Requires cable franchise fees paid in connection with the provision of cable service in the county of Maui to be distributed in thirds to Maui Community College and DOE, the county of Maui, and Maui's PEG access entity. Effective July 1, 2099. (SD1)

A BILL FOR AN ACT

PART I

SECTION 1. The State has long supported the provision of public, educational, and governmental (PEG) access channels for the residents of the county of Maui (county). As the grantor of cable television franchises, the State has required the cable television operator serving the county to provide PEG channels and to fund these channels from the cable operator's gross revenues.

In 1989, the department of commerce and consumer affairs invited Maui community college, the department of education, the county, and nonprofit agencies on Maui to design a plan for a PEG entity on Maui. In 1992, the department of commerce and consumer affairs established the Maui PEG consortium as the advisory body for distribution of PEG franchise fees. Per the department of commerce and consumer affairs' mandate, cable franchise fees were allocated to PEG services. Additionally, a public access channel was established on Maui.

In 1997,the PEG consortium was dissolved and, since that time, Akaku has served as the PEG access organization on Maui. In dissolving the PEG consortium, it was the parties' understanding that funding levels for each sector of PEG cable television - public, educational, and governmental – would remain the same as they were under the consortium: approximately one-third each.

The legislature finds that Akaku is not funding PEG programming at adequate levels. For example, funding for the educational component has decreased from twenty-nine per cent of franchise fees to nine per cent. This lack of adequate funding has occurred despite the fact that the contract between the department of commerce and consumer affairs and Akaku specifically states, in part:

"WHEREAS, the Director also understands that as part of the agreements with MCC [Maui Community College] and DOE [Department of Education], Akaku will provide financial resources for educational access, and Akaku will fulfill the reporting requirements for educational access set forth in this Agreement; and

WHEREAS, the Director further understands that Akaku will enter into an agreement with the County of Maui ("County") to provide financial resources for government access programming, operational and technical support for the production and cablecasting of government access programming, and for the fulfillment of reporting requirements for government access set forth in this Agreement."

The legislature further finds that it is the intent of the PEG access program to provide equal financial resources to public, educational, and governmental programming.

SECTION 2. Section 440G-15, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Each cable operator shall pay an annual fee to be determined by the director. The fees [so] collected under this section shall be deposited into the compliance resolution fund established under section 26-9(o)[.]; provided that notwithstanding any law to the contrary, all fees collected under this section for the provision of cable service in the county of Maui shall be distributed to the following entities as follows:

PART II

SECTION 3. The legislature believes that technology plays an integral role in the education of our public school students. The ability of students, teachers, and administrators to access technology contributes to a successful learning environment. The legislature has supported this effort, in part, by using the INET program, from which many schools have already benefited. The continued use of this program is key to addressing the needs of our students.

SECTION 4. There is appropriated out of the compliance resolution fund of the State of Hawaii the sum of $           , or so much thereof as may be necessary for fiscal year 2005-2006, for infrastructure upgrades to telecommunications systems within the department of education.

The sum appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2099.