For Immediate Release: July 20, 2007
DBEDT Release News 07-15

HONOLULU--The Small Business Regulatory Review Board announced that the State has strengthened the role of small businesses in the state's regulatory process with the enactment of Senate Bill 188 (Act 217). The bill, recently signed into law by Governor Linda Lingle, requires state agencies to consider their impact on small business earlier in the regulatory process and it expands the duties of the Small Business Regulatory Review Board. It also strengthens the current statute by requiring agencies every other year to review all existing rules that affect small business to ensure that they continue to serve their public purpose. The Board will work closely with each state department and agency on compliance,

"As part of my Administration's commitment to foster a business-friendly environment in Hawai‘i, it continues to be important for state agencies to listen to the voice of small business earlier in the regulatory process and to recognize the potential adverse effects and unintended consequences of regulation," said Governor Lingle.

"We're pleased with the passage and signing of Senate Bill 188," said Lynne Woods, chairperson of the Small Business Regulatory Review Board. "By strengthening the role of the Small Business Regulatory Review Board, the new law allows us to continue our work on behalf of Hawai‘i's job-creating small businesses."

The responsibilities of the Small Business Regulatory Review Board include:

• Commentary on small business impact statements to the rule-drafting Agency
• Identification and commentary on business impacts of existing administrative rules and regulations
• Recommendations to the Governor's office, agencies or the Legislature regarding the need for an administrative rule or legislative change
• Recommendations to the mayors or county councils regarding county rules
• Review of small business petitions and complaints on business impact

"Small business is the heart of Hawai‘i's economy, employing about 60 percent of our workforce," said Ted Liu, Director of the Department of Business, Economic Development and Tourism. "All government agencies must think carefully about the impact any new regulation, as well as the ones that are already on the books, could have on businesses in our state. This new law requires it."

The Small Business Regulatory Review Board was established on July 1, 1998 with passage of the Small Business Regulatory Flexibility Act. Subsequently, the role of the Board has been codified in Chapter 201M, Hawai‘i Revised Statutes.

The Board is comprised of current or former owners or officers of small businesses from across the State, appointed by the Governor with the consent of the Senate. They serve on a volunteer basis, and are charged with considering any request from small business owners for review of any state or county administrative rule.

The Board has been meeting monthly since July 1999.

Dori Palcovich, Business Advocate, DBEDT
Phone: (808) 586-2594
Email: dpalcovi@dbedt.hawaii.gov