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Bill caps
gasoline prices
Lawmakers adjourn after passing
the historic measure and
rejecting assisted suicideGASOLINE PRICE CAP
DEATH WITH DIGNITY
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Hawaii will soon be the first state in the nation to have a law that caps gasoline prices, though the legislation will not take effect until 2004, and oil companies are widely expected to press their fight against the regulation. GASOLINE PRICE CAP
By Tim Ruel
truel@starbulletin.comThe Legislature approved yesterday a measure introduced late in the session by the Attorney General's Office that establishes maximum wholesale and retail prices for regular unleaded gasoline.
The move drew an immediate statement from ChevronTexaco Corp., which operates one of Hawaii's two gasoline refineries. "We hope the governor will see the wisdom of vetoing it," Chevron said. "While it is impossible to forecast exactly what will happen in any market, creating a hostile climate for business will inevitably hurt Hawaii and its people."
Gov. Ben Cayetano, who has pushed for the bill, is expected to sign it into law.
If the law takes effect, the state Public Utilities Commission would set price caps weekly using an average of spot market prices from Los Angeles, San Francisco and the Pacific Northwest. The commission would add 22 cents to the average of the West Coast prices to arrive at Oahu's maximum wholesale price, while the Neighbor Island price would tack on an additional 8 cents. Retail prices would tack on another 16 cents.
If the law were to take effect under recent West Coast prices, the maximum Oahu gas price would be $1.69, which is nearly a dime higher than the current average price of $1.596 a fact that critics use to point out that the law will lead to higher prices. But the cap is only a ceiling, and oil companies and gasoline dealers are free to compete with each other and set lower prices.
Chevron and the oil companies have kept Hawaii prices low this year to sway public sentiment against regulation, said Spencer Hosie, the state's lead attorney in its now-settled antitrust lawsuit against the oil firms.
Hosie predicts that Hawaii prices at the pump will stay on par with West Coast prices plus 3 or 4 cents, for as long as the new law is in play.
In early 1998, before the state sued the oil companies, average mainland prices dipped to $1.159, while Hawaii's were 50 cents higher at $1.659, prompting claims of price gouging.
"When you're fighting the oil companies, don't even think for a second that we've won the war," Attorney General Earl Anzai said yesterday.
If Chevron were to sue over the new law, it would likely argue against its constitutionality, Hosie said. Chevron did exactly that five years ago when the state passed a law to ban the amount of rent that oil companies can charge to gasoline dealers. Chevron won earlier this year in federal court, and the law was ruled unconstitutional. But the state would have a better case with price caps, because the cap would lead to lower gas prices in Hawaii, which is a legitimate state interest, Hosie said.
Earlier this year, the state dropped its $2 billion antitrust lawsuit against the companies in exchange for a total payment of $35 million. The oil companies have said that the settlement proves that the state never had a case.
Sen. Cal Kawamoto, an opponent of regulating gas prices, said the Attorney General's Office is taking its loss out on the oil companies. "If you hurt a wild boar, it loses all rationale," said Kawamoto (D, Waipahu).
The Senate voted 18-7 in favor of the measure, and the House approved it 29-21 with one member absent.
"It was closer than I would like it to be," Anzai said.
Yesterday's vote is likely to become a major issue in this landmark election year, Anzai said. "I can't think of anything that affects every household more than (gas prices) in terms of actual dollars."
The rest of the nation has been watching Hawaii closely, Hosie said. Gas prices have been rising in some markets on the mainland, and consolidation in the oil industry is leading to the same lack of competitive forces that drove up Hawaii gas prices.
"I think that Hawaii is ahead of the curve on this issue, as it should be, but Alaska, California and the federal government are all looking at how oil companies set gasoline prices in concentrated markets, and I will be surprised if other states don't take action along the lines that Hawaii has taken today," Hosie said.
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Like a cat with nine lives, the oft-resuscitated death-with-dignity bill likely will not go away even though the state Senate dealt it a fatal blow yesterday for this session. DEATH WITH DIGNITY
By Crystal Kua
ckua@starbulletin.com"I think that even though it failed ... it came real close, and one day, perhaps in the next five years or so, this will become the law in the state of Hawaii," said Gov. Ben Cayetano, who supported the bill.
Following an emotional and tearful debate, the Senate voted 14-11 against passing a bill that would have legalized physician-assisted suicide in Hawaii.
House Bill 2487, House Draft 1, describes the procedures and safeguards by which a terminally ill person over the age of 18 could request in writing a prescription of life-ending drugs.
The bill had an arduous journey to the Senate floor after passing the House.
Sen. David Matsuura (D, South Hilo) at first refused to give the bill a hearing and then deferred passing the bill out. On Tuesday, 15 senators, including Matsuura, voted to pull the bill from committee.
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Proponents argued that the bill would have given terminally ill patients another end-of-life choice to the provisions set in the current "living will" or advance health directives.Opponents said there was not enough time to work out the bugs and that seniors and the disabled would end up being victims of the process.
The two senators whose votes were uncertain until they stood up to speak were Sens. Donna Kim (D, Fort Shafter-Aiea) and Bob Hogue (R, Kaneohe-Enchanted Lake).
Hogue and Kim switched to "no" votes after first voting "yes" during the bill's second of three readings on Tuesday.
Their speeches were among the most passionate in explaining the reasons for their final vote.
Hogue said he was still undecided up until the Senate convened. "I have cried many times."
He said spent yesterday morning going around his district, to shopping centers, retirement homes and restaurants in Kailua and Kaneohe, asking people what they thought about it.
He then turned to the audience above and looked at death-with-dignity supporter Bill Perry of Honolulu, who suffers from prostate cancer, and said, "I'm sorry I cannot help you to make the choice that you want to make."
With her voice trembling at times, Kim said her heart was for the bill, but she felt that the measure had problems and was being rushed through.
The votes for and against House Bill 2487, House Draft 1, the so-called death-with-dignity bill that would have legalized physician-assisted suicide were: How the Senate split on assisted suicide
>> NO: Robert Bunda (D, Wahiawa), Jan Yagi Buen (D, West Maui), Jonathan Chun (D, Kauai), Kalani English (D, Hana), Fred Hemmings (R, Waimanalo), Bob Hogue (R, Kailua), Brian Kanno (D, Kapolei), Cal Kawamoto (D, Waipahu), Donna Mercado Kim (D, Aiea), David Matsuura (D, South Hilo), Ron Menor (D, Mililani), Norman Sakamoto (D, Moanalua), Sam Slom (R, Hawaii Kai), Rod Tam (D, Nuuanu).
>> YES: Avery Chumbley (D, East Maui), Suzanne Chun-Oakland (D, Liliha), Carol Fukunaga (D, Makiki), Colleen Hanabusa (D, Waianae), David Ige (D, Pearl City), Les Ihara Jr. (D, Kapahulu), Lorraine Inouye (D, North Hilo), Russell Kokubun (D, Kau), Matt Matsunaga (D, Palolo), Bob Nakata (D, Kahaluu), Brian Taniguchi (D, Manoa).
"What bothers me about this decision, Mr. President, is that I am forced make it in such a short time," Kim said.
"I have read the bill, and there are a couple of areas in which I am not comfortable with the bill. I would like to see amendments made to it."
Kim and Sen. Rod Tam (D, Nuuanu), who also switched his "yes" vote to a "no," scolded lobbyists for threatening to withhold votes in this year's election.
Sen. Brian Taniguchi (D, Manoa-McCully) changed his vote from "no" to "yes."
Cayetano said: "The religious right in this state is very well organized, not only here in Hawaii, but throughout the rest of the nation. That had to have had an impact in an election year.
"I think as the level of awareness of what the issue is really all about begins to grow among the community in general that you're going to see that there will be more and more support for this."
Kelly Rosati, executive director of Hawaii Family Forum, which opposed the measure, was among those who were "thrilled" with the outcome, but she said she is well aware that the issue will be back. "This is just the beginning," Rosati said.
Those who watched the debate were struck by the fervor of the speeches.
"I thought the debate was remarkably profound on all sides," Rosati said.
The governor said, "I think those who advocated for the bill did so with great eloquence and substance, and anyone who was watching that could not help but be impressed by the level of debate."
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