SB 418: RELATING TO REGULATORY SUNSET REVIEW IN HAWAII.

A BILL FOR AN ACT

RELATING TO REGULATORY SUNSET REVIEW IN HAWAII.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the proliferation of administrative rules and regulations can lead to inefficiencies, outdated policies, and unnecessary burdens on businesses and residents.  The legislature also finds that agencies will often build upon existing administrative rules to add even more rules and complexity.  Other states have also faced these issues and have created several structures to deal with runaway rulemaking.  For example, the State of Idaho has implemented a successful regulatory review program that ensures periodic evaluation and elimination of unnecessary regulations.  To reverse the State's abysmal ranking as a place to do business, the legislature finds that establishing a similar program in the State would help to address one of the biggest factors that impedes businesses and residents--too many rules and fees that may not be legally valid anymore since the authority to establish these rules no longer exists, or is irrelevant.

     Accordingly, the purpose of this Act is to establish a program in the State to review, streamline, and modernize the Hawaii Administrative Rules by implementing a rolling regulatory sunset and review process. 

     SECTION 2.  (a)  The department of the attorney general shall implement and oversee a regulatory review program to evaluate all administrative rules adopted by state agencies.

     (b)  Each state agency shall review at minimum, twenty per cent of its administrative rules annually so that all rules are reviewed at least once every five years. 

     (c)  The purpose of the review is to:

     (1)  Identify and repeal rules that are no longer necessary, outdated, or duplicative;

     (2)  Identify rules that are not supported by statutory authority;

     (3)  Simplify and streamline rules to reduce regulatory burdens; and

     (4)  Improve clarity and accessibility of administrative rules. 

     SECTION 3.  (a)  Each state agency shall submit a report annually to the department of the attorney general summarizing:

     (1)  The rules the state agency reviewed during the year;

     (2)  Recommendations for retention, modification, or repeal of each reviewed rule; and

     (3)  Justifications for each recommendation.

     (b)  The department of the attorney general shall:

     (1)  Review agency reports to ensure consistency with statutory requirements and state policy;

     (2)  Compile an annual regulatory review report summarizing findings and recommendations for all state agencies; and

     (3)  Submit the report to the governor and legislature no later than twenty days prior to the convening of each regular session. 

     SECTION 4.  The department of the attorney general shall seek input from stakeholders and the general public as part of the review process by accepting public comments for at least sixty days.

     SECTION 5.  The department of the attorney general shall notify the governor and legislature of any noncompliance with the provisions of this Act by state agencies. 

     SECTION 6.  The department of the attorney general shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to implement the regulatory review program established under this Act. 

     SECTION 7.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to implement and administer the regulatory review program established pursuant to this Act.

     The sums appropriated shall be expended by the department of the attorney general for the purposes of this Act.

     SECTION 8.  This Act shall take effect on January 1, 2525.

Report Title:

AG; Regulatory Review Program; Hawaii Administrative Rules; State Agencies; Reports; Rules; Appropriations

Description:

Establishes a regulatory review program overseen by the Department of the Attorney General to evaluate all Hawaii Administrative Rules adopted by state agencies and identify any rules that should be retained, modified or repealed.  Requires each state agency to review 20 per cent of their rules every year and submit a report to the Department of the Attorney General.  Requires the Department of the Attorney General to notify the Governor and Legislature of any noncompliance by a state agency, adopt rules, and submit annual reports to the Legislature and Governor.  Appropriates funds.  Effective 1/1/2525.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO REGULATORY SUNSET REVIEW IN HAWAII.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the proliferation of administrative rules and regulations can lead to inefficiencies, outdated policies, and unnecessary burdens on businesses and residents.  The legislature also finds that agencies will often build upon existing administrative rules to add even more rules and complexity.  Other states have also faced these issues and have created several structures to deal with runaway rulemaking.  For example, the State of Idaho has implemented a successful regulatory review program that ensures periodic evaluation and elimination of unnecessary regulations.  To reverse the State's abysmal ranking as a place to do business, the legislature finds that establishing a similar program in the State would help to address one of the biggest factors that impedes businesses and residents—-too many rules and fees that may not be legally valid anymore since the authority to establish these rules no longer exists, or is irrelevant.

     Accordingly, the purpose of this Act is to establish a program in the State to review, streamline, and modernize the Hawaii Administrative Rules by implementing a rolling regulatory sunset and review process. 

     SECTION 2.  (a)  The department of the attorney general shall oversee a regulatory review program to evaluate all administrative rules adopted by state agencies.

     (b)  Each state agency shall review at minimum, twenty per cent of its administrative rules annually so that all rules are reviewed at least once every five years. 

     (c)  The purpose of the review is to:

     (1)  Identify and repeal rules that are no longer necessary, outdated, or duplicative;

     (2)  Identify rules that are not supported by statutory authority;

     (3)  Simplify and streamline rules to reduce regulatory burdens; and

     (4)  Improve clarity and accessibility of administrative rules. 

     SECTION 3.  (a)  Each state agency shall submit a report annually to the department of the attorney general summarizing:

     (1)  The rules the state agency reviewed during the year;

     (2)  Recommendations for retention, modification, or repeal of each reviewed rule; and

     (3)  Justifications for each recommendation.

     (b)  The department of the attorney general shall:

     (1)  Review agency reports to ensure consistency with statutory requirements and state policy;

     (2)  Compile an annual regulatory review report summarizing findings and recommendations for all state agencies; and

     (3)  Submit the report to the governor and legislature no later than twenty days prior to the convening of each regular session. 

     SECTION 4.  (a)  State agencies shall seek input from stakeholders and the general public as part of the review process by:

     (1)  Publishing a list of rules under review on the agency's website;

     (2)  Accepting public comments for at least sixty days; and

     (3)  Hosting public hearings as needed.

     (b)  State agencies shall include a summary of public input in their annual report to the department of the attorney general.

     SECTION 5.  (a)  If a state agency fails to comply with the review requirements set forth in this Act, the rules under the state agency's jurisdiction shall be automatically repealed at the end of the five-year review cycle unless specifically extended by the legislature. 

     (b)  The department of the attorney general shall notify the governor and legislature of any noncompliance by state agencies. 

     SECTION 6.  The department of the attorney general shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to implement the regulatory review program established under this Act. 

     SECTION 7.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to implement and administer the regulatory review program established pursuant to this Act.

     The sums appropriated shall be expended by the department of the attorney general for the purposes of this Act.

     SECTION 8.  This Act shall take effect on July 1, 2025.

Report Title:

AG; Regulatory Review Program; Hawaii Administrative Rules; Reports; Rules; Appropriations

Description:

Establishes a regulatory review program overseen by the Department of the Attorney General to evaluate all Hawaii Administrative Rules adopted by state agencies and identify any rules that should be retained, modified or repealed.  Requires each state agency to review 20 per cent of their rules every year and submit a report to the Department of the Attorney General.  Automatically repeals administrative rules at the end of each 5-year review cycle for any state agency that fails to comply, unless the review cycle is extended by the Legislature.  Requires the Department of the Attorney General to notify the Governor and Legislature of any noncompliance by a state agency, adopt rules, submit annual reports to the Legislature and Governor.  Appropriates funds.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 189

Honolulu, Hawaii

RE:    S.B. No. 418

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Government Operations, to which was referred S.B. No. 418 entitled:

"A BILL FOR AN ACT RELATING TO REGULATORY SUNSET REVIEW IN HAWAII,"

begs leave to report as follows:

     The purpose and intent of this measure is to establish a Regulatory Review Program overseen by the Department of the Attorney General to evaluate the Hawaii Administrative Rules, utilizing a five-year rolling regulatory sunset and review process.  

     Your Committee received testimony in support of this measure from the Grassroot Institute of Hawaii, Maui Chamber of Commerce, and one individual.

     Your Committee received testimony in opposition to this measure from the Department of the Attorney General, Department of Commerce and Consumer Affairs, Department of Labor and Industrial Relations, and Department of Land and Natural Resources.

     Your Committee finds that the proliferation of antiquated, contradictory, or baseless administrative rules unduly hinders residents and businesses and causes inefficiencies in the State.  Without a mechanism for the regular review of administrative rules, agencies often build upon existing rules to create a web of complexity.  Fear of the burden of these administrative rules, which have not been subject to the legislative policymaking process, can deter businesses from operating in the State and infringe on residents' personal freedoms.  This measure will simplify, modernize, and streamline the Hawaii Administrative Rules by establishing a clearly structured regulatory review process.

     While your Committee appreciates the positive response expressed by the Attorney General, it acknowledges the concerns raised in the testimony of the Department of the Attorney General that the review process proposed in this measure may prove too burdensome for state agencies in terms of funds, time, and labor.

     Accordingly, your Committee has amended this measure by:

     (1)  Making the Department of the Attorney General, rather than the state agencies; responsible for seeking public input on the review process;

     (2)  Deleting language that would have required state agencies to:

          (A)  Publish a list of the administrative rules under review to the agency's website;

          (B)  Hold public hearings on the review process; and

          (C)  Include a summary of public input in the agency's annual report to the Department of the Attorney General;

     (3)  Deleting language that would have automatically repealed certain rules if a state agency failed to comply with the review requirements of this measure;

     (4)  Inserting an effective date of January 1, 2525, to encourage further discussion; and

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 418, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 418, S.D. 1, and be referred to your Committees on Ways and Means and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Government Operations,