Requires cable operator serving Maui county to pay access operating fees collected from subscribers to Maui community college, DOE, Maui County, and Maui's PEG access entity. (SD1)

A BILL FOR AN ACT

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 (DCCA) 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, DCCA established the Maui PEG consortium as the advisory body for distribution of PEG franchise fees. Per DCCA's 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 DCCA 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 equitable financial resources to public, educational, and governmental programming.

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

"§440G-   The director shall require the cable operator that provides cable service to persons residing in the county of Maui to distribute the access operating fees collected from subscribers, as follows:

SECTION 3. New statutory material is underscored.

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