Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred H.B. No. 2435 entitled:

begs leave to report as follows:

The purpose of this bill is to expedite and reduce the costs of the regulatory process for resellers of telecommunications services, and therefore promote a competitive telecommunications market, by exempting them from the requirement of seeking Public Utility Commission (PUC) approval prior to entering into any financing agreements.

PUC and the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs submitted testimony in support of this measure with amendments. Verizon Hawaii submitted testimony in opposition to this measure.

Your Committee finds that exempting resellers of telecommunications services from PUC financing agreement approval will drive down costs for resellers as well as their consumers. It was suggested to your Committee that the requirement be removed for all telecommunications providers, not just one narrow segment of the industry. Your Committee notes that although the title of this bill may be too narrow to do this, there are several other bills with more generic titles that could be used to carry forward this measure. Your Committee respectfully requests the Committees on Consumer Protection and Commerce and Finance to look into this matter.

Your Committee has amended this bill by:

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 H.B. No. 2435, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2435, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.