STAND. COM. REP. NO.  962-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 3103

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Public Safety, to which was referred S.B. No. 3103, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to provide for fair and equitable means of funding the statewide 911 system by establishing an E911 surcharge similar to the enhanced 911 surcharge imposed on postpaid wireless communications services to be imposed on each retail transaction of prepaid wireless telecommunications service.  

The Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs; Office of Information Management Technology, Enhanced 911 Board; Maui Police Department; Honolulu Police Department; Hawai‘i Police Department; Kauai Police Department; T-Mobile USA, Inc.; AT&T; CTIA-The Wireless Association; and the Industry Council for Emergency Response Technologies supported this measure.  The Hawaii Food Industry Association opposed this measure.  The Department of the Attorney General, Department of Accounting and General Services, and the Tax Foundation of Hawaii offered comments on the measure.

     Your Committee has amended this measure by:

     (1)  Adding a purpose section;

     (2)  Deleting a provision that would have allowed the administering agency to retain up to two per cent of remitted surcharges to cover administrative costs;

     (3)  Clarifying that the Department of Accounting and General Services is the administering agency for the surcharge, including by deleting references to "ehawaii.gov";

     (4)  Defining "board" as meaning the enhanced 911 board; and

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

     Should the Committee on Consumer Protection and Commerce deliberate on this measure, your Committee respectfully requests that it further examine the collection of the proposed surcharge and the issues surrounding online purchases, administrative expenses, and other related issues.

     As affirmed by the record of votes of the members of your Committee on Public Safety that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3103, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3103, S.D. 2, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Public Safety,

____________________________

HENRY J.C. AQUINO, Chair