Repeals authority for appointed PUC. Establishes election requirements for PUC.

A BILL FOR AN ACT

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

§   -1 Commission members; composition. The public utilities commission shall be composed of three members, elected at large.

§   -2 Qualification of commission member. No person shall be eligible for election or appointment to the commission unless the person is a registered voter of the State. No person owning any stock or bonds of any public utility corporation, or having any interest in, or deriving any remuneration from, any public utility shall be elected a commissioner. No member of the commission shall hold or be a candidate for any other public office under the state or county governments in accordance with Article II, section 7 of the Constitution of the State, nor shall a person be eligible for election or appointment to the board of education if that person is also a candidate for any other public office under the state or county governments. The term "public office", for the purposes of this section shall not include notaries public, reserve police officers, or officers of emergency organizations for civilian defense or disaster relief.

§   -3 Election of members. (a) Members of the public utilities commission shall be elected at the general election. Except as otherwise provided by this chapter, the candidates for the public utilities commission shall be elected in the manner prescribed by title 2.

(b) The public utilities commission ballot shall be prepared in a manner so as to afford every eligible voter the opportunity to vote for each and every candidate seeking election to the commission. The ballot shall contain the names of all commission candidates arranged alphabetically in a nonpartisan manner. Each voter in the general election shall be entitled to receive the public utilities commission ballot.

§   -4 Term of office; vacancies. (a) The term of office of members of the commission shall be four years, beginning on the day of the general election of the year in which they are elected, and ending on the day of the second general election after their election; provided that, with respect to the initial election of commission members in 2008, the member elected with the lowest number of votes shall serve a term of two years, beginning on the day of the general election of the year in which the member is elected, and ending on the day of the next general election after the member's election. No member shall serve for more than two terms.

(b) Any vacancy on the commission that may occur through any cause other than expiration shall be filled in accordance with section 17- ."

SECTION 2. Chapter 17, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§17-  Public utilities commission members. (a) The governor shall make an appointment to fill any vacancy in the membership of the public utilities commission for the unexpired term of that vacancy whenever a vacancy occurs and the term of that vacancy ends at the time of the next succeeding general election.

(b) In the case of a vacancy, the term of which does not end at the next succeeding general election:

(c) All appointments made by the governor under this section shall be made without consideration of the appointee's party affiliation or preference, or nonpartisanship."

SECTION 3. Section 269-2, Hawaii Revised Statutes, is amended to read as follows:

"§269-2 Public utilities commission; [number, appointment of commissioners, qualifications;]compensation[; persons having interest in public utilities]. (a) There shall be a public utilities commission composed of three members, [to be called commissioners, and who shall be appointed in the manner prescribed in section 26-34, except as otherwise provided in this section. All members shall be appointed for terms of six years each, except that the terms of the members first appointed shall be for two, four, and six years, respectively, as designated by the governor at the time of appointment. The governor] to be elected and to serve as provided by law. The members shall designate a member to be chairperson of the commission. [Each member shall hold office until the member's successor is appointed and qualified. Section 26-34 shall not apply insofar as it relates to the number of terms and consecutive number of years a member can serve on the commission; provided that no member shall serve more than two terms.

In appointing commissioners, the governor shall select persons who have had experience in accounting, business, engineering, government, finance, law, or other similar fields. The commissioners shall devote full time to their duties as members of the commission and no commissioner shall hold any other public office or other employment during the commissioner's term of office. No person owning any stock or bonds of any public utility corporation, or having any interest in, or deriving any remuneration from, any public utility shall be appointed a commissioner.]

(b) [Effective January 1, 1989, and January 1, 1990, the] The chairperson of the commission shall be paid a salary [set by the governor within the range of $69,748 to $74,608 and $72,886 to $77,966 a year, respectively,] of $           annually, 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 87.

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

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. Subject to the issuance by the chief election officer of a certificate of election under section 11-56, Hawaii Revised Statutes, certifying that the State Constitution has been amended to establish an elected public utilities commission, this Act shall take effect as follows: