THE SENATE	S.B. NO.	3089
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII

A BILL FOR AN ACT

relating to the department of commerce and consumer affairs.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  For decades, the job performed by the division of consumer advocacy has been inconsistent with the powers and duties conferred to the division by Hawaii law.  The consumer advocate has focused only on public utility rates and has never considered environmental issues, appeared before any governmental agency other than the public utilities commission, adopted administrative rules, represented a subset of consumers, or appealed a case in court.  Accordingly, it is prudent to amend state law to reflect the actual functions of the division.

     The purpose of this Act is to:

     (1)  Amend the powers and duties of the consumer advocate to more accurately reflect the powers and duties actually performed by the consumer advocate;

     (2)  Rename the consumer advocate as the rate advocate; and

     (3)  Rename the division of consumer advocacy as the division of rate advocacy.

     SECTION 2.  Section 269-51, Hawaii Revised Statutes, is amended to read as follows:

     "§269-51  [Consumer] Rate advocate; director of commerce and consumer affairs.  The director of commerce and consumer affairs shall be the [consumer] rate advocate in hearings before the public utilities commission.  The [consumer] rate advocate shall represent, protect, and advance the interests of all consumers[, including small businesses,] of utility services.  The [consumer] rate advocate shall not receive any salary in addition to the salary received as director of commerce and consumer affairs.

     The responsibility for advocating the interests of the consumer of utility services shall be separate and distinct from the responsibilities of the public utilities commission and those assistants employed by the commission.  As [consumer] rate advocate, the director of commerce and consumer affairs shall have full rights to participate as a party in interest in all proceedings before the public utilities commission."

     SECTION 3.  Section 269-52, Hawaii Revised Statutes, is amended to read as follows:

     "§269-52 Division of [consumer] rate advocacy; personnel.  There shall be a division of [consumer] rate advocacy within the department of commerce and consumer affairs to provide administrative support to the director of commerce and consumer affairs acting in the capacity of [consumer] rate advocate.  The director may employ and at pleasure dismiss an executive administrator, who shall be exempt from chapter 76, may define the executive administrator's powers and duties, and fix the executive administrator's compensation.  The director may employ engineers, accountants, investigators, clerks, and stenographers as may be necessary for the performance of the [consumer] rate advocate's functions, in accordance with chapter 76; provided that:

     (1)  The director may employ up to ten utility analysts exempt from chapter 76; and

     (2)  Each analyst shall possess at least the minimum qualifications required of comparable experts in the relevant industry."

     SECTION 4.  Section 269-54, Hawaii Revised Statutes, is amended to read as follows:

     "§269-54  General powers; duties.  (a)  The [consumer] rate advocate shall have the authority expressly conferred by or reasonably implied from the provisions of this part.

     (b)  The [consumer] rate advocate may:

    [(1) Adopt rules pursuant to chapter 91 necessary to effectuate the purposes of this part.

(2)] (1)  Conduct investigations to secure information useful in the lawful administration of any provision of this part[.];

    [(3) Assist, advise, and cooperate with federal, state, and local agencies and officials to protect and promote the interests of the consumer in the public utilities field.

(4)] (2)  Study the operation of laws affecting all consumers[, including small businesses,] of utility services and recommend to the governor and the legislature new laws and amendments of laws in the consumers' interest in the public utilities field[.

(5) Organize and hold conferences on problems affecting consumers of utility services.];

(3) Assist, advise, and cooperate with public utilities; and

    [(6)] (4)  Perform [such] other acts as may be incidental to the exercise of the functions, powers, and duties set forth in this section.

    [(7) Represent the interests of consumers of utility services before any state or federal agency or instrumentality having jurisdiction over matters which affect those interests.

(c)  The consumer advocate shall consider the long-term benefits of renewable resources in the consumer advocate's role as consumer advocate.

(d)] (c)  Whenever it appears to the [consumer] rate advocate that:

     (1)  [any] Any public utility has violated or failed to comply with any provision of this part or of any state or federal law;

     (2)  [any] Any public utility has failed to comply with any rule, regulation, or other requirement of the public utilities commission or of any other state or federal agency;

     (3)  [any] Any public utility has failed to comply with any provision of its charter or franchise;

     (4)  [changes,] Changes, additions, extensions, or repairs to the plant or service of any public utility are necessary to meet the reasonable convenience or necessity of the public; or

     (5)  [the] The rates, fares, classifications, charges, or rules of any public utility are unreasonable or unreasonably discriminatory,

the [consumer] rate advocate may institute proceedings for appropriate relief before the public utilities commission.  [The consumer advocate may appeal any final decision and order in any proceeding to which the consumer advocate is a party in the manner provided by law.

(e)] (d)  The [consumer] rate advocate may file with the commission and serve on any public utility a request in writing to furnish any information reasonably relevant to any matter or proceeding before the commission or reasonably required by the [consumer] rate advocate to perform the duties hereunder.  Any [such] request shall set forth with reasonable specificity the purpose for which the information is requested and shall designate with reasonable specificity the information desired.  The public utility shall comply with [such] a request within the time limit set forth by the [consumer] rate advocate unless within ten days following service it requests a hearing on the matter before the public utilities commission and states its reasons therefor.  If a hearing is requested, the public utilities commission shall proceed to hold the hearing and make its determination on the request within thirty days after the same is filed.  [The consumer advocate or the public utility may appeal the decision of the commission on any such request, subject to chapter 602, in the manner provided for civil appeals from the circuit courts.]  Subject to the foregoing, [such] requests may ask the public utility to:

     (1)  Furnish any information with which the [consumer] rate advocate may require concerning the condition, operations, practices, or services of the public utility;

     (2)  Produce and permit the [consumer] rate advocate or the consumer advocate's representative to inspect and copy any designated documents (including writings, drawings, graphs, charts, photographs, recordings, and other data compilations from which information can be obtained), or to inspect and copy, test, or sample any designated tangible thing [which] that is in the possession, custody, or control of the public utility; or

     (3)  Permit entry upon land or other property in the possession or control of the utility for the purpose of inspection and measuring, surveying, photographing, testing, or sampling the property or any designated object thereon."

     SECTION 5.  (a)  All references to "consumer advocate", or like terms, as the case may be, in sections 138-2, 269-6.5, 269-16, 269-31, 269-55, 271-9.5, 271G-7.5, 271G-10, 486J-6, and 486J-7, Hawaii Revised Statutes, shall be amended to "rate advocate", or like terms, as the case may be, as the context requires.

     (b)  All references to "division of consumer advocacy", or like terms, as the case may be, in sections 28-8.3, 196-1, 269-27.6, 269-33, 269-53, and 269E-4, Hawaii Revised Statutes, shall be amended to "division of rate advocacy", or like terms, as the case may be, as the context requires.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Consumer Advocate; Division of Consumer Advocacy; Rename; Duties

Description:

Amends the powers and duties of the consumer advocate to more accurately reflect the powers and duties actually performed by the consumer advocate.  Renames the consumer advocate as the rate advocate.  Renames the division of consumer advocacy as the division of rate advocacy.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.