STAND. COM. REP. NO. 685

                                   Honolulu, Hawaii
                                                     , 1999

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




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 1279, S.D. 1, entitled: 

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

begs leave to report as follows:

     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.

     This measure establishes the fund as a special fund outside
the state treasury, and exempts the fund from administrative
surcharges.

     In addition, this measure authorizes the Public Utilities
Commission to temporarily borrow funds from the Public Utilities
Commission Special Fund to start the Universal Service Fund and
to repay the amounts borrowed when sufficient moneys are
collected in the fund.

     Finally, this measure appropriates $300,000, from the Public
Utilities Commission Special Fund for fiscal year 1999-2000, to
carry out the purposes of the Universal Service Program.


 
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                                   STAND. COM. REP. NO. 685
                                   Page 2


     Your Committee has amended this measure by:

     (1)  Deleting the provision setting the fund outside the
          state treasury;

     (2)  Changing the sources of contributions to the fund to
          provide greater flexibility for funding; and

     (3)  Making technical, nonsubstantive amendments.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1279, S.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.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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