HOUSE OF REPRESENTATIVES	H.C.R. NO.	55
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

requesting a financial and management audit of hawaii's public, educational, and governmental access organizations.

     WHEREAS, Title 47, Section 531 of the United States Code authorizes local franchising authorities to require cable operators to set aside channels for public, educational, or governmental (PEG) use; and

     WHEREAS, section 440G-8.2(f), Hawaii Revised Statutes (HRS), requires cable operators to designate at least three channels for PEG use; and

     WHEREAS, the requirement of PEG access necessitated the creation of PEG access organizations across the state to administer these channels; and

     WHEREAS, when PEG access organizations were created, they contracted with the State to:

     (1)  Manage the PEG channels;

     (2)  Provide facilities and equipment for the production of PEG programming;

     (3)  Train governmental, educational, and community organizations and the general public to use the facilities and equipment;

     (4)  Market and promote the organization and the channels; and

     (5)  Provide support services to PEG users in exchange for the access fees and equipment and facilities funds paid by the cable companies in the respective counties;

and

     WHEREAS, PEG channels are therefore funded by a portion of franchise fees paid by cable companies; and

     WHEREAS, Hawaii's four PEG access organizations, Olelo Community Television; Akaku: Maui Community Television; Ho'ike: Kauai Community Television; and Na Leo o Hawaii, provide equipment and infrastructure for PEG access in all four counties pursuant to their contracts with the Department of Commerce and Consumer Affairs; and

     WHEREAS, millions of dollars have been spent by the PEG access organizations' boards since their establishment; and

     WHEREAS, a financial and management audit would assure the State and the public that these funds are being spent appropriately; and

     WHEREAS, section 23-5(a), HRS, authorizes the state Auditor to examine and inspect all accounts, books, records, files, papers, and documents, and all financial affairs of every covered department, office agency, and political subdivision; and

     WHEREAS, under section 23-1, HRS, the State Auditor's jurisdiction includes quasi-public institutions supported in whole or in part by, or that handle, state or public funds; now, therefore,

     BE IT RESOLVED by the House of Representatives of the Twenty-fifth Legislature of the State of Hawaii, Regular Session of 2010, the Senate concurring, that the Auditor is requested to perform a financial and management audit of Hawaii's four PEG access organizations; and

     BE IT FURTHER RESOLVED that the Auditor submit its findings and recommendations to the Legislature at least twenty days prior to the convening of the 2011 Regular Session; and
     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor; the Director of Commerce and Consumer Affairs; and the executive directors of Olelo Community Television, Akaku: Maui Community Television, Ho'ike: Kauai Community Television, and Na Leo o Hawaii.

OFFERED BY:

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Report Title: 

PEG Access Organizations; Financial and Management Audit