STAND. COM. REP. NO. 2038

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2473
                                        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 S.B. No. 2473 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to give the small business
defender the discretion to refuse any case, to limit the small
business defender's liability, and to appropriate $100,000 for
fiscal year 2000-2001 to fund the position and other support
personnel.

     Testimony in favor of this measure was submitted by the
Small Business Regulatory Review Board, The Chamber of Commerce
of Hawaii, the Kona-Kohala Chamber of Commerce, NFIB Hawaii, The
Hawaii Business League, Small-Business Economic Revival Force,
the Hawai`i Restaurant Association, and one individual.

     Your Committee finds that the legislation creating the small
business defender, the Hawaii Small Business Regulatory
Flexibility Act, Act 168, Session Laws of Hawaii 1998, is being
used as a model throughout the United States.  If this model
legislation is to advance in Hawaii, funding must be provided for
the small business defender position.

     Your Committee has also heard the continuing discussion
regarding the location of the small business defender position,
and the recommendation from the small business community that the

 
a                                                     SB2473 SD1
 
                                   STAND. COM. REP. NO. 2038
                                   Page 2


position be placed outside the legislature.  Your Committee has
amended this measure accordingly, to:

     (1)  Place the position of the small business defender in
          the Department of Budget of Finance;

     (2)  Authorize the Director of Finance to appoint the small
          business defender from a list submitted by the Senate
          President and the Speaker of the House of
          Representatives;

     (3)  Authorize the Director of Finance to determine the
          salary of the small business defender and appoint
          administrative support personnel; and

     (4)  Make the Department of Budget and Finance the expending
          agency for the appropriation.

     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 S.B. No. 2473, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2473,
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

 
a                                                     SB2473 SD1