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.

2025 Regular Session Introduced by Henry Aquino and 7 co-sponsors

SCR 83 directs the Hawaii State Auditor to audit INET maintenance costs island-wide, report findings to the Legislature before the 2026 session, guiding franchise-fee use reforms.

Re-Referred to EDT/CPN, WAM.

#cableoperators #dcca #inet #institutionalnetworks #maintenancecosts #stateauditor

SCR 83 (2025) — Requesting a financial audit of Hawaii State Institutional Networks (INET)

Summary
- SCR 83 is a Hawaii concurrent resolution asking the State Auditor to conduct a financial audit of the Hawaii State Institutional Networks (INET) on each island to determine the actual costs of maintenance.
- Sponsor(s): Representatives/Senators including Hashimoto, Kidani, Gabbard, Aquino, McKelvey; cosponsors Wakai, San Buenaventura, Kim.
- Introduced: May 15, 2025. Final legislative actions show passage by both chambers (House and Senate) and enrollment; recorded as Res. Chapter 137, Statutes of 2025 (filed July 10, 2025).
- Companion measure: SR 66.

Purpose and intent
- To increase transparency about INET maintenance costs after concerns that the Department of Commerce and Consumer Affairs (DCCA) authorized cable operators to charge “marginal costs” for maintenance of institutional network portions actually used.
- To verify whether maintenance costs charged or claimed are accurate and minimal, consistent with statements from information-technology sources and federal rules limiting the use of franchise fee revenues for building new INET infrastructure.

Key provisions
- Requests the State Auditor to perform a financial audit of Hawaii State INET on each island, focusing on actual maintenance costs.
- Directs the Auditor to submit a report of findings and recommendations — including any proposed legislation — to the Legislature no later than 20 days prior to the convening of the Regular Session of 2026.
- Requests that a certified copy of the Concurrent Resolution be transmitted to the State Auditor.

Who is affected
- State Auditor: tasked with conducting the audit and producing the report.
- Department of Commerce and Consumer Affairs (DCCA): implicated by prior authorizations regarding cable operator charges.
- Cable operators and franchise holders: the audit could review charges/uses of franchise fees and marginal-cost billing practices.
- Public institutions served by INET (e.g., schools, libraries, government facilities) and the Legislature: potential downstream effects on funding, oversight, and statutory changes.

Potential impacts
- Improved fiscal transparency regarding INET maintenance spending by island.
- Evidence base for legislative or administrative changes governing how franchise fees and operator charges are applied to institutional networks.
- Possible recommendations for statutory or regulatory adjustments depending on audit findings (the resolution explicitly asks the Auditor to include proposed legislation if appropriate).

Procedural/timeline notes
- Resolution introduced May 15, 2025; passed both chambers and enrolled. Auditor’s report due to the Legislature at least 20 days before the 2026 Regular Session convenes (per the resolution).