STAND. COM. REP. NO. 218

Honolulu, Hawaii

, 2019

RE: H.B. No. 1062

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Intrastate Commerce and Economic Development & Business, to which was referred H.B. No. 1062 entitled:

"A BILL FOR AN ACT RELATING TO BROADBAND,"

beg leave to report as follows:

The purpose of this measure is to establish a Broadband Service Infrastructure Grant Program (Program) to be administered by the Department of Business, Economic Development, and Tourism (DBEDT).

Charter Communications, Hawaiian Electric Company, Inc., Maui Electric Company, Ltd., Hawaii Electric Light Company, Inc., The O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, and a few concerned individuals testified in support of this measure. The Department of Commerce and Consumer Affairs, DBEDT, and Hawaiian Telcom commented on this measure.

Your Committees note that in order to create a level playing field, the restriction on an applicant receiving funds from other federal or state grant or loan programs should be removed. There are many federal rural grant programs that seek matching state funding. The Program could help to augment those federal programs. Furthermore, it is necessary for DBEDT to assess the resources to create the policies, rules, procedures, and reports needed to successfully implement the Program. Additionally, DBEDT appreciates the intent of this measure, provided that it does not replace priorities included in the executive budget.

Your Committees have amended this measure by changing its effective date to July 1, 3000.

As affirmed by the records of votes of the members of your Committees on Intrastate Commerce and Economic Development & Business that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1062, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1062, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committees on Intrastate Commerce and Economic Development & Business,

____________________________ ANGUS L.K. McKELVEY, Chair

____________________________ TAKASHI OHNO, Chair