REPORT TITLE:
PUC; Management audit


DESCRIPTION:
Requires the Auditor to conduct a management audit of the Public
Utilities Commission and report back to the Legislature and
Governor before the convening of the Regular Session of 2001.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1882 
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1        
TWENTIETH LEGISLATURE, 2000                                PROPOSED
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE PUBLIC UTILITIES COMMISSION.



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

 1      SECTION 1.  The legislature finds that there is a need to
 
 2 conduct a management audit of the public utilities commission to
 
 3 ensure that the commission is equipped to handle the challenges
 
 4 of the twenty-first century.
 
 5      The legislature finds that previous management audits of the
 
 6 public utilities commission were conducted in 1975 and 1989 at
 
 7 the request of the legislature.  The 1975 audit, consisting of
 
 8 three volumes, found serious organizational, procedural, and
 
 9 staffing deficiencies at the commission, and spurred the
 
10 legislature to examine and reorganize the State's public
 
11 utilities regulatory program that resulted in legislative
 
12 changes.  The 1989 audit also found serious concerns with the
 
13 commission.  The audit found that heavy workloads and inadequate
 
14 resources, among other things, were often cited as reasons for
 
15 not doing such things as bringing rules up to date or developing
 
16 more adequate complaint handling and consumer education programs.
 
17      The legislature further finds that the public utilities
 
18 commission is currently faced with many challenges in meeting the
 
19 needs of Hawaii's residents in a changing global economy.  Since
 
20 the 1989 audit of the commission, there have been significant
 

 
Page 2                                                     1882 
                                     H.B. NO.           H.D. 1        
                                                        PROPOSED
                                                        

 
 1 technological advances in such areas as telecommunications and
 
 2 electrical restructuring that require a reexamination of the role
 
 3 of the commission's regulatory activities.  The legislature also
 
 4 recognizes the need for a regulatory structure that fosters
 
 5 innovation and efficiency in dealing with the competitiveness of
 
 6 a new economy.  Therefore, a legislative audit would be helpful
 
 7 in assisting the public utilities commission in making such a
 
 8 transition.
 
 9      Accordingly, the purpose of this Act is to require the
 
10 auditor to conduct a management audit of the public utilities
 
11 commission to assess the adequacy of the present utility
 
12 regulatory process in dealing with issues, problems, and
 
13 developments in complex and changing areas, such as
 
14 telecommunications, energy deregulation, and intergovernmental
 
15 relations and to report back to the legislature and governor
 
16 before the convening of the regular session of 2001.
 
17      SECTION 2.  The legislative auditor shall conduct a
 
18 management audit of the public utilities commission that shall
 
19 include, but not be limited to, the following topics:
 
20      (1)  Appropriateness and applicability of current utility
 
21           legislation;
 
22      (2)  Adequacy of coverage of current public utilities
 
23           commission policies, rules, and procedures;
 

 
Page 3                                                     1882 
                                     H.B. NO.           H.D. 1        
                                                        PROPOSED
                                                        

 
 1      (3)  Management of the public utilities commission and the
 
 2           division of consumer advocacy in terms of providing
 
 3           technical and analytical staff support in case
 
 4           management and enforcement of the public utilities
 
 5           commission's rules and regulations;
 
 6      (4)  The effectiveness of the public utilities commission
 
 7           and the division of consumer advocacy in dealing with
 
 8           telecommunications, energy, and other utility issues.
 
 9      SECTION 3.  The auditor shall submit the findings and
 
10 recommendations, including any proposed legislation, to the
 
11 legislature and the governor no later than twenty days prior to
 
12 the convening of the regular session of 2001.
 
13      SECTION 4.  This Act shall take effect upon its approval.