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 S.B. No. 959, S.D. 2, entitled:

begs leave to report as follows:

The purpose of this bill is to restore a fair portion of public, educational, and governmental (PEG) franchise fees to educational entities.

Testimony in support of this measure was received from Maui Community College, the Department of Education-Maui, and an interested citizen. Testimony in opposition to this measure was received from the Department of Commerce and Consumer Affairs, Akaku: Maui Community Television (Akaku), the Office of Hawaiian Affairs, and Olelo Community Television. The League of Women Voters of Hawaii commented.

Your Committee finds that in its franchising agreement with cable television operators, the State requires that a certain percentage of channel capacity and gross revenues be made available for community access. The State delegated oversight of these community access channels and distribution of funding to a PEG access organization in each of the four counties.

Your Committee is aware that in the county of Maui, funding for the educational component of community access is not in comparable proportion with the public and governmental components, having decreased from 29 to 9 percent of total funding. Your Committee has also heard testimony that during negotiations to establish Akaku, Maui's PEG access organization, it was agreed that Akaku would continue funding PEG stakeholders at approximately equal levels.

A present, the educational stakeholders, Maui Community College and the Department of Education-Maui, are attempting to reach a fair accord on this issue with Akaku. Your Committee recognizes the importance of local community control and encourages resolution of the dispute through these negotiations.

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 S.B. No. 959, S.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Finance.