Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection, and Housing and Energy, Environment, and International Affairs, to which was referred S.B. No. 2291 entitled:

beg leave to report as follows:

The purpose of this measure is to protect Hawaii consumers from price gouging in petroleum sales during periods of abnormal disruption of the marketplace caused by extraordinary adverse circumstances.

Testimony in support of this measure was submitted by the Department of Commerce and Consumer Affairs and the Department of Business, Economic Development, and Tourism. Testimony in opposition to this measure was submitted by Aloha Petroleum, Ltd.

Comments were submitted by the Western States Petroleum Association

Your Committees find that this measure will enhance the State's enforcement authority under chapter 480, Hawaii Revised Statutes, by specifically making it an unfair or deceptive trade practice for any petroleum-related business to sell or offer to sell any petroleum product for an amount that represents an unconscionably excessive price during any abnormal disruption of the market, whether this disruption occurred in Hawaii or in other parts of the world.

Your Committees have amended this measure by making technical, nonsubstantive amendments.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection, and Housing and Energy, Environment, and International Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2291, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2291, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.