STAND. COM. REP. NO. 2161-22

Honolulu, Hawaii

, 2022

RE: S.C.R. No. 120

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.C.R. No. 120, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION URGING THE PUBLIC UTILITIES COMMISSION TO CONSIDER AND ADOPT AN EFFICIENT, STREAMLINED PROCESS TO REVIEW REQUESTS MADE BY ELECTRIC UTILITIES TO PROVIDE MIDDLE MILE BROADBAND SERVICES IN FURTHERANCE OF THE STATE'S EFFORTS TO EXPEDITE BROADBAND ACCESS TO UNSERVED AND UNDERSERVED AREAS,"

begs leave to report as follows:

The purpose of this measure is to urge the Public Utilities Commission to consider and adopt an efficient, streamlined process to review requests made by electric utilities to provide middle mile broadband services in furtherance of the State's efforts to expedite broadband access and equity, facilitate digital equity, and promote expeditious broadband deployment to unserved and underserved areas.

Your Committee received testimony in support of this measure from the University of Hawai‘i System; Hawaiian Electric Company; Ocean Networks, Inc.; and one individual. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs, Public Utilities Commission, and Hawaiian Telcom.

Your Committee finds that the coronavirus disease 2019 pandemic has magnified the need for broadband access for all residents in the State. Broadband access has become a necessity for efficient access to basic amenities including health care, education, public safety, commerce, and government services. Access to broadband is also necessary for work and in daily interactions with others. Your Committee further finds that existing regulated public utilities are able to provide foundational, diverse middle mile broadband services to internet service providers and other third parties without duplicating efforts or congesting rights-of-way or view planes, which will increase the deployment of broadband in unserved and underserved communities.

Your Committee notes and agrees with the comment submitted by the Department of Commerce and Consumer Affairs in its written testimony to your Committee that it may be necessary for the Public Utilities Commission to revisit its rules, known as the Affiliate Transaction Requirements, to ensure that cross-subsidization does not occur for broadband activities.

Your Committee has amended this measure by:

(1) Making a technical, nonsubstantive amendment to the title to more accurately reflect the measure's purpose; and

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

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 120, S.D. 1, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 120, S.D. 1, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

AARON LING JOHANSON, Chair