REPORT TITLE:
Small Business


DESCRIPTION:
Makes the law enacting the small business regulatory flexibility
act and the small business defender permanent.  Moves the small
business defender position to the department of business,
economic development, and tourism for administrative purposes.
Allows the small business defender to hire attorneys under
section 28-8.3, Hawaii Revised Statutes.  (HB1956 CD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1956
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                S.D. 2
STATE OF HAWAII                                            C.D. 1
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO SMALL BUSINESS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  A strong, viable economy is integral to the
 
 2 overall well-being of the people of Hawaii, and small businesses
 
 3 have a significant impact on the State's workforce and economy.
 
 4 The legislature finds that small businesses contribute to our
 
 5 quality of life by providing essential products and services,
 
 6 jobs, and other employment and economic opportunities.  Small
 
 7 businesses also fuel economic expansion for the benefit of the
 
 8 entire community.
 
 9      The legislature finds that small businesses serve a public
 
10 purpose, and it is necessary that small businesses in the State
 
11 be supported and assisted in their endeavors.
 
12      The purpose of this Act is to assist small businesses in
 
13 this State by:
 
14      (1)  Making permanent the law enacting the Hawaii Small
 
15           Business Regulatory Flexibility Act and the small
 
16           business defender;
 
17      (2)  Transferring the small business defender position to
 
18           the department of business, economic development, and
 
19           tourism for administrative purposes; and
 

 
Page 2                                                     1956
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1
                                                        


 1      (3)  Allowing the small business defender to hire attorneys
 
 2           under section 28-8.3, Hawaii Revised Statutes.
 
 3      SECTION 2.  Section 28-8.3, Hawaii Revised Statutes, is
 
 4 amended by amending subsections (a), (b), and (c) to read as
 
 5 follows:
 
 6      "(a)  No department of the State other than the attorney
 
 7 general may employ or retain any attorney, by contract or
 
 8 otherwise, for the purpose of representing the State or the
 
 9 department in any litigation, rendering legal counsel to the
 
10 department, or drafting legal documents for the department;
 
11 provided that the foregoing provision shall not apply to the
 
12 employment or retention of attorneys:
 
13      (1)  By the public utilities commission, the labor and
 
14           industrial relations appeals board, and the Hawaii
 
15           labor relations board;
 
16      (2)  By any court or judicial or legislative office of the
 
17           State;
 
18      (3)  By the legislative reference bureau;
 
19      (4)  By any compilation commission that may be constituted
 
20           from time to time;
 
21      (5)  By the real estate commission for any action involving
 
22           the real estate recovery fund;
 

 
 
Page 3                                                     1956
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1
                                                        


 1      (6)  By the contractors license board for any action
 
 2           involving the contractors recovery fund;
 
 3      (7)  By the trustees for any action involving the travel
 
 4           agency recovery fund;
 
 5      (8)  By the office of Hawaiian affairs;
 
 6      (9)  By the department of commerce and consumer affairs for
 
 7           the enforcement of violations of chapters 480 and 485;
 
 8     (10)  As grand jury counsel;
 
 9     (11)  By the Hawaiian home lands trust individual claims
 
10           review panel;
 
11     (12)  By the Hawaii health systems corporation or any of its
 
12           facilities;
 
13     (13)  By the auditor;
 
14     (14)  By the office of ombudsman;
 
15     (15)  By the insurance division;
 
16     (16)  By the University of Hawaii; [or]
 
17     (17)  By the small business defender; or
 
18    [(17)] (18)  By a department, in the event the attorney
 
19           general, for reasons deemed by the attorney general
 
20           good and sufficient, declines, to employ or retain an
 
21           attorney for a department; provided that the governor
 
22           thereupon waives the provision of this section.
 

 
 
Page 4                                                     1956
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1
                                                        


 1      (b)  For purposes of this section, the term "department"
 
 2 includes any department, board, commission, agency, bureau, or
 
 3 officer of the State.
 
