STAND. COM. REP. NO.  231-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2309

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No. 2309 entitled:

"A BILL FOR AN ACT RELATING TO ADMINISTRATIVE PENALTIES,"

begs leave to report as follows:

The purpose of this measure is to increase the administrative penalties for violations of Chapter 321, Hawaii Revised Statutes (HRS), relating to the Department of Health, from a maximum of $1,000 for each day of violation, to a maximum of $10,000 for each day of violation.

The Department of Health and an individual testified in support of this measure.  The Chamber of Commerce of Hawaii opposed this measure.

     Your Committee notes the Department of Health's testimony that the current penalty amount does not have adequate deterrent effect to enforce compliance with the law in certain situations; however, your Committee believes greater guidance is needed to arrive at an appropriate maximum penalty amount.  To support further deliberations on this measure, your Committee requests the Department of Health to provide to the Committee on Judiciary information on the administrative penalties imposed by other states for similar violations.

Your Committee has amended this bill by:

(1)  Changing the maximum penalty amount specified in the bill for violations of Chapter 321, HRS, to an unspecified amount;

(2)  Changing its effective date to July 1, 2050, to encourage continued discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2309, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2309, H.D. 1, and be referred to the Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Health,

____________________________

DELLA AU BELATTI, Chair