Report Title:

Gasoline pricing caps

Description:

Assures a sufficient supply of reasonably priced gasoline by extending the effective date of the gas cap law to July 1, 2005, for Oahu and July 1, 2007, for neighbor islands, broadening the gas cap to include mid-grade and premium gas, establishing a monitoring, analysis and reporting program, among other provisions.

HOUSE OF REPRESENTATIVES

H.B. NO.

2972

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to energy resources.

 

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

PART I

SECTION 1. The legislature finds that Hawaii's motor fuel market is served by an oligopoly. Since consumers are best served when vigorous competition exists, the State has an important role in not only ensuring a level of competition in the market but also in protecting consumers from market abuses.

The oligopoly structure of the gasoline market confers significant market power to the existing companies, allowing a few buyers or sellers in a market to exert significant influence over the quantity of goods and services traded or the price at which they are sold. Because of the limited size of Hawaii's market and the large economies of scale needed in gasoline refining, a "natural" oligopoly has been created, with only a few companies sustaining profitably. Therefore, a small number of companies will continue to dominate the market in Hawaii for the foreseeable future.

The existence of an oligopoly and market power does not always guarantee high prices, but there appears to be two main behavioral strategies. Either companies work together to maximize the profits of the group by maintaining high prices or they compete with each other by cutting prices and improving the services they provide to their customers, demonstrating that competition is possible. However, the potential of firms exercising market power to raise prices is immense and undeniable. Therefore, this oligopoly situation requires careful scrutiny to maximize competition within the market and to regulate when justifiable, by proving that the market is not competitive and, further, is unlikely to become competitive.

The primary goal of this Act is to make the market transparent, giving industry and government the authority and duty to collect and disseminate data to identify specific trends within the market and to identify abuses of market power. This is to ensure that the State has a thorough understanding of the operations of the gasoline industry to respond to the current conditions of the market.

A second goal is to strategically plan Hawaii's economic and environmental future through the development of a comprehensive energy strategy.

In Act 77, Session Laws of Hawaii 2002, the legislature found that there is a real need to ensure lower gasoline prices for Hawaii's consumers because of the large premiums they are paying at the gasoline pump. The legislature attempted to address this problem by establishing gasoline pricing caps which are to become effective on July 1, 2004. However, while the legislature finds that there may be some pricing transparency and a better understanding of the gasoline market for the county of Oahu, critical information is lacking for the other counties, requiring a delay in the implementation of gasoline pricing caps for those other counties until additional information can be acquired.

Therefore, the purposes of this Act are to:

(1) Establish and fund a gasoline monitoring, analysis, and reporting program within the office of the auditor;

(2) Establish the gasoline monitoring, analysis, and reporting special fund;

(3) Establish penalties for restricting the supply of gasoline;

(4) Amend the maximum pre-tax wholesale and retail prices for the sale of gasoline and limiting regulation of gasoline to counties with a population over five hundred thousand;

(5) Authorize the legislature to appropriate funds from the gasoline monitoring, analysis, and reporting special fund as necessary to undertake and complete an integrated state energy strategy that is consistent with the Hawaii Fuels Study; and

(6) Authorize the speaker of the house and senate president to establish a task force to address barriers to competition and other pertinent information with regard to the gasoline market for the counties of Hawaii, Kauai, and Maui.

PART II

SECTION 2. Act 77, Session Laws of Hawaii 2002, is amended by adding a new section to be appropriately inserted and to read as follows:

"SECTION 17A. This Act shall not apply to counties with a population of less than five hundred thousand; provided that section 486H-E of section 3 shall apply to all counties."

SECTION 3. Act 77, Session Laws of Hawaii 2002, is amended by amending section 2 as follows:

1. By adding five new sections to be appropriately designated and to read:

"§486H-E Ethanol content requirement. (a) Effective January 1, 2006, no manufacturer, wholesaler, or jobber may sell regular unleaded, mid-grade, or premium gasoline to a dealer retail station, an independent retail station, or to another jobber or wholesaler that does not contain at least ten per cent ethanol by volume. The amounts of gasoline sold in the State containing ten per cent ethanol shall be in accordance with rules as the commission may deem appropriate.

(b) The commission may authorize the sale of gasoline that does not meet the provisions of this section:

(1) To the extent that sufficient quantities of competitively-priced ethanol are not available to meet the minimum requirements of this section; or

(2) In the event of any other circumstances for which the commission determines compliance with this section would cause undue hardship.

(c) Each manufacturer, wholesaler, or jobber at such reporting dates as the commission may establish, shall file with the commission, on forms prescribed, prepared, and furnished by the commission, a certified statement showing:

(1) The price and amount of ethanol available;

(2) The amount of ethanol-blended fuel sold by the manufacturer, wholesaler, or jobber;

(3) The amount of non-ethanol-blended gasoline sold by the manufacturer, wholesaler, or jobber; and

(4) Any other information the commission shall require for the purposes of compliance with this section.

(d) Any confidential information pertinent to the responsibilities of the commission specified in this section that is obtained by another state agency, including the department of taxation, the attorney general, and the consumer advocate, shall be available to the attorney general, the attorney general's authorized representatives, and the commission and shall be treated in a confidential manner.

§486H-F Gasoline monitoring, analysis, and reporting special fund. (a) There is established a gasoline monitoring, analysis, and reporting special fund to be administered by the office of the auditor.

(b) Moneys in the special fund shall be used to:

(1) Administer a gasoline monitoring, analysis, and reporting program within the office of the auditor;

(2) Establish two staff positions within the public utilities commission to monitor, implement, enforce, and report on the gasoline price regulations for Oahu; and

(3) Develop a single integrated state energy strategy in conformance with the Hawaii Fuels Study, under the guidance of the energy resources coordinator.

(c) Beginning July 1, 2004, every distributor shall pay to the office of the auditor a fee of $.0015 for each gallon of gasoline it produces in or imports into the State. All revenues generated from these fees shall be deposited into the special fund. Payment shall be made monthly by check or money order payable to the office of the auditor and shall be submitted no later than the fifteenth day of the month following the end of the payment period of the previous month.

As used in this section, "distributor" means and includes:

(1) Every person who refines, manufactures, produces, or compounds fuel in the State, and sells it at wholesale or at retail;

(2) Every person who imports or causes to be imported into the State or exports or causes to be exported from the State, any fuel; and

(3) Every person who acquires fuel through exchanges with another distributor.

(d) The auditor may adopt, amend, or repeal rules pursuant to chapter 91 to effectuate the purposes of this chapter within the jurisdiction of the auditor.

§486H-G Gasoline monitoring, analysis, and reporting program. (a) The auditor shall establish a gasoline monitoring, analysis, and reporting program for the purposes of promoting oversight of the gasoline market and protecting consumers from market abuses.

(b) All distributors shall submit to the auditor information in sufficient detail on forms prescribed, prepared, and furnished by the auditor, including:

(1) Inventory of regular unleaded, mid-grade, and premium gasoline;

(2) The price of the various grades of gasoline;

(3) The amount of the various grades of gasoline sold;

(4) The amount of gasoline imported and exported; and

(4) Any other information that the auditor shall require for the purposes of compliance with this chapter.

(c) Any confidential information received under this section by the auditor shall be treated in a confidential manner.

§486H-H Penalties for restricting supply of gasoline. The auditor and the public utilities commission shall immediately report any shortage or condition affecting the supply of gasoline to the legislature and the attorney general who shall exercise all appropriate criminal and civil actions and pursue all legal and equitable remedies that may be available to the State.

(b) Any person, including any manufacturer, wholesaler, jobber, or retailer, who in response to the requirements of this chapter, engages in any act that results in the limiting, control, or shortage of gasoline in the State shall be subject to civil penalty that shall be three times the amount of the damages that the State has sustained as a result of the acts, together with reasonable attorney fees and court costs.

For purposes of this section, "person" means any person, firm, association, organization, partnership, business trust, corporation, or company, and includes any responsible corporate officer.

§486H-I Provisions not to be used as a defense. No requirement or provision contained in this chapter may be used by any person, including any manufacturer, wholesaler, jobber, or retail dealer of petroleum products, as a defense in any action brought pursuant to this chapter or chapter 480."

2. By amending section 486H-A to read:

"§486H-A Maximum pre-tax wholesale price for the sale of gasoline; civil actions. (a) Notwithstanding any law to the contrary, no manufacturer, wholesaler, or jobber may sell regular unleaded, mid-grade, or premium gasoline to a dealer retail station, an independent retail station, or to another jobber or wholesaler at a price above the maximum pre-tax wholesale prices established pursuant to subsection (b). The commission shall publish the maximum pre-tax wholesale prices by means that shall include the internet website for the State of Hawaii.

