Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 247

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 247 entitled: 


begs leave to report as follows:
     The purpose of this bill is to clarify and confirm the
Legislature's intent in enacting Act 80, Session Laws of Hawaii
1994, which was to empower the Public Utilities Commission to
replace an existing telecommunications carrier with an
alternative carrier for particular areas.  

     Specifically, this bill grants the alternative carrier the
power to acquire from the decertified carrier by eminent domain
any property and rights necessary to provide service, in
accordance with procedures set forth in the bill.

     GST Telecom Hawaii, Inc., Oceanic Communications, and
TelHawaii, Inc. submitted testimony in support of this bill.  The
Department of Business, Economic Development, and Tourism, the
Division of Consumer Advocacy of the Department of Commerce and
Consumer Affairs, and AT&T testified in support of the intent of
the bill.  GTE and IBEW Local Union 1357 submitted testimony
opposing this bill.

     Your Committee finds that current obstacles to replacing
carriers in certain areas are hindering the goal of bringing
competition to Hawaii's telecommunications industry.  Your
Committee, therefore, supports this bill to provide a means to

                                 STAND. COM. REP. NO. 52
                                 Page 2

facilitate the replacement of carriers when the Public Utilities
Commission finds that replacement is necessary.  Your Committee
recognizes that this bill will undergo further discussion and
deliberation by the Committees on Consumer Protection and
Commerce and Finance.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 247 and recommends that it pass
Second Reading and be referred to the Committee on Consumer
Protection and Commerce.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business

                                   ROBERT N. HERKES, Chair