STAND. COM. REP. NO. 2459

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2711
                                        S.D. 1




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

Sir:

     Your Committee on Judiciary, to which was referred S.B. No.
2711 entitled: 

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

begs leave to report as follows:

     The purpose of this bill, as received by your Committee, is
to automatically repeal any administrative rule that has been
adopted pursuant to a statute or ordinance that has been
subsequently repealed.

     Your Committee finds that rules based upon repealed statutes
or ordinances clutter our already over-burdened system, and
repealing such administrative rules pursuant to section 91-3,
Hawaii Revised Statutes, may be a time-consuming and costly
process.  However, your Committee notes that an automatic repeal
of administrative rules could wreak tremendous havoc in executive
agencies whenever functions are transferred between agencies, or
when new agencies are created and old ones are repealed.  Your
Committee recognizes that the Legislature's standard practice has
been to provide for the rules adopted by the former agency to
continue in force and effect until replaced by the new agency.
Therefore, your Committee believes that agencies should be given
some time to adopt alternative rules or procedures in the event
that programs or activities continue beyond the termination of
the statute or ordinance.

     Testimony in support of the intent of this measure was
submitted by the Housing and Community Development Corporation of

 
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                                   STAND. COM. REP. NO. 2459
                                   Page 2


Hawaii, the Department of Business, Economic Development, and
Tourism, Land Use Research Foundation of Hawaii, and Small-
Business Economic Revival Force.

     Upon further consideration, your Committee has amended this
measure by:

     (1)  Providing that any administrative rule that has been
          adopted pursuant to a statute or ordinance that has
          been repealed shall be repealed within six months; and

     (2)  Providing that any administrative rule that has been
          adopted pursuant to a federal statute or regulation
          shall be exempt from the requirements of this section.

     As affirmed by the record of votes of the members of your
Committee on Judiciary that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2711, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as S.B. No. 2711, S.D. 1, and
be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary,



                                   ______________________________
                                   AVERY B. CHUMBLEY, Co-Chair



                                   ______________________________
                                   MATTHEW M. MATSUNAGA, Co-Chair

 
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