THE SENATE                           S.C.R. NO.            168
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                    SENATE  CONCURRENT
                        RESOLUTION

  REQUESTING A MANAGEMENT AUDIT OF THE PUBLIC UTILITIES
    COMMISSION.


 1        WHEREAS, the Legislature finds that there is a need to
 2   conduct a management audit of the Public Utilities Commission
 3   to ensure that the Commission is equipped to handle the
 4   challenges of the twenty-first century; and
 5   
 6        WHEREAS, the last management audit of the Public Utilities
 7   Commission was conducted by the Auditor in 1989 and findings
 8   revealed serious managerial concerns; and
 9   
10        WHEREAS, since then, there have been significant
11   technological advances in such areas as telecommunications and
12   electrical utility restructuring that require a reexamination
13   of the role of the Commission's regulatory activities; and
14   
15        WHEREAS, a management audit would be helpful in assisting
16   the Public Utilities Commission by providing recommendations on
17   a regulatory structure to ensure that it is able to efficiently
18   comprehend, regulate, and manage the innovations in the new
19   economy; now, therefore,
20   
21        BE IT RESOLVED by the Senate of the Twentieth Legislature
22   of the State of Hawaii, Regular Session of 2000, the House of
23   Representatives concurring, that the Auditor is requested to
24   conduct a management audit of the Public Utilities Commission;
25   and
26   
27        BE IT FURTHER RESOLVED that the management audit shall
28   include but not be limited to the following:  
29   
30        (1)  A review of the policies and procedures under which
31             the Public Utilities Commission is currently
32             operating; 
33   
34        (2)  A review of the Hawaii Revised Statutes relating to
35             the regulatory authority of the Public Utilities
36             Commission and recommendations as to provisions that
37             should be updated or repealed; 

 
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 1   
 2        (3)  The identification of areas of regulation that tend
 3             to discourage innovation and efficiency or inhibit
 4             the development of business while serving no purpose
 5             in protecting the public interest; 
 6   
 7        (4)  A review of the civil service structure of the
 8             Commission with respect to the ability of the
 9             Commission to obtain needed expertise in reviewing
10             dockets; 
11   
12        (5)  A review of the current and future staffing and
13             equipment needs of the Commission to handle existing
14             and anticipated case loads; 
15   
16        (6)  A review of the Commission's regulatory activities as
17             they interrelate with land use issues involving
18             future population growth and needs and location of
19             power generation and other utility facilities; 
20   
21        (7)  An analysis of the effectiveness of the Public
22             Utilities Commission, including parameters for
23             measuring effectiveness; and 
24   
25        (8)  A review of the role of the Commission as an active
26             enforcement agency or passive regulatory agency;
27   
28   and
29   
30        BE IT FURTHER RESOLVED that the Auditor submit a report on
31   the management audit to the Legislature no later than twenty
32   days prior to the convening of the Regular Session of 2001; and
33   
34        BE IT FURTHER RESOLVED that certified copies of this
35   Concurrent Resolution be transmitted to the Auditor and the
36   Public Utilities Commission.
37 
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40                         OFFERED BY:  ____________________________