Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 1049, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to provide for the partial deregulation of wireless telecommunications providers by the Public Utilities Commission (PUC).

AT&T Wireless submitted testimony in support of this bill. The Department of Taxation, PUC, and the Department of Budget and Finance commented on this measure. Verizon Wireless voiced concerns.

This bill grants Hawaii's wireless industry a partial exemption from state regulation by specifying that persons with federal licenses to provide commercial mobile radio service shall only be subject to certain requirements of the PUC law, chapter 269, Hawaii Revised Statutes (HRS).

Specifically, the wireless industry would be exempt from PUC regulation in the areas of general supervision, financial reports filing, accident reporting, tariff filing, termination of service, securities issuance, issuance of voting stock, acquisition of another public utility's stock, merger and consolidation, and penalties. However, PUC oversight would continue with respect to certification, exemptions and waivers, the annual public utility fee, liability for damage to public utility property, the Public Utility Special Fund, and the Universal Service Fund.

The Senate Committee on Commerce, Consumer Protection and Housing noted, and the members of this Committee agree that the issue of wireless deregulation is a complex issue and raises several concerns. Thus, in an effort to facilitate further discussion on these matters, your Committee has retained this bill's delayed effective date of July 1, 2050.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1049, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1049, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.