STAND

STAND. COM. REP. NO. 945-06

Honolulu, Hawaii

, 2006

RE: H.B. No. 3115

H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 3115, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE PETROLEUM INDUSTRY,"

begs leave to report as follows:

The purpose of this bill is to protect Hawaii's consumers by ensuring that the petroleum industry engages in consistent and fair practices. Among other things, this measure:

(1) Establishes the Petroleum Industry Monitoring, Analysis, and Reporting Program (Program), which requires refiners to submit reports that provide information about refiner expenses and sales to the Public Utilities Commission (PUC);

(2) Establishes the automated Petroleum Industry Information Reporting System to be maintained by the PUC;

(3) Establishes the Petroleum Industry Monitoring, Analysis, and Reporting Special Fund (Special Fund);

(4) Redelineates the types of information that the petroleum industry must provide to the PUC;

(5) Repeals the gasoline price cap law;

(6) Makes an appropriation to the Special Fund for the PUC to establish the Program; and

(7) Makes any misrepresentation or unlawful profiteering by the petroleum industry an unfair trade practice.

The PUC and Aloha Petroleum, Ltd., testified in support of this bill. The Department of Business, Economic Development, and Tourism, The Chamber of Commerce of Hawaii, and Mid Pac Petroleum supported the intent of this measure. The Kokua Council and a concerned individual opposed this measure. The Department of Budget and Finance, Department of Commerce and Consumer Affairs, Western States Petroleum Association, and a concerned individual offered comments.

Your Committee has amended this bill by:

(1) Changing the effective date to July 1, 2020, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 3115, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 3115, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

		____________________________ DWIGHT TAKAMINE, Chair