STAND. COM. REP. 1403

Honolulu, Hawaii

, 2003

RE: H.C.R. No. 123

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.C.R. No. 123 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING A FINANCIAL AND MANAGEMENT AUDIT OF THE PUBLIC, EDUCATION, AND GOVERNMENT ACCESS ORGANIZATIONS,"

begs leave to report as follows:

The purpose of this concurrent resolution is to request the Auditor to perform a financial and management audit of the four television access organizations, namely: Olelo Community Television; Akaku: Maui Community Television; Ho'ike: Kauai Community Television; and Na Leo o Hawaii.

Testimony in support of this measure was received from the League of Women Voters – Kaua'i County, Community Television Producers Association, Advocates for Consumer Rights, and a number of interested citizens. Akaku: Maui Community Television offered comments. Na Leo o Hawaii testified against this concurrent resolution.

Your Committee finds that various allegations of mismanagement and financial irresponsibility have been directed against the organizations that are the subject of this concurrent resolution. These allegations should be examined, and any problems corrected, to allow these organizations to best serve the public.

The allegations include:

(1) Absence of information and oversight as to how public funds are being spent;

(2) Public funds spent on junkets for staff and board members;

(3) Poorly planned methods of purchasing and retiring equipment;

(4) Amending bylaws to allow contracts of any size without board approval;

(5) Amending bylaws to remove open records and meetings requirements;

(6) Using public funds to provide gifts to board members;

(7) Giving preference to in-house productions over publicly produced programs; and

(8) Controlling programming content rather than letting the public decide.

The audit proposed by this concurrent resolution will:

(1) Provide an objective basis for determining whether the access organizations are serving the best interests of the public;

(2) Identify financial and management shortcomings to enable the access organizations to take remedial measures to better serve the public; and

(3) Clarify that these organizations, while ostensibly private, are state agencies for the purposes of the Uniform Information Practices Act, and are subject to financial and management audits by the Auditor.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 123 and recommends that it be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,

 

____________________________

KENNETH T. HIRAKI, Chair