L'espace de travail IA pour les professionnels du droit
Essai gratuit de 14 jours (10 questions/jour pendant l'essai)
chapter-201m•Hawaii Revised Statutes, Chapter 201M — Small Business Regulatory Flexibility Act
chapter-201mHaw. Rev. Stat. ch. 201MCode1 janv. 1998
Division 1. Government — Title 13. Planning and Economic Development
Hawaii Revised Statutes as published by the Hawaii State Legislature (files updated 1/5/2026 7:14 PM).
As used in this chapter, unless the context clearly requires otherwise:
"Advisory committee" means an advisory committee on small business as established in section 201M-4.
"Affected small businesses" or "affects small business" means any potential or actual requirement imposed upon a small business through an agency's proposed or adopted rule that will cause a direct and significant economic burden upon a small business, or is directly related to the formation, operation, or expansion of a small business.
"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.
"Board" means the small business regulatory review board.
"Rule" shall have the same meaning as in section 91-1.
"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.
[L 1998, c 168, pt of §2, §5; am L 2002, c 202, §§2, 5; am L 2007, c 217, §2; am L 2017, c 174, §2]
(a) Prior to submitting proposed rules for adoption, amendment, or repeal under section 91-3, the agency shall determine whether the proposed rules affect small business, and if so, the availability and practicability of less restrictive alternatives that could be implemented. This section shall not apply to emergency rulemaking.
(b) If the proposed rules affect small business, the agency shall consider creative, innovative, or flexible methods of compliance for small businesses and prepare a small business impact statement to be submitted with the proposed rules to the departmental advisory committee on small business and the board when the rules are essentially complete and before the rules are submitted to the governor for approval for public hearing. The statement shall provide a reasonable determination of the following:
(1) The businesses that will be directly affected by, bear the costs of, or directly benefit from the proposed rules;
(2) Description of the small businesses that will be required to comply with the proposed rules and how they may be adversely affected;
(3) In dollar amounts, the increase in the level of direct costs such as fees or fines, and indirect costs such as reporting, recordkeeping, equipment, construction, labor, professional services, revenue loss, or other costs associated with compliance;
(4) The probable monetary costs and benefits to the implementing agency and other agencies directly affected, including the estimated total amount the agency expects to collect from any additionally imposed fees and the manner in which the moneys will be used;
(5) The methods the agency considered or used to reduce the impact on small business such as consolidation, simplification, differing compliance or reporting requirements, less stringent deadlines, modification of the fines schedule, performance rather than design standards, exemption, or any other mitigating techniques;
(6) How the agency involved small business in the development of the proposed rules; and
(7) Whether the proposed rules include provisions that are more stringent than those mandated by any comparable or related federal, state, or county standards, with an explanation of the reason for imposing the more stringent standard.
(c) When a proposed rule includes provisions that are more stringent than those mandated by any comparable or related federal, state, or county standards, the agency shall, in addition to the information required by subsection (b), include in the small business impact statement information comparing the costs and benefits of the standard set by the proposed rule to the costs and benefits of the standard under the comparable or related federal, state, or county law. The agency shall also include an explanation of its decision to impose the higher standard. The agency's comparison and justification shall include:
(1) A description of the public purposes to be served by imposing the standard under the proposed rule;
(2) The text of the related federal, state, or county law, including information about the purposes and applicability of the law;
(3) A comparison between the proposed rule and the related federal, state, or county law, including a comparison of their purposes and of the standards and their application and administration;
(4) A comparison of the monetary costs and benefits to the implementing agency and other agencies directly affected, of imposing the proposed standard, with the costs and benefits of imposing or deferring to the related federal, state, or county standard, as well as a description of the manner in which any additional fees derived from imposition of the proposed standard are to be used; and
(5) A comparison of the adverse effects on small businesses of the standard imposed by the proposed rule, with the adverse effects on small business of the related federal, state, or county standard.
(d) This chapter shall not apply to proposed rules adopted by an agency to implement a statute or ordinance that does not require an agency to interpret or describe the requirements of the statute or ordinance, such as federally-mandated regulations that afford the agency no discretion to consider less restrictive alternatives.
[L 1998, c 168, pt of §2, §5; am L 2002, c 202, §5; am L 2007, c 217, §3; am L 2008, c 230, §3]
(a) For any proposed rule that affects small business, the agency shall also submit a small business statement to the small business regulatory review board and the departmental advisory committee on small business after the public hearing is held. This section shall not apply to emergency rules. The small business statement required by this section shall provide the following information:
(1) A description of how opinions or comments from affected small business were solicited, a summary of the public and small business comments, and a summary of the agency's response to those comments;
(2) The number of persons who:
(A) Attended the public hearing;
(B) Testified at the hearing; and
(C) Submitted written comments; and
(3) If there was a request to change the proposed rule at the hearing in a way that affected small business, a statement of the reasons for adopting the proposed rule, the reason why a requested change was not made, and the problems or negative result the change would provide if adopted.
