HOUSE OF REPRESENTATIVES
TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO THE SMALL BUSINESS REGULATORY FLEXIBILITY ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to provide greater clarity and effect to the Small Business Regulatory Flexibility Act with the following amendments:
(1) Adopt a more explicit definition of "small business";
(2) Clarify the powers of the small business regulatory review board when reviewing administrative rules that impact small business;
(3) Increase the number of board members from nine to eleven; and
(4) Clarify when reporting by the agencies is required for submission to the small business regulatory review board and when reporting by the board is required for submission to the legislature.
SECTION 2. Section 201M-1, Hawaii Revised Statutes, is amended by amending the definition of "small business" to read as follows:
business" means a for-profit [
enterprise consisting of] corporation,
limited liability company, partnership, limited partnership, sole
proprietorship, or other legal entity that:
(1) Is domiciled and authorized to do business in Hawaii;
(2) Is independently owned and operated; and
fewer than one hundred full-time or part-time employees[
.] in Hawaii."
SECTION 3. Section 201M-5, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:
shall be established within the department of business, economic development,
and tourism, for administrative purposes, a small business regulatory review
board to review any proposed new or amended rule [
or to]. If the
board determines that a proposed rule will not have a significant economic impact
on a substantial number of small businesses, the board shall submit a statement
to that effect to the agency that sets forth the reason for the board's
decision. If the board determines that the proposed rule will have a
significant economic impact on a substantial number of small businesses, the
board may submit to the agency suggested changes in the proposed rule to
minimize the economic impact of the proposed rule, or may recommend the
withdrawal of the proposed rule. The board may also consider any request
from small business owners for review of any rule adopted by a state agency and
to make recommendations to the agency or the legislature regarding the need for
a rule change or legislation. For requests regarding county ordinances, the
board may make recommendations to the county council or the mayor for
(b) The board
shall consist of [
nine] eleven members, who shall be appointed by
the governor pursuant to section 26-34, provided that:
(1) Three members shall be appointed from a list of nominees submitted to the president of the senate;
(2) Three members shall be appointed from a list of nominees submitted by the speaker of the house of representatives;
members shall be appointed by the governor;
(4) The director of business, economic development, and tourism, or the director's designated representative, shall serve as an ex officio voting member of the board;
(5) The appointments shall reflect representation of a variety of businesses in the State;
(6) No more than two members shall be representatives from the same type of business; and
(7) There shall be at least one representative from each county.
For the purposes of paragraphs (1) and (2), nominations shall be solicited from small business organizations, state and county chambers of commerce, and other interested business organizations."
SECTION 4. Section 201M-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
agency having rules that affect small business shall submit by June 30 of each
,] to the board a list of those rules [ to
the small business regulatory review board;] and a report describing the
specific public purpose or interest for adopting the respective rules that
affect small business and any other reasons to justify their continued
implementation; provided that, by June 30 of each year, each agency shall
submit to the [ small business regulatory review] board a list of any
rules to be amended or repealed, based upon any new, amended, or repealed
statute[ . The agency shall also submit a report describing the specific
public purpose or interest for adopting the respective rules that affect small
business and any other reasons to justify their continued implementation.] that
impacts small business."
SECTION 5. Section 201M-7, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
board may solicit testimony from the public regarding any report submitted by
the agency under this section at a public meeting held pursuant to chapter 92.
Upon consideration of any report submitted by an agency under this section and
any public testimony, the board shall submit an evaluation report to the [
regular session of] legislature[ .] each even-numbered year.
The evaluation report shall include an assessment as to whether the public
interest significantly outweighs a rule's effect on small business and any
legislative proposal to eliminate or reduce the effect on small business. The
legislature may take any action in response to the report as it finds
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect upon its approval.
Small Business Regulatory Flexibility Act
Adopt a more explicit definition of "small business," clarify the powers of the Small Business Regulatory Review Board, increase the number of board members from nine to eleven, and clarify when reporting by the agencies is required for submission to the board and for submission by the board to the Legislature.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.