STAND. COM. REP. NO. 2163

Honolulu, Hawaii

RE:    S.B. No. 2108

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Economic Development and Technology, to which was referred S.B. No. 2108 entitled:

"A BILL FOR AN ACT RELATING TO TELECOMMUNICATIONS,"

begs leave to report as follows:

     The purpose and intent of this measure is to limit to retail basic exchange services the services for which a telecommunications carrier must obtain approval from the Public Utilities Commission, in order to charge a rate higher than the filed tariff rate.

     Your Committee received testimony in support of this measure from Hawaiian Telcom.  Your Committee received testimony in opposition to this measure from the Consumer Advocate.  Your Committee received comments on this measure from the Public Utilities Commission and TW Telecom, Inc.

     Your Committee finds that while the intent of the measure may be to seek consistency with the treatment of intrastate telecommunications services relating to costs, rates, and pricing, it is not clear what is covered by "basic exchange services".  Adding a definition of the term will help clarify the intention of this measure, and will assist the Public Utilities Commission and Hawaii's telecommunications carriers obtain a better understanding of the statutory requirements.

     Your Committee has amended this measure accordingly, by adding a definition of "basic exchange service".

     As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2108, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2108, S.D. 1, and be referred to the Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Technology,

____________________________

CAROL FUKUNAGA, Chair