STAND. COM. REP. NO. 759

Honolulu, Hawaii

, 2023

RE: H.B. No. 1030

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1030 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 carryover balance of the Public Utilities Commission Special Fund from $1,000,000 to $3,000,000.

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

Your Committee finds that the Public Utilities Commission Special Fund is the primary source of funding for the Public Utilities Commission and Department of Commerce and Consumer Affairs' Division of Consumer Advocacy. Under existing law, all funds in excess of $1,000,000 in the special fund at the end of June of each year are transferred to the general fund. The current carryover balance of $1,000,000 is the only means for the Commission to meet its financial obligations until the first major infusion of public utility fees in August; thereafter, fees are collected on a staggered basis. The current carryover balance was established in 1994 and has never been modified, even though the Commission's responsibilities and operational costs have grown significantly since that time. Your Committee further finds that the $1,000,000 carryover balance is no longer sufficient to meet the 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 H.B. No. 1030 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,

____________________________

MARK M. NAKASHIMA, Chair