STAND. COM. REP. NO. 1226

Honolulu, Hawaii

RE:    H.B. No. 1004

       H.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Commerce, Consumer Protection, and Affordable Housing, to which was referred H.B. No. 1004, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO CONSUMER ADVOCACY,"

begs leave to report as follows:

     The purpose of this measure is to enhance the ability of the Division of Consumer Advocacy to carry out its duties and responsibilities.

     Specifically, this measure:

     (1)  Requires the Division of Consumer Advocacy to restructure its operations pursuant to its December 2006, report to the Legislature; and

     (2)  Appropriates funds to meet the costs incurred as a result of the restructuring process.

     Your Committee received testimony in support of this measure from the Division of Consumer Advocacy; the Public Utilities Commission; Hawaiian Electric Company, Inc. and its subsidiary utility companies; The Gas Company; the Hawaii Solar Energy Association; the Hawaii Energy Policy Forum; and the Retail Merchants of Hawaii.

     Your Committee finds that by Act 143, Session Laws of Hawaii 2006 (Act 143), the Legislature recognized that there is a need for the Division of Consumer Advocacy (Division) to function more effectively and efficiently in light of changing regulatory conditions, duties, requirements, and advances in technology.  Act 143 also mandated the Division to conduct a review of its organization and to propose any necessary legislation that will enable it to more effectively protect and represent the interests of consumers.  This measure represents the Division's first step toward reaching the goals and objectives set forth in Act 143. 

     Your Committee notes the Division's request that specific amounts for funding and positions be inserted and asks that the Committee on Ways and Means look into this request.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Affordable Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1004, H.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Affordable Housing,

____________________________

BRIAN T. TANIGUCHI, Chair