CONFERENCE COMMITTEE REPORT NO. 163

                            Honolulu, Hawaii
                                            , 1999

                            RE:   S.B. No. 1279
                                  S.D. 2
                                  H.D. 2
                                  C.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 1279, S.D. 2, H.D. 2, entitled:  

     "A BILL FOR AN ACT RELATING TO THE UNIVERSAL SERVICE FUND," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to ensure the viability of
universal telecommunications service in the State by precluding
the use of moneys in the Universal Service Fund for purposes
other than those related to the provision of universal
telecommunications service.  Specifically, the measure:

     (1)  Establishes the Universal Service Fund as a special
          fund outside of the State treasury; 

     (2)  Exempts the Universal Service Fund from general fund
          assessments and administrative surcharges; 


 
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     (3)  Authorizes a temporary loan from the Public Utilities
          Commission Special Fund to the Universal Service Fund;
          and 

     (4)  Appropriates $800,000 out of the Universal Service Fund
          to fund the Universal Service Program. 

     Upon careful consideration, your Committee on Conference has 
amended this measure by:

     (1)  Clarifying that the $800,000 appropriation is for the
          Public Utilities Commission to carry out the purposes
          of the universal service program; and
 
     (2)  Providing that the Universal Service Fund shall repay
          moneys borrowed from the Public Utilities Commission
          Special Fund when sufficient funds have been collected
          in the Universal Service Fund.

     Your Committee on Conference is in accord with the intent
and purpose of S.B. No. 1279, S.D. 2, H.D. 2, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as S.B. No. 1279, S.D. 2, H.D. 2, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
            HOUSE                             SENATE
                                   
                                   
                                   
______________________________     ______________________________
ROBERT N. HERKES, Co-Chair         BRIAN T. TANIGUCHI, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
RON MENOR, Co-Chair                BRIAN KANNO, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
SYLVIA J. LUKE, Co-Chair           CAROL FUKUNAGA, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
JERRY L. CHANG, Member             WHITNEY T. ANDERSON, Member

 
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______________________________
JIM RATH, Member


 
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