STAND. COM. REP. NO. 1043-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2473
                                     S.D. 2
                                     H.D. 1




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

Sir:

     Your Committees on Economic Development and Business
Concerns and Consumer Protection and Commerce, to which was
referred S.B. No. 2473, S.D. 2, entitled: 

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

beg leave to report as follows:

     The purpose of this bill is to modify the Small Business
Defender (SBD) law by:

     (1)  Giving the SBD the discretion to accept or refuse any
          case;

     (2)  Limiting the liability of the SBD; and

     (3)  Transferring the SBD from the Legislature to the
          Department of Budget and Finance (B&F).

     This bill also appropriates funds to the SBD and other
support personnel

     The Small Business Regulatory Review Board, Associated
Builders and Contractors, Inc., the Chamber of Commerce of
Hawaii, National Federation of Independent Business, and an
individual supported this bill.  The Hawaii Business League
supported this bill with reservations.  The Attorney General
supported the intent of this bill.  The B&F and an individual
commented on this bill.

 
 
                                 STAND. COM. REP. NO. 1043-00
                                 Page 2

 
     Upon further consideration, your Committees have amended
this bill by deleting its contents and inserting the substantive
provisions of H.B. 1956, H.D. 1.  As amended, this bill:

     (1)  Makes the SBD permanent;

     (2)  Places the SBD within the B&F for administrative
          purposes; and 

     (3)  Appropriates funds to the SBD.

     Your Committees find that these provisions will make the SBD
better able to serve small businesses in Hawaii.  Placing the SBD
within the B&F will allow the SBD to more effectively pursue its
agenda.

     As affirmed by the records of votes of the members of your
Committees on Economic Development and Business Concerns and
Consumer Protection and Commerce that are attached to this
report, your Committees are in accord with the intent and purpose
of S.B. No. 2473, S.D. 2, as amended herein, and recommend that
it pass Second Reading in the form attached hereto as S.B. No.
2473, S.D. 2, H.D. 1, and be referred to the Committee on
Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Economic
                                   Development and Business
                                   Concerns and Consumer
                                   Protection and Commerce,

                                   
                                   
                                   
                                   
______________________________     ______________________________
RON MENOR, Chair                   ROBERT N. HERKES, Chair