REPORT TITLE:
Enhanced 911 service


DESCRIPTION:
Implements a cost recovery mechanism to allow commercial mobile
radio service providers to recover costs incurred for providing
wireless enhanced 911 services.  (HB661 CD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        661
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 3
TWENTIETH LEGISLATURE, 1999                                S.D. 2
STATE OF HAWAII                                            C.D. 1
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO ENHANCED WIRELESS EMERGENCY 911 SERVICE.



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

 1      SECTION 1.  The legislature finds that the department of
 
 2 health, in addition to the functions and duties assigned to it
 
 3 under chapter 321, Hawaii Revised Statutes, is required to assist
 
 4 each county in the development of an emergency 911 telephone
 
 5 system.
 
 6      The legislature further finds that the mobile nature of
 
 7 wireless communications service creates complexities in providing
 
 8 911 emergency services.  The Federal Communications Commission
 
 9 (FCC), in FCC Docket No. 94-102, adopted regulations that require
 
10 commercial mobile radio service providers to provide wireless
 
11 enhanced 911 service, if requested by the local government or a
 
12 public safety agency responsible for the emergency 911 functions,
 
13 within certain time parameters (FCC order).
 
14      The FCC requires the implementation of a cost recovery
 
15 mechanism to allow commercial mobile radio service providers to
 
16 recover their costs for designing, purchasing, installing,
 
17 testing, and operating enhanced facilities, systems, and services
 
18 necessary to comply with emergency 911 requirements.  It is in
 
19 the public interest to establish a cost recovery mechanism in
 

 
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 1 accordance with the FCC order so that the citizens of Hawaii who
 
 2 use commercial mobile radio service will realize the benefits of
 
 3 wireless enhanced 911 service.
 
 4      SECTION 2.  The Hawaii Revised Statutes is amended by adding
 
 5 a new chapter to be appropriately designated and to read as
 
 6 follows:
 
 7                             "CHAPTER
 
 8              ENHANCED 911 SERVICES FOR MOBILE PHONES
 
 9      �   -1 Definitions.  As used in this chapter, unless the
 
10 context requires otherwise:
 
11      "Automatic location identification" means a wireless
 
12 enhanced 911 service capability that enables the automatic
 
13 display of information defining the approximate geographic
 
14 location of the wireless telephone used to place a 911 call in
 
15 accordance with the Federal Communications Commission order.
 
16      "Automatic number identification" means a wireless enhanced
 
17 911 service capability that enables the automatic display of the
 
18 ten-digit wireless telephone number used to place a 911 call in
 
19 accordance with the Federal Communications Commission order.
 
20      "Board" means the wireless enhanced 911 board established
 
21 under this chapter.
 
22      "Commercial mobile radio service" means commercial mobile
 
23 radio service under sections 3(27) and 332(d) of the Federal
 
24 Telecommunications Act of 1996, 47 U.S.C. 151 et seq., and the
 

 
Page 3                                                     661
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 1 Omnibus Budget Reconciliation Act of 1993, Pub.L. 103-66,
 
 2 August 10, 1993, 107 Stat. 312.  It includes the term "wireless"
 
 3 and service provided by any wireless, real time two-way voice
 
 4 communication device, including radio-telephone communications
 
 5 used in cellular telephone service, personal communications
 
 6 service, or the functional or competitive equivalent of a radio-
 
 7 telephone communications line used in cellular telephone service,
 
 8 a personal communications service, or a network radio access line
 
 9 that has access to enhanced 911 service.  The term does not
 
10 include services that do not provide access to 911 service, a
 
11 communication channel suitable only for data transmission, a
 
12 wireless roaming service, or other non-local radio access line
 
13 service, or a private telecommunications service.
 
14      "Commercial mobile radio service connection" means each
 
15 active wireless telephone number assigned to a commercial mobile
 
16 radio service customer, including end-users of resellers, with a
 
17 billing address in the State of Hawaii.
 
18      "Federal Communications Commission order" means the original
 
19 order issued in the Federal Communications Commission Docket No.
 
20 94-102 governing wireless enhanced 911 service and any other
 
21 Federal Communication Commission orders related to the provision
 
22 of wireless enhanced 911 service.
 

