REPORT TITLE: 
Administrative Rules


DESCRIPTION:
Ensures that whenever an administrative rule is adopted,
amended, or repealed, the rule conforms to the related statutes.
Gives the head of the agency affected by administrative rules
more accountability for compliance and conformity to statutes.
Extends the sunset date of the Hawaii Small Business Regulatory
Flexibility Act from June 30, 2002, to June 30, 2006.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2188
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                     A BILL FOR AN ACT

RELATING TO ADMINISTRATIVE PROCEDURE.



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

 1      SECTION 1.  The legislature finds that under the current
 
 2 practice of the executive branch, a rule undergoes a series of
 
 3 reviews by several agencies, including the department of budget
 
 4 and finance, the department of business, economic development,
 
 5 and tourism, and the department of the attorney general, before
 
 6 it can actually be approved in its final form.  Final approval is
 
 7 issued by an executive memorandum.  The legislature finds that
 
 8 this practice is inefficient and recommends allowing a single
 
 9 department head to have the authority to sign off on a rule
 
10 without having to obtain the approval of multiple departments.
 
11      The purpose of this Act is to expedite the State's
 
12 rulemaking process by:
 
13      (1)  Ensuring that whenever an administrative rule is
 
14           adopted, amended, or repealed, the rule conforms to the
 
15           related statutes;
 
16      (2)  Giving the head of the agency affected by
 
17           administrative rules more accountability for compliance
 
18           and conformity to statutes; and
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (3)  Extending the sunset date of Act 168, SLH 1998, which
 
 2           established the Hawaii Small Business Regulatory
 
 3           Flexibility Act, from June 30, 2002, to June 30, 2006.
 
 4      SECTION 2.  Chapter 91, Hawaii Revised Statutes, is amended
 
 5 by adding a new section to be appropriately designated and to
 
 6 read as follows:
 
 7      "91-     Rulemaking procedure.  (a)  Subject to the
 
 8 requirements of this chapter, each agency shall develop and use
 
 9 flexible approaches in making, amending, or repealing rules that
 
10 meet the needs of the agency and that involve persons affected by
 
11 the agency's rules.  In making, amending, or repealing rules, the
 
12 head of the agency is responsible for ensuring that the rules
 
13 developed are in concert with the spirit and intent of the law
 
14 and may designate a representative to provide assistance in
 
15 fulfilling this responsibility.
 
16      (b)  After a public hearing has been held on any rule as
 
17 required by section 91-3, the proposed rule shall not be adopted
 
18 unless the head of the agency concurs that the proposed rule has
 
19 a rational nexus to the law and conforms to the letter, spirit,
 
20 and intent of the law."
 
21      SECTION 3.  Section 91-1, Hawaii Revised Statutes, is
 
22 amended by adding a new definition to be appropriately inserted
 
23 and to read as follows:
 

 
Page 3                                                     2188
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      ""Head of the agency" means any officer, board, commission,
 
 2 authority, public corporation, instrumentality or other body
 
 3 having charge of an agency."
 
 4      SECTION 4.  Act 168, Session Laws of Hawaii 1998, is amended
 
 5 by amending section 5 to read as follows:
 
 6      "SECTION 5.  This Act shall take effect on July 1, 1998, and
 
 7 shall be repealed [as of] on June 30, [2002.] 2006."
 
 8      SECTION 5.  Statutory material to be repealed is bracketed.
 
 9 New statutory material is underscored.
 
10      SECTION 6.  This Act shall take effect upon its approval.