Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Energy and Environmental Protection, to which was referred H.B. No. 2044 entitled:

begs leave to report as follows:

The purpose of this bill is to exempt from the procurement code government contracts to procure goods, services, or construction for the operation of an electric utility owned or operated by any county with a population under 100,000.

While your Committee is passing out this bill, your Committee demonstrated concern about the exemption from procurement. Subsequent discussion should focus on the independence of such an entity from political influence.

Testimony in favor of the bill was received from the Mayor of Kauai county, and information was provided by Common Cause Hawaii.

Your Committee has amended this bill by clarifying that the provision is applicable only to a utility that is operated as an autonomous entity established by ordinance, resolution, or charter, and making technical nonsubstantive changes for purposes of style, clarity, and consistency.

As affirmed by the record of votes of the members of your Committee on Energy and Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2044, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2044, H.D. 1, and be referred to the Committee on Finance.