STAND. COM. REP. NO. 3024

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2188
                                        H.D. 2
                                        S.D. 1




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

Sir:

     Your Committees on Commerce and Consumer Protection and
Judiciary, to which was referred H.B. No. 2188, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO ADMINISTRATIVE PROCEDURE,"

beg leave to report as follows:

     The purpose of this measure is to require flexibility and
accountability in the rulemaking process.

     Testimony on the measure was submitted by the Department of
Commerce and Consumer Affairs, Department of Business, Economic
Development, and Tourism, Department of the Attorney General,
Small Business Regulatory Review Board, The Chamber of Commerce
of Hawaii, Kona-Kohala Chamber of Commerce, Building Industry
Association of Hawaii, Big Island Business Council, Land Use
Research Foundation of Hawaii, and Small Business Economic
Revival Force.

     This measure requires state agencies to use flexible
approaches in adopting, amending, and repealing rules, and to
ensure that its rules are in concert with the spirit and intent
of the law and bear a reasonable nexus to the law.  The measure
also delays the sunsetting of the Hawaii Small Business
Regulatory Flexibility Act by four years.

     Your Committees find that the rulemaking process inherently
involves a review and analysis to determine whether a proposed
rule effectuates an underlying statute and bears a rational nexus

 
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                                   STAND. COM. REP. NO. 3024
                                   Page 2


to the statute.  Therefore, this measure establishes no new
rulemaking requirements.

     Your Committees further find that the definition of head of
the agency established in section 3 of this measure, as received,
overlaps with the existing definition of agency in chapter 91,
Hawaii Revised Statutes, and requires other clarification.
Therefore, your Committees have amended this measure by deleting
sections 1 to 3 of the measure as received.  The measure, as
amended, extends the sunsetting of the Hawaii Small Business
Regulatory Flexibility Act, but makes no other amendments to the
laws relating to administrative rulemaking.

     As affirmed by the records of votes of the members of your
Committees on Commerce and Consumer Protection and Judiciary that
are attached to this report, your Committees are in accord with
the intent and purpose of H.B. No. 2188, H.D. 2, as amended
herein, and recommend that it pass Second Reading in the form
attached hereto as H.B. No. 2188, H.D. 2, S.D. 1, and be referred
to the Committee on Ways and Means.


                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Commerce and
                                   Consumer Protection and
                                   Judiciary,



____________________________       ______________________________
AVERY B. CHUMBLEY, Co-Chair        BRIAN KANNO, Co-Chair



____________________________       ______________________________
MATTHEW M. MATSUNAGA, Co-Chair     BRIAN T. TANIGUCHI, Co-Chair

 
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