STAND. COM. REP. NO. 1720

                                 Honolulu, Hawaii
                                                   , 1999

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




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

Sir:

     Your Committee on Finance, to which was referred S.B. No.
1279, S.D. 2, H.D. 1, 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 implement the goal of
universal and affordable telephone service by:

     (1)  Designating the Universal Service Fund as a special
          fund outside of the state treasury;

     (2)  Exempting the Universal Service Fund from the
          administrative surcharges set forth in sections 36-27
          and 36-30, Hawaii Revised Statutes; and

     (3)  Appropriating $800,000 through a loan from the Public
          Utilities Commission Special Fund to carry out the
          purposes of the Universal Service Program.

     The Public Utilities Commission, the Consumer Advocate, GTE,
ATT, and GST Telecom Hawaii testified in support of this bill.
Oceanic Communications testified in support of the intent of this
bill.

     Your Committee has made technical, nonsubstantive amendments
to the bill to conform to correct drafting style.


 
 
                                 STAND. COM. REP. NO. 1720
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1279, S.D. 2, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 1279,
S.D. 2, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair