STAND. COM. REP. NO.  39

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 774

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Economic Development & Business, to which was referred H.B. No. 774 entitled:

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

begs leave to report as follows:

The purpose of this measure is to assist small business in Hawaii by appropriating funds to the Department of Business, Economic Development, and Tourism to allow the Small Business Regulatory Review Board (Board) to hire additional staff to carry out the Board's mission.

The State Procurement Office, The Chamber of Commerce of Hawaii, Hawaii Business League, and a concerned individual testified in support of this measure.  The Department of Business, Economic Development, and Tourism testified in support of the intent of this measure.  A concerned individual testified in opposition.

     The Board provides input into the administrative rulemaking process and provides vital recommendations to policymakers and State and county agencies to aid small businesses in Hawaii.  However, the Board currently lacks sufficient staffing to adequately carry out this mission.  Your Committee finds that providing funding to facilitate the hiring of staff by the Board would benefit small businesses in Hawaii.

     Your Committee has amended this measure by changing the amount appropriated for the Board to acquire additional staff from $50,000 to an unspecified amount to facilitate further discussion.

     Your Committee notes that, according to the Small Business Regulatory Review Board, approximately $140,000 to $150,000 would be the ideal sum to adequately fund full operations of the Board.  Accordingly, should the Committee on Finance deliberate on this measure, your Committee respectfully requests that it consider appropriating $140,000 to $150,000 for the Small Business Regulatory Review Board to hire additional staff.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 774, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 774, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

DEREK S.K. KAWAKAMI, Chair