STAND. COM. REP. NO.  1531-08

Honolulu, Hawaii

                , 2008

RE:   H.C.R. No. 358

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Economic Development & Business Concerns, to which was referred H.C.R. No. 358 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS TO ESTABLISH A TASK FORCE TO SOLICIT PUBLIC INPUT AND EXAMINE METHODS OTHER THAN THE PUBLIC PROCUREMENT CODE PROCESS TO OVERSEE PUBLIC, EDUCATION, AND GOVERNMENT ACCESS ORGANIZATIONS' EXPENDITURES AND ENSURE PROPER CHECKS AND BALANCES,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to ensure proper checks and balances in public, education, and government (PEG) access organizations' spending of public monies by establishing a task force to recommend a process, other than under the Hawaii Public Procurement Code, to oversee these expenditures.

     The Department of Commerce and Consumer Affairs supported the intent of this measure.  Olelo Community Television opposed this measure.  Akaku: Maui Community Television submitted comments.

     Your Committee finds that the application of procurement code procedures to PEG access organization selection and expenditures may have a detrimental effect on the reliability of PEG access services and the long-term maintenance of PEG access equipment.  However, the fact is that these PEG access organizations are publicly funded by way of user fees from cable television subscribers.  Thus, it is imperative that there be oversight of the expenditure of these public funds.

At the same time, your Committee feels that this measure is not specific enough in its goals and has amended it by specifying that the report submitted to the Legislature shall include suggested policy changes for the selection of PEG access organizations.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 358, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.C.R. No. 358, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

____________________________

KYLE T. YAMASHITA, Chair