(b) On a weekly basis, the commission shall determine the maximum pre-tax wholesale price of regular unleaded, mid-grade, or premium gasoline [for each island as follows:

(1) For the island of Oahu,]; provided that the maximum pre-tax wholesale price of regular unleaded gasoline shall consist of the baseline price for regular unleaded gasoline, plus the location adjustment factor, and the marketing margin factor[;], and for mid-grade and premium gasoline, plus the additional mid-grade and premium adjustment factor, respectively.

[(2) For the islands of Kauai, Molokai, Lanai, Maui, and Hawaii, the maximum pre-tax wholesale price of regular unleaded gasoline shall consist of the maximum pre-tax wholesale price of regular unleaded gasoline for Oahu, plus the neighbor island wholesale adjustment factor.]

(c) The baseline price for regular unleaded gasoline for Oahu referred to in subsection (b) shall be determined on a weekly basis, and shall be equal to the national average [of:

(1) The spot pipeline daily price for regular unleaded gasoline for Los Angeles;

(2) The spot pipeline daily price for regular unleaded gasoline for San Francisco; and

(3) The spot daily price for the Pacific Northwest,] spot price for regular unleaded gasoline as reported and published by the Oil Price Information Service or other comparable service such as the Lundberg Survey, as determined by the commission, for the five business days of the preceding week.

(d) The location adjustment factor referred to in subsection (b) shall be $.04 per gallon for the first year after the effective date of this section, and shall thereafter be subject to annual adjustment pursuant to section 486H-D(a).

(e) The marketing margin factor referred to in subsection (b) shall be $.18 per gallon for the first year after the effective date of this section, and shall thereafter be subject to annual adjustment pursuant to section 486H-D(a).

[(f) The neighbor island wholesale adjustment factor shall be the sum of the neighbor island location adjustment factor, plus the neighbor island marketing factor.

(g) The neighbor island location adjustment factor shall be $.04 per gallon for the first year after the effective date of this section, and shall thereafter be subject to annual adjustment pursuant to section 486H-D(a).

(h) The neighbor island marketing factor shall be $.04 per gallon for the first year after the effective date of this section, and shall thereafter be subject to annual adjustment pursuant to section 486H-D(a).]

(f) The mid-grade adjustment factor shall be $ per gallon for the first year after the effective date of this section, and shall thereafter be subject to annual adjustments pursuant to section 486H-D(a).

(g) The premium-grade adjustment factor shall be $       per gallon for the first year after the effective date of this section, and shall thereafter be subject to annual adjustments pursuant to section 486H-D(a).

[(i)](h) Any manufacturer, wholesaler, or jobber who knowingly violates any requirement imposed or rule adopted under this section shall be subject to a civil penalty, for each [such] violation, [which penalty shall be] equal to three times the amount of the overcharge[,] or $250,000, whichever is greater, and shall be liable for the costs of the action[,] and reasonable attorney's fees as determined by the court. Within two years from the date the commission obtains actual knowledge of the violation, the commission may institute a civil action in a court of competent jurisdiction to collect the civil penalty, the costs, and attorney's fees. In the case of ongoing violation, the [two year] two-year period shall start from the date of the last violation. The commission may refer any such action to the attorney general as it deems appropriate.

As used in this subsection, "overcharge" means the number of gallons of gasoline sold, times the wholesale price at which the manufacturer or jobber sold regular unleaded, mid-grade, or premium gasoline to a dealer retail station, less taxes assessed, less the maximum pre-tax wholesale price established pursuant to subsection (b).

[(j)](i) The commission shall have the power to determine the extent to which a manufacturer, wholesaler, or jobber is complying with any requirement imposed or rule adopted under this section, including the power to compel a manufacturer, wholesale, or jobber to submit documents, data, and information necessary and appropriate for the commission to determine such compliance. The commission may use data collected by the department of business, economic development, and tourism pursuant to chapter 486J, as well as obtain the assistance of that department in determining such compliance.

[(k) The commission shall adopt rules pursuant to chapter 91 as may be necessary to implement this section.]"

3. By amending section 486H-B to read:

"§486H-B Maximum pre-tax retail price for gasoline sold on a self-serve basis; civil actions. (a) Notwithstanding any law to the contrary, no retail station may sell regular unleaded, mid-grade, or premium gasoline at retail, on a self-serve basis, at a price above the maximum pre-tax retail prices established pursuant to subsection (b). The commission shall publish the maximum pre-tax retail prices by means that shall include the internet website for the State of Hawaii. The commission may also publish the retail prices inclusive of all taxes.

