STAND. COM. REP. NO. 2945

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 1956
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred H.B. No. 1956, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO SMALL BUSINESS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Place the small business regulatory review board and
          the small business defender in the department of budget
          and finance for administrative purposes instead of the
          Legislature; and

     (2)  Require appointment of the small business defender by
          the Governor instead of the President of the Senate and
          Speaker of the House;

     (3)  Make the law enacting the Small Business Regulatory
          Flexibility Act and the small business defender
          permanent;

     (4)  Appropriate funds to the small business defender.

     Testimony in favor of this measure was submitted by the
Small Business Regulatory Review Board, The Chamber of Commerce
of Hawaii, NFIB, Small-Business Economic Revival Force, Hawaii
Business League, and Jas. W. Glover, Ltd.  The Department of the
Attorney General, Department of Business, Economic Development,

 
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                                   STAND. COM. REP. NO. 2945
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and Tourism, and Department of Budget and Finance submitted
comments.

     Your Committee finds that the Hawaii Small Business
Regulatory Flexibility Act, Act 168, Session Laws of Hawaii 1998,
has become a model throughout the United States.  By making this
Act permanent, and designating a "home" for the program, with
appropriate funding, Hawaii will continue to make strides in
improving the climate for small business.

     Your Committee has amended this measure to make the
appointment of the small business defender by the Governor,
subject to section 26-34, Hawaii Revised Statutes.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 1956, H.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as
H.B. No. 1956, H.D. 1, S.D. 1, and be referred to the Committee
on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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