STAND. COM. REP. NO. 374

Honolulu, Hawaii

RE: S.B. No. 550

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 550 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 allow Public Utilities Commission members who are residents of a county other than the City and County of Honolulu to receive an allowance of $225 per day for expenses related to board, lodging, and incidental expenses, in addition to actual air travel expenses.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Public Utilities Commission, The Alliance for Solar Choice, and one individual.

Your Committee finds that the Public Utilities Commission serves a critical role in providing regulatory oversight for various regulated utility and transportation industries, ensuring that consumers of the regulated services receive reliable services at affordable rates, and overseeing other important public interest matters. Given these responsibilities, it is important that the State attract the most qualified candidates to serve as Commissioners, regardless of the island on which they reside.

Your Committee further finds that neighbor island commissioners are not currently provided any reimbursement for their travel expenses, such as airfare, board, lodging, and incidental expenses. In addition to airfare, neighbor island commissioners incur expenses related to lodging, utilities, and transportation to Oahu, which can exceed $30,000 per year, or more than twenty-five percent of a Commissioner's annual salary. Your Committee notes that there are other similarly situated boards and commissions that are allowed reimbursement for these expenses. Therefore, your Committee finds that it is appropriate for neighbor island commissioners to receive similar reimbursement as necessary to offset the additional costs they incur in furtherance of their duties.

Your Committee has amended this measure by clarifying that a neighbor island commissioner may be reimbursed for actual air travel expenses incurred in carrying out the commissioner's duties.

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. 550, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 550, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

ROSALYN H. BAKER, Chair