(b) On a weekly basis, the commission shall determine the maximum pre-tax retail price of gasoline. The maximum pre-tax retail price for regular unleaded, mid-grade, or premium gasoline shall consist of the maximum pre-tax wholesale price for regular unleaded, mid-grade, or premium gasoline established pursuant to section 486H-A(b), plus a retail marketing margin factor.

(c) The retail marketing margin factor for the island of Oahu shall be $.16 per gallon for the first year[,] and shall thereafter be subject to adjustment pursuant to section 486H-D(b).

(d) The retail marketing margin factor for the islands of Kauai, Maui, and Hawaii shall be $.24 per gallon for the first year and shall thereafter be subject to adjustment pursuant to section 486H-D(b).

[(d)](e) Any retail station that knowingly violates any requirement imposed or rule adopted under this section shall be subject to a civil penalty equal to three times the amount of the overcharge or $25,000, whichever is greater, and shall be liable for the costs of the action[,] and reasonable attorney's fees as determined by the court. Within two years from the date the commission obtains actual knowledge of the violation, the commission may institute a civil action in a court of competent jurisdiction to collect the civil penalty, the costs, and the attorney's fees. In the case of ongoing violation, the two-year period shall start from the date of the last violation. The commission may refer any such action to the attorney general as it deems appropriate.

As used in this subsection, "overcharge" means the number of gallons of gasoline sold, times the retail price at which the retail station sold regular unleaded, mid-grade, or premium gasoline, less taxes assessed, less the maximum pre-tax retail price established pursuant to subsection (b).

[(e)](f) The commission shall have the power to determine the extent to which a retail station is complying with any requirement imposed or rule adopted under this section, including the power to compel a retail station to submit documents, data, and information necessary and appropriate for the commission to determine such compliance. The commission may use data collected by the department of business, economic development, and tourism pursuant to chapter 486J, as well as obtain the assistance of such department in determining such compliance.

[(f) The commission shall adopt rules pursuant to chapter 91 as may be necessary to implement this section.]"

4. By amending section 486H-C to read:

"§486H-C Governor's emergency powers. (a) Notwithstanding any law to the contrary, the governor may suspend in whole or in part, section 486H-A, section 486H-B, or any rule adopted pursuant to those sections whenever the governor issues a written determination that strict compliance with any section or a rule will cause a major adverse impact on the economy, public order, or the health, welfare, or safety of the people of Hawaii. The governor shall publish this determination in accordance with section 1-28.5. The suspension shall take effect upon issuance of the written determination by the governor.

(b) Except as provided in subsection (c), the suspension under subsection (a) shall remain in effect until the earlier of:

(1) The adjournment of the next regular or special session of the legislature; or

(2) The effective date of any legislative enactment intended to address the major adverse impact;

provided that if the legislature has enacted legislation to address the major adverse impact, and the governor vetoes the legislation, the suspension shall terminate on the date of that veto, and the pre-tax maximum wholesale [price] prices or the pre-tax maximum retail [price] prices in effect immediately prior to the issuance of the written determination by the governor shall take effect on the day after the date of the veto; and provided further that if no action is taken by the legislature during the regular or special session to address the major adverse impact, then the pre-tax maximum wholesale [price] prices or the pre-tax maximum retail [price] prices in effect immediately prior to the issuance of the written determination by the governor shall take effect on the day after adjournment sine die of the regular or special session.

(c) If the written determination is issued while the legislature is in session, the suspension under subsection (a) shall remain in effect until the earlier of:

(1) The adjournment of that session of the legislature; or

(2) The effective date of any legislative enactment intended to address the major adverse impact;

provided that if the legislature has enacted legislation to address the major adverse impact, and the governor vetoes the legislation, the suspension shall terminate on the date of that veto, and the pre-tax maximum wholesale [price] prices or the pre-tax maximum retail [price] prices in effect immediately prior to the issuance of the written determination by the governor shall take effect on the day after the date of the veto; and provided further that if no action is taken by the legislature during the regular or special session to address the major adverse impact, then the pre-tax maximum wholesale [price] prices or the pre-tax maximum retail [price] prices in effect immediately prior to the issuance of the written determination by the governor shall take effect on the day after adjournment sine die of the regular or special session."

