STAND

STAND. COM. REP. NO. 657

Honolulu, Hawaii

, 2005

RE: S.B. No. 711

S.D. 2

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 711, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to update and clarify the requirements of the Small Business Regulatory Flexibility Act.

The Department of Business, Economic Development and Tourism and National Federation of Independent Business testified in support of this measure.

This measure clarifies and amends the requirements of the Small Business Regulatory Flexibility Act, which was enacted in 1998 to provide regulatory relief for small businesses in the State. More specifically, this measure:

(1) Defines "rule", as the term relates to an agency regulation subject to review by the Small Business Regulatory Review Board (Board), consistent with the Administrative Procedure Act;

(2) Requires proposed rules that may affect small businesses to be submitted for review when the rules are essentially complete and before they are submitted to the Governor for approval for public hearing;

(3) Authorizes the Board to review proposed new or amended agency rules, in addition to existing rules;

(4) Allows a Board member to serve more than one term as chairperson;

(5) Requires the Board's annual report to the Legislature to contain a summary of rule review comments to the agencies;

(6) Replaces the biennial periodic review of an agency's rules with a five-year review; and

(7) Makes technical, housekeeping revisions.

Your Committee finds that this measure enhances the State's efforts to provide relief to small businesses from burdensome and unnecessary regulation and helps to further Hawaii's position as a leader in the area of small business regulatory reform.

Your Committee has amended this measure by making technical amendments for the purpose of style and to correctly reflect the language of the Hawaii Revised Statutes.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 711, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 711, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Housing,

		____________________________ RON MENOR, Chair