SB421

Report Title:

Small Business; Bill of Rights

Description:

Sets forth specific "rights" that small businesses have or should have, to allow them to achieve success for themselves and their employees for the good of all the residents of Hawaii.

THE SENATE	S.B. NO.	421
TWENTY-THIRD LEGISLATURE, 2005
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE SMALL BUSINESS BILL OF RIGHTS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The Legislature finds that small businesses are an essential element in strengthening and diversifying Hawaii's economy and creating jobs for our citizens. To help ensure that they can achieve this goal, a "small business bill of rights" would afford small businesses protection against arbitrary and unilateral actions by administrative departments, as well as reduce the numerous roadblocks to business success, which will inevitably lead to more investment and job growth in Hawaii.

The Legislature also finds that in the past decade, several states have adopted less confrontational methods of issuing permits and enforcing laws. Agencies have learned that they can obtain more cooperation and increase regulatory compliance by working in partnership with businesses. Because the regulatory system is often driven by a "fine-and-punishment" approach, state agencies and private businesses often are unnecessarily antagonistic. The small business regulatory review board was established by the Legislature in 1998 to address these concerns. It works closely with state and county rule-drafting agencies to help reduce the regulatory burden. A "Bill of Rights" is an essential part of their review process.

To ensure that state regulations remain relevant to evolving business practices and conditions, a "sunset" process for review of state administrative rules should be put into effect. Every administrative rule maintained by any state agency should be reviewed, updated, and if appropriate, eliminated by that agency. The small business regulatory review board can assist in that process by reviewing on a periodic basis existing rules to ensure that more innovative approaches to business regulations are fully considered.

"Small Business," meaning any legal entity that is independently owned and operated and employs not more than one hundred full-time employees, is the backbone of Hawaii's economy, and is central to our way of life. More than 95 per cent of all Hawaii establishments are small businesses, and they provide jobs for 60 per cent of all Hawaii's employees. Accordingly, future growth in Hawaii's workforce will come primarily from new homegrown businesses and from existing small businesses that hire new workers.

Hawaii citizens should be able to enjoy a business culture that encourages and supports small business. Hawaii currently has the natural, technical and human resources to assure that every person who wants to work can achieve meaningful employment.

The purpose of this Act is to set forth specific "rights" that small businesses have or should have, to allow them to achieve success for themselves and their employees for the good of all the residents of Hawaii.

SECTION 2. These rights include, but are not limited to:

(1) The right to expect state agencies to provide a prompt, accurate, and courteous response to a request for information and to work together to assure ready access to the information needed to assist businesses in their relationships with state government.

(2) The right to a clear, stable and predictable regulatory and record-keeping environment with easily accessible information and regulations in plain language, including posting of all proposed regulatory rule changes on the Internet website of the Office of the Lieutenant Governor.

(3) The right to advance notice of an agency's rulemaking proceedings. The notice should be mailed to all persons who have made a timely written request for such advance notice.

(4) The right to be treated equally and fairly, with reasonable access to state tax incentives and services.

(5) The right to a one-stop permitting process that includes a centralized Internet website based application system. This site should have expeditious and responsible timeframes to process state and county permits, licenses, and registrations and approvals to simplify and reduce the filing of forms affecting business.

(6) The right to a timely response to an application for a permit, license, registration or approval necessary to operate the small business.

(7) The right to automatic renewal of essential permits, licenses, registrations or approvals, absent good cause for non-renewal. All issuing agencies shall take action to grant or deny any application for a business or development-related permit, license or approval within the established maximum period of time for that agency in accordance with section 91-13.5. If an authority intends not to renew the business or development-related permit, license, or approval, the authority should give notice to the holder of the permit, license, registration or approval, thirty days before the expiration with the reasons for non-renewal. Reasons for non-renewal must be for good cause or render conditions set forth in law.

(8) The right to a timely and impartial hearing in the event a state regulatory agency takes an adverse action against a business, as in the case of license or permit denial, termination or revocation. Officials conducting such hearings should be impartial. Small businesses should be considered innocent of any alleged violation, deficiency, or wrongdoing, until determined otherwise in that impartial hearing. In any contested case, they should have the right to present evidence, both oral and written. This evidence must be fully considered by the agency. In the event of an unfavorable decision, the business has the right to a judicial appeal.

(9) The right to a presumption of innocence where a violation, deficiency, or wrongdoing is alleged and the right to have the agency act only when able to prove the allegation by a preponderance of the evidence.

(10) The right to be notified, in writing, at least thirty days prior to any action by any state agency because of a deficiency or violation of civil law, except where the violation has serious health, safety or environmental impact.

(11) The right to privacy regarding confidential and proprietary information when competing for state procurement funds. No state agency shall mandate the disclosure of confidential or proprietary information as a condition of obtaining any contract or payment under any contract when a contract is to be awarded on a "firm fixed price" or "cost plus fixed price" basis.

(12) The right to all of the protections afforded in the Hawaii Taxpayer's Bill of Rights.

(13) The right to request information relating to administrative actions of state agencies from the office of the ombudsman, in accordance with chapter 96.

(14) The right to request information and an opinion from the Office of Information Practices, in accordance with chapter 92, in regard to the release of government documents.

(15) The right to provide information to the division of consumer advocacy in accordance with chapter 269, in regard to issues under the purview of the Public Utilities Commission.

(16) The right to request information and an opinion from the office of consumer protection, in accordance with chapter 487, in regard to business to business and consumer issues.

(17) The right to access the department of business, economic development and tourism's small business advocate in any dispute with a state agency to make sure government resources are coordinated on behalf of small business and the rights of businesses are being upheld.

(18) The right to administrative rule review pursuant to the Small Business Regulatory Flexibility Act by filing a petition with the small business regulatory review board in accordance with section 201M-6.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________