Requires that every rule conforms to its related statute; provides for the automatic repeal of administrative rules on the repeal of the underlying statute or ordinance; requires the small business regulatory review board to analyze regulatory programs and provide recommendations to the legislature by June 30, 2006.

A BILL FOR AN ACT

PART I.

SECTION 1. Conforming the adoption, repeal, or amendment of an administrative rule to its related statute is a necessary activity. Ensuring that the proposed rule change has a rational nexus to the law and conforms to the letter, spirit, and intent of the law prior to a public hearing should increase government efficiency and limit the resultant expenditure of already limited governmental time and resources used to ensure the conformity of the rule to the existing statute after a public hearing on the rule change has been held.

The purpose of this part is to improve government efficiency by ensuring that whenever an administrative rule is adopted, amended, or repealed, that the rule conforms to the related statute and by giving the head of the agency affected by these administrative rules more accountability for compliance and conformity to the statutes.

SECTION 2. Chapter 91, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§91- Rulemaking procedure. (a) When making, amending, or repealing rules, agencies shall comply with:

(1) The requirements of this section;

(2) Consistent procedures required by other statutes; and

(3) Applicable federal mandates.

(d) Any interested party may appeal the adoption of a rule by filing a petition for regulatory review as provided for in section 201M-6."

PART II.

SECTION 3. The repeal of rules that have lost their authorizing statute or ordinance is a housekeeping matter that should not have to involve full rulemaking procedures. To improve the efficiency of government, the requirement that full rulemaking procedures be followed to repeal rules adopted pursuant to a statute or ordinance that has been subsequently repealed should be eliminated. This will ensure that valuable government resources and time are not wasted.

The purpose of this part is to improve government efficiency by providing for the automatic repeal of administrative rules along with their authorizing statute or ordinance.

SECTION 4. Chapter 91, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§91- Automatic repeal of administrative rules. (a) Upon the repeal of a statute or ordinance, any administrative rule that has been adopted pursuant to the repealed statute or ordinance is automatically repealed.

(b) This section shall not apply to an administrative rule adopted pursuant to a subsequently repealed statute or ordinance, that is readopted by operation of law as a part of a transfer of functions from one department or agency to another department or agency."

PART III.

SECTION 5. (a) The small business regulatory review board shall conduct an analysis of regulatory programs to determine whether any such program should be repealed or continued. The review board shall make written recommendations to the legislature regarding the following:

(b) Every agency administering a state program shall furnish the small business regulatory review board all such documents and information as the review board may from time to time require. Each agency shall make available to the review board all documents and information as may be requested. The chairperson of the review board, for the purpose of securing information, shall have access to and may examine any books, documents, papers, or records of any agency.

(c) The review board shall conduct its review of each administrative rule before January 1, 2005, and shall report its findings and recommendations, including any proposed implementing legislation, to the legislature before June 30, 2006.

SECTION 6. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval; provided part II shall apply retrospectively to administrative

rules adopted pursuant to statutes or ordinances that have been repealed prior to the effective date of this Act.