(b) If the small business regulatory review board finds that a statement provided pursuant to subsection (a)(3):
(1) Indicates inconsistency with any of the agency's determinations under section 201M-2(b); or
(2) Does not address the concerns of public input,
the board with good cause may request a written response from the agency explaining the rationale used to deny the public concerns within ten working days of receipt of the small business statement after public hearing. The agency shall respond in writing to the board's concerns within ten working days.
(c) The written response from an agency required in subsection (b), at a minimum, shall:
(1) Specifically address each issue and concern raised in the board's request for a written response; and
(2) Affirmatively state that the agency has considered all written and oral testimony received at the agency's public hearing and has addressed all issues or concerns raised in the written and oral testimony.
[L 1998, c 168, pt of §2, §5; am L 2002, c 202, §5; am L 2012, c 241, §2]
[§201M-4] Advisory committee on small business; consultation process for proposed rules. (a) There may be established within and administratively attached to every department of the State or county whose rules affect small business activities, an advisory committee on small business. The advisory committee shall consist of three or more odd number of members appointed by the department and may advise more than one department. The department shall have the authority to appoint members to the advisory committee and to fill any vacancies. The members shall serve on a volunteer basis and have experience or knowledge of the effect of regulation by those departments on the formation, operation, or expansion of a small business. No person shall serve on the small business regulatory review board and an advisory committee on small business concurrently. The advisory committees shall not be subject to the requirements of chapter 91.
(b) When the agency is proposing rules that affect small business, the agency may consult with the administratively attached departmental advisory committee on small business regarding any matter related to the proposed rules prior to complying with the rulemaking requirements provided in chapter 91. Each agency shall develop its own internal management procedures for soliciting comments during the drafting of proposed rules from affected small businesses. The agency may develop creative procedures for the solicitation of comments from affected small businesses during the drafting or development of proposed rules.
(c) If necessary, any group or members of affected small businesses may also be consulted by the agency to formulate the relevant language, develop criteria, and provide any other expertise to ensure that the proposed rules will be drafted in a manner that will protect the public health, welfare, and safety without placing an undue and significant burden upon small business.
[L 1998, c 168, pt of §2, §5; am L 2002, c 202, §5]
(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 or for review of any legislation affecting small businesses, 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.
(b) The board shall consist of eleven members, who shall be appointed by the governor pursuant to section 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 appointed or confirmed to serve on the board, but not less than five, shall constitute a quorum to do business, and the concurrence of a majority of all the members appointed or confirmed to serve on the board, but not less than five, 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 proposed, amended, or adopted by a state agency or for review of any legislation affecting small businesses, 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.
[L 1998, c 168, pt of §2, §5; am L 2002, c 202, §§3, 5; am L 2007, c 217, §4; am L 2012, c 241, §3; am L 2017, c 174, §3; am L 2018, c 18, §5; am L 2019, c 247, §1; am L 2024, c 67, §1; am L 2025, c 75, §1]
(a) In addition to the basis for filing a petition provided in section 91‑6, any affected small business may file a written petition with the agency that has adopted the rules objecting to all or part of any rule affecting small business on any of the following grounds:
(1) The actual effect on small business was not reflected in, or significantly exceeded, the small business impact statement submitted prior to the adoption of the rules;
(2) The small business impact statement did not consider new or significant economic information that reveals an undue impact on small business;
(3) These impacts were not previously considered at the public hearing on the rules;
(4) The rules create an undue barrier to the formation, operation, and expansion of small businesses in a manner that significantly outweighs its benefit to the public;
(5) The rules duplicate, overlap, or conflict with rules adopted by another agency or violate the substantive authority under which the rules were adopted; or
(6) The technology, economic conditions, or other relevant factors justifying the purpose for the rules have changed or no longer exist.
(b) Upon submission of the petition, the agency shall forward a copy of the petition to the board, as notification of a petition filed under this chapter. The agency shall promptly consider the petition and may seek advice and counsel regarding the petition from the appropriate departmental advisory committee on small business. Within sixty days after the submission of the petition, the agency shall determine whether the impact statement or the public hearing addressed the actual and significant impact on small business. The agency shall submit a written response of the agency's determination to the board within sixty days after receipt of the petition. If the agency determines that the petition merits the adoption, amendment, or repeal of a rule, it may initiate proceedings in accordance with section 91-3.
(c) If the agency determines that the petition does not merit the adoption, amendment, or repeal of any rule, any affected small business may seek a review of the decision by the board. The board shall promptly convene a meeting pursuant to chapter 92 for the purpose of soliciting testimony that will assist in its determination whether to recommend that the agency initiate proceedings in accordance with section 91-3. The board may base its recommendation on any of the following reasons:
(1) The actual effect on small business was not reflected in, or significantly exceeded, the impact statement submitted prior to the adoption of the rules;
(2) The impact statement did not consider new or significant economic information that reveals an undue impact on small business;
(3) These impacts were not previously considered at the public hearing on the rules;
(4) The rules create an undue barrier to the formation, operation, and expansion of small businesses in the State in a manner that significantly outweighs its benefit to the public;
(5) The rules duplicate, overlap, or conflict with rules adopted by another agency or violate the substantive authority under which the rules were adopted; or
(6) The technology, economic conditions, or other relevant factors justifying the purpose for the rules have changed or no longer exist.
(d) If the board recommends that an agency initiate rulemaking proceedings for any reason provided in subsection (c), it shall submit to the legislature an evaluation report and the agency's response as provided in subsection (b). The legislature may subsequently take any action in response to the evaluation report and the agency's response as it finds appropriate.
(e) If the board does not recommend that an agency initiate rulemaking proceedings, the board shall notify the small business of its decision and inform the small business that the small business may submit a complaint to the ombudsman pursuant to chapter 96 regarding the decision of the agency or board.
(f) Nothing in this section shall entitle an affected small business to a contested case hearing under chapter 91.
[L 1998, c 168, pt of §2, §5; am L 2002, c 202, §5; am L 2007, c 217, §5; am L 2017, c 12, §12]
(a) Each agency having rules that affect small business shall submit to the board by June 30 of each odd-numbered year, a list of those rules and a report describing the specific public purpose or interest for adopting the respective rules that affect small business and any other reasons to justify continued implementation of the rules; provided that, by June 30 of each year, each agency shall submit to the board a list of any rules to be amended or repealed, based upon any new, amended, or repealed statute that impacts small business.
(b) The board shall provide to the head of each agency a list of any rules adopted by the agency that affect small business and have generated complaints or concerns, including any rules that the board determines may duplicate, overlap, or conflict with other rules, or exceed statutory authority. Within forty-five days after being notified by the board of the list, the agency shall submit a written report to the board in response to the complaints or concerns. The agency shall also state whether the agency has considered the continued need for the rules and the degree to which technology, economic conditions, and other relevant factors may have diminished or eliminated the need for maintaining the rules.
(c) The board may solicit testimony from the public regarding any report submitted by the agency under this section at a public meeting held pursuant to chapter 92. Upon consideration of any report submitted by an agency under this section and any public testimony, the board shall submit an evaluation report to the legislature each even-numbered year. The evaluation report shall include an assessment as to whether the public interest significantly outweighs a rule's effect on small business and any legislative proposal to eliminate or reduce the effect on small business. The legislature may take any action in response to the report as it finds appropriate.
[L 1998, c 168, pt of §2, §5; am L 2002, c 202, §5; am L 2007, c 217, §6; am L 2012, c 241, §4; am L 2017, c 174, §4]
(a) Except where a penalty or fine is assessed pursuant to a program approved, authorized, or delegated under a federal law, any agency authorized to assess civil penalties or fines upon a small business shall waive or reduce any penalty or fine as allowed by federal or state law for a violation of any statute, ordinance, or rules by a small business under the following conditions:
(1) The small business corrects the violation within a minimum of thirty days after receipt of a notice of violation or citation; and
(2) The violation was unintentional or the result of excusable neglect; or
(3) The violation was the result of an excusable misunderstanding of an agency's interpretation of a rule.
(b) Subsection (a) shall not apply:
(1) When a small business fails to exercise good faith in complying with the statute or rules;
(2) When a violation involves wilful or criminal conduct;
(3) When a violation results in serious health and safety impacts;
(4) To violations of chapters 6E, 180, 180C, 181, 182, 183, 183C, 183D, 186, 187A, 188, 188F, 189, 190, 190D, 195, 195D, 195F, 205, 205A, 340A, 340E, 341, 342B, 342C, 342D, 342E, 342F, 342G, 342H, 342I, 342J, 342L, and 342P;
(5) To violations of sections 200-9(b) to (d), 200-24(4), 200-37, and 200-38; or
(6) To violations of administrative rules promulgated pursuant to section 200-4(a)(6); except for rules pertaining to matters listed in section 200-4(a)(6)(A), (B), (C), and (D).
(c) An agency may adopt rules to implement the requirements of this section.
[L 1998, c 168, pt of §2, §5; am L 2002, c 202, §5; am L 2004, c 206, §1; am L 2017, c 12, §13]
The governor may execute any executive order, memorandum, or directive necessary to implement any provision of this chapter.
[L 1998, c 168, pt of §2, §5; am L 2002, c 202, §5]
Connectez Omnilex pour rechercher dans le corpus juridique depuis votre assistant IA.