Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred H.B. No. 285, H.D. 1, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to require that administrative rules conform to enabling statutes, to provide for the automatic repeal of administrative rules when the enabling statute or ordinance is repealed, and require the Small Business Regulatory Review Board to include in its report to the legislature recommendations as to whether a rule is an appropriate function of state government and whether the rule can be implemented as cost-effectively by the private sector as by state government.

Testimony in support of the measure was received from the Department of Human Resources Development, the Chamber of Commerce of Hawaii, and the Land Use Research Foundation of Hawaii. The Director of Business, Economic Development, and Tourism support the measure and requested an amendment. The Office of Information Practices provided comments.

Your Committee finds that requiring agencies to conform their administrative rules to the intent of the rule's underlying law, and conversely, automatically repealing administrative rules when the rule's underlying law is repealed will result in a more efficient state government.

Additionally, your Committee believes that expanding the scope of small business's recommendations to the legislature allows small businesses to further participate in the regulatory process.

Based on testimony received, your Committee amended the bill by making automatic repeals of administrative rules effective 180 days after the related statute or ordinance is repealed.

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 285, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 285, H.D. 1, S.D. 2.