STAND. COM. REP. NO.  809-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2736

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred H.B. No. 2736, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE SMALL BUSINESS BILL OF RIGHTS,"

beg leave to report as follows:

     The purpose of this bill is to support small businesses by:

     (1)  Establishing the Small Business Bill of Rights; and

     (2)  Requiring the Ombudsman to investigate complaints of violations of the Small Business Bill of Rights.

     The Small Business Regulatory Review Board, Retail Merchants of Hawaii, Hawaii Business League, and National Federation of Independent Businesses in Hawaii testified in support of this bill.  The Department of Commerce and Consumer Affairs, Department of Business, Economic Development, and Tourism, and the Office of the Ombudsman submitted comments.

     Questions were raised as to whether some of the "rights" provided by this bill are actually enforceable.  Furthermore, the Ombudsman has expressed concerns that this bill may prompt small businesses to request confidential information from the Ombudsman and would also create a preferred class of complainants by requiring the Ombudsman to investigate every complaint of a violation of the Small Business Bill of Rights.  Your Committees note that this bill has a defective date and are moving this bill along for further discussion.

     As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2736, H.D. 1, and recommend that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

____________________________ TOMMY WATERS, Chair

____________________________ ROBERT N. HERKES, Chair