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The Honolulu Advertiser
Posted on: Friday, May 30, 2008

Small-business bill of rights awaits governor's signature

By Curtis Lum
Advertiser Staff Writer

Business advocates are urging Gov. Linda Lingle to sign a measure that creates a Small Business Bill of Rights intended to reduce the burden state and county regulations place on small businesses.

HB 2781 was passed by the Legislature this past session and was sent to Lingle for her signature. Lingle spokesman Russell Pang said the governor is reviewing all bills and has until July 8 to act on them.

Pang encouraged small businesses and others to submit comments to the governor's office to aid her in her decision.

The intent of the measure is to reduce the regulatory roadblocks that businesses face and to direct government agencies to be more responsive to the needs of business owners. Many of the 16 "rights" already exist in some form in the Hawai'i Revised Statutes, but the measure would consolidate them into one law.

The bill is supported by many small-business groups and by the state Small Business Regulatory Review Board, which evaluates proposed rules that could affect small businesses.

Tim Lyons, president of the Hawai'i Business League, said the bill of rights is a "huge step" in helping small businesses navigate the rules and regulations they face.

"Small business has historically griped about government not treating them fairly," Lyons said. "What this bill does is lay out some very specific rights and obligations of government in dealing with small businesses."

Among the rights, businesses can expect agencies to provide a "prompt, accurate and courteous response" to a request for information.

Businesses can also expect a timely response to an application for a permit.

But Lyons believes the most important right in the bill will require an agency to justify to the regulatory review board the need for a proposed rule or regulation if it is more stringent than one already on the books. The agency must show why a new rule is needed and the cost it will have on businesses.

Although the review board cannot prevent a rule from being implemented, Lyons said, this requirement would bring more awareness to proposed regulations and provide more opportunities for input.

"There are a number of situations where the county says one thing, the state says another. It's very difficult, particularly for some small businesses that operate interisland when you have all different kinds of regulations and you have to figure out what's the new one," Lyons said. "It's really important to have that kind of coordinating thing. It's not really a prohibition on anybody making a new law, near as much as it is saying, 'Let's coordinate those laws and those regulations so it's easy for people to live by them.' "

Reach Curtis Lum at culum@honoluluadvertiser.com.