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REPORT TITLE:
Universal Service Fund; PUC


DESCRIPTION:
Establishes the universal service fund as a special fund outside
of the state treasury to implement the policies and goals of
universal service.  Appropriates moneys out of the universal
service fund to carry out the purposes of the universal service
program.  (HB756 HD2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        756
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO PUBLIC UTILITIES COMMISSION.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 36-27, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "36-27  Transfers from special funds for central service
 
 4 expenses.  Except as provided in this section, and
 
 5 notwithstanding any other law to the contrary, from time to time
 
 6 the director of finance, for the purpose of defraying the
 
 7 prorated estimate of central service expenses of government in
 
 8 relation to all special funds, except the:
 
 9      (1)  Special summer school and intersession fund under
 
10           section 302A-1310;
 
11      (2)  School cafeteria special funds of the department of
 
12           education;
 
13      (3)  Special funds of the University of Hawaii;
 
14      (4)  State educational facilities improvement special fund;
 
15      (5)  Convention center capital special fund under section
 
16           206X-10.5 and the convention center operations special
 
17           fund under section 206X-10.6;
 
18      (6)  Special funds established by section 206E-6;
 
19      (7)  Housing loan program revenue bond special fund;
 
20      (8)  Housing project bond special fund;
 
Page 2                                                     756
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (9)  Aloha Tower fund created by section 206J-17;
 
 2     (10)  Domestic violence prevention special fund under section
 
 3           321-1.3;
 
 4     (11)  Spouse and child abuse special account under section
 
 5           346-7.5;
 
 6     (12)  Spouse and child abuse special account under section
 
 7           601-3.6;
 
 8     (13)  Funds of the employees' retirement system created by
 
 9           section 88-109;
 
10     (14)  Unemployment compensation fund established under
 
11           section 383-121;
 
12     (15)  Hawaii hurricane relief fund established under chapter
 
13           431P;
 
14     (16)  Hawaii health systems corporation special funds;
 
15     (17)  Boiler and elevator safety revolving fund established
 
16           under section 397-5.5;
 
17     (18)  Tourism special fund established under section
 
18           [[]201B-11[]]; [and]
 
19     (19)  Department of commerce and consumer affairs' special
 
20           funds; and
 
21     (20)  Universal service fund established under chapter 269;
 
22 shall deduct five per cent of all receipts of all other special
 
23 funds, which deduction shall be transferred to the general fund
 
 
 
Page 3                                                     756
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 of the State and become general realizations of the State.  All
 
 2 officers of the State and other persons having power to allocate
 
 3 or disburse any special funds shall cooperate with the director
 
 4 in effecting these transfers.  To determine the proper revenue
 
 5 base upon which the central service assessment is to be
 
 6 calculated, the director shall adopt rules pursuant to chapter 91
 
 7 for the purpose of suspending or limiting the application of the
 
 8 central service assessment of any fund.  No later than twenty
 
 9 days prior to the convening of each regular session of the
 
10 legislature, the director shall report all central service
 
11 assessments made during the preceding fiscal year."
 
12      SECTION 2.  Section 36-30, Hawaii Revised Statutes, is
 
13 amended by amending subsection (a) to read as follows:
 
14      "(a)  Each special fund, except the:
 
15      (1)  Transportation use special fund established by section
 
16           261D-1;
 
17      (2)  Special summer school and intersession fund under
 
18           section 302A-1310;
 
19      (3)  School cafeteria special funds of the department of
 
20           education;
 
21      (4)  Special funds of the University of Hawaii;
 
22      (5)  State educational facilities improvement special fund;
 
23      (6)  Special funds established by section 206E-6;
 
 
 
Page 4                                                     756
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (7)  Aloha Tower fund created by section 206J-17;
 
 2      (8)  Domestic violence prevention special fund under section
 
 3           321-1.3;
 
 4      (9)  Spouse and child abuse special account under section
 
 5           346-7.5;
 
 6     (10)  Spouse and child abuse special account under section
 
 7           601-3.6;
 
 8     (11)  Funds of the employees' retirement system created by
 
 9           section 88-109;
 
10     (12)  Unemployment compensation fund established under
 
11           section 383-121;
 
12     (13)  Hawaii hurricane relief fund established under chapter
 
13           431P;
 
14     (14)  Convention center capital special fund established
 
15           under section 206X-10.5 and the convention center
 
16           operations special fund established under section 206X-
 
17           10.6;
 
18     (15)  Hawaii health systems corporation special funds; [and]
 
19     (16)  Tourism special fund established under section
 
20           [[]201B-11[]]; and
 
21     (17)  Universal service fund established under chapter 269;
 
22 shall be responsible for its pro rata share of the administrative
 
23 expenses incurred by the department responsible for the
 
24 operations supported by the special fund concerned."
 
Page 5                                                     756
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      SECTION 3.  Section 269-42, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (a) to read as follows:
 
 3      "(a)  There is established outside the state treasury a
 
 4 special fund to be known as the universal service fund to be
 
 5 administered by the commission[.] to implement the policies and
 
 6 goals of universal service.  The fund shall consist of
 
 7 contributions from the sources identified in subsections (e) and
 
 8 (f).  Interest earned from the balance of the fund shall become a
 
 9 part of the fund.  The commission shall adopt rules regarding the
 
10 distribution of moneys from the fund including reimbursements to
 
11 carriers for providing reduced rates to low-income, elderly,
 
12 residents of underserved or rural areas, or other subscribers, as
 
13 authorized by the commission."
 
14      SECTION 4.  There is appropriated out of the universal
 
15 service fund the sum of $          or so much thereof as may be
 
16 necessary for fiscal year 1999-2000 to be expended by the public
 
17 utilities commission to carry out the purposes of the universal
 
18 service program; provided that the moneys shall be temporarily
 
19 loaned from the public utilities special fund to the universal
 
20 service fund.  The funds borrowed from the public utilities
 
21 special fund shall be repaid from the universal service fund when
 
22 sufficient funds are collected in the universal service fund as
 
23 determined by the public utilities commission.
 
 
 
Page 6                                                     756
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      The sum appropriated shall be expended by the public
 
 2 utilities commission for the purposes of this Act.
 
 3      SECTION 5.  Statutory material to be repealed is bracketed.
 
 4 New statutory material is underscored.
 
 5      SECTION 6.  This Act shall take effect on July 1, 1999;
 
 6 provided that:
 
 7      (1)  The amendments made to sections 36-27 and 36-30, Hawaii
 
 8           Revised Statutes, by this Act shall not be repealed
 
 9           when those sections are reenacted on July 1, 2000,
 
10           pursuant to section 13 of Act 216, Session Laws of
 
11           Hawaii 1997; and
 
12      (2)  The amendments made to section 36-27, Hawaii Revised
 
13           Statutes, by this Act shall not be repealed when that
 
14           section is reenacted on July 31, 2003, pursuant to
 
15           section 9 of Act 142, Session Laws of Hawaii 1998.