STAND. COM. REP. NO. 386-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2843
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2843, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO UTILITY LINES,"

begs leave to report as follows:

     The purpose of this omnibus measure is to offer different
approaches to pursuing the undergrounding of overhead utility
lines that were included in separate bills drafted by the
Legislative Reference Bureau in its report in response to Senate
Concurrent Resolution No. 30, S.D. 1, enacted in 1999.

     Your Committee received testimony supporting this measure
from The Office of Hawaiian Affairs, Outdoor Circle, and a
private individual.  Testimony in support of the alternative
dispute resolution section of the bill and suggesting an
amendment, was submitted by the Judiciary.  The Department of
Commerce and Consumer Affairs and Department of Transportation
supported the intent of the measure, but also stated opposition
and concerns regarding parts of the bill.  The Public Utilities
Commission (PUC), Kauai Electric, Life of the Land, and
Environmental Center supported the bill in part, and opposed the
bill in part.  Hawaiian Electric Company, Inc., commented.
Testimony in opposition to the measure was submitted by the
Department of Taxation and GTE Hawaiian Tel.

     Your Committee heard testimony that the purpose of
encouraging undergrounding was a commendable one, and that many
of the provisions of this bill had merit.  However, testifiers

 
 
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also expressed concerns that the bill enacted duplicative
regulation, merely restated existing duties of the PUC, and
distributed the costs of undergrounding inappropriately.

     Your Committee has significant concerns regarding this
measure.  However, your Committee believes that there is merit in
keeping it alive for discussion purposes, and thereby providing
the Legislature with a source of a variety of different ideas on
the subject of utility undergrounding.  Your Committee has
accordingly replaced the effective dates of this bill with blanks
to encourage further consideration and discussion of the bill.
Technical, nonsubstantive amendments were also made for purposes
of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2843, H.D. 1, as amended herein, and
recommends that it be referred to the Committee on Finance, in
the form attached hereto as H.B. No. 2843, H.D. 2.

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



                                   ______________________________
                                   RON MENOR, Chair