STAND. COM. REP. NO. 969

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 756
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred H.B. No.
756, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO PUBLIC UTILITIES COMMISSION,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Redesignating the Universal Service Fund (Fund) as a
          special fund that is outside the state treasury to be
          administered by the Public Utilities Commission (PUC)
          to implement the policies and goals of the PUC;

     (2)  Exempt the Fund from the administrative surcharges
          required by sections 36-27 and 36-30, Hawaii Revised
          Statutes; and

     (3)  Appropriate moneys from the Fund to be used by the PUC
          to carry out the purposes of the Universal Service
          Program.

     The PUC, the Consumer Advocate, AT&T, GST Telecom Hawaii,
Oceanic Communications, AARP Hawaii State Legislative Committee,
and GTE testified in support of this bill.

     Your Committee has amended this bill by making technical,
nonsubstantive amendments for purposes of style and clarity.


 
 
 
                                 STAND. COM. REP. NO. 969
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
756, H.D. 1, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as H.B. No. 756, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair