STAND. COM. REP. NO. 2379

Honolulu, Hawaii

RE:    S.B. No. 2859

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Health and Judiciary and Labor, to which was referred S.B. No. 2859 entitled:

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

beg leave to report as follows:

     The purpose and intent of this measure is to increase administrative penalties for violations of chapter 321, Hawaii Revised Statutes, and rules adopted pursuant to this chapter.

     Your Committees received testimony in support of this measure from the Department of Health and one individual.  Your Committees received testimony in opposition to this measure from The Chamber of Commerce of Hawaii, Hawaii Food Industry Association, and Hawaii Restaurant Association.

     Your Committees find that the administrative penalty for violations of chapter 321, Hawaii Revised Statutes, has not been increased in nearly thirty years.  Consequently, this penalty does not have the necessary impact to force violators of departmental rules to rapidly correct major violations.

     Your Committees further find that the maximum penalty of $10,000 per day per violation, proposed by this measure, provides the Department of Health with the ability to better scale the severity of the violation to the final penalty amount.  Violations of lesser severity will be assessed lower penalties, while egregious violations will be assessed the maximum penalty.  This measure also provides parity with the maximum penalties available under chapter 328, Hawaii Revised Statutes, part of which provides regulatory authority over food manufacturers, distributors, and retailers.

     As affirmed by the records of votes of the members of your Committees on Health and Judiciary and Labor that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2859 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Health and Judiciary and Labor,

____________________________ CLAYTON HEE, Chair

____________________________ JOSH GREEN, Chair