STAND. COM. REP. NO.  1185

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 1236

      S.D. 1

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Economic Development & Business, to which was referred S.B. No. 1236, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO FIBER OPTICS,"

begs leave to report as follows:

The purpose of this measure is to require the installation of fiber optic cable systems in new condominiums and planned communities by denying a building permit for such construction unless it includes a fiber optic cable system that meets the requirements established by the Director of Commerce and Consumer Affairs.

The Department of Business, Economic Development, and Tourism testified in support of this measure.  The Building Industry Association of Hawaii testified in opposition to this measure.  The Department of Commerce and Consumer Affairs, Office of Information Management and Technology, and Hawaii Association of REALTORS offered comments.

     Your Committee has amended this measure by:

     (1)  Requiring the installation of infrastructure that accommodates, at a minimum, fiber optic cable during new condominium and planned community construction;

     (2)  Removing the requirement that a fiber optic cable system be installed during new condominium and planned community construction;

     (3)  Specifying as minimum required infrastructure available conduit capacity and a dedicated junction box for each housing unit or building;

     (4)  Removing language that required the Director of Commerce and Consumer Affairs to make rules regarding standards for mandatory fiber optic cable systems; and

     (5)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1236, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1236, S.D. 1, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business,

____________________________

CLIFT TSUJI, Chair