STAND. COM. REP. NO. 908-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 2912

S.D. 2

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 2912, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO CABLE TELEVISION,"

begs leave to report as follows:

The purpose of this measure is to increase access to public, educational, and governmental (PEG) cable television equipment and facilities for the residents of underserved areas of the State by:

(1) Authorizing the Department of Commerce and Consumer Affairs (DCCA) to begin a three-year pilot program that will provide supplemental funding for PEG cable television access in underserved areas of the State; and

(2) Making an unspecified appropriation from the DCCA's Compliance Resolution Fund (CRF) for the initial year of the program.

Your Committee heard testimony in support of this measure from DCCA, the Education and Outreach Director for the Akaku Molokai Media Center, Akaku: Maui Community Television, and three residents from rural communities on Oahu.

Your Committee finds that PEG access organizations currently receive funding based on the gross revenues of the cable television operators in their respective counties. The level of funding is presently three percent of the cable operator's gross revenues, which is paid directly to the PEG organization.

Due to low population density and geographic remoteness from existing PEG access centers, some communities do not have effective access to basic PEG services. This measure will permit DCCA to use a new source of funds, the CRF, to temporarily provide better PEG access in these underserved communities. The pilot program is planned to extend for two addition years, subject to funding in the next biennium budget.

Your Committee amended the bill as requested by DCCA by:

(1) Specifying that the appropriation for the program for fiscal 2004-2005 will be $800,000;

(2) Explicitly permitting the use of the funds for equipment and operations, as well as facilities;

(3) Clarifying DCCA's authority to establish standards and conditions for the use of the pilot program funds by decision and order, without being subject to the requirements of chapter 91, Hawaii Revised Statues (HRS), Administrative Procedure;

(4) Clarifying that the use of the funds is not subject to chapter 42F, HRS, Grants and Subsidies; and

(5) Changing the effective date to reflect July 1, 2004, while retaining the three year sunset date.

Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

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 is in accord with the intent and purpose of S.B. No. 2912, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2912, S.D. 2, H.D. 1, and 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