STAND. COM. REP. NO. 1872-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 3100

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 3100, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE STRUCTURE OF GOVERNMENT,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Consolidate the Departments of Human Resources Development and Budget and Finance into a single department, which shall be known as the Department of Budget, Finance, and Human Resources;

(2) Appropriate funds to the Department of Budget and Finance for the purposes of consolidating the Departments of Human Resources Development and Budget and Finance into a single department;

(3) Transfer to the Department of Business, Economic Development and Tourism (DBEDT) jurisdiction over cable TV and the Broadband Assistance Advisory Council from the Department of Commerce and Consumer Affairs and telecommunications carriers from the Public Utilities Commission;

(4) Establish the position of Commissioner of Telecommunications to oversee and supervise the regulatory functions transferred to DBEDT;

(5) Create a special fund in DBEDT for administration, including personnel costs, of regulation of cable systems and telecommunications carriers;

(6) Require the Broadband Assistance Advisory Council to advise the Director of Business, Economic Development and Tourism on broadband deployment; and

(7) Transfer all rights, powers, duties, assets, funds, and employees of the Department of Commerce and Consumer Affairs and the Public Utilities Commission associated with the regulatory jurisdiction transferred by this measure to DBEDT.

The Office of the Governor, Department of Accounting and General Services, Department of Human Resources Development, Department of Business, Economic Development and Tourism, Office of Enterprise Technology Services, and Hawaiian Telcom opposed this measure. The Department of Commerce and Consumer Affairs, Department of Land and Natural Resources, Department of Budget and Finance, Public Utilities Commission, and Charter Communications provided comments.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3100, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair