STAND. COM. REP. NO. 1058-14
Honolulu, Hawaii
, 2014
RE: S.B. No. 2487
S.D. 1
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 Economic Development & Business, to which was referred S.B. No. 2487, 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 assist small businesses in Hawaii. Specifically, this bill improves the effectiveness and efficiency of the Small Business Regulatory Review Board, while allowing the Legislature to monitor and evaluate the Board's performance and effectiveness by:
(1) Requiring training of members of the Board by the Department of the Attorney General to ensure that the members have a clear understanding of their role and its parameters;
(2) Clarifying the contents of the Board's annual report to the Legislature; and
(3) Establishing a sunset date of June 30, 2019, for the Board.
Act 168, Session Laws of Hawaii 1998, codified as Chapter 201M, Hawaii Revised Statutes, established the Small Business Regulatory Flexibility Act. This Act provides for a petition process for regulatory review and a periodic administrative review of rules impacting small businesses by an independent regulatory review board, known as the Small Business Regulatory Review Board.
Although the Board's role is to look at the impact of rules on small businesses and make recommendations to adopt new rules, or amend or repeal existing rules, concerns have been raised that the Board has not been functioning as originally envisioned, particularly with regard to the roles of Board members. Nevertheless, the underlying mission of the Board remains important for small businesses in Hawaii. Providing additional training and a clearer understanding of the role of Board members should help the Board operate as originally envisioned.
Furthermore, clarifying the contents of the Board's annual report to the Legislature will also enable the Legislature to better monitor and evaluate the Board's performance over the next several years to determine whether the Board is beneficial to small businesses in Hawaii and should be retained.
However, your Committee finds that establishing a date by which the Board will be dissolved is unnecessary at this time. Further monitoring and evaluation of the Board and its fulfillment of its mission is sufficient. Your Committee also notes that, while concerns about the Board have been raised, the Board has not received the necessary financial and administrative support from the Department of Business, Economic Development, and Tourism to operate efficiently and effectively.
Accordingly, your Committee has amended this bill by:
(1) Inserting language requiring the Department of Business, Economic Development, and Tourism to sufficiently support the work of the Board through financial and administrative assistance; and
(2) Deleting provisions repealing the Board on June 30, 2019.
Technical, nonsubstantive amendments were also made for purposes of clarity, consistency, and style.
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 S.B. No. 2487, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2487, S.D. 1, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.
Respectfully submitted on behalf of the members of the Committee on Economic Development & Business,
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____________________________ CLIFT TSUJI, Chair |
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