 4      (c)  Every attorney employed by any department on a full-
 
 5 time basis, except an attorney employed by the public utilities
 
 6 commission, the labor and industrial relations appeals board, the
 
 7 Hawaii labor relations board, the office of Hawaiian affairs, the
 
 8 Hawaii health systems corporation, the department of commerce and
 
 9 consumer affairs in prosecution of consumer complaints, insurance
 
10 division, the University of Hawaii, the Hawaiian home lands trust
 
11 individual claims review panel, the small business defender, or
 
12 as grand jury counsel, shall be a deputy attorney general."
 
13      SECTION 3.  Act 168, Session Laws of Hawaii 1998, is amended
 
14 by amending section    -1 of the chapter established in section 3
 
15 of the Act to read as follows:
 
16      "§ -1 Small business defender.(a)  There is established
 
17 within the [legislature] department of business, economic
 
18 development, and tourism for administrative purposes a small
 
19 business defender.  The small business defender shall be
 
20 appointed by the [senate president and speaker of the house of
 
21 representatives.  The senate president and speaker of the house
 
22 of representatives shall determine the salary of the small
 
23 business defender.  The senate president and speaker of the house
 

 
Page 5                                                     1956
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1
                                                        


 1 of representatives may also appoint administrative support
 
 2 personnel who shall assist and support the small business
 
 3 defender.] governor without regard to chapters 76 and 77, and
 
 4 shall serve at the pleasure of the governor.  The small business
 
 5 defender's salary shall be within the range of salaries paid to
 
 6 the directors and deputy directors of the departments of state
 
 7 government.  The small business defender shall be a member of the
 
 8 state employees' retirement system and shall be eligible to
 
 9 receive the benefits of any state or federal employee benefit
 
10 program generally applicable to officers and employees of the
 
11 State.
 
12      (b)  In carrying out its duties under this section, the
 
13 small business defender may request staff assistance from the
 
14 department of business, economic development, and tourism and
 
15 other appropriate state agencies.  The small business defender
 
16 may also employ, without regard to chapters 76 and 77, and at
 
17 pleasure dismiss such persons as the small business defender
 
18 finds necessary for the performance of its functions and fix
 
19 their compensation.
 
20      [(b)] (c)  Unless otherwise specifically provided by law,
 
21 and upon written request by a small business, the small business
 
22 defender may represent, defend, and provide legal representation
 
23 to any small business, during any adjudicatory or contested
 

 
Page 6                                                     1956
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1
                                                        


 1 proceeding involving any civil citation issued by a state or
 
 2 county agency in which the small business is a party; provided
 
 3 that the small business shall seek its own legal representation
 
 4 whenever the potential remedies against the small business may
 
 5 include fines or penalties that exceed $25,000 or may result in
 
 6 the suspension or revocation of a license.  The small business
 
 7 defender shall have the discretion to accept or refuse any case
 
 8 for good cause.  The small business defender may also engage in
 
 9 the following activities:
 
10      (1)  Advocate and negotiate, upon consultation with the
 
11           small business regulatory review board, with federal,
 
12           state, and county agencies and officials on any matter
 
13           relating to and promoting the interests of small
 
14           business;
 
15      (2)  Conduct investigations to secure information useful in
 
16           the lawful administration of any provision in this
 
17           chapter;
 
18      (3)  Refer any appropriate matter to the auditor or
 
19           ombudsman for examination or investigation; and
 
20      (4)  Do any and all things necessary to effectuate the
 
21           purposes of this chapter.
 
22      [(c)] (d)  Each small business shall waive and release any
 
23 and all claims, damages, causes of action, and any request for
 

 
Page 7                                                     1956
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1
                                                        


 1 relief made against the small business defender or staff, the
 
 2 State or counties, their officers, employees, or agents, and
 
 3 arising from the legal representation of the small business by
 
 4 the small business defender provided under this section."
 
 5      SECTION 4.  Act 168, Session Laws of Hawaii 1998, is amended
 
 6 by amending section 5 to read as follows:
 
 7      "SECTION 5.  This Act shall take effect on July 1, 1998[,
 
 8 and shall be repealed as of June 30, 2002]."
 
 9      SECTION 5.  Statutory material to be repealed is bracketed.
 
10 New statutory material is underscored.
 
11      SECTION 6.  This Act shall take effect on July 1, 2000.