STAND. COM. REP. NO. 347

Honolulu, Hawaii

RE:    S.B. No. 990

       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 Commerce, Consumer Protection, and Affordable Housing, to which was referred S.B. No. 990 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to appropriate $300,000 for each year of the 2007-2009 fiscal biennium to be deposited into the Petroleum Industry Monitoring, Analysis, and Reporting Special Fund, to promote petroleum product pricing transparency.

     Your Committee received testimony in support of this measure from one individual.  The Public Utilities Commission and the Western States Petroleum Association submitted comments on this measure.

     Your Committee finds that Act 78, Session Laws of Hawaii 2006 (Act 78), requires the Public Utilities Commission to establish the Petroleum Industry Monitoring, Analysis, and Reporting Program.  In addition, Act 78 created the Industry Monitoring, Analysis, and Reporting Special Fund.

     The intent of this measure is to provide consumers with true and effective transparency of the petroleum industry by appropriating funds to the Industry Monitoring, Analysis, and Reporting Special Fund.

     Your Committee has amended this measure by deleting the specific amounts appropriated to promote further discussion, by changing the effective date to July 1, 2007, to conform with the fiscal calendar, and by adding a section to clarify and strengthen the Public Utilities Commission's powers with regard to the monitoring, evaluation, or investigation of the petroleum industry so that the Public Utilities Commission will have the funds and authority necessary to accomplish its statutory duties.

     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 S.B. No. 990, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 990, S.D. 1, 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