Hawaii Strengthens Small Business Role In State's Regulatory Process

July 16, 2007; 04:38 AM
Hawaii has strengthened the role of its 112,000 small businesses in the state’s regulatory process with the passage of Senate Bill 188. 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 Hawaii’s 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.

“Governor Lingle and the Hawaii legislature have taken an important step toward creating a regulatory climate in which small businesses can prosper,” said Chief Counsel for Advocacy Thomas M. Sullivan.  “The new law requires state agencies to listen to the voice of small business earlier in the regulatory process.  That results in less burdensome and more effective regulation.  Hawaii small business owners clearly have friends in Governor Lingle, and the bill sponsor, Senator Sam Slom (R-8th),” he said.

Small businesses are a key part of Hawaii’s economy.  In 2005, according to Office of Advocacy research, 98.6 percent of Hawaii’s employer firms were small businesses, and they employed 263,673 workers or 57.4 percent of the state’s private work force.

By listening to small business, state agencies can foster a climate of entrepreneurial success so that small business continues to create jobs, innovate, broaden the tax base, and bring more Americans into the economic mainstream.  Regulatory flexibility for small business results in less burdensome rules without sacrificing important regulatory goals such as environmental quality, better working conditions, and food and drug safety.

“We’re pleased with the passage and signing of Senate Bill 188,” said Lynne Woods, Chairperson of Hawaii’s 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 Hawaii’s job-creating small businesses.”

The Office of Advocacy, the “small business watchdog” of the federal government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President.  It is the source for small business statistics presented in user-friendly formats, and it funds research into small business issues.

For more information on Advocacy’s state regulatory flexibility model legislation initiative, visit www.sba.gov/advo/laws/law_modeleg.html.