Bill Text: HI SB2648 | 2018 | Regular Session | Amended

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Bill Title: Relating To The Public Utilities Commission.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Engrossed - Dead) 2018-03-16 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; none voting no (0) and Representative(s) DeCoite, Fukumoto, Har, Holt, Nakashima, Souki, Tokioka excused (7). [SB2648 Detail]

Download: Hawaii-2018-SB2648-Amended.html

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THE SENATE	S.B. NO.	2648
TWENTY-NINTH LEGISLATURE, 2018		S.D. 2
STATE OF HAWAII		H.D. 1

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 legislature finds that the public utilities commission's primary purpose is to provide effective, proactive, and informed oversight of all regulated companies to ensure these companies efficiently and safely provide their customers with adequate and reliable services at just and reasonable rates, while providing regulated companies with a fair opportunity to earn a reasonable rate of return.  However, the public utilities commission has several long- and short-term goals that reflect the commission's increased work complexity and program responsibilities, which go beyond the commission's traditional regulatory role, including in the area of energy regulation.  Furthermore, with the advent of new and emerging technology, the market, and other forces, the regulatory landscape throughout the country is rapidly changing.

     The legislature further finds that, due to the commission's increasing responsibilities and the evolution of the regulatory landscape, the structure and operations of the public utilities commission may be updated to enable the commission to operate more efficiently and effectively, consistent with best practices.

     The purpose of this Act is to update the structure and operation of the commission to increase efficiency and effectiveness by:

     (1)  Ensuring that members who are residents of a county other than the city and county of Honolulu receive per diem compensation and travel expenses;

     (2)  Clarifying the ability of the commissioners to appoint and employ staff;

     (3)  Establishing a task force to examine the operations of the public utilities commission to increase efficiency and effectiveness.

     The legislature notes that, due to unforeseen circumstances, the auditor's report on the management audit of the public utilities commission, requested pursuant to Act 198, Session Laws of Hawaii 2017, has been delayed.  The contents of the present Act shall be amended, as appropriate, once the auditor's report is released.

     SECTION 2.  Section 269-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(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.  All members shall be appointed for terms of six years each, except that the terms of the members first appointed shall be for two, four, and six years, respectively, as designated by the governor at the time of appointment.  A member who is a resident of a county other than the city and county of Honolulu shall receive per diem compensation for expenses, for days on which actual service is rendered, at an allowance equal to the maximum federal employee rate for Hawaii, as established by the United States Department of Defense, on the date that the member incurs the expense.  The governor shall designate a member to be chairperson of the 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 member shall serve more than twelve consecutive years.

     In appointing commissioners, the governor shall select persons who have had experience in accounting, business, engineering, government, finance, law, or other similar fields.  The commissioners shall devote full time to their duties as members of the commission and no commissioner shall hold any other public office or other employment during the 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 a commissioner."

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

     "§269-3  Employment of assistants.  (a)  The chairperson of the public utilities commission may appoint and employ professional staff and other assistants for the public utilities commission as the chairperson finds necessary for the performance of the commission's functions and define their powers and duties.  Notwithstanding section 26-35(a)(4) to the contrary and subject to applicable personnel laws, the employment, appointment, applicable salary schedules, promotion, transfer, demotion, discharge, and job descriptions of all officers and employees of or under the jurisdiction of the commission shall be determined by the chairperson and may be delegated to the executive officer appointed and employed pursuant to subsection [(b);] (e); provided that determinations concerning personnel matters made by the chairperson or the executive officer, as delegated by the chairperson, may be reviewed by the director of commerce and consumer affairs for completeness and for compliance and conformance with applicable administrative processes and procedures of the department of commerce and consumer affairs.  The chairperson may appoint and, at pleasure, dismiss a chief administrator and attorneys as may be necessary, and who shall be exempt from chapter 76.  The chairperson may also appoint other staff, including a fiscal officer and a personnel officer, with or without regard to chapter 76.

     (b)  Each commissioner may request and, upon request, shall be provided with the services of a staff attorney and a researcher to assist the commissioner in drafting, preparing revisions, or suggesting approaches to pending decisions and orders.  Attorney/client privilege shall exist between the commissioner and the staff attorney until, and if, the work product is shared with other commissioners.  No commissioner shall request staff assistance on non-commission-related work.  Staff attorneys and researchers provided pursuant to this section may be selected from the commission's current staff allotment.  The chairperson shall not refuse to provide a commissioner with the services of a staff attorney or researcher pursuant to this section.

     (c)  Each commissioner, other than the chairperson, may appoint and employ a clerical or support staff person to assist with that commissioner's duties.  Unless specifically appointed to serve a single commissioner, staff appointed pursuant to this section shall function independently and serve all commissioners as needed, and shall not be required to serve a single commissioner.

     (d)  The chief counsel shall devote full time to the chief counsel's duties to the commission, and no person serving as chief counsel shall hold any other public office or other employment while serving as chief counsel to the commission.  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 serve as chief counsel to the commission.

     [(b)] (e)  The chairperson of the commission shall appoint, employ, and dismiss, at pleasure, an executive officer who shall be responsible for managing the operations of the commission.  The responsibilities of the executive officer shall include management and recruitment of personnel, budget planning and implementation, strategic planning and implementation, procurement and contract administration, and implementation of administrative programs and projects.  The executive officer shall be exempt from chapter 76.

     [(c)] (f)  Notwithstanding section 91-13, the commission may consult with its assistants appointed under authority of this section in any contested case or agency hearing concerning any issue of facts.  Neither the commission nor any of its assistants shall in such proceeding consult with any other person or party except upon notice and an opportunity for all parties to participate, save to the extent required for the disposition of ex parte matters authorized by law."

     SECTION 4.  (a)  There is established within the department of business, economic development, and tourism for administrative purposes a task force to examine the operations of the public utilities commission to increase efficiency and effectiveness.

     (b)  The task force shall be composed of the following members:

     (1)  The director of business, economic development, and tourism or the director's designee, who shall serve as the chairperson of the task force;

     (2)  The director of commerce and consumer affairs or the director's designee;

     (3)  The chair of the public utilities commission or the chair's designee;

     (4)  The executive director of the division of consumer advocacy or the executive director's designee;

     (5)  The state energy office administrator or the administrator's designee;

     (6)  The chair of the standing committee of the senate whose subject matter relates to energy;

     (7)  The chair of the standing committee of the house of representatives whose subject matter relates to energy; and

     (8)  The mayors of each county or their respective designees.

Task force members may recommend additional members with appropriate specialized expertise to the task force, with the approval of the chairperson.

     (c)  In examining the operations of the public utilities commission, the task force shall evaluate and address:

     (1)  The public utilities commission's docket review and decision-making process;

     (2)  The capability of providing attendance at a public hearing by teleconference or video conference;

     (3)  Representation on the commission membership of the public utilities commission, including the number, composition, and training requirements of the commissioners; and

     (4)  The roles of the executive officer and chief counsel of the public utilities commission.

     (d)  Members of the task force shall be exempted from section 26-34, Hawaii Revised Statutes, and shall serve without compensation, but shall be reimbursed for reasonable expenses incurred, including travel expenses.  No member of the task force shall be made subject to chapter 84, Hawaii Revised Statutes, solely because of that members' participation as a member of the task force.

     (e)  The department of business, economic development, and tourism shall provide administrative and clerical support required by the task force.

     (f)  The task force shall submit a report to the legislature of its findings and recommendations, including proposed legislation, no later than twenty days prior to the convening of the regular session of 2019.

     (g)  The task force shall be dissolved on June 30, 2019.

     SECTION 5.  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 2018-2019 for the task force established by this Act to examine the operations of the public utilities commission.

     The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

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

     SECTION 7.  This Act shall take effect on July 1, 2050.

 

Report Title:

Public Utilities Commission; Commissioners; Structure; Organization; Per Diem; Teleconference; Videoconference; Financial Disclosure

 

Description:

Permits neighbor island members to receive per diem compensation and compensation for travel expenses.  Clarifies the ability of the commissioners of the Public Utility Commission to appoint and employ staff.  Establishes a task force to examine the operations of the Public Utilities Commission.  (SB2648 HD1)

 

 

 

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