Increases PUC commissioners' salary. Authorizes PUC chairperson to appoint utility analysts and legal assistants exempt from chapter 76. Authorizes the PUC to suspend collection of public utility fees when balance of PUC special fund exceeds $3,000,000. (HB1021 HD2)

A BILL FOR AN ACT

SECTION 1. The public utilities commission and the division of consumer advocacy of the department of commerce and consumer affairs serve indispensable functions that are necessary to implement sound energy policies for the State of Hawaii.

However, both agencies face difficulties that diminish their ability to perform effectively. These include:

Further, although both agencies purportedly have an independent source of funding, that is, the public utilities commission special fund and the compliance resolution fund, because excess balances in the funds lapse into the general fund, the result is restrictive oversight of the funds by the department of budget and finance, the administration, and the legislature.

Additionally, public utility commission staff salaries, in addition to being limited by state job classification pay scales, are limited by the "glass ceiling" established by the commissioners' disproportionately low salaries.

The purpose of this Act is to adopt policies and reforms to support the public utilities commission and the division of consumer advocacy in their progressive and aggressive efforts to protect ratepayers and the public and implement the State's energy strategy. This Act also ensures that the public utilities commission and the division of consumer advocacy have the resources to timely and fairly address regulatory issues regarding technological advances and operational efficiencies that encourage balanced growth and investment and ensure system reliability.

SECTION 2. Section 269-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Effective July 1, [2005,] 2006, the chairperson of the commission shall be paid a salary set at [eighty-seven] one hundred per cent of the salary of the director of [human resources development,] commerce and consumer affairs, and each of the other commissioners shall be paid a salary equal to ninety-five per cent of the chairperson's salary. The commissioners shall be exempt from chapters 76 and 89 but shall be members of the state employees retirement system and shall be eligible to receive the benefits of any state or federal employee benefit program generally applicable to officers and employees of the State, including those under chapter 87A.

The commission is placed within the department of budget and finance for administrative purposes."

SECTION 3. Section 269-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The chairperson of the public utilities commission may appoint and employ [such] clerks, stenographers, agents, engineers, accountants, and other assistants for the public utilities commission as the chairperson finds necessary for the performance of the commission's functions and define their powers and duties. The chairperson may appoint, and at pleasure, dismiss a chief administrator, research assistants, economists, legal secretaries, enforcement officers, utility analysts, legal assistants, and [such] hearings officers as may be necessary. Notwithstanding section 103D-209(b), the chairperson shall appoint one or more attorneys independent of the attorney general who shall act as attorneys for the commission and define their powers and duties and fix their compensation. The chief administrator, research assistants, economists, legal secretaries, enforcement officers, hearings officers, utility analysts, legal assistants, and attorneys shall be exempt from chapter 76. Other employees shall be appointed as may be needed by the chairperson in accordance with chapter 76."

SECTION 4. Section 269-33, Hawaii Revised Statutes, is amended as follows:

1. By amending its title to read:

"§269-33 Public utilities commission special fund[.]; suspension of public utility fees."

2. By amending subsection (d) to read:

"(d) [All moneys in excess of $1,000,000 remaining on balance in the public utilities commission special fund on June 30 of each year shall lapse to the credit of the state general fund.] The public utilities commission may suspend collection of public utilities fees when the balance of the public utilities commission special fund exceeds $3,000,000; provided that the suspension shall not apply to utilities paying a flat fee of $30 under section 269-30(b)."

SECTION 5. There is appropriated out of the public utilities commission special fund established under section 269-33, Hawaii Revised Statutes, the sum of $           or so much thereof as may be necessary for fiscal year 2006-2007 to enable the public utilities commission to reorganize, thus allowing it to respond timely and effectively to current regulatory issues, including technology advances and operational efficiencies that encourage balanced growth and investment and ensure system reliability.

The sum appropriated by shall be expended by the public utilities commission.

SECTION 6. There is appropriated out of the compliance resolution fund established under section 26-9(o), Hawaii Revised Statutes, the sum of $            or so much thereof as may be necessary for fiscal year 2006-2007 for the department of commerce and consumer affairs' division of consumer advocacy to reorganize, thus allowing it to respond timely and effectively to current regulatory issues, including technology advances and operational efficiencies that encourage balanced growth and investment and ensure system reliability.

The sum appropriated shall be expended by the department of commerce and consumer affairs.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2020; provided that the amendments made to section 269-33, Hawaii Revised Statutes, by section 4 of this Act shall not be repealed when section 269, Hawaii Revised Statutes, is repealed and reenacted on June 30, 2009, pursuant to section 7 of Act 141, Session Laws of Hawaii 2004, as amended by section 51 of Act 22, Session Laws of Hawaii 2005.