STAND. COM. REP. NO. 2931

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2467
                                        H.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 2467, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE CONSUMER ADVOCATE,"

begs leave to report as follows:

     The purpose of this measure is to allow the Division of
Consumer Advocacy of the Department of Commerce and Consumer
Affairs (DCCA) to employ its own attorneys.

     The DCCA, Public Utilities Commission (PUC), Hawaiian
Electric Company, Inc., GTE, Kauai Electric, The Gas Company, and
an individual submitted testimony on the measure.

     As part of its mandate to represent and protect the
interests of consumers of utility services, the Division of
Consumer Advocacy is responsible for analyzing applications filed
with the PUC by regulated utilities.  These analyses require a
thorough understanding of theories supporting utility regulation,
including those grounded in accounting, engineering, finance,
economics, and statistics.  Additionally, issues raised in PUC
dockets are interrelated and docket proceedings span a number of
years.  Therefore, the division requires legal counsel who have
an understanding of the underlying theories of utility regulation
and an institutional knowledge of the issues and their
interrelationships.  

     Currently, the division is provided legal counsel through
the Office of the Attorney General.  However, a high turnover of

 
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                                   STAND. COM. REP. NO. 2931
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deputy attorneys general assigned to the division over the years
has made it difficult for the division to retain legal counsel
with an understanding of the technical and complex issues
involved in utility regulation.  This measure will enable the
division to hire its own attorneys and to develop the necessary
expertise and experience to better protect consumers' interests.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2467, H.D. 1, and recommends that it pass
Second Reading and be referred to the Committee on Ways and
Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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