 
 
 
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 1      "Phase I wireless enhanced 911 service" means an emergency
 
 2 telephone system, as defined by the Federal Communications
 
 3 Commission order, in which wireless 911 calls and information on
 
 4 the caller's automatic number identification and the cell site in
 
 5 which the call originates are routed to an appropriate public
 
 6 safety answering point.
 
 7      "Phase II wireless enhanced 911 service" means an emergency
 
 8 telephone system, as defined by the Federal Communications
 
 9 Commission order, in which wireless 911 calls and information on
 
10 the caller's automatic number identification and automatic
 
11 location identification are routed to an appropriate public
 
12 safety answering point.
 
13      "Proprietary information" means customer lists and other
 
14 related information (including the number of customers),
 
15 technology descriptions, technical information, or trade secrets,
 
16 and the actual or developmental costs of wireless enhanced 911
 
17 service that are developed, produced, or received internally by a
 
18 provider or by a provider's employees, directors, officers, or
 
19 agents.
 
20      "Provider" means a person or entity that is authorized by
 
21 the Federal Communications Commission to provide facilities-based
 
22 commercial mobile radio service within the State.
 

 
 
 
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 1      "Public safety agency" means a functional division of the
 
 2 State or county that provides or has authority to provide, or a
 
 3 private entity contracted by a state or county agency that
 
 4 provides firefighting, law enforcement, ambulance, medical, or
 
 5 other emergency services.
 
 6      "Public safety answering point" means the public safety
 
 7 agency that receives incoming 911 calls and dispatches
 
 8 appropriate public safety agencies or other providers to respond
 
 9 to such calls.
 
10      "Reseller" means a person or entity that purchases
 
11 commercial mobile radio service from a provider for the purpose
 
12 of reselling commercial mobile radio service to end-users.
 
13      "Wireless enhanced 911 commercial mobile radio service
 
14 costs" means all legitimate capital, nonrecurring, and recurring
 
15 costs directly related to the implementation and operation of
 
16 Phase I or Phase II wireless enhanced 911 services pursuant to
 
17 the Federal Communications Commission order.
 
18      "Wireless enhanced 911 fund" or "fund" means the statewide
 
19 special fund established to ensure adequate cost recovery for the
 
20 deployment of phase I and phase II wireless enhanced 911 service
 
21 in Hawaii.
 
22      �   -2 Wireless enhanced 911 board.(a)  There is created
 
23 within the department of health for administrative purposes, a
 

 
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 1 wireless enhanced 911 board consisting of twelve voting members,
 
 2 provided that the membership shall consist of:
 
 3      (1)  The director of health or the director's designee, who
 
 4           shall serve as the chair;
 
 5      (2)  Two representatives from large providers, who shall be
 
 6           appointed by the governor as provided in section 26-34,
 
 7           except as otherwise provided by law;
 
 8      (3)  Two representatives from small providers, who shall be
 
 9           appointed by the governor as provided in section 26-34,
 
10           except as otherwise provided by law;
 
11      (4)  Two representatives from either large or small
 
12           providers, who shall be appointed by the governor as
 
13           provided in section 26-34, except as otherwise provided
 
14           by law;
 
15      (5)  One representative each from the city and county of
 
16           Honolulu and the counties of Hawaii, Kauai, and Maui,
 
17           who shall be appointed by the governor as provided in
 
18           section 26-34, from a list of five names submitted by
 
19           each respective public safety answering point, except
 
20           as otherwise provided by law; and
 
21      (6)  The consumer advocate or the consumer advocate's
 
22           designee.
 

 
 
 
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 1      (b)  Seven voting members shall constitute a quorum, whose
 
 2 affirmative vote shall be necessary for all actions by the board,
 
 3 provided that of the seven voting members in attendance, three
 
 4 are representatives of the providers and three are
 
 5 representatives of public safety answering points, except as
 
 6 provided in section    -7(c).
 
 7      (c)  The board shall meet upon the call of the chair, but no
 
 8 less than once each three months after September 30, 1999. 
 
 9      (d)  The members representing providers shall be appointed
 
10 by the governor for terms of two years, except that terms of the
 
11 three members initially appointed shall be for eighteen months.
 
12      (e)  Each member shall hold office until the member's
 
13 successor is appointed and qualified.  Section 26-34 shall be
 
14 applicable only in so far as it relates to succession, vacancies,
 
15 and suspension of board members.
 
