided under this section."
 
16      SECTION 4.  Act 168, Session Laws of Hawaii 1998, is amended
 
17 by amending section 5 to read as follows:
 
18      "SECTION 5.  This Act shall take effect on July 1, 1998[,
 
19 and shall be repealed as of June 30, 2002]."
 
20      SECTION 5.  There is appropriated out of the general
 
21 revenues of the State of Hawaii the sum of $1 or so much thereof
 
22 as may be necessary for fiscal year 2000-2001 for the small
 
23 business defender in carrying out the purposes of this Act.
 

 
Page 5                                                     1956
                                     H.B. NO.           H.D. 1
                                                        S.D. 1
                                                        

 
 1      SECTION 6.  The sum appropriated shall be expended by the
 
 2 department of budget and finance for the purposes of this Act.
 
 3      SECTION 7.  Statutory material to be repealed is bracketed.
 
 4 New statutory material is underscored.
 
 5      SECTION 8.  This Act shall take effect on July 1, 2000.