REPORT TITLE:
Small Business


DESCRIPTION:
Makes the law enacting the small business regulatory flexibility
act and the small business defender permanent.  Moves the small
business regulatory review board and the defender position to the
department of budget and finance for administrative purposes.
Appropriates $100,000 to the small business defender.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1956
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO SMALL BUSINESS.



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

 1      SECTION 1.  The purpose of this Act is to assist small
 
 2 businesses in this State by:
 
 3      (1)  Making the law enacting the Small Business Regulatory
 
 4           Flexibility Act and the small business defender
 
 5           permanent;
 
 6      (2)  Transferring the small business regulatory review board
 
 7           and the small business defender position to the
 
 8           department of budget and finance for administrative
 
 9           purposes; and
 
10      (3)  Appropriating funds to the small business defender.
 
11      SECTION 2.  Act 168, Session Laws of Hawaii 1998, section 2,
 
12 is amended by amending section    -5 to read as follows:
 
13      "   -5  Small business regulatory review board; powers.
 
14 (a)  There shall be established within the department of
 
15 [business, economic development, and tourism,] budget and finance
 
16 for administrative purposes, a small business regulatory review
 
17 board to consider any request from small business owners for
 
18 review of any rule adopted by a state agency and to make
 
19 recommendations to the agency or the legislature regarding the
 

 
Page 2                                                     1956
                                     H.B. NO.           
                                                        
                                                        


 1 need for a rule change or legislation.  For requests regarding
 
 2 county ordinances, the board may make recommendations to the
 
 3 county council or the mayor for appropriate action.
 
 4      (b)  The board shall consist of eleven members, who shall be
 
 5 appointed by the governor pursuant to section 26-34.  Selection
 
 6 for the initial board shall come from a list of nominees
 
 7 submitted by the small business task force on regulatory relief.
 
 8 Thereafter, the nominations shall be made from names submitted by
 
 9 any and all of the departmental advisory committees on small
 
10 business.  The appointments shall reflect representation of a
 
11 variety of small businesses in the State; provided that no more
 
12 than two members shall be representatives from the same type of
 
13 small business, and that there shall be at least two small
 
14 business representatives from each county.
 
15      (c)  All members of the board shall be either a current or
 
16 former owner or officer of a small business and shall not be an
 
17 officer or employee of the federal, state, or county government.
 
18 The governor shall appoint the initial chairperson of the board,
 
19 and a majority of the board shall elect subsequent chairpersons.
 
20 The chairperson shall serve a term of not more than one year,
 
21 unless removed earlier by a two-thirds vote of all members to
 
22 which the board is entitled.
 

 
 
 
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                                     H.B. NO.           
                                                        
                                                        


 1      (d)  A majority of all the members to which the board is
 
 2 entitled shall constitute a quorum to do business, and the
 
 3 concurrence of a majority of all the members to which the board
 
 4 is entitled shall be necessary to make any action of the board
 
 5 valid.
 
 6      (e)  In addition to any other powers provided by this
 
 7 chapter, the board may:
 
 8      (1)  Adopt any rules necessary to implement this chapter;
 
 9      (2)  Organize and hold conferences on problems affecting
 
10           small business; and
 
11      (3)  Do any and all things necessary to effectuate the
 
12           purposes of this chapter."
 
13      SECTION 3.  Act 168, Session Laws of Hawaii 1998, section 3,
 
14 is amended by amending section    -1 to read as follows:
 
15      " -1 Small business defender.(a)  There is established
 
16 within the [legislature] department of budget and finance for
 
17 administrative purposes a small business defender.  The small
 
18 business defender shall be appointed by the [senate president and
 
19 speaker of the house of representatives.  The senate president
 
20 and speaker of the house of representatives shall determine the
 
21 salary of the small business defender.  The senate president and
 
22 speaker of the house of representatives may also appoint
 

 
 
 
Page 4                                                     1956
                                     H.B. NO.           
                                                        
                                                        


 1 administrative support personnel who shall assist and support the
 
 2 small business defender.] governor without regard to chapters 76
 
 3 and 77, and shall serve at the pleasure of the governor.  The
 
 4 small business defender's salary shall be within the range of
 
 5 salaries paid to directors of the departments of the state
 
 6 government.  The small business defender shall be a member of the
 
 7 state employees' retirement system and shall be eligible to
 
 8 receive the benefits of any state or federal employee benefit
 
 9 program generally applicable to officers and employees of the
 
10 State.
 
11      (b)  In carrying out its duties under this section, the
 
12 small business defender may request staff assistance from the
 
13 department of budget and finance and other appropriate state
 
14 agencies.  The small business defender may also employ, without
 
15 regard to chapters 76 and 77, and at pleasure dismiss such
 
16 persons as it finds necessary for the performance of its
 
17 functions and fix their compensation.
 
18      [(b)] (c)  Unless otherwise specifically provided by law,
 
19 and upon written request by a small business, the small business
 
20 defender may represent, defend, and provide legal representation
 
21 to any small business, during any adjudicatory or contested
 
22 proceeding involving any civil citation issued by a state or
 

 
 
 
Page 5                                                     1956
                                     H.B. NO.           
                                                        
                                                        


 1 county agency in which the small business is a party; provided
 
 2 that the small business shall seek its own legal representation
 
 3 whenever the potential remedies against the small business may
 
 4 include fines or penalties that exceed $25,000 or may result in
 
 5 the suspension or revocation of a license.  The small business
 
 6 defender shall have the discretion to accept or refuse any case
 
 7 for good cause.  The small business defender may also engage in
 
 8 the following activities:
 
 9      (1)  Advocate and negotiate, upon consultation with the
 
10           small business regulatory review board, with federal,
 
11           state, and county agencies and officials on any matter
 
12           relating to and promoting the interests of small
 
13           business;
 
14      (2)  Conduct investigations to secure information useful in
 
15           the lawful administration of any provision in this
 
16           chapter;
 
17      (3)  Refer any appropriate matter to the auditor or
 
18           ombudsman for examination or investigation; and
 
19      (4)  Do any and all things necessary to effectuate the
 
20           purposes of this chapter.
 
21      [(c)] (d)  Each small business shall waive and release any
 
22 and all claims, damages, causes of action, and any request for
 

 
 
 
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                                     H.B. NO.           
                                                        
                                                        


 1 relief made against the small business defender or staff, the
 
 2 State or counties, their officers, employees, or agents, and
 
 3 arising from the legal representation of the small business by
 
 4 the small business defender provided under this section."
 
 5      SECTION 4.  Act 168, Session Laws of Hawaii 1998, is amended
 
 6 by amending section 5 to read as follows:
 
 7      "SECTION 5.  This Act shall take effect on July 1, 1998[,
 
 8 and shall be repealed as of June 30, 2002]."
 
 9      SECTION 5.  There is appropriated out of the general
 
10 revenues of the State of Hawaii the sum of $100,000, or so much
 
11 thereof as may be necessary for fiscal year 2000-2001, for the
 
12 small business defender in carrying out the purposes of this Act.
 
13      SECTION 6.  The sum appropriated shall be expended by the
 
14 small business defender for the purposes of this Act.
 
15      SECTION 7.  Statutory material to be repealed is bracketed.
 
16 New statutory material is underscored.
 
17      SECTION 8.  This Act shall take effect on July 1, 2000.
 
18 
 
19                              INTRODUCED BY:______________________