STAND. COM. REP. NO. 2434

Honolulu, Hawaii

RE: S.B. No. 2649

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2649 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to require open deliberation of the adjudicatory functions of the Public Utilities Commission.

Your Committee received testimony in opposition to this measure from the Public Utilities Commission. Your Committee received comments on this measure from the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs and Office of Information Practices.

Your Committee finds that the State's Sunshine Law, codified as part I of chapter 92, Hawaii Revised Statutes, contains an exemption for a board's adjudicatory functions, except for the Land Use Commission, whose adjudicatory functions remain subject to the open meeting requirements of the Sunshine Law. Under existing law, this Sunshine Law exemption covers the Public Utilities Commission when it hears contested cases, or otherwise serves in a quasi-judicial role. Your Committee notes that the Public Utilities Commission also has non-adjudicatory functions and that those non-adjudicatory functions are properly subject to the Sunshine Law.

Your Committee further finds that this measure requires open deliberation of the adjudicatory functions of the Public Utilities Commission. However, it is not your Committee's intent to require the Public Utilities Commission to follow the Sunshine Law for its quasi-judicial hearings and its general adjudicatory functions, as your Committee has heard concerns that this requirement could increase the Commission's administrative workload and costs. Accordingly, a clarifying amendment to this measure is needed.

Your Committee also notes that it is appropriate to place this clarifying amendment within chapter 269, Hawaii Revised Statutes, relating to the Public Utilities Commission, rather than within the Sunshine Law. This will avoid any potential inference that because the non-adjudicatory functions of one board -- the Public Utilities Commission -- are specifically made subject to the Sunshine Law, other boards' non-adjudicatory functions would therefore be considered exempt from the Sunshine Law, as such an inference would not reflect your Committee's intent.

Your Committee has amended this measure by:

(1) Deleting language that amended the State's Sunshine Law to require open deliberation of the adjudicatory functions of the Public Utilities Commission;

(2) Specifying within chapter 269, Hawaii Revised Statutes, that the adjudicatory functions of the Public Utilities Commission are exempt from the Sunshine Law, while the Commission's non-adjudicatory functions are subject to the Sunshine Law; and

(3) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2649, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2649, S.D. 1, and be referred to your Committee on Judiciary.

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

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ROSALYN H. BAKER, Chair