RESOLUTION

WHEREAS, the Department of Commerce and Consumer Affairs (DCCA) entered into and renegotiated contracts between 1990 and 1999 with the following four public, education, and government (PEG) access organizations: Olelo Community Television; Akaku: Maui Community Television; Hoike: Kauai Community Television; and Na Leo O Hawaii; and

WHEREAS, Chapter 103D, Hawaii Revised Statutes, the State procurement law, was not in effect when two of these contracts were initially entered into,

WHEREAS, the DCCA was not aware that these PEG contracts were subject to the state procurement law at the time the two contracts were renegotiated and two new contracts were entered into by the DCCA;

WHEREAS, the Department of the Attorney General informed the DCCA some time after December 2003 that contracts with the PEG access organizations must comply with the State procurement law; and

WHEREAS, to provide continuous, high-quality PEG services to the public, the DCCA needs to rely on consistent providers; and

WHEREAS, problems with purchases of equipment and long-term maintenance of this equipment by the current PEG access organizations may arise for the DCCA and the current PEG access organizations with the application of the state procurement law; and

WHEREAS, the application of the state procurement law to the contract process between the DCCA and the current PEG access organizations may disrupt the consistent provision of service and long-term maintenance of equipment; and

WHEREAS, the current PEG access organizations are funded primarily through annual PEG access fees that the local cable operator is required to pay pursuant to DCCA franchise orders; and

WHEREAS, the current PEG access organizations do not receive any governmental monies from the state general fund or the DCCA Compliance Resolution Fund; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2006, the Senate concurring, that the Legislative Reference Bureau shall review and make recommendations on whether the PEG access organizations should be exempt from the state procurement law; and

BE IT FURTHER RESOLVED that the review and recommendations are to be reported to the Legislature no later than twenty days prior to the convening of the Regular Session of 2007; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Acting Director of the Legislative Reference Bureau, the Director of Commerce and Consumer Affairs, the Administrator of the Cable Television Division, the Attorney General, and the executive directors and chairpersons of the boards of Olelo Community Television; Akaku: Maui Community Television; Hoike: Kauai Community Television; and Na Leo O Hawaii.

Report Title:

LRB Study; Exemption of PEG Access Organizations from State Procurement Law