STAND. COM. REP. NO. 2385

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2287
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 2287 entitled: 

     "A BILL FOR AN ACT RELATING TO THE PUBLIC UTILITIES
     COMMISSION,"

begs leave to report as follows:

     The purpose of this measure is to create a funding mechanism
for the conversion of overhead utility lines to underground
utility lines.

     Testimony on the measure was received from the Public
Utilities Commission (PUC), Division of Consumer Advocacy of the
Department of Commerce and Consumer Affairs, Department of
Taxation, University of Hawaii at Manoa Environmental Center,
AT&T, Kauai Electric, Tax Foundation of Hawaii, GTE, Hawaiian
Electric Company, Inc., Na Leo Pohai, and Life of the Land.

     This measure establishes a special fund to fund the
conversion of overhead utility lines to underground utility
lines.  It also establishes mechanisms for the funding of the
fund by allowing taxpayers to make a contribution through their
income tax returns, authorizing the collection of contributions
from utility consumers through utility "round-up" programs, and
establishing an annual allocation of revenues from utilities with
above-ground facilities.

     Upon careful consideration, your Committee has amended this
measure by:

 
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                                   STAND. COM. REP. NO. 2385
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     (1)  Deleting language that requires the PUC to establish an
          allocation of utility revenues and authorizes utilities
          to collect contributions from customers through "round-
          up" programs;

     (2)  Requiring that an unspecified percentage of excess
          moneys in the PUC special fund be deposited annually
          into the underground conversion fund, based on the
          amount of excess funds in the PUC special fund prior to
          their lapsing into the general fund; and

     (3)  Making technical, nonsubstantive amendments for
          purposes of clarity, consistency, and style.
 
     In passing this measure, it is your Committee's intent that
the legislature continue to engage in further discussion and
exploration of funding mechanisms to accomplish the conversion of
overhead utility facilities to underground utility facilities.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 2287, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 2287, S.D. 1, and be referred to the Committee on Ways and
Means.

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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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