STAND. COM. REP. NO.  184

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1004

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committees on Consumer Protection & Commerce and Energy & Environmental Protection, to which was referred H.B. No. 1004 entitled:

"A BILL FOR AN ACT RELATING TO CONSUMER ADVOCACY,"

beg leave to report as follows:

     The purpose of this measure is to restructure the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs.

     This bill also appropriates funds for additional positions in the Division of Consumer Advocacy and for training of its professional staff.

     Testimony in support of this measure was received from the Public Utilities Commission, the Division of Consumer Advocacy, the Gas Company, the Hawaii Solar Energy Association, the Hawaii Energy Policy Forum, the Hawaiian Electric Company, and Honolulu Seawater Air Conditioning, LLC.  Life of the Land expressed major concerns.

     Your Committees find that this bill effectuates the recommendations made in the Division of Consumer Advocacy's report in response to Act 143, Session Laws of Hawaii 2006.  Act 143 required the Division of Consumer Advocacy to "conduct an in-depth review of its organization to develop a comprehensive plan to restructure and supplement the division and its resources to function more effectively and efficiently."

     Your Committees have amended this measure by:

(1)  Clarifying that section 2 of the bill shall not be construed to limit any existing authority of the Department of Commerce and Consumer Affairs to restructure the Division of Consumer Advocacy without prior legislative approval;

(2)  Deleting the reference to "researcher" in section 3 to afford the Division of Consumer Advocacy flexibility in determining the nature of the analyst positions necessary to fulfill its mission;

(3)  Deleting section 4 and replacing it with sections 3 and 4 of H.B. No. 1308 so that the additional utility analyst positions will be funded using moneys from the Public Utilities Commission special fund rather than the general fund;

(4)  Adding new sections 6 and 7 to provide funding from the Public Utilities Commission special fund for specialized training of the professional staff of the Division of Consumer Advocacy;

(5)  Changing the effective date to July 1, 2020, to facilitate further discussion of the measure; and

(6)  Making technical nonsubstantive amendments for the purposes of clarity and style.

     As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Energy & Environmental Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No.

1004, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1004, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Energy & Environmental Protection,

____________________________ HERMINA MORITA, Chair

____________________________ ROBERT N. HERKES, Chair