STAND. COM. REP. NO. 1275

Honolulu, Hawaii

, 2001

RE: H.B. No. 1335

H.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Economic Development and Technology, to which was referred H.B. No. 1335, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to exempt from the definition of "public utility" persons with an exclusive wireless telecommunication license from the Federal Communications Commission.

Your Committee received testimony in favor of this measure from AT&T Wireless Services, Voicestream Wireless, Goodsill, Anderson, Quinn & Stifel, and Cingular Wireless. Your Committee received testimony opposing this measure from the Public Utilities Commission and the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs.

Your Committee finds that the Federal Communications Commission (FCC) maintains regulatory authority over cellular communications, not the Public Utilities Commission (PUC). However, because wireless companies are still classified as public utilities, they must pay a tax and PUC fee – revenues that are used for the PUC's operating budget to regulate utilities. This is despite the fact that the PUC has not had regulatory authority over cellular and wireless providers since Congress and the FCC preempted State Commissions in 1993.

Your Committee acknowledges that consumer complaints will arise in regards to wireless service providers, and is assured that the Office of Consumer Protection will properly handle such complaints.

As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1335, H.D. 1, and recommends that it pass Second Reading and be referred to the Committees on Commerce, Consumer Protection and Housing and Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Technology,

____________________________

ROD TAM, Chair