STAND. COM. REP. NO. 753

Honolulu, Hawaii

, 2005

RE: H.B. No. 1529

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 1529 entitled:

"A BILL FOR AN ACT RELATING TO GOVERNMENT,"

begs leave to report as follows:

The purpose of this bill is to ensure greater accountability in the creation, amendment, and repeal of government agency rules, by amending the administrative rulemaking process. Specifically, this bill:

(1) Requires a state agency to specify its authority to adopt rules, transmit a copy of proposed rules to the State Auditor, and to meet other procedural requirements;

(2) Provides notice and hearing requirements for the adoption of emergency rules;

(3) Requires the State Auditor to review proposed rulemaking action and to report to the Legislature on whether the adoption, amendment, or repeal of a rule is authorized by the agency's rulemaking authority;

(4) Establishes an administrative process for challenging rules, and requires the Office of the Ombudsman to investigate and resolve disputes arising from this process;

(5) Awards fees and costs to a petitioner who prevails in an action for declaratory judgment as to the validity of an agency rule; and

(6) Requires the Governor to transmit a copy of all executive orders to the Legislature.

The Hawaii Government Employees Association, Hawaii State AFL-CIO, University of Hawaii Professional Assembly, Sestak Rehabilitation Services, and three individuals testified in support of this bill. The Office of the Governor opposed this measure. The State Auditor and the Office of the Ombudsman offered comments.

Your Committee finds that the addition of new requirements and procedures to the rulemaking process will help ensure the proper application of state agency rulemaking authority.

Your Committee has amended this bill by:

(1) Specifying that copies of executive orders shall be transmitted to the Legislature within five business days of execution by the Governor;

(2) Requiring agencies to file notice of their intent to adopt rules with the State Auditor at least five business days prior to issuing notice of a public hearing for rulemaking action;

(3) Clarifying that the State Auditor shall not review and report to the Legislature on rulemaking action that has been administratively challenged and for which the Ombudsman has issued a written determination;

(4) Providing that challenges of rulemaking action includes challenges to the repeal of a rule;

(5) Clarifying that administrative challenges made orally must be stated clearly and with enough specificity to enable agency response; and

(6) Making technical, nonsubstantive amendments for clarity and style.

 

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1529, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1529, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

 

____________________________

SYLVIA LUKE, Chair