Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 475 entitled:

begs leave to report as follows:

The purpose of this measure is to require the Auditor to conduct a management audit of the Public Utilities Commission.

Your Committee finds that previous management audits of the Public Utilities Commission conducted in 1975 and 1989 uncovered serious concerns with the Commission's operation. Among other things, excessive workloads and inadequate resources restricted the Commission's ability to effectively manage itself.

Your Committee finds that a management audit will allow the Commission to better recognize its strengths and weaknesses, improve how it fulfills its statutory mandates, and ensure that it is able to handle the challenges facing Hawaii's rapidly changing economy.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 475, and recommends that it pass Third Reading.