(a) There 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. 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 proposed, amended, or 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 rules, the board may make recommendations to the county council or the mayor for appropriate action.

Terms Used In Hawaii Revised Statutes 201M-5

  • Agency: means each state or county board, commission, department, or officer authorized by law to make rules, except those in the legislative or judicial branches. See Hawaii Revised Statutes 201M-1
  • Board: means the small business regulatory review board. See Hawaii Revised Statutes 201M-1
  • Chambers: A judge's office.
  • county: includes the city and county of Honolulu. See Hawaii Revised Statutes 1-22
  • Ex officio: Literally, by virtue of one's office.
  • Quorum: The number of legislators that must be present to do business.
  • Small business: means a for-profit 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

    (3) Employs fewer than one hundred full-time or part-time employees in Hawaii. See Hawaii Revised Statutes 201M-1

(b) The board shall consist of eleven members, who shall be appointed by the governor pursuant to § 26-34; provided that:

(1) Three members shall be appointed from a list of nominees submitted by 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;
(3) Two members shall be appointed from a list of nominees submitted by the board;
(4) Two members shall be appointed by the governor;
(5) 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;
(6) The appointments shall reflect representation of a variety of businesses in the State;
(7) No more than two members shall be representatives from the same type of business; and
(8) 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.

(c) Except for the ex officio member, all members of the board shall be either a current or former owner or officer of a business and shall not be an officer or employee of the federal, state, or county government. A majority of the board shall elect the chairperson. The chairperson shall serve a term of not more than one year, unless removed earlier by a two-thirds vote of all members to which the board is entitled.
(d) A majority of all the members to which the board is entitled shall constitute a quorum to do business, and the concurrence of a majority of all the members to which the board is entitled shall be necessary to make any action of the board valid.
(e) In addition to any other powers provided by this chapter, the board may:

(1) Adopt any rules necessary to implement this chapter;
(2) Organize and hold conferences on problems affecting small business; and
(3) Do any and all things necessary to effectuate the purposes of this chapter.
(f) The board shall submit an annual report to the legislature twenty days prior to each regular session detailing any requests from small business owners for review of any rule adopted by a state agency, and any recommendations made by the board to an agency or the legislature regarding the need for a rule change or legislation. The report shall also contain a summary of the comments made by the board to agencies regarding its review of proposed new or amended rules.

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