REPORT TITLE:
Small Business; Fines


DESCRIPTION:
Allows state and county regulatory agencies to resolve matters
with small businesses through mediation, arbitration, or other
alternative dispute resolution before imposing civil fines,
charges, or fees on the small business, except when federal law
requires the immediate imposition of citations or fines, or the
agency determines that the small business has acted in bad faith
in its dealings with the agency or in failing to comply with
applicable laws.  Requires the small business regulatory review
board to review the implementation of the provisions under the
bill and report its findings and recommendations and any proposed
legislation prior to the convening of each regular session.
Specifies that the small business defender work with state and
county agencies and small businesses to implement the provisions
of the bill.(HB2360 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2360
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO SMALL BUSINESSES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The Hawaii Revised Statutes is amended by adding
 
 2 a new section to be appropriately designated and to read as
 
 3 follows:
 
 4      "   -     Small businesses; flexibility in imposing fines.
 
 5 (a)  Notwithstanding any other law to the contrary, a state or
 
 6 county regulatory agency may resolve a matter in question with an
 
 7 owner or other representative of a small business, whether
 
 8 through mediation, arbitration, or other alternative dispute
 
 9 resolution method, prior to imposing a civil fine, charge, or fee
 
10 on any small business, except when:
 
11      (1)  Federal law requires the immediate imposition of
 
12           citations or fines; or
 
13      (2)  The agency determines that the small business has acted
 
14           in bad faith in its dealings with the agency or in
 
15           failing to comply with applicable laws.
 
16      (b)  The small business regulatory review board shall review
 
17 the implementation of this section and report its findings and
 
18 recommendations regarding progress or impediments and needed
 
19 improvements in the law, including any proposed implementing
 
20 legislation, to the legislature no later than twenty days before
 

 
Page 2                                                     2360
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 the convening of each regular session.
 
 2      (c)  As used in this section, the term "small business" has
 
 3 the same meaning as used in section 103D-901."
 
 4      SECTION 2.  Section 3 of Act 168, Session Laws of Hawaii
 
 5 1998, is amended by amending section    -1 to read as follows:
 
 6      " -1 Small business defender.(a)  There is established
 
 7 within the legislature a small business defender.  The small
 
 8 business defender shall be appointed by the senate president and
 
 9 speaker of the house of representatives.  The senate president
 
10 and speaker of the house of representatives shall determine the
 
11 salary of the small business defender.  The senate president and
 
12 speaker of the house of representatives may also appoint
 
13 administrative support personnel who shall assist and support the
 
14 small business defender.
 
15      (b)  Unless otherwise specifically provided by law, and upon
 
16 written request by a small business, the small business defender
 
17 may represent, defend, and provide legal representation to any
 
18 small business, during any adjudicatory or contested proceeding
 
19 involving any civil citation issued by a state or county agency
 
20 in which the small business is a party; provided that the small
 
21 business shall seek its own legal representation whenever the
 
22 potential remedies against the small business may include fines
 
23 or penalties that exceed $25,000 or may result in the suspension
 

 
Page 3                                                     2360
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 or revocation of a license.  The small business defender shall
 
 2 have the discretion to accept or refuse any case for good cause.
 
 3 The small business defender may also engage in the following
 
 4 activities:
 
 5      (1)  Advocate and negotiate, upon consultation with the
 
 6           small business regulatory review board, with federal,
 
 7           state, and county agencies and officials on any matter
 
 8           relating to and promoting the interests of small
 
 9           business;
 
10      (2)  Work with state and county agencies and small
 
11           businesses in implementing section    -   ;
 
12     [(2)] (3)  Conduct investigations to secure information
 
13           useful in the lawful administration of any provision in
 
14           this chapter;
 
15     [(3)] (4)  Refer any appropriate matter to the auditor or
 
16           ombudsman for examination or investigation; and
 
17     [(4)] (5)  Do any and all things necessary to effectuate the
 
18           purposes of this chapter.
 
19      (c)  Each small business shall waive and release any and all
 
20 claims, damages, causes of action, and any request for relief
 
21 made against the small business defender or staff, the State or
 
22 counties, their officers, employees, or agents, and arising from
 
23 the legal representation of the small business by the small
 

 
Page 4                                                     2360
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 business defender provided under this section."
 
 2      SECTION 3.  Statutory material to be repealed is bracketed.
 
 3 New statutory material is underscored.
 
 4      SECTION 4.  This Act shall take effect upon its approval.