CONFERENCE COMMITTEE REP. NO. 134-08

Honolulu, Hawaii

                 , 2008

RE:    H.B. No. 2781

       H.D. 2

       S.D. 2

       C.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir and Madam:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 2781, H.D. 2, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO SMALL BUSINESS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to reduce the burden that State regulation places on small businesses by:

(1)  Setting forth the rights of small businesses as they interact with and are regulated by state agencies;

(2)  Specifically authorizing the Ombudsman in chapter 96, Hawaii Revised Statutes, to investigate complaints of violations of the foregoing rights; and

(3)  Requiring the Small Business Regulatory Review Board to convene a working group to review whether the procedures related to rulemaking under Hawaii's Small Business Regulatory Flexibility Act adequately address the concerns of small business.

     Your Committee on Conference has amended this bill by:

     (1)  Removing the provisions specifically authorizing the Ombudsman to investigate complaints of violations of the Small Business Bill of Rights;

     (2)  Requiring agencies, under the Small Business Regulatory Flexibility Act, to perform and include in their small business impact statement for proposed rules, a more rigorous examination and justification of rules that impose standards more stringent than those mandated by any comparable or related federal, state, or county laws;

     (3)  Changing the effective date to July 1, 2008; and

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

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 2781, H.D. 2, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 2781, H.D. 2, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ CAROL FUKUNAGA, Chair	______________________________ KYLE T. YAMASHITA, Co-Chair
____________________________ BRIAN T. TANIGUCHI, Co-Chair	______________________________ TOMMY WATERS, Co-Chair
____________________________ SHAN S. TSUTSUI, Co-Chair	______________________________ JAMES KUNANE TOKIOKA, Co-Chair