5. By amending section 484H-D to read as follows:

§486H-D Adjustments. (a) A manufacturer, wholesaler, or jobber may petition the commission to adjust the maximum pre-tax wholesale price of regular unleaded, mid-grade, or premium gasoline in the event of a change in the value of the baseline price for regular unleaded gasoline, the location adjustment factor, the marketing margin factor, [or the neighbor island wholesale adjustment factor.] the mid-grade adjustment factor, or the premium adjustment factor. The petitioner shall bear the burden of proof to establish by clear and convincing evidence the need for and the amount of any adjustment. The adjustments shall be determined as follows:

(1) The value of the baseline price for regular unleaded gasoline shall be equal to the national average [of:

(A) The spot pipeline daily price for regular unleaded gasoline for Los Angeles;

(B) The spot pipeline daily price for regular unleaded gasoline for San Francisco; and

(C) The spot daily price for the Pacific Northwest,] spot price for regular unleaded gasoline as reported and published by the Oil Price Information Service or other comparable service such as the Lundberg Survey, as determined by the commission, for the five business days of the preceding week;

(2) The value of the location adjustment factor in effect at the time the petition is filed shall be adjusted to equal the average of the actual acquisition cost to non-refiner marketers to obtain gasoline from refiners or importers for sale on the island of Oahu over the prior twelve-month period, which cost shall be taken from arm's length transactions between non-refiner marketers, and refiners or importers, such as exchange agreements, sales agreements, or other similar agreements; provided that the location adjustment factor shall not exceed the reasonable cost of importing gasoline to the island of Oahu.

As used in this paragraph, "actual acquisition cost" means the amount over the base price of regular unleaded gasoline that a non-refiner marketer pays to a third party for delivery of such gasoline into a terminal located on the island of Oahu;

(3) The value of the marketing margin factor in effect at the time the petition is filed shall be adjusted by adding to such value the difference between:

(A) The average of the difference over the prior twelve-month period between:

(i) The dealer tank wagon price for sales for resale; and

(ii) The bulk price for sales for resale, for PAD District V,

as reported and published by the Energy Information Administration or its successor in Table 31 - "Motor Gasoline Prices by Grade, Sales Type, PAD District, and State" or other source containing the same information; less

(B) The average of the difference over the period from 1994 until the most current year between:

(i) The dealer tank wagon price for sales for resale; and

(ii) The bulk price for sales for resale, for PAD District V,

as reported and published by the Energy Information Administration or its successor in Table 31 - "Motor Gasoline Prices by Grade, Sales Type, PAD District, and State" or other source containing the same information;

[(4) The value of the neighbor island location adjustment factor in effect at the time the petition is filed shall be adjusted to equal the actual acquisition cost to non-refiner marketers to obtain gasoline from a refiner or importer for sale on the island of Kauai, Molokai, Lanai, Maui, or Hawaii, over the prior twelve-month period, which cost shall be taken from arm's length transactions between non-refiner marketers, and refiners or importers, such as exchange agreements, sales agreements, or other similar agreements; provided that the neighbor island location adjustment factor shall not exceed the reasonable cost of importing gasoline to the island of Kauai, Molokai, Lanai, Maui, or Hawaii, from any port on the island of Oahu. As used in this subsection, "actual acquisition cost" means the amount over the base price of regular unleaded gasoline that a non-refiner marketer pay to a third party for delivery of such gasoline into a terminal located on Kauai, Molokai, Lanai, Maui, or Hawaii; and

(5) The value of the neighbor island marketing factor in effect at the time the petition is filed shall be adjusted if there are material changes in the cost factors associated with marketing gasoline on the island of Kauai, Molokai, Lanai, Maui, or Hawaii, such as terminaling, storage, or distribution costs.] and

(4) The value of the mid-grade and premium adjustment factors in effect at the time the petition is filed shall be adjusted by any increase in the mid-grade or premium adjustment factors as Published by Means of Platt Singapore.

(b) A retail station may petition the commission to adjust the maximum pre-tax retail [price] prices of gasoline in the event of a change in the maximum pre-tax wholesale price for regular unleaded gasoline, or the value of the retail marketing margin factor. The petitioner shall bear the burden of proof to establish by clear and convincing evidence the need for and the amount of any adjustment. The adjustment shall be determined as follows:

(1) The value of the retail marketing margin factor for regular unleaded, mid-grade, or premium gasoline established in section 486H-B(c) shall be adjusted upward only if such value is less than the average of the difference over the prior twelve-month period between:

(A) The "through retail outlets" price for sales to end users for regular unleaded, mid-grade, or premium gasoline; and

(B) The dealer tank wagon price, for sales for resale for regular unleaded, mid-grade, or premium gasoline, for PAD District V,

as reported and published by the Energy Information Administration or its successor in Table 31 - "Motor Gasoline Prices by Grade, Sales Type, PAD District, and State" or other source containing the same information.

