THE SENATE S.C.R. NO. 83 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII SENATE CONCURRENT RESOLUTION Requesting the State Auditor to conduct a financial audit of the Hawaii State Institutional Networks on each island of the State to determine actual costs for maintenance. THE SENATE S.C.R. NO. 83 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII THE SENATE S.C.R. NO. 83 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII SENATE CONCURRENT RESOLUTION Requesting the State Auditor to conduct a financial audit of the Hawaii State Institutional Networks on each island of the State to determine actual costs for maintenance. WHEREAS, the Department of Commerce and Consumer Affairs recently authorized cable operators to charge marginal costs for the maintenance of portions of institutional networks that are actually used; and WHEREAS, cable operators were originally contractually bound to build the institutional networks at no cost to subscribers or the State; and WHEREAS, the Federal Communications Commission Order 621 prohibits cable operators from subtracting from or retaining franchise fees to build new institutional networks or support operational costs; and WHEREAS, franchise fees are meant to be used exclusively for the maintenance of existing institutional networks; and WHEREAS, an audit of institutional network costs is necessary to determine actual costs for maintenance on each island, thereby increasing transparency; and WHEREAS, information technology experts have stated that maintenance costs for institutional network architecture are minimal; and WHEREAS, an audit may help confirm the costs of institutional network maintenance; now, therefore, BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, the House of Representatives concurring, that the Auditor is requested to conduct a financial audit of the Hawaii State Institutional Networks on each island of the State to determine actual costs for maintenance; and BE IT FURTHER RESOLVED that the Auditor is requested to submit a report of the Auditor's findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2026. BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Auditor. OFFERED BY: _____________________________ Report Title: State Auditor; DCCA; INET; Institutional Networks; Cable Operators; Maintenance Costs WHEREAS, the Department of Commerce and Consumer Affairs recently authorized cable operators to charge marginal costs for the maintenance of portions of institutional networks that are actually used; and WHEREAS, cable operators were originally contractually bound to build the institutional networks at no cost to subscribers or the State; and WHEREAS, the Federal Communications Commission Order 621 prohibits cable operators from subtracting from or retaining franchise fees to build new institutional networks or support operational costs; and WHEREAS, franchise fees are meant to be used exclusively for the maintenance of existing institutional networks; and WHEREAS, an audit of institutional network costs is necessary to determine actual costs for maintenance on each island, thereby increasing transparency; and WHEREAS, information technology experts have stated that maintenance costs for institutional network architecture are minimal; and WHEREAS, an audit may help confirm the costs of institutional network maintenance; now, therefore, BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, the House of Representatives concurring, that the Auditor is requested to conduct a financial audit of the Hawaii State Institutional Networks on each island of the State to determine actual costs for maintenance; and BE IT FURTHER RESOLVED that the Auditor is requested to submit a report of the Auditor's findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2026. BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Auditor. OFFERED BY: _____________________________ OFFERED BY: _____________________________ Report Title: State Auditor; DCCA; INET; Institutional Networks; Cable Operators; Maintenance Costs