Report Title:

Public Utilities Commission; Consumer protection

Description:

Creates a selection commission to pick members of the Public Utilities Commission. Establishes terms of service.

HOUSE OF REPRESENTATIVES

H.B. NO.

2717

TWENTY-THIRD LEGISLATURE, 2006

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the public utilities commission.

 

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

SECTION 1. The public utilities commission (PUC) serves as the regulatory agency for public utilities companies that provide essential services that directly impact the quality of life enjoyed by our residents, including electricity, transportation, gasoline, and communication companies. Most notably, the PUC is tasked with prescribing rates, tariffs, charges, and fees and determining the allowable rate of earnings of public service companies in establishing rates. The PUC also issues guidelines concerning the general management of public utility companies and acts on requests for the acquisition, sale, disposition, or other exchange of utility properties, including mergers and consolidations.

The legislature finds that the PUC serves as a quasi-judicial body charged with oversight and enforcement activities over certain regulated industries. It is critical that such a body, like the judicial branch of the state government, be permitted to act without regard to outside influences. As such, members of the PUC should be selected through a selection process, rather than through direct appointment by the governor, to prevent any undue influence on the commission.

The purpose of this Act is to create a public utilities selection commission to select individuals to serve on the PUC.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§269- Public utilities selection commission. (a) There is established a public utilities selection commission to select commissioners of the public utilities commission that shall consist of seven members. Of the seven members:

(1) Three shall be appointed by the governor in accordance with section 26-34, except as otherwise provided by law;

(2) Two shall be appointed by the governor from a list of three names submitted by the president of the senate; and

(3) Two shall be appointed by the governor from a list of three names submitted by the speaker of the house of representatives,

provided that if fewer than three names are submitted for each appointment, the governor may disregard the list.

(b) The public utilities selection commission shall be selected and shall operate in a wholly nonpartisan manner. After the initial formation of the public utilities selection commission, elections and appointments to the public utilities selection commission shall be for staggered terms of six years each. No member of the public utilities selection commission shall serve for more than one full six-year term on the public utilities selection commission.

(c) Each member of the public utilities selection commission shall be a resident of the state and a citizen of the United States.

(d) No member of the public utilities selection commission shall:

(1) Run for elected office under the United States, the State, or its political subdivisions;

(2) Take an active part in political management or in political campaigns;

(3) Be a current member of the public utilities commission; and

(4) Be eligible to serve as a commissioner of the public utilities commission for a period of three years after serving on the public utilities selection commission.

(e) No act of the public utilities selection commission shall be valid except by concurrence of the majority of its members.

(f) The public utilities selection commission shall select one of its members to serve as chairperson. The public utilities selection commission may promulgate rules to effectuate the purposes of this section, in accordance with chapter 91, which shall have the force and effect of law. The deliberations of the public utilities selection commission shall be confidential.

(g) The legislature shall provide for the staff and operating expenses of the public utilities selection commission in a separate budget. No member of the public utilities selection commission shall receive any compensation for commission services, but shall be allowed necessary expenses for travel, board, and lodging incurred in the performance of the public utilities selection commission duties.

(h) The public utilities selection commission shall be attached to the department of budget and finance for administrative purposes only.

SECTION 3. Section 269-2, Hawaii Revised Statutes, is amended to read as follows:

"§269-2 Public utilities commission; number, [appointment of commissioners,] selection of commissioners, qualifications; compensation; persons having interest in public utilities. (a) There shall be a public utilities commission of three members, to be called commissioners, and who shall be [appointed in the manner prescribed in section 26-34, except as otherwise provided in this section.] selected by the public utilities selection commission established pursuant to section 269- . All members shall be [appointed] selected for terms of six years each, except that the terms of the members first [appointed] selected shall be for two, four, and six years, respectively, as designated by the [governor] public utilities selection commission at the time of [appointment.] selection. The [governor] public utilities selection commission shall designate a member to be chairperson of the public utilities commission. Each member shall hold office until the member's successor is appointed and qualified. [Section 26-34 shall not apply insofar as it relates to the number of terms and consecutive number of years a member can serve on the commission; provided that no] No member shall serve more than twelve consecutive years.

In [appointing] selecting public utilities commissioners, the [governor] public utilities selection commission shall select persons who have had experience in accounting, business, engineering, government, finance, law, or other similar fields. The public utilities commissioners shall devote full time to their duties as members of the public utilities commission and no public utilities commissioner shall hold any other public office or other employment during the public utility commissioner's term of office. No person owning any stock or bonds of any public utility corporation, or having any interest in, or deriving any remuneration from, any public utility shall be [appointed] selected as a public utilities commissioner.

(b) Effective July 1, 2005, the chairperson of the public utilities commission shall be paid a salary set at eighty-seven per cent of the salary of the director of human resources development, and each of the other public utilities commissioners shall be paid a salary equal to ninety-five per cent of the chairperson's salary. The public utilities commissioners shall be exempt from chapters 76 and 89 but shall be members of the state employees retirement system and shall be eligible to receive the benefits of any state or federal employee benefit program generally applicable to officers and employees of the State, including those under chapter 87A.

The public utilities commission is placed within the department of budget and finance for administrative purposes."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2006-2007 for the purposes of establishing the public utilities selection commission.

The sum appropriated shall be expended by the department of budget and finance.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2006.

INTRODUCED BY:

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