Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 769, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the Director of Commerce and Consumer Affairs to provide a rebate to cable television subscribers when fees collected and deposited into the compliance resolution fund are in excess of what is needed to fund the Department's cable television division.

The measure also requires the Department of Commerce and Consumer Affairs to conduct an evaluation of the highest and best uses of cable television operator franchise fees, and report its findings and recommendations to the Legislature no later than twenty days before the convening of the Regular Session of 2006.

Your Committee understands that cable television operators are required to pay an annual fee of one per cent of their preceding year's income to cover the costs of administering cable television regulation in Hawaii. The fees collected have sometimes been in excess of what is required for cable television regulation. Your Committee recognizes that a rebate is one option for the surplus of annual fees.

Accordingly, your Committee has amended the bill by:

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. 769, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 769, S.D. 2.