STAND. COM. REP. NO. 1676

Honolulu, Hawaii

RE:    H.B. No. 1004

       H.D. 2

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, 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 improve the ability of the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs to carry out its statutory duties by:

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

     (2)  Appropriating funds to meet restructuring costs.

     Your Committee received written comments in support of this measure from the Department of Commerce and Consumer Affairs and its Division of Consumer Advocacy; the Public Utilities Commission; Hawaii Energy Policy Forum; Retail Merchants of Hawaii, and Hawaiian Electric Company, Inc.

     Your Committee finds that this measure will provide the Division of Consumer Advocacy with the flexibility necessary to function more effectively and efficiently in response to changing regulatory conditions, duties, requirements, and advances in technology.

     Your Committee has amended this measure by:

     (1)  Designating sections 1 through 7 as Part I;

     (2)  Adding a new Part II, which appropriates funds to the Office of the Auditor for research and support services necessary to protect Hawaii consumers by developing additional deterrents for identity theft, and in particular those related to the compromise of electronic data and information, and social security numbers in public records; and

     (3)  Changing the unspecified appropriation amounts to $1 throughout the measure for the purposes of further discussion.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1004, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1004, H.D. 2, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair