STAND

STAND. COM. REP. NO.3047

Honolulu, Hawaii

, 2002

RE: H.B. No. 2449

H.D. 1

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Economic Development and Technology, to which was referred H.B. No. 2449, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to assist small businesses by modifying the provisions of the Hawaii Small Business Regulatory Flexibility Act. In particular, this measure:

(1) Amends the definition of "small business" to mean enterprises with fewer than 100 rather than 200 employees;

(2) Allows the small business regulatory review board to make nominations to fill board vacancies;

(3) Allows the majority of the board to elect the chairperson;

(4) Deletes the provision for a small business defender; and

(5) Extends the Act's sunset date to June 30, 2004.

Your Committee received testimony in favor of this measure from the Director of Business, Economic Development, and Tourism, Chair of the Small Business Regulatory Review Board, the Chamber of Commerce of Hawaii, the Hawaii Business League, National Federation of Independent Business, and Shea & Co., CPAs.

Your Committee finds that passage of the Small Business Regulatory Flexibility Act culminated four years of hard work and received national acclaim from the U.S. Small Business Administration. Therefore, it is important that we extend the Act, rather than allow it to sunset on June 30^th, 2002.

Your Committee has amended this measure in the following ways:

(1) Making the Act permanent by removing the sunset date;

(2) Requiring the small business regulatory review board to submit an annual report to the legislature; and

(3) Deleting the repeal of provision for a small business defender.

As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2449, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2449, H.D. 1, 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 and Technology,

		____________________________ ROD TAM, Chair