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The Honolulu Advertiser
Posted on: Saturday, June 26, 2004

Gasoline price caps delayed one more year

By Lynda Arakawa
Advertiser Capitol Bureau

Hawai'i residents won't see gasoline price caps until at least September of 2005.

Here are bills Lingle will veto

Among the measures Gov. Linda Lingle yesterday announced that she will veto:

• Senate Bill 459, banning contributions by government contractors receiving contracts of more than $25,000, increasing the fines for violating the campaign spending law and expanding the law barring campaigning in government facilities to everyone. Lingle said the bill has serious technical errors that could lead to constitutional challenges.

• House Bill 1743, prohibiting artificial lights that are positioned toward or directly illuminate the ocean, unless such light is authorized and required for public safety or safe ocean navigation; creates exception for fixtures at hotels/ hotel-condos. Lingle said the bill is vague and relies on subjective determinations.

• Senate Bill 3170, establishing new requirements for the blending of ethanol in gasoline. Lingle said current law requires the state to adopt rules requiring gasoline sold in Hawai'i to contain 10 percent ethanol.

• Senate Bill 469, prohibiting an employer or labor organization from discriminating against an employee who uses accrued and available sick leave in accordance with a valid collective bargaining agreement or valid employment policy. Lingle said the bill could lead to extensive abuse of sick leave, disrupt business operations, increase costs and discriminate against employees who abide by company rules.

• House Bill 1374, allowing a person who successfully defends a charge of workers' compensation insurance fraud, except criminal cases, to recover attorney's fees and other costs against the person who initiates and prosecutes the action. Lingle called the bill false reform because the insurance commissioner could not pursue fraud by claimants or workers' compensation providers.

• House Bill 2025, prohibiting employers from discriminating on the basis of gender by paying wages to an employee at a rate less than the rate at which the employer pays wages to another employee of the opposite sex for equal work if gender is the only consideration. Lingle said the bill is unnecessary because federal and state laws prohibit employers from discriminating on the basis of gender.

Gov. Linda Linda yesterday let a bill delaying gasoline price cap until that time become law without her signature. But she made it clear she opposes any price caps on gasoline and said she wants the Legislature to repeal the law next year.

"We're buying some time to go back to the Legislature and talk about why this second bill is so bad and should be repealed," Lingle said. "The preamble to the second bill says this bill will not guarantee that prices will go down. In my opinion, it guarantees that prices will go up, and that's very clear."

Lingle also announced she will veto 28 bills, including a campaign spending reform measure aimed at barring contributions from certain government contractors. Lingle said she supports the concept but that the bill had flaws that could lead to court challenges.

The vetoes announced yesterday bring Lingle's final veto total to 38. The Legislature overrode seven of her previous vetoes during the regular session, and House and Senate leaders said yesterday they are not interested in convening a special session to override any more vetoes. When Lingle vetoed 50 bills last year, the Legislature came back in special session to override six.

The gasoline price cap bill, Senate Bill 3193, was intended to fix flaws in a 2002 law. It amends the 2002 law by delaying the start of the law from July 1 this year to September 2005 and limits the caps to cover only wholesale prices and not retail prices.

It also changes the law by basing the price-cap formula on spot prices in several markets across the nation rather than only on the West Coast, and expands the caps to cover all gasoline grades except diesel.

If Lingle vetoed the bill, the 2002 law would take effect July 1, but she could have still suspended it by exercising emergency powers. The new bill establishes tighter requirements for the governor to suspend price caps.

Lingle said the price caps will cause prices to rise, create shortages and "rekindle" an anti-business reputation for the state.

House Majority Leader Scott Saiki and Senate President Robert Bunda said it doesn't make sense for Lingle to let the bill become law if she is against price caps.

"We tried to work with (the state Department of Business, Economic Development and Tourism) over the last year on this issue and we'll continue to do that," said Saiki, D-22nd (McCully, Pawa'a).

Lingle also vetoed a campaign spending bill, Senate Bill 459, citing flaws in the measure largely due to what she called technical errors.

The bill was aimed at prohibiting campaign contributions from government contractors selected in a nonbid process for contracts greater than $25,000 and contributions from out-of-state corporations and unions.

The bill also made it a felony to falsify reports and contribute under a false name to circumvent the law.

State Attorney General Mark Bennett said the bill had loopholes and mistakes that would have left the state vulnerable to constitutional challenges. One error was a provision that wound up barring a political action committee from making contributions if it received monetary donations from at least 10 Hawai'i residents, he said.

Another provision would have allowed nonbid contractors to make campaign contributions, but barred those who won government contracts by bidding the lowest price, Bennett said.

Saiki said that the House would have take a "hard look" at the governor's objections but that the intent was to ban out-of-state committee contributions unless they had 10 in-state contributors.

Campaign Spending Commission associate director Tony Baldomero expressed disappointment at the veto and said commission executive director Bob Watada, who was unavailable for comment, felt the bill was a step in the right direction.

Baldomero said the commission will likely try again next year to push through legislation that would ban contributions by government contractors receiving contracts of more than $25,000, increase the fines for violating the campaign spending law and expand the law barring campaigning in government facilities.

Advertiser Staff Writer Gordon Y.K. Pang contributed to this report. Reach Lynda Arakawa at larakawa@honoluluadvertiser.com or at 525-8070.