STAND. COM. REP. NO. 1177-20

Honolulu, Hawaii

, 2020

RE: S.B. No. 2884

S.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 2884, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE PUBLIC UTILITIES COMMISSION SPECIAL FUND CARRYOVER BALANCE,"

begs leave to report as follows:

The purpose of this measure is to increase the amount of funds that may be retained in the Public Utilities Commission Special Fund at the end of each fiscal year.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Public Utilities Commission, and Ulupono Initiative. Your Committee received testimony in opposition to this measure from one individual.

Your Committee finds that the current carryover balance of $1,000,000 in the Public Utilities Commission Special Fund was established in 1994 and has never been modified, even though the Public Utilities Commission has grown significantly in size in terms of responsibilities and operational costs since that time. Your Committee further finds that the main source of revenue for the Public Utilities Commission Special Fund are fees collected on a staggered basis. Since the fees are collected at various times of the year, the $1,000,000 carryover balance is no longer sufficient to meet the Public Utilities Commission's start-of-year expenses, including statutory obligations and payroll.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2884, S.D. 1, and recommends that it pass Second Reading and be referred to your Committee on Finance.

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

____________________________

ROY M. TAKUMI, Chair