REPORT TITLE:
Universal Service Fund


DESCRIPTION:
Establishes the USF as a separate fund outside the State
treasury; exempts the USF from administrative surcharges;
provides for repayment of moneys loaned to the USF when
sufficient moneys are collected in the USF; and appropriates
$300,000 from USF for the universal service program. (SD1)  

 
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                                                        1279
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE UNIVERSAL SERVICE FUND.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 36-27, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§36-27  Transfers from special funds for central service
 
 4 expenses.  Except as provided in this section, and
 
 5 notwithstanding any other law to the contrary, from time to time
 
 6 the director of finance, for the purpose of defraying the
 
 7 prorated estimate of central service expenses of government in
 
 8 relation to all special funds, except the:
 
 9      (1)  Special summer school and intersession fund under
 
10           section 302A-1310;
 
11      (2)  School cafeteria special funds of the department of
 
12           education;
 
13      (3)  Special funds of the University of Hawaii;
 
14      (4)  State educational facilities improvement special fund;
 
15      (5)  Convention center capital special fund under section
 
16           206X-10.5 and the convention center operations special
 
17           fund under section 206X-10.6;
 
18      (6)  Special funds established by section 206E-6;
 
19      (7)  Housing loan program revenue bond special fund;
 

 
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 1      (8)  Housing project bond special fund;
 
 2      (9)  Aloha Tower fund created by section 206J-17;
 
 3     (10)  Domestic violence prevention special fund under section
 
 4           321-1.3;
 
 5     (11)  Spouse and child abuse special account under section
 
 6           346-7.5;
 
 7     (12)  Spouse and child abuse special account under section
 
 8           601-3.6;
 
 9     (13)  Funds of the employees' retirement system created by
 
10           section 88-109;
 
11     (14)  Unemployment compensation fund established under
 
12           section 383-121;
 
13     (15)  Hawaii hurricane relief fund established under chapter
 
14           431P;
 
15     (16)  Hawaii health systems corporation special funds;
 
16     (17)  Boiler and elevator safety revolving fund established
 
17           under section 397-5.5;
 
18     (18)  Tourism special fund established under section [[]201B-
 
19           11[]]; [and]
 
20     (19)  Department of commerce and consumer affairs' special
 
21           funds; and
 
22     (20)  Universal service fund established under chapter 269;
 
23 shall deduct five per cent of all receipts of all other special
 

 
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 1 funds, which deduction shall be transferred to the general fund
 
 2 of the State and become general realizations of the State.  All
 
 3 officers of the State and other persons having power to allocate
 
 4 or disburse any special funds shall cooperate with the director
 
 5 in effecting these transfers.  To determine the proper revenue
 
 6 base upon which the central service assessment is to be
 
 7 calculated, the director shall adopt rules pursuant to chapter 91
 
 8 for the purpose of suspending or limiting the application of the
 
 9 central service assessment of any fund.  No later than twenty
 
10 days prior to the convening of each regular session of the
 
11 legislature, the director shall report all central service
 
12 assessments made during the preceding fiscal year."
 
13      SECTION 2.  Section 36-30, Hawaii Revised Statutes, is
 
14 amended by amending subsection (a) to read as follows:
 
15      "(a)  Each special fund, except the:
 
16      (1)  Transportation use special fund established by section
 
17           261D-1;
 
18      (2)  Special summer school and intersession fund under
 
19           section 302A-1310;
 
20      (3)  School cafeteria special funds of the department of
 
21           education;
 
22      (4)  Special funds of the University of Hawaii;
 
23      (5)  State educational facilities improvement special fund;
 

 
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 1      (6)  Special funds established by section 206E-6;
 
 2      (7)  Aloha Tower fund created by section 206J-17;
 
 3      (8)  Domestic violence prevention special fund under section
 
 4           321-1.3;
 
 5      (9)  Spouse and child abuse special account under section
 
 6           346-7.5;
 
 7     (10)  Spouse and child abuse special account under section
 
 8           601-3.6;
 
