STAND. COM. REP. NO. 1330

Honolulu, Hawaii

, 2019

RE: S.B. No. 991

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Intrastate Commerce, to which was referred S.B. No. 991, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TELECOMMUNICATIONS,"

begs leave to report as follows:

The purpose of this measure is to decrease the overall regulatory burden on providers of basic exchange service, or landline, telecommunication providers by:

(1) Authorizing providers in counties with a population of less than 500,000 to increase retail rates by no more than $6.50 annually without prior approval by the Public Utilities Commission;

(2) Exempting providers from prior Commission approval requirements for issuance of securities, disposition of property, sale of stock, and reporting and competitive procurement requirements; and

(3) Clarifying providers' exemption from rate regulation.

The Public Utilities Commission, Department of Commerce and Consumer Affairs, Hawaiian Telcom, and Verizon testified in support of this measure. Charter Communications testified in opposition to this measure.

Your Committee notes that the intent of this measure is not to infringe on wholesale rates charged for services provided by a telecommunications carrier to another communications provider.

Your Committee has amended this measure by changing its effective date to July 1, 3000.

As affirmed by the record of votes of the members of your Committee on Intrastate Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 991, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 991, S.D. 1, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Intrastate Commerce,

____________________________

TAKASHI OHNO, Chair