STAND. COM. REP. NO. 250-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2581
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 2581 entitled: 

     "A BILL FOR AN ACT RELATING TO THE REPEAL OF UNNECESSARY
     ADMINISTRATIVE RULES,"

begs leave to report as follows:

     The purpose of this bill is to expedite the streamlining of
Hawaii state government and increase government efficiency by
repealing administrative rules that are unnecessary through
legislative action.

     Specifically, this bill:

     (1)  Repeals outright one or more specific sections,
          subchapters, or chapters of the Hawaii Administrative
          Rules; and

     (2)  Stipulates that agencies whose administrative rules
          have been repealed under this bill need not comply with
          the requirements for the repeal of rules of the Hawaii
          Administrative Procedure Act.

     The Office of the Lieutenant Governor (Office), the
Department of Budget and Finance, the Department of Accounting
and General Services, the Land Use Research Foundation of Hawaii,
the National Federation of Independent Business, the Small
Business Regulatory Review Board, and an individual testified in
support of the measure.  The Hawaii Island Economic Development

 
 
                                 STAND. COM. REP. NO. 250-00
                                 Page 2

 
Board, the Estate of James Campbell, and the Chamber of Commerce
of Hawaii testified in support of the intent of this measure.
The Department of Land and Natural Resources submitted comments
on this measure.

     The Office testified that this bill is part of a package of
bills being recommended for action by the Office's "Slice Waste
and Tape" (SWAT) reform initiative to reduce the regulatory
burdens on businesses and to improve government efficiency.

     Your Committee notes that currently, to repeal any
administrative rule--even those rules that are unnecessary-
-departments and agencies are required to go through the same
process as that for adopting or amending rules pursuant to the
Hawaii Administrative Procedure Act.  This bill will allow
departments and agencies to repeal rules that are unnecessary
without having to expend limited resources by going through the
rulemaking process under the Hawaii Administrative Procedure Act.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 2581 and recommends that it pass
Second Reading and be referred to the Committee on Consumer
Protection and Commerce.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair