STAND. COM. REP. NO. 169-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 1680

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Intrastate Commerce, to which was referred H.B. No. 1680 entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish a prepaid wireless enhanced 911 (E911) surcharge, separate from the existing E911 surcharge for communications service connections, on all prepaid wireless telecommunications service purchased in retail transactions occurring within the State;

(2) Allow sellers to deduct three percent of all prepaid wireless E911 surcharges collected to offset administrative expenses associated with collecting the surcharge;

(3) Require semiannual remittance of surcharge amounts to the Enhanced 911 Fund by sellers; and

(4) Decrease the existing E911 surcharge rate for communications service connections.

Your Committee received testimony in support of this measure from the Office of Enterprise Technology Services, one member of the Enhanced 911 Board, the Kauai Police Department, and one individual. Your Committee received testimony in opposition to this measure from the Retail Merchants of Hawaii.

Your Committee finds that the monies collected and placed into the Enhanced 911 Fund provide funding to deploy and sustain E911 service and to develop and fund future E911 technologies. Your Committee also finds, however, that monies are only collected from postpaid wireless consumers, not prepaid wireless consumers. This measure will address the inequity of one consumer group subsidizing an essential service utilized by all consumer groups.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2050, to encourage further discussion; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity, consistency, and style.

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 H.B. No. 1680, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1680, 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