Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Economic Development and Technology and Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 1312 entitled:

beg leave to report as follows:

The purpose of this measure is to make the law enacting the small business regulatory flexibility act and the small business defender permanent, and allow the small business defender to hire attorneys.

Your Committees received testimony in favor of this measure from Paradise Cruise, Ltd., the National Federation of Independent Business, and the Chamber of Commerce of Hawaii. Your Committee received testimony opposing this measure from the Department of Business, Economic Development, and Tourism, the Hawaii Electricians Market Enhancement Program Fund, and the Hawaii Business League.

Your Committees find that small businesses serve a public purpose, and it is necessary that small businesses in the State be supported and assisted in their endeavors. Any representation, defense, or legal representation provided to a small business by the small business defender would be analogous to those actions where the prosecution of a case is handled by the department of the attorney general and the defendant is represented by the office of the prosecutor.

Your Committees have adopted the recommendation of the Hawaii Business League by amending this measure to keep the small business defender within the legislature. The reason for this amendment is that the legislature is the only place where the defender could truly act in an independent manner, very similar to the Legislative Auditor and the Legislative Reference Bureau. Your Committees have also made technical, nonsubstantive amendments.

As affirmed by the records of votes of the members of your Committees on Economic Development and Technology and Transportation, Military Affairs and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1312, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1312, S.D. 1, and be referred to the Committee on Ways and Means.