16      (f)  A member may vote by proxy submitted in writing to the
 
17 board.
 
18      (g)  The members shall serve without compensation.  Members
 
19 shall be entitled to reimbursements from the wireless enhanced
 
20 911 fund for reasonable traveling expenses incurred in connection
 
21 with the performance of the board duties.
 
22      (h)  The board or its chair, with the approval of the board,
 
23 may retain independent, third party accounting firms, consultants
 

 
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 1 or other third party for purposes of verifying reports, payments
 
 2 into the fund, processing checks, and making distributions from
 
 3 the fund as directed by the board and as allowed by this chapter,
 
 4 and other administrative duties necessary to administer the fund
 
 5 or oversee operations of the board, including technical advisory
 
 6 support.
 
 7      (i)  The board shall develop reasonable procedures to ensure
 
 8 that all providers receive adequate notice of board meetings and
 
 9 information concerning board decisions.
 
10      �   -3 Wireless enhanced 911 fund.(a)  There is
 
11 established outside the state treasury a special fund to be known
 
12 as the wireless enhanced 911 fund to be administered by the
 
13 wireless enhanced 911 board within the department of health for
 
14 the purpose of ensuring adequate cost recovery for the deployment
 
15 of wireless enhanced 911 service in Hawaii and to be used solely
 
16 for that purpose.
 
17      (b)  The fund consists of the amounts collected under
 
18 section    -4(e).
 
19      (c)  Any expenses of administering the fund must be paid
 
20 from moneys in the fund.
 
21      (d)  The board shall place the funds in an interest-bearing
 
22 account at any federally insured financial institution.
 

 
 
 
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 1      (e)  The moneys paid into the fund are not general fund
 
 2 revenues of the State and shall be kept in a fund separate and
 
 3 apart from the general fund of the State to ensure adequate cost
 
 4 recovery to providers and public safety answering points for the
 
 5 deployment of phase I and phase II wireless enhanced 911 service
 
 6 in Hawaii as specified in this section.
 
 7      �   -4 Surcharge.  (a)  The board shall:
 
 8      (1)  Establish a monthly wireless enhanced 911 surcharge on
 
 9           each commercial mobile radio service connection within
 
10           90 days after a public safety answering point requests
 
11           wireless enhanced 911 service from a provider in
 
12           accordance with the Federal Communications Commission
 
13           order; and
 
14      (2)  Establish the effective date of the surcharge.  The
 
15           rate of such surcharge shall initially be set at 30
 
16           cents per month for each commercial mobile radio
 
17           service connection.  The surcharge shall not exceed 50
 
18           cents per month.  This surcharge shall have uniform
 
19           application and shall be imposed on each commercial
 
20           mobile radio service connection operating within the
 
21           State.  The surcharge may be increased or decreased in
 
22           accordance with subsection (g).
 

 
 
 
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 1      (b)  All providers and resellers, within ninety days of the
 
 2 effective date of the initial surcharge or the date the board
 
 3 approves any adjustment in the amount of the surcharge, as the
 
 4 case may be, shall bill to and collect from each of their
 
 5 customers a monthly surcharge at the rate established by the
 
 6 board for each commercial mobile radio service connection.  The
 
 7 provider or reseller may list the surcharge as a separate line
 
 8 item on each bill.  If a provider or reseller receives a partial
 
 9 payment for a monthly bill from a commercial mobile radio service
 
10 customer, the provider or reseller shall apply the payment
 
11 against the amount the customer owes the provider or reseller
 
12 before applying the partial payment against the surcharge.
 
13      (c)  A provider which is collecting the surcharge and
 
14 remitting appropriate portions of the surcharge to the fund
 
15 pursuant to this chapter, and which has been requested by a
 
16 public safety answering point to provide phase I or phase II
 
17 wireless enhanced 911 service in a particular county or counties,
 
18 may recover wireless enhanced 911 commercial mobile radio service
 
19 costs as provided in this chapter.
 
20      (d)  Each provider or reseller may retain two per cent of
 
21 the amount of surcharges collected to offset administrative
 
22 expenses associated with billing and collecting the surcharge.
 

 
 
 
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 1      (e)  A provider or reseller shall remit to the wireless
 
 2 enhanced 911 fund within sixty days after the end of the calendar
 
 3 month in which the surcharge is collected, an amount that
 
 4 represents the surcharges collected that are net of the amounts
 
 5 retained for administrative expenses incurred by the provider or
 
 6 reseller, as provided in subsection (d).
 
 7      (f)  The surcharges collected by the provider or reseller
 
 8 pursuant to this section are not subject to any tax, fee, or
 
 9 assessment, nor are they considered revenue of the provider or
 
10 reseller.
 
11      (g)  Except for the initial surcharge which shall remain in
 
12 effect for at least twelve months, the board may, upon the
 
13 affirmative vote by at least two-thirds of the total members of
 
14 the board, adjust the amount of surcharge from time to time upon
 
15 ninety days' written notice to providers, resellers, and public
 
16 safety answering points to ensure full recovery for providers and
 
17 for public safety answering points, over a reasonable period of
 
18 time, of the costs with developing and maintaining a wireless
 
19 enhanced 911 service.
 
20      (h)  A provider or reseller shall have no obligation to take
 
21 any legal action to enforce the collection of the surcharge for
 
22 which any customer is billed.  However, the board may initiate a
 
23 collection action.  If the board prevails in such a collection
 
24 action, reasonable attorney's fees and costs shall be awarded.
 

 
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 1      (i)  At any time the members deem it necessary and
 
 2 appropriate, the board may meet to make recommendations to the
 
 3 legislature as to whether the surcharge and fund should be
 
 4 discontinued, continued as is, or be amended.
 
 5      (j)  The board shall convene to review and evaluate the
 
 6 surcharge and fund and make recommendations to the legislature as
 
 7 to whether the surcharge and fund should be discontinued,
 
 8 continued as is, or be amended, upon any of the following dates:
 
 9      (1)  The date all providers have certified to the board that
 
10           all wireless enhanced 911 commercial mobile radio
 
11           service costs for phase I wireless enhanced 911 service
 
12           have been recovered;
 
13      (2)  Within six months of the date of any request from a
 
14           public safety answering point for phase II wireless
 
15           enhanced 911 service in accordance with the Federal
 
16           Communications Commission order; or 
 
17      (3)  May 1, 2003.
 
18      (k)  When considering whether to discontinue, continue as is
 
19 or amend the fund or surcharge, the board's recommendations shall
 
20 be based on the latest information available, concerning costs
 
21 associated with providing wireless enhanced 911 service in
 
22 accordance with the Federal Communications Commission order.
 

 
 
 
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 1      �   -5 Recovery from the fund.(a)  Within thirty days of
 
 2 the end of each calendar month, beginning with the first month in
 
 3 which a provider begins billing and collecting surcharges, each
 
 4 provider may request reimbursement from the fund of wireless
 
 5 enhanced 911 commercial mobile radio service costs incurred
 
 6 including sworn invoices reflecting such costs, provided that
 
 7 such costs are recoverable under section    -4(c), and have not
 
 8 already been reimbursed to the provider.  In no event shall a
 
 9 provider be reimbursed for any amount above its actual wireless
 
10 enhanced 911 commercial mobile radio service costs allowed to be
 
11 recovered under section    -4(c).
 
12      (b)  Any public safety answering point that has requested a
 
13 provider to provide and implement phase I or phase II wireless
 
14 enhanced 911 service in a particular county or counties is
 
15 eligible to seek reimbursement from the fund solely to pay for
 
16 the reasonable cost to lease, purchase, or maintain all necessary
 
17 equipment, including computer hardware, software and database
 
18 provisioning, required by the public safety answering point to
 
19 provide technical functionality for the wireless enhanced 911
 
20 service pursuant to the Federal Communications Commission order.
 
21 The total amount of reimbursement which the eligible public
 
22 safety answering points may obtain from the fund shall not exceed
 
23 three and one-half per cent of the total moneys remitted into the
 

 
Page 14                                                    661
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 1 fund.  All other expenses necessary to operate the public safety
 
 2 answering point including but not limited to those expenses
 
 3 related to overhead, staffing, and other day-to-day operational
 
 4 expenses, shall continue to be paid through the general funding
 
 5 of the respective counties.
 
 6      (c)  The board shall authorize disbursements from the fund
 
 7 in the following order of priority:
 
 8      (1)  Expenses of the board to be paid from the fund pursuant
 
 9           to this chapter;
 
10      (2)  Requests for reimbursements from providers for wireless
 
11           enhanced 911 commercial mobile radio service costs; and
 
12      (3)  Requests for reimbursements for public safety answering
 
13           points.
 
14 To the extent there are insufficient moneys in the fund to
 
15 satisfy any or all requests for reimbursement, the board shall
 
16 have the discretion to disburse moneys in amounts less than
 
17 requested or defer such requests until additional amounts are
 
18 deposited into the fund.
 
19      (d)  If there are competing requests for reimbursement
 
20 between providers when there are insufficient moneys in the fund
 
21 to satisfy such requests, the board shall disburse moneys to the
 
22 requesting providers through a prorated disbursement based on the
 
23 amount of the wireless enhanced 911 commercial mobile radio
 
24 service costs being sought to be reimbursed.
 

 
Page 15                                                    661
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 1      �   -6 Audits.(a)  During any period in which a wireless
 
 2 enhanced 911 surcharge is imposed upon customers, the provider or
 
 3 reseller shall submit to the board, before April 2 of each
 
 4 following year, an audited report prepared by an independent
 
 5 certified public accountant that demonstrates that the surcharge
 
 6 imposed recovers only legitimate costs and expenses directly
 
 7 related to the provision of phase I or phase II wireless enhanced
 
 8 911 service. The cost of such audited report shall be considered
 
 9 part of the expenses that may be recovered by the provider as
 
10 part of the surcharge.  The board shall prevent public disclosure
 
11 of proprietary information contained in the audited report unless
 
12 required by court order or appropriate administrative agency
 
13 decision.
 
14      (b)  During any period in which a provider or reseller
 
15 imposes a wireless enhanced 911 surcharge upon its customers, the
 
16 provider or reseller shall submit, concurrently with the remittal
 
17 of the net surcharges billed to and collected from the provider's
 
18 or reseller's customers, a report that provides sufficient detail
 
19 to the board to verify the accuracy of the total surcharges
 
20 payable and collected by the provider or reseller.  The board, in
 
21 its discretion, may order an audit of the provider's or
 
22 reseller's records or require the provider or reseller to submit
 
23 an audited report which reconciles the total surcharges billed to
 

 
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 1 and collected from a reseller's customers and remitted to the
 
 2 board.
 
 3      (c)  The board shall select an independent third party to
 
 4 audit the fund every two years to determine whether the fund is
 
 5 being managed in accordance with this chapter.  The board may
 
 6 utilize the audit to determine whether the amount of the
 
 7 surcharge assessed on each commercial mobile radio service
 
 8 connection is required to be adjusted.  The costs of the audit
 
 9 shall be an administrative cost of the board recoverable from the
 
10 fund.
 
11      �   -7 Proprietary information.(a)  All proprietary
 
12 information submitted to the board, any third party used by the
 
13 board in connection with its duties, or any public safety
 
14 answering point in deploying wireless 911 service shall be
 
15 retained in confidence.  Proprietary information submitted
 
16 pursuant to this chapter shall not be released to any person
 
17 other than to the submitting provider or reseller, the board, or
 
18 any independent, third-party accounting firm retained by the
 
19 board, without the express permission of the submitting provider
 
20 or reseller.  General information collected by the board shall be
 
21 released or published only in aggregate amounts that do not
 
22 identify or allow identification of numbers of subscribers or
 
23 revenues attributable to an individual provider.
 

 
Page 17                                                    661
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 1      (b)  The board, any third parties it may retain, and any
 
 2 public safety answering point must take appropriate measures to
 
 3 maintain the confidentiality of the proprietary information that
 
 4 may be submitted by a provider.  Recognizing that providers
 
 5 require their proprietary information to be held in confidence,
 
 6 the board shall adopt reasonable procedures to prevent disclosure
 
 7 or access of the proprietary information to the public and
 
 8 competitors, including members of the board representing the
 
 9 providers.  Members of the board may not disclose the information
 
10 to any third parties, including their employers, without the
 
11 written consent of the provider whose proprietary information is
 
12 to be disclosed.
 
13      (c)  When at least two-thirds of the members of the board
 
14 determine that a board action can be conducted by a committee
 
15 consisting of all board members except the six provider
 
16 representatives, such committee shall have the power to act for
 
17 the board on the specific matters defined by the board, such that
 
18 proprietary information shall not be disclosed to the provider
 
19 representatives.
 
