STAND. COM. REP. NO. 718

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 661
                                     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 Consumer Protection and Commerce, to which
was referred H.B. No. 661, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO ENHANCED WIRELESS EMERGENCY
     911 SERVICE,"

begs leave to report as follows:

     The purpose of this bill is to allow the implementation of a
plan established by the Federal Communications Commission (FCC),
that would result in the increased ability of public safety
answering points (PSAPs) receiving wireless 911 calls, to
identify the location of a wireless 911 caller through enhanced
911 technology.  This bill seeks to comply with the third of
three conditions required by the FCC before wireless enhanced 911
(E911) service under the FCC plan may be implemented:  the
creation of a cost recovery mechanism allowing wireless
providers, resellers, and public safety agencies receiving E911
calls, to recover the costs of establishing and maintaining the
E911 system.  Among other things, the bill:

     (1)  Creates a Wireless Enhanced 911 Special Fund:

          (A)  Into which is paid surcharges imposed on each
               wireless connection less a wireless provider's
               administrative and capital costs, and less a
               wireless reseller's administrative expenditures;

     and

 
 
 
                                 STAND. COM. REP. NO. 718
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          (B)  Out of which wireless providers and PSAPs may
               obtain cost recovery assistance when surcharges
               collected are less than administrative and capital
               E911 costs, and PSAPs may seek reimbursement for
               the costs and maintenance of E911 equipment;

          and

     (2)  Establishes a Wireless Enhanced 911 Advisory Board with
          authority to adjust surcharges to ensure full recovery
          of E911 costs, adjust disbursements from the fund, and
          undertake collection actions.

     Your Committee received testimony in support of this measure
and suggesting amendments from the Department of Health (DOH) and
GTE.  Western Wireless Corporation, Ameritech Cellular (AC),
Honolulu Cellular Telephone Company (HCTC), and the Honolulu
Police Department also testified in support of this bill.
Testimony in opposition was submitted by the Division of Consumer
Advocacy of the Department of Commerce and Consumer Affairs
(DCCA) who, among other things, stated that E911 carrier costs
should be collected through the competitive market rather than
statutory mandate.

     HCTC testified that while landline telephone networks with
enhanced 911 systems can provide the location and telephone
number of the handset used to make the 911 call, wireless systems
can not.  In an attempt to change this situation and establish
enhanced 911 networks for wireless systems, the FCC in 1996
issued an order mandating a two-phase implementation of wireless
E911 technology.  In the first phase, wireless carriers must be
able to provide PSAPs with the caller's number and the location
of the nearest cell site.  In Phase II, carriers must be able to
provide the caller's location within 125 meters, with at least 67
percent effectiveness, by October 2001.

     HCTC also testified that the FCC ordered three conditions
for offering wireless E911:

     (1)  The PSAP must formally request Phase I and Phase II
          from the wireless carrier;

     (2)  The PSAP must have the technical capability to handle
          E911 service; and

     (3)  A cost recovery mechanism must be in place,

and that this bill is designed to address the third FCC
condition.

 
                                 STAND. COM. REP. NO. 718
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     AC testified that radio communications, by their very
nature, are subject to a wide variety of factors which may affect
their calls.  These include atmospheric conditions, foliage,
interference, fading and battery power--all of which are beyond
the control of the wireless carrier.

     Your Committee believes that the concerns raised by DCCA
merit further discussion in the Committee on Finance.  In
addition, your Committee has amended this measure as suggested by
DOH and GTE to:

     (1)  Remove language specifically directing DOH to assist in
          county development of a E911 system, leaving DOH the
          authority to provide general assistance to the
          counties;

     (2)  Clarify that providers submit an annual audit by April
          2 of the year following any period in which an E911
          surcharge is imposed upon customers;

     (3)  Exempt emergency response personnel from liability; and

     (4)  Make nonsubstantive, technical amendments to clarify
          language of the bill, and conform the measure to
          requirements under the FCC Order.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 661, H.D. 1, as amended herein, and
recommends that it be referred to the Committee on Finance, in
the form attached hereto as H.B. No. 661, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair