STAND. COM. REP. NO. 3376

Honolulu, Hawaii

RE:    H.B. No. 3367

       H.D. 2

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 3367, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WIRELESS ENHANCED 911,"

begs leave to report as follows:

     The purpose of this measure is to require the Auditor to conduct a financial and management audit of the Wireless Enhanced 911 Fund to ensure that the Fund is administered properly and effectively.

More specifically, as part of that audit, the Auditor is directed to determine whether the surcharge tax assessed to mobile phone customers for E911 emergency mobile phone services is sufficient to fund the Wireless Enhanced 911 Fund.  This measure also decreases the surcharge on each mobile phone from $0.66 to $0.43 per month.

     Your Committee finds that requiring the Auditor to conduct a financial and management audit of the Wireless Enhanced 911 Fund will help ensure that the purposes and intent of establishing the fund are fulfilled.  Your Committee further finds that the amount of funds required to implement phases I and II of the wireless enhanced 911 services is less than originally forecasted, thereby warranting a reduction in the surcharge imposed on customers.

     Upon further consideration, your Committee has amended the measure by changing two references to the surcharge imposed on customers for the Wireless Enhanced 911 Fund to clarify that the surcharge is not a tax.

     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 H.B. No. 3367, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 3367, H.D. 2, S.D. 2.

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

____________________________

ROSALYN H. BAKER, Chair