Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 954, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to clarify the regulatory review and approval process (automatic permit by approval) under section 91-13.5, Hawaii Revised Statutes (HRS) by among other things:

1. Extending to December 31, 2003, the deadline in which affected agencies must adopt rules, subject to section 91-13.5, HRS;
2. Specifying that failure by agencies to meet the rule-making deadline will result in a one-year statutory maximum time period for the agency;
3. Redefining "business or development-related permit, license, or approval" to mean any state or county application, petition, permit, license, certificate or any other form of a request for approval required by specified sections and chapters of the HRS;
4. Setting forth requirements for agencies that administer state permit programs delegated, authorized, or approved under federal law; and
5. Requiring the Attorney General to:

1. Develop and propose model rules for state and county agencies to implement section 91-13.5, HRS;
2. Make the model rules available to the agencies; and
3. Assist agencies in finding solutions to problems involved in implementing section 91-13.5, HRS.

The Sierra Club supports the bill as a means to address problems created with automatic approval. The Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, the Estate of James Campbell, and the County of Hawaii offered comments on the bill. The Land Use Research Foundation of Hawaii submitted testimony with concerns on the bill. Hawaiian Electric Company, Inc. and its subsidiary utilities submitted testimony in opposition to the bill. The Public Utilities Commission submitted testimony requesting to be exempted from the provisions of the automatic permit approval law.

Your Committee finds that the automatic approval law, section 91-13.5, will support the effort to make the regulatory process more efficient. The automatic approval law requires agencies to adopt rules specifying a maximum time period to grant or deny a business or development-related permit. Failure to act within the time period results in automatic approval of the permit.

Your Committee has amended this bill by changing the effective date of the bill to January 1, 2050.

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. 954, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance, in the form attached hereto as H.B. No. 441 H.D. 2.