STAND. COM. REP. NO. 794-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2582
                                     H.D. 1




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

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2582 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to improve governmental
efficiency and reduce costs of government by removing procedures
required to repeal obsolete or unauthorized administrative rules.

     This bill replaces the full rulemaking procedures that would
be applicable to rules that are either obsolete or unauthorized
with an expedited repeal process requiring that the public be
given:

     (1)  Thirty days' notice of the proposed repeal;

     (2)  The ability to review the full text of the rules in
          person; and

     (3)  The opportunity to review the rules on, and download
          rules from the internet.

     Testimony in support of this measure was submitted by the
Department of Business, Economic Development, and Tourism,
Department of Accounting and General Services, Estate of James
Campbell, Small Business Regulatory Review Board, Small-Business
Economic Revival Force, Land Use Research Foundation of Hawaii,
and the Building Industry Association of Hawaii.  Comments were

 
 
                                 STAND. COM. REP. NO. 794-00
                                 Page 2

 
submitted by the Office of the Lieutenant Governor.  The Hawaii
Insurers Council testified in opposition.

     Your Committee agrees that the full panoply of procedures
applicable to rulemaking should not apply to the repeal of rules
that have no basis in a valid statute or ordinance, or where the
rule has become obsolete because of a change in the industry,
entity, or other thing regulated.  In these cases repeal should
be essentially a housekeeping matter and require the use of the
least amount of governmental resources as possible.

     Your Committee has amended this measure by deleting
references to the Lieutenant Governor in the findings and purpose
section of this bill and has also made technical, nonsubstantive
amendments for purposes of consistency and style.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2582, as amended herein, and recommends that
it pass Third Reading in the form attached hereto as H.B. No.
2582, H.D. 1.

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



                                   ______________________________
                                   RON MENOR, Chair