STAND. COM. REP. NO. 19

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 756
                                     




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

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 756 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to establish the universal
service fund as a special fund outside of the state treasury to
implement the policies and goals of universal service.  It also
appropriates moneys out of the universal service fund to carry
out the purposes of the universal service program.  And it
provides that any unexpended or unencumbered balance of the
appropriation will lapse into the universal service fund.

     AT&T, the Department of Commerce and Consumer Affairs, GTE,
GST Telecom Hawaii, and the Public Utilities Commission testified
in support of this bill.

     There was no testimony in opposition.

     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. 756 and recommends that it pass
Second Reading and be referred to the Committee on Consumer
Protection and Commerce.


 
 
 
 
                                 STAND. COM. REP. NO. 19
                                 Page 2

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



                                   ______________________________
                                   ROBERT N. HERKES, Chair