Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 784 entitled:

begs leave to report as follows:

The purpose of this bill is to provide equal financing to each of the public, educational and governmental (PEG) access programming groups for the county of Maui. Specifically, this bill will require cable franchise fees paid in connection with the cable television service in Maui County to be distributed as follows:

Your Committee received testimony in support of this measure from Maui Community College and the Department of Education. Testimony in opposition of this measure was received from the Department of Commerce and Consumer Affairs, Akaku: Maui Community Television, Olelo Community Television, and several concerned individuals.

Your Committee finds that currently, 100 percent of the public access funding for Maui is directed to Akaku, which provides public access programming. There was concern that this bill would significantly reduce Akaku's financial resources. Concern was also expressed that the needs of each PEG sector vary, requiring flexibility in dispersing funding.

Your Committee further finds that there may exist written documentation of an agreement between the various PEG groups that the funding levels for the PEG sectors are to be equal. Your Committee understands that prior to Akaku serving as Maui's access organization, a PEG consortium existed. This consortium was composed of Maui Community College, Department of Education, Maui County, and other non-profit agencies on Maui. The members of the consortium agreed that PEG funding levels would be equivalent. When the consortium dissolved and Akaku became Maui's PEG access organization, it was assumed that the same levels of funding would continue. However, they have not.

In light of these concerns, your Committee has amended this bill by providing an effective date of July 1, 2099, in the interest of facilitating further discussion. Technical, nonsubstantive amendments were also made for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 784, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 784, H.D. 1, and be referred to the Committee on Finance.