 9     (11)  Funds of the employees' retirement system created by
 
10           section 88-109;
 
11     (12)  Unemployment compensation fund established under
 
12           section 383-121;
 
13     (13)  Hawaii hurricane relief fund established under chapter
 
14           431P;
 
15     (14)  Convention center capital special fund established
 
16           under section 206X-10.5 and the convention center
 
17           operations special fund established under section 206X-
 
18           10.6;
 
19     (15)  Hawaii health systems corporation special funds; [and]
 
20     (16)  Tourism special fund established under section
 
21           [[]201B-11[]]; and
 
22     (17)  Universal service fund established under chapter 269;
 
23 shall be responsible for its pro rata share of the administrative
 

 
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 1 expenses incurred by the department responsible for the
 
 2 operations supported by the special fund concerned."
 
 3      SECTION 3.  Section 269-42, Hawaii Revised Statutes, is
 
 4 amended by amending subsection (a) to read as follows:
 
 5      "(a)  There is established outside of the state treasury a
 
 6 special fund to be known as the universal service fund to be
 
 7 administered by the commission[.] in order to implement the
 
 8 policies and goals of universal service.  The fund shall consist
 
 9 of contributions from the sources identified in subsections (e)
 
10 and (f).  Interest earned from the balance of the fund shall
 
11 become a part of the fund.  The commission shall adopt rules
 
12 regarding the distribution of moneys from the fund including
 
13 reimbursements to carriers for providing reduced rates to
 
14 low-income, elderly, residents of underserved or rural areas, or
 
15 other subscribers, as authorized by the commission."
 
16      SECTION 4.  There is appropriated out of the public
 
17 utilities special fund the sum of $300,000, or so much thereof as
 
18 may be necessary for fiscal year 1999-2000, to carry out the
 
19 purposes of the universal service program.  The sum appropriated
 
20 shall be temporarily loaned from the public utilities special
 
21 fund to the universal service fund.  The funds borrowed from the
 
22 public utilities special fund shall be repaid from the universal
 
23 service fund when sufficient funds are collected in the universal
 

 
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 1 service fund as determined by the commissioner. 
 
 2      SECTION 5.  The sum appropriated shall be expended by the
 
 3 public utilities commission for the purposes of this Act.
 
 4      SECTION 6.  Act 216, Session Laws of Hawaii 1997, is amended
 
 5 by amending section 13 to read as follows:
 
 6      "SECTION 13.  This Act shall take effect on July 1, 1997,
 
 7 and shall be repealed on June 30, 2000; provided that any
 
 8 statutory or session law material in the Act in existence on June
 
 9 30, 1997, shall be reenacted on July 1, 2000, in the same form in
 
10 which it existed on June 30, 1997[.]; and provided further that
 
11 amendments made to sections 36-27 and 36-30, Hawaii Revised
 
12 Statutes, by Act   , Session Laws of Hawaii 1999, shall be
 
13 retained."
 
14      SECTION 7.  Act 142, Session Laws of Hawaii 1998, is amended
 
15 by amending section 9 to read as follows:
 
16      "SECTION 9.  This Act shall take effect upon its approval
 
17 and shall be repealed on July 31, 2003, except that section 3 of
 
18 this Act shall not be repealed; provided that sections 36-27 and
 
19 397-5(b), Hawaii Revised Statutes, shall be reenacted in the form
 
20 in which they read on the day before the approval of this Act[.];
 
21 provided further that amendments made to section 36-27, Hawaii
 
22 Revised Statutes, by section 1 of Act   , Session Laws of Hawaii
 
23 1999, shall be retained."
 

 
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 1      SECTION 8.  In printing this Act, the revisor of statutes
 
 2 shall insert the appropriate number of this Act in sections 6 and
 
 3 7 of this Act.
 
 4      SECTION 9.  Statutory material to be repealed is bracketed.
 
 5 New statutory material is underscored.
 
 6      SECTION 10.  This Act shall take effect on July 1, 1999.
 

 
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