STAND. COM. REP. NO. 789-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1864
                                     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 Consumer Protection and Commerce, to which
was referred H.B. No. 1864 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to increase governmental
efficiency by removing the requirement that full rulemaking
procedures be followed to repeal rules adopted pursuant to a
statute or ordinance that has been subsequently repealed.  This
bill provides that rules are automatically repealed along with
their authorizing statute or ordinance.

     Testimony in support of this measure was submitted by the
Department of the Attorney General (AG), Small-Business Economic
Revival Force, General Contractors Association of Hawaii, Land
Use Research Foundation of Hawaii, and Building Industry
Association.  The Office of the Lieutenant Governor, Housing and
Community Development Corporation of Hawaii (HCDCH), Department
of Business, Economic Development, and Tourism (DBEDT), and
Chamber of Commerce of Hawaii supported the intent of this bill.
AG, HCDCH, and DBEDT suggested amendments.

     Your Committee finds that the repeal of rules that have lost
their authorizing statute or ordinance is a housekeeping activity
that should not be accompanied by full rulemaking procedures and
the resultant expenditure of limited governmental time and
resources that these procedures require.


 
 
                                 STAND. COM. REP. NO. 789-00
                                 Page 2

 
     This measure has been amended to address concerns expressed
by AG and HCDCH.  Language that might have inadvertently caused
chapter 91, Hawaii Revised Statutes, procedures other than notice
procedures to apply to the "automatic" repeal of rules has been
removed.

     In addition, an exemption from automatic repeal has been
provided at the request of HCDCH, an entity that was formed by
consolidation of the Housing Finance and Development Corporation,
Hawaii Housing Authority, and Rental Housing Trust Fund.  The
consolidation repealed existing agency statutes and transferred
agency functions and rules to HCDCH.  Under the exemption, rules
of agencies or departments whose functions and rules have been
transferred to another agency or department are not subject to
automatic repeal.

     Your Committee has made a technical, nonsubstantive
amendment for purposes of clarity and consistency.
 
     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. 1864, as amended herein, and recommends that
it pass Third Reading in the form attached hereto as H.B. No.
1864, H.D. 1.

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



                                   ______________________________
                                   RON MENOR, Chair