Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 769, S.D. 2, entitled:

begs leave to report as follows:

The purpose of this bill is to allocate excess cable television fees to their highest and best use by:

(2) Requiring DCCA to conduct an evaluation and study of the highest and best uses of the excess franchise fees.

Testimony in support of this measure was received from Olelo Community Television. DCCA requested an amendment.

Your Committee finds that cable television operators are required to pay an annual fee of one percent of their preceding year's income to cover the costs of administering cable television regulation in Hawaii, and that these fees sometimes exceed those costs.

Your Committee recognizes that granting rebates to subscribers is one way to disburse excess funds, but has questions about the cost of allocating those rebates, as well as whether excess fees could be used in ways that would provide a greater benefit to both cable subscribers and the community at large.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 769, S.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Finance.