STAND

STAND. COM. REP. NO. 1095

Honolulu, Hawaii

, 2005

RE: S.B. No. 711

S.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Economic Development & Business Concerns, to which was referred S.B. No. 711, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE SMALL BUSINESS REGULATORY FLEXIBILITY ACT,"

begs leave to report as follows:

The purpose of this bill is to update and clarify the requirements of the Small Business Regulatory Flexibility Act by, among other things:

(1) Defining "rule";

(2) Requiring rules to be submitted to the Small Business Regulatory Review Board (Board) before they are submitted to the Governor for approval for public hearing;

(3) Specifying that the duties of the Board include reviewing proposals for new or amended rules;

(4) Clarifying that the term of the chairperson of the Board is one year and that members may serve more than one term as a chairperson;

(5) Specifying that the Board's report to the Legislature shall contain a summary of comments made by the Board to agencies regarding its review of proposed new or amended rules; and

(6) Changing the periodic review period of agencies with rules affecting small business to every five years.

The Department of Business, Economic Development, and Tourism, National Federation of Independent Business – Hawaii, and Hawaii Agriculture Research Center testified in support of this bill.

As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 711, S.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

		____________________________ ROBERT N. HERKES, Chair