STAND. COM. REP. NO. 1125_______

                                 Honolulu, Hawaii
                                                   , 1999

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




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

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred S.B. No. 1279, S.D. 2, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to designate as a special fund
the Universal Service Fund (Fund) to implement the goal of
universal and affordable telephone service.

     The American Association of Retired Persons testified in
support of this measure.  The Public Utilities Commission and GTE
supported the intent of the measure.  TelHawaii, Inc., GST
Telecom Hawaii, and Oceanic Communications also supported the
intent of the measure, provided that the Fund be placed outside
of the State treasury.  The Consumer Advocate opposed the measure
for its failure to place the Fund outside of the State treasury.

     Your Committee has amended this bill by inserting the
language reflected in H.B. No. 1033, thereby placing the Fund
outside of the State treasury.  Your Committee has further
amended this bill by specifying that the amount to be
appropriated for the Fund is $800,000 and designating this amount
as a temporary loan from the Public Utilities Special Fund.

 
 
 
 
 
 
                                 STAND. COM. REP. NO. 1125_______
                                 Page 2

 

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of S.B. No. 1279, S.D. 2, as amended herein,
and recommends that it pass Second Reading in the form attached
hereto as S.B. No. 1279, S.D. 2, H.D. 1, and be referred to the
Committee on Consumer Protection and Commerce.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair