HI HR96

Federal Communications Commission requested to fund the Universal Service Fund (USF) to provide funding for rural area recipients and conduct audits of USF recipients if necessary.

FCC previously granted $500,000,000 in USF moneys to Sandwich Isles Communications Inc. to provide fiber and DSL broadband to Hawaiian Home Lands, but significant portions of homes and rural areas in Hawaii remain without internet service.

President of Sandwich Isles Communications Inc.'s parent company (Waimana Enterprises Inc.) was indicted for misusing $4,000,000 in company funds for personal use.

FCC made grants to Sandwich Isles Communications Inc. despite the company not being certified by the Public Utilities Commission as a USF eligible telecommunications carrier.

State established its own USF-like special fund under Hawaii Revised Statutes section 269-42 that was never funded by the Public Utilities Commission; dedicated USF funding would enable cooperatives and smaller telecommunications firms to serve rural Hawaii.