HI SR66

Request that the State Auditor conduct a financial audit of Hawaii State Institutional Networks on each island to determine actual maintenance costs and increase transparency.

Department of Commerce and Consumer Affairs authorized cable operators to charge marginal costs for institutional network maintenance despite operators originally being contractually bound to build networks at no cost to subscribers or the State.

Federal Communications Commission Order 621 prohibits cable operators from subtracting franchise fees to build new institutional networks or support operational costs, with franchise fees reserved exclusively for maintaining existing networks.

Auditor must submit findings, recommendations, and any proposed legislation to the Legislature no later than twenty days before the 2026 Regular Session convenes.

Resolution cites information technology experts stating that institutional network maintenance costs are minimal, suggesting an audit may help confirm actual maintenance expenses.