STAND. COM. REP. NO. 301-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2188
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 2188 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to speed up the State's
rulemaking process by:

     (1)  Ensuring that whenever an administrative rule is
          adopted, amended, or repealed, the rule conforms to the
          related statutes;

     (2)  Giving the head of the agency affected by
          administrative rules more accountability for compliance
          and conformity to statutes;

     (3)  Allowing an interested party to appeal the adoption of
          a rule by filing a petition for regulatory review under
          the Hawaii Small Business Regulatory Flexibility Act,
          Act 168, Session Laws of Hawaii (SLH) 1998; and

     (4)  Extending the sunset date of the Hawaii Small Business
          Regulatory Flexibility Act from June 30, 2002, to June
          30, 2006.

     The General Contractors Association of Hawaii, the Building
Industry Association of Hawaii, the Small Business Regulatory
Review Board, the Kona-Kohala Chamber of Commerce, the Big Island

 
 
                                 STAND. COM. REP. NO. 301-00
                                 Page 2

 
Business Council, the Hawaii Business League, the Land Use
Research Foundation of Hawaii, the Construction Industry
Legislative Organization, the National Federation of Independent
Business, and the Hawaii Business Roundtable testified in support
of this measure.  The Chamber of Commerce of Hawaii testified in
support of the intent of this measure.  The Attorney General and
the Hawaii Nurses' Association testified in opposition to this
measure.  Comments were submitted by the Department of Commerce
and Consumer Affairs, the Department of Budget and Finance, the
Hawaii Hotel Association, and an individual.

     Your Committee believes that this bill furthers efforts to
streamline the state regulatory process by allowing a single
department head to have the authority to sign off a rule without
having to obtain the approval of multiple departments.

     Your Committee has amended this bill by:

     (1)  Deleting the provision allowing an interested party to
          appeal the adoption of a rule through filing a petition
          for regulatory review under the Hawaii Small Business
          Regulatory Flexibility Act; and

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

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 2188, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 2188, H.D. 1, and be referred to the Committee
on Consumer Protection and Commerce.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair