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.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            
THE SENATE                              S.B. NO.           2703
TWENTIETH LEGISLATURE, 2000                                
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
 

 
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 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 and report back to the legislature and governor before
 
12 the convening of the regular session of 2001.
 
13      SECTION 2.  The legislative auditor shall conduct a
 
14 management audit of the public utilities commission that shall
 
15 include but not be limited to the following:
 
16      (1)  A review of the policies and procedures under which the
 
17           public utilities commission is currently operating;
 
18      (2)  The identification of provisions of the Hawaii Revised
 
19           Statutes relating to the regulatory authority of the
 
20           public utilities commission and the determination of
 
21           whether the provisions are obsolete or no longer
 
22           applicable due to advances in technology, along with
 
23           recommendations as to whether those provisions should
 
24           be updated or repealed;
 

 
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 1      (3)  The identification of areas of regulation that tend to
 
 2           discourage innovation and efficiency or inhibit the
 
 3           development of business while serving no purpose in
 
 4           protecting the public interest;
 
 5      (4)  A review of the civil service structure of the
 
 6           commission with respect to the ability of the
 
 7           commission to obtain needed expertise in reviewing
 
 8           dockets;
 
 9      (5)  A review of the current and future staffing and
 
10           equipment needs of the commission to handle existing
 
11           and anticipating case loads;
 
12      (6)  A review of the commission's regulatory activities as
 
13           they interrelate with land use issues involving future
 
14           population growth and needs and location of power
 
15           generation and other utility facilities;
 
16      (7)  An analysis of the effectiveness of the public
 
17           utilities commission, including parameters for
 
18           measuring effectiveness; and
 
19      (8)  A review of the role of the commission as an active
 
20           enforcement agency or passive regulatory agency.
 
21      SECTION 3.  The auditor shall submit the findings and
 
22 recommendations, including any proposed legislation, to the
 
23 legislature and the governor no later than twenty days prior to
 
24 the convening of the regular session of 2001.
 

 
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 1      SECTION 4.  This Act shall take effect upon its approval.
 
 2 
 
 3                           INTRODUCED BY:  _______________________
 
 4                                           _______________________
 
 5                                           _______________________