STAND. COM. REP. NO. 1193-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2648

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Energy & Environmental Protection and Labor & Public Employment, to which was referred S.B. No. 2648, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE PUBLIC UTILITIES COMMISSION,"

beg leave to report as follows:

The purpose of this measure is to make various updates to the structure and operations of the Public Utilities Commission to increase efficiency and effectiveness, including:

(1) Establishing guiding principles for the Commission;

(2) Establishing docket review and decision-making processes;

(3) Permitting teleconference and videoconference abilities;

(4) Specifying senior staff members who must file public financial disclosures;

(5) Beginning January 1, 2019, increasing the number of Commissioners to five;

(6) Updating the composition of the Commission;

(7) Specifying training requirements for Commissioners;

(8) Clarifying Commissioners' ability to appoint and employ staff;

(9) Clarifying the roles of the executive officer and chief counsel;

(10) Permitting neighbor island members to receive per diem compensation and compensation for travel expenses; and

(11) Requiring the Commission to report to the Legislature regarding certain staff duties.

Ulupono Initiative and one concerned individual testified in support of this measure. The Public Utilities Commission, and one concerned individual testified in opposition to this measure. The Department of Commerce and Consumer Affairs, Hawaii State Ethics Commission, Electricity Working Group of the Hawaii Energy Policy Forum, and one concerned individual provided comments on this measure.

Your Committees have amended this measure by:

(1) Deleting language which:

(A) Establishes guiding principles for the Commission;

(B) Establishes docket review and decision-making processes;

(C) Permits teleconference and videoconference abilities;

(D) Specifies which senior staff members must file public financial disclosures;

(E) Increases the number of Commissioners from three to five and updates the composition of the Commission;

(F) Specifies training requirements for Commissioners;

(G) Clarifies the roles of the executive officer and chief counsel; and

(H) Requires the Commission to report to the Legislature regarding certain staff duties; and

(2) Establishing and appropriating funds for a task force to examine the operations of the Public Utilities Commission and report to the Legislature before the 2019 Regular Session; and

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

As affirmed by the records of votes of the members of your Committees on Energy & Environmental Protection and Labor & Public Employment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2648, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2648, S.D. 2, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committees on Energy & Environmental Protection and Labor & Public Employment,

____________________________ AARON LING JOHANSON, Chair

____________________________ CHRIS LEE, Chair