20      �   -8  Limitation of liability.(a)  Notwithstanding any
 
21 law to the contrary, in no event shall any provider, or its
 
22 employees, directors, officers, assigns, or agents, except in
 
23 cases of gross negligence or wanton and wilful misconduct, be
 

 
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 1 liable for any civil damages or criminal liability resulting from
 
 2 death or injury to a person or from damage to property incurred
 
 3 by any person in connection with any act or omission in
 
 4 developing, designing, adopting, establishing, installing,
 
 5 participating in, implementing, maintaining, or providing access
 
 6 to phase I or phase II wireless enhanced 911 service in
 
 7 compliance with the wireless enhanced 911 requirements
 
 8 established by the Federal Communications Commission, or any
 
 9 other wireless service intended to help persons obtain emergency
 
10 assistance.  In addition, no provider or its employees,
 
11 directors, officers, assigns, or agents shall be liable for civil
 
12 damages or criminal liability in connection with the release of
 
13 customer information to any governmental entity, including any
 
14 public safety answering point, as required under this chapter.
 
15      (b)  In no event shall any public safety answering point, or
 
16 its employees, assigns, or agents, or emergency response
 
17 personnel, except in cases of gross negligence or wanton and
 
18 wilful misconduct, be liable for any civil damages or criminal
 
19 liability resulting from death or injury to the person or from
 
20 damage to property incurred by any person in connection with any
 
21 act or omission in the development, installation, maintenance,
 
22 operation, or provision of phase I or phase II wireless enhanced
 
23 911 service.
 

 
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 1      �   -9 Database or location information.(a)  Any
 
 2 commercial mobile radio service location information obtained by
 
 3 any public safety answering point or public safety agency or its
 
 4 personnel for public safety purposes is not a government record
 
 5 open to disclosure under chapter 92F.
 
 6      (b)  A person may not disclose or use, for any purpose other
 
 7 than the wireless enhanced 911 calling system, information
 
 8 contained in the database of the provider's network portion of
 
 9 the wireless enhanced 911 calling system established pursuant to
 
10 this chapter without the prior written consent of the provider.
 
11      �   -10  Dispute resolution.(a)  Any provider, reseller,
 
12 or public safety answering point aggrieved by a decision of the
 
13 board shall have the right to petition the board for
 
14 reconsideration within ten days following the rendering of the
 
15 board's decision.  As part of its petition for reconsideration,
 
16 such aggrieved party may present any reasonable evidence or
 
17 information for the board to consider.  The board shall render
 
18 its decision on the reconsideration petition as soon as
 
19 reasonably possible, but no later than thirty days after the
 
20 reconsideration request is made.
 
21      (b)  An aggrieved party, following the completion of the
 
22 reconsideration petition process, upon agreement of the other
 
23 party, may have the dispute resolved through final and binding
 

 
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 1 arbitration by a single arbitrator in accordance with the
 
 2 Wireless Industry Arbitration Rules of the American Arbitration
 
 3 Association.  The costs of the arbitration, including the fees
 
 4 and expenses of the arbitrator, shall be borne by the
 
 5 nonprevailing party of any arbitration proceeding.  The
 
 6 arbitrator's decision shall be final and binding and may be
 
 7 confirmed and enforced in any court of competent jurisdiction.
 
 8      (c)  Nothing in this section shall preclude any provider,
 
 9 reseller, or public safety answering point from pursuing any
 
10 existing right or remedy to which it is entitled in any court
 
11 having jurisdiction thereof.
 
12      �   -11  Miscellaneous.  A provider shall not be required to
 
13 provide wireless enhanced 911 service until the provider and the
 
14 public safety answering point providing wireless enhanced 911
 
15 service in the county or counties in which the provider is
 
16 licensed to provide commercial mobile radio service has entered
 
17 into a written agreement setting forth the basic terms of service
 
18 to be provided."
 
19      SECTION 3.  Section 36-27, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "[[]�36-27[]]  Transfers from special funds for central
 
22 service expenses.  Except as provided in this section, and
 
23 notwithstanding any other law to the contrary, from time to time
 

 
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 1 the director of finance, for the purpose of defraying the
 
 2 prorated estimate of central service expenses of government in
 
 3 relation to all special funds, except the:
 
 4      (1)  Special summer school and intersession fund under
 
 5           section 302A-1310;
 
 6      (2)  School cafeteria special funds of the department of
 
 7           education;
 
 8      (3)  Special funds of the University of Hawaii;
 
 9      (4)  State educational facilities improvement special fund;
 
10      (5)  Convention center capital special fund under section
 
11           206X-10.5 and the convention center operations special
 
12           fund under section 206X-10.6;
 
13      (6)  Special funds established by section 206E-6;
 
14      (7)  Housing loan program revenue bond special fund;
 
15      (8)  Housing project bond special fund;
 
16      (9)  Aloha Tower fund created by section 206J-17;
 
17     (10)  Domestic violence prevention special fund under section
 
18           321-1.3;
 
19     (11)  Spouse and child abuse special account under section
 
20           346-7.5;
 
21     (12)  Spouse and child abuse special account under section
 
22           601-3.6;
 
23     (13)  Funds of the employees' retirement system created by
 
24           section 88-109;
 

 
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 1     (14)  Unemployment compensation fund established under
 
 2           section 383-121;
 
 3     (15)  Hawaii hurricane relief fund established under chapter
 
 4           431P;
 
 5     (16)  Hawaii health systems corporation special funds;
 
 6     (17)  Boiler and elevator safety revolving fund established
 
 7           under section 397-5.5;
 
 8     (18)  Tourism special fund established under section
 
 9           [[]201B-11[]]; [and]
 
10     (19)  Department of commerce and consumer affairs' special
 
11           funds; and
 
12     (20)  Wireless enhanced 911 fund established under chapter
 
13                ;
 
14 shall deduct five per cent of all receipts of all other special
 
15 funds, which deduction shall be transferred to the general fund
 
16 of the State and become general realizations of the State.  All
 
17 officers of the State and other persons having power to allocate
 
18 or disburse any special funds shall cooperate with the director
 
19 in effecting these transfers.  To determine the proper revenue
 
20 base upon which the central service assessment is to be
 
21 calculated, the director shall adopt rules pursuant to chapter 91
 
22 for the purpose of suspending or limiting the application of the
 
23 central service assessment of any fund.  No later than twenty
 

 
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                                     H.B. NO.           H.D. 3
                                                        S.D. 2
                                                        C.D. 1
                                     

 1 days prior to the convening of each regular session of the
 
 2 legislature, the director shall report all central service
 
 3 assessments made during the preceding fiscal year."
 
 4      SECTION 4.  Section 36-30, Hawaii Revised Statutes, is
 
 5 amended by amending subsection (a) to read as follows:
 
 6      "(a) Each special fund, except the:
 
 7      (1)  Transportation use special fund established by section
 
 8           261D-1;
 
 9      (2)  Special summer school and intersession fund under
 
10           section 302A-1310;
 
11      (3)  School cafeteria special funds of the department of
 
12           education;
 
13      (4)  Special funds of the University of Hawaii;
 
14      (5)  State educational facilities improvement special fund;
 
15      (6)  Special funds established by section 206E-6;
 
16      (7)  Aloha Tower fund created by section 206J-17;
 
17      (8)  Domestic violence prevention special fund under section
 
18           321-1.3;
 
19      (9)  Spouse and child abuse special account under section
 
20           346-7.5;
 
21     (10)  Spouse and child abuse special account under section
 
22           601-3.6;
 

 
 
 
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                                     H.B. NO.           H.D. 3
                                                        S.D. 2
                                                        C.D. 1
                                     

 1     (11)  Funds of the employees' retirement system created by
 
 2           section 88-109;
 
 3     (12)  Unemployment compensation fund established under
 
 4           section 383-121;
 
 5     (13)  Hawaii hurricane relief fund established under chapter
 
 6           431P;
 
 7     (14)  Convention center capital special fund established
 
 8           under section 206X-10.5 and the convention center
 
 9           operations special fund established under section
 
10           206X-10.6;
 
11     (15)  Hawaii health systems corporation special funds; [and]
 
12     (16)  Tourism special fund established under section
 
13           [[]201B-11[]]; and
 
14     (17)  Wireless enhanced 911 fund established under chapter
 
15                ;
 
16 shall be responsible for its pro rata share of the administrative
 
17 expenses incurred by the department responsible for the
 
18 operations supported by the special fund concerned."
 
19      SECTION 5.  Act 216, Session Laws of Hawaii 1997, is amended
 
20 by amending section 13 to read as follows:
 
21      "SECTION 13.  This Act shall take effect on July 1, 1997,
 
22 and shall be repealed on June 30, 2000; provided that any
 
23 statutory or session law material in this Act in existence on
 

 
Page 25                                                    661
                                     H.B. NO.           H.D. 3
                                                        S.D. 2
                                                        C.D. 1
                                     

 1 June 30, 1997, shall be reenacted on July 1, 2000, in the same
 
 2 form in which it existed on June 30, 1997[.]; and provided
 
 3 further that the amendments made to sections 36-27 and 36-30,
 
 4 Hawaii Revised Statutes, by sections 3 and 4 of Act    , Session
 
 5 Laws of Hawaii 1999, shall be retained."
 
 6      SECTION 5.  Section 37-51, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "�37-51  Abolition of special funds; legislative purpose.
 
 9 The purpose of this part is to place all special funds under
 
10 legislative and executive budgetary control in the same manner as
 
11 the general fund, with the exception of the Wireless Enhanced 911
 
12 Fund under chapter    , and those funds subject to applicable
 
13 federal laws or regulations and payments on principal and
 
14 interest on revenue bonds."
 
15      SECTION 6.  Section 37-53, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "�37-53  Transfer of special funds.  (a) At any time during
 
18 a fiscal year, notwithstanding any other law to the contrary, any
 
19 department may, with the approval of the governor or the director
 
20 of finance if so delegated by the governor, transfer from any
 
21 special fund relating to such department to the general revenues
 
22 of the State all or any portion of moneys determined to be in
 
23 excess of fiscal year requirements for such special fund, except
 
24 for:
 

 
Page 26                                                    661
                                     H.B. NO.           H.D. 3
                                                        S.D. 2
                                                        C.D. 1
                                     

 1      (1)  The Wireless Enhanced 911 fund established under
 
 2           chapter    ;
 
 3      (2)  [special] Special funds under the control of the
 
 4           department of transportation relating to highways,
 
 5           airports, transportation use, and harbors
 
 6           activities[,];
 
 7      (3)  [special] Special funds under the control of the Hawaii
 
 8           health systems corporation[,]; and
 
 9      (4)  [special] Special funds of the University of Hawaii.
 
10      (b)  At any time the department of transportation, with the
 
11 approval of the governor or the director of finance if so
 
12 delegated by the governor, may transfer from any special fund
 
13 under the control of the department of transportation, or from
 
14 any account within any such special fund, to the general revenues
 
15 of the State or to any other special fund under the control of
 
16 the department of transportation all or any portion of moneys
 
17 determined to be in excess of requirements for the ensuing twelve
 
18 months determined as prescribed by rules adopted pursuant to
 
19 chapter 91; provided that no such transfer shall be made [which]
 
20 that would cause a violation of federal law or federal grant
 
21 agreements."
 
22      SECTION 7.  Act 142, Session Laws of Hawaii 1998, is amended
 
23 by amending section 9 to read as follows:
 

 
Page 27                                                    661
                                     H.B. NO.           H.D. 3
                                                        S.D. 2
                                                        C.D. 1
                                     

 1      "SECTION 9.  This Act shall take effect upon its approval
 
 2 and shall be repealed on July 31, 2003, except that section 3 of
 
 3 this Act shall not be repealed; provided that sections 36-27 and
 
 4 397-5(b), Hawaii Revised Statutes, shall be reenacted in the form
 
 5 in which they read on the day before the approval of this Act[.];
 
 6 and provided further that the amendments made to section 36-27,
 
 7 Hawaii Revised Statutes, by section 3 of Act    , Session Laws of
 
 8 Hawaii 1999, shall be retained."
 
 9      SECTION 8.  In printing this Act, the revisor of statutes
 
10 shall insert the appropriate number of this Act in sections 5 and
 
11 7 of this Act.
 
12      SECTION 9.  Statutory material to be repealed is bracketed.
 
13 New statutory material is underscored.
 
14      SECTION 10.  This Act shall take effect upon its approval.