(c) If the commission adjusts the maximum pre-tax wholesale [price] gasoline prices or the maximum pre-tax retail [price of regular unleaded] gasoline[,] prices, the commission shall publish its findings and the adjusted prices by means that shall include the internet website for the State of Hawaii.

(d) In its discretion and without a petition having been filed, the commission may adjust the maximum pre-tax wholesale [price] prices or the maximum pre-tax retail [price of regular unleaded] gasoline prices if an adjustment is necessary as a result of a change in the value of the baseline price for regular unleaded gasoline, the location adjustment factor, the marketing margin factor, [the neighbor island wholesale adjustment factor,] the mid-grade or premium factor, or the retail marketing margin factor.

(e) Nothing in section 486H-A or 486H-B shall be construed to prohibit the filing of a petition during the first year after the effective date of this section."

SECTION 4. Act 77, Session Laws of Hawaii 2002, is amended by amending section 19 to read as follows:

"SECTION 19. This Act shall take effect upon its approval; provided that:

(1) Section 2 shall take effect on July 1, [2004;] 2005; provided that section 17A shall be repealed on July 1, 2007; and

(2) Sections 6 and 7 shall take effect on July 1, 2002."

SECTION 5. Chapter 486J, Hawaii Revised Statutes, is repealed.

PART III

SECTION 6. The purpose of this part is to develop a single, integrated state energy strategy as outlined in the Hawaii Fuels Study, also known as the "Stillwater Report."

A significant recommendation of the recently completed Hawaii Fuels Study is to initiate an integrated energy strategy. The legislature finds that a holistic approach is needed to ensure that improvements in one area of Hawaii's energy system do not cause deterioration in another. For instance, replacing residual oil with liquefied natural gas to produce electricity and incorporating ethanol blending are examples of policies that may cause financial difficulties for existing industry participants and thus be detrimental to the State's economy.

An integrated energy strategy will give the legislature and other policymakers a broad range of policy options, including improved planning and enhanced data collection and monitoring to support the development of a long-term plan with realistic goals. An integrated energy strategy with long-range objectives may also lead to an improved investment climate. Such a plan will also greatly improve coordination among stakeholder groups, and promote the use of strategic partnerships. Additionally, developing an integrated energy strategy will allow the state to pursue meaningful investment strategies and technology options.

Under chapter 196-4, Hawaii Revised Statutes, the responsibility for long-range planning and coordination of the State's energy systems falls under the director of the department of business, economic development and tourism, in the director's role as the energy resources coordinator. One of the coordinator's responsibilities is to complete periodic strategic assessments of Hawaii’s energy needs and recommend policies and programs to achieve the State's long-term energy objectives found in chapter 226-18, Hawaii Revised Statutes. The development of a single, integrated state energy strategy is consistent with this responsibility.

The legislature shall appropriate funds from the gasoline monitoring, analysis, and reporting special fund as may be necessary for the energy resources coordinator to undertake and complete an integrated state energy strategy that is consistent with the Hawaii Fuels Study.

PART IV

SECTION 7. The speaker of the house of representatives and the senate president shall appoint a joint legislative task force to address gasoline pricing issues and barriers to competition in counties with a population of less than five hundred thousand.

PART V

SECTION 8. There is appropriated out of the general revenues of the State of Hawaii the sum of $500,000 or so much thereof as may be necessary for fiscal year 2004-2005 to establish the gasoline monitoring, analysis, and reporting program established under this Act.

The sum appropriated shall be expended by the office of the auditor for the purposes of this Act.

SECTION 9. There is appropriated out of the gasoline monitoring, analysis, and reporting special fund the sum of $91,580 for fiscal year 2004-2005 for two full-time equivalent (2.00 FTE) auditor/inspectors ($45,790/position) in the public utilities commission to monitor, implement, enforce, and report on Oahu's gasoline price regulations.

The sum appropriated shall be expended by the public utilities commission for the purposes of this Act.

PART VI

SECTION 10. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 12. This Act shall take effect upon its approval; provided that sections 8 and 9 shall take effect on July 1, 2004.

INTRODUCED BY:

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