Requires DCCA to require in PEG access organization contracts, public access to records in compliance with chapter 92F, HRS, the Uniform Information Practices Act, and minimum public access to PEG access organization meetings. (HB865 HD1)

A BILL FOR AN ACT

SECTION 1. In 2002, the state office of information practices (OIP) found that the public, educational, and governmental (PEG) access organizations, Olelo and Hoike, are corporations owned, operated, or managed by or on behalf of the State as set forth under section 92F-3 of the Hawaii Revised Statutes (HRS), and, therefore, are required to follow the Uniform Information Practices Act (UIPA), which governs public access to government records and information. In Opinion Letter No. 02-08, OIP found that the PEG organizations were originally created by the department of commerce and consumer affairs (DCCA), notwithstanding their current corporate form, and are funded almost entirely through funds collected from cable customers and allocated pursuant to chapter 440G, Hawaii Revised Statutes. The Pacific Business News reported that in 2004, Olelo received $5,300,000 in fees from cable franchisee Oceanic Time Warner Cable.

In addition, OIP found that although the DCCA has not exercised close control over the administration of the PEG access channels, DCCA has significant and direct control over Olelo and Hoike through its appointment of, and authority to remove the majority of appointees on the corporations' boards, and also exercises indirect control over the existence of these organizations through contractual agreements that select the corporations as the director’s designees, and that terminate their corporate existence when that designee status ends. OIP concluded that DCCA performs a government function by providing for PEG access channels, and that the administration of these channels is a government function performed by Olelo and Hoike by or on behalf of DCCA.

In 2004, Olelo filed a lawsuit against OIP in state circuit court seeking a declaration that the corporation is not owned, operated, or managed by the State under the UIPA and is not a state agency. If the corporation prevails, the public will be unable to hold the PEG access organizations accountable for the millions of dollars received by them annually in state-mandated funds.

The purpose of this Act is to clearly state the legislature's intent that PEG access organizations be subject to public scrutiny, by providing that DCCA's contracts with PEG access organizations shall require each PEG access organization to provide public access to the organization's meetings and records.

SECTION 2. Chapter 440G, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§440G-   PEG access organization meetings and records. The director shall include in public, educational, and governmental access organization contracts:

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.