Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1096
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 1096 entitled: 


begs leave to report as follows:

     The purpose of this bill is to deregulate certain
professions and vocations.

     In particular, this bill repeals the laws relating to the
practice of barbering (chapter 438, Hawaii Revised Statutes),
beauty culture (chapter 439), electrologists (chapter 448F),
hearing aid dealers and fitters (chapter 451A), real estate
collection servicing agencies (chapter 454D), dispensing
opticians (chapter 458), and speech pathologists and audiologists
(chapter 468E).

     Your Committee received testimony in favor of this measure
from the Department of Commerce and Consumer Affairs and the
state Auditor.  Testimony in opposition to the measure was
received from the Board of Barbering and Cosmetology, the
Dispensing Optician Advisory Committee, the Board of Speech
Pathology and Audiology, and numerous concerned practitioners in
the fields under consideration for repeal and consumers of those

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     Your Committee finds that deregulation has the potential for
reducing government bureaucracy and red tape.  Streamlining
government operations by terminating unnecessary programs will
help to make government more cost effective and efficient, which
your Committee finds to be extremely important given the weakened
condition of the State's economy.

     Nevertheless, your Committee finds that streamlining
government services should not be undertaken when the public's
health and safety will be adversely affected; when elimination of
licensing will open the door for fraud, incompetence, and public
distrust in professionals; or when terminating a program will
adversely impact the provision of services to affected groups
under mandated government programs, such as under the Felix
consent decree.

     Accordingly, your Committee finds that only three of the
seven professions specified in the bill should be repealed
directly, namely, electrologists, hearing aid dealers and
fitters, and real estate collection servicing agencies.  Your
Committee finds that compelling reasons have not been offered to
demonstrate that the continued regulation of these professions is
necessary to protect the public health, safety, and welfare.

     Your Committee further finds that the Auditor has conducted
a number of sunset reports in the past that recommended repealing
several regulatory programs that the Auditor considered to be
unnecessary to protect the public health, safety, and welfare
under the principles set forth in the Hawaii Regulatory Licensing
Reform Act (chapter 26H, Hawaii Revised Statutes).

     In other cases, the Auditor has found that a regulatory
program that the Legislature has found to be necessary may be
better administered by the Director of Commerce and Consumer
Affairs rather than a regulatory board.  Because many of the
sunset studies conducted by the Auditor are not up to date,
however, your Committee finds that there is a need for the
Auditor to conduct a further review of other professions and
vocations to determine whether they should be eliminated or
continued and, if continued, whether regulation should be by a
board or the Department of Commerce and Consumer Affairs.

     Accordingly, your Committee has amended this bill to specify
that with respect to the remaining four professions in the bill
(barbering, beauty culture, dispensing opticians, and speech
pathologists and audiologists), together with respect to the
regulation of dental hygienists (chapter 447), dentistry (chapter

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448), and elevator mechanics (chapter 448H), the Auditor shall
conduct a study, or a series of studies as appropriate, to

     (1)  Whether, under existing sunset law criteria, the
          regulation of these professions or vocations should be
          sunsetted or continued; and

     (2)  Assuming that regulation of one or more of these
          professions and vocations should continue, whether
          regulation is handled more efficiently and cost
          effectively by a regulatory board or commission, or by
          the Department of Commerce and Consumer Affairs.

     In addition, your Committee has amended this bill to add
language requiring the Legislative Reference Bureau to conduct a
study on the licensing examination used by the board of dental
examiners, and requiring the Auditor to conduct an audit on the
dental provider reimbursement practices of insurers and related

     Finally, your Committee has added conforming amendments to
other Hawaii Revised Statutes sections to delete references to
laws being repealed by this bill.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 1096, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
1096, H.D. 1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,

                                   RON MENOR, Chair

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