STAND. COM. REP. NO. 2111

Honolulu, Hawaii

RE:    S.B. No. 2015

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2015 entitled:

"A BILL FOR AN ACT RELATING TO INTRASTATE TELECOMMUNICATIONS SERVICES,"

begs leave to report as follows:

     The purpose of this measure is to clarify that the Public Utilities Commission shall treat retail intrastate telecommunications services as fully competitive.

     Your Committee received testimony in support of this measure from Hawaiian Telecom.  Testimony in opposition to this measure was received from Kona Kai ATM LLC and tw telecom-Hawaii.  Testimony with comments on this measure was received from the Public Utilities Commission.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that this measure expands the opportunities for increased competition in the intrastate retail telecommunications market that were enabled by Act 180, Session Laws of Hawaii 2009.  This measure will allow the Public Utilities Commission to consider additional telecommunications services such as private lines that transmit data between customer locations as fully competitive.  Your Committee further finds that this measure applies only to retail rates, and does not affect wholesale telecommunications rates.  Finally, your Committee finds that this measure leaves in place important consumer safeguards such as the provision of lifeline telephone services, carrier of last resort obligations, and service quality standards.

     Your Committee has amended this measure by:

     (1)  Clarifying that this measure applies to retail intrastate telecommunications services; and

     (2)  Removing the reference to section 269-34, Hawaii Revised Statutes, so as to not unintentionally limit the application of this measure.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2015, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2015, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

____________________________

ROSALYN H. BAKER, Chair