HI Public Broadcasting

Transfers all licenses, assets, responsibilities, and functions
of the Hawaii Public Broadcasting Authority to the Hawaii Public
Television Foundation.  Gives the State first rights to the
assets if the foundation determines that any of the equipment
listed on the inventory of HPBA as of 6/30/00 is no longer
useful, or if the foundation dissolves or discontinues public
broadcasting in Hawaii.  (SD1)

THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The purpose of this Act is to provide for the
 2 orderly transfer of the licenses, assets, responsibilities, and
 3 functions of the Hawaii Public Broadcasting Authority (HPBA),
 4 also known as Hawaii Public Television, to the Hawaii Public
 5 Television Foundation (HPTF), a private, not-for-profit
 6 organization under section 501(c)(3) of the Internal Revenue Code
 7 of 1986, as amended.  The transfer is contingent upon the
 8 approval of the Federal Communications Commission (FCC).  This
 9 transfer represents a significant step in the direction of a
10 redefined relationship between the State and public television in
11 Hawaii.
12      The legislature recognizes that the transfer is necessary as
13 the result of significant reductions in state and federal funding
14 of HPBA.  At the instruction of the 1996 legislature, HPBA
15 developed a strategic plan that was presented at the 1997 regular
16 session.  The purpose of this plan was to develop a blueprint
17 that demonstrated how public television could transition to a
18 community-based system.
19      The plan created a new relationship with the State to

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                                     S.B. NO.           S.D. 1

 1 preserve the important role Hawaii Public Television plays in
 2 creating and broadcasting educational programs for the department
 3 of education, the University of Hawaii, and other educational
 4 institutions.  The plan also enabled Hawaii Public Television to
 5 innovate and efficiently pursue its role in broadcasting cultural
 6 and public affairs programs that enhance the quality of life in
 7 the community.
 8      In supporting the educational, cultural, and historical
 9 contributions of non-commercial public television programming, it
10 remains essential to ensure the continued creative and financial
11 health of public television in Hawaii, and its ability to operate
12 in a rapidly changing and advancing technical environment.
13      The strategic plan submitted by HPBA provided for
14 establishment of a foundation, initially for fund-raising and
15 eventually to operate the public television network in Hawaii.
16 The foundation (HPTF) was established in December, 1997, with a
17 board of directors of twenty-five community leaders and will be
18 prepared to assume all responsibilities of management and
19 operation of the public television system in Hawaii, effective
20 July 1, 2000.
21      SECTION 2.  (a)  Notwithstanding any law to the contrary,
22 including but not limited to chapter 103D, parts XI and XII,
23 Hawaii Revised Statutes, the following are transferred to the

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                                     S.B. NO.           S.D. 1

 1 Hawaii Public Television Foundation on July 1, 2000.
 2      (1)  All records, equipment, and other property of HPBA,
 3           including without limitation all broadcast equipment,
 4           non-broadcast equipment, files, supplies, records,
 5           documents, and other physical assets of HPBA;
 6      (2)  All licenses issued by the Federal Communications
 7           Commission that are held by HPBA; and
 8      (3)  All rights and obligations of HPBA under leases,
 9           licenses, and contracts, executed or entered into with
10           owners of real property, independent contractors, or
11           other broadcasting or production entities and public
12           bodies.
13      (b)  The transfers in subsection (a) shall not require the
14 consent of any public agency except any required approvals of the
15 FCC.
16      (c)  To the extent consistent with federal law and
17 regulations and with agreements executed by HPBA, the transfers
18 accomplished by this section are made on the condition that the
19 application to transfer the broadcasting licenses from HPBA to
20 HPTF is approved by the FCC.
21      (d)  The assets and licenses transferred to the HPTF shall
22 be used by the foundation throughout their terms and useful
23 lives, for the purposes of continuing and advancing public

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                                     S.B. NO.           S.D. 1

 1 broadcasting in Hawaii.  If the foundation determines that any of
 2 the equipment listed on the inventory of HPBA as of June 30,
 3 2000, is no longer useful, the State of Hawaii shall have first
 4 right, at no cost to the State, to the equipment.  If the
 5 foundation dissolves or discontinues public broadcasting in
 6 Hawaii, at any time, the State of Hawaii shall have first right,
 7 at no cost to the State, to all the assets of Hawaii Public
 8 Television; provided that assets not claimed by the State shall
 9 be transferred, along with licenses and rights, to a public or
10 private entity qualified contractually to succeed the foundation
11 as the public broadcasting (PBS) affiliate in Hawaii.
12      SECTION 3.  HPBA is granted all necessary authority to
13 perform all acts necessary to carry out the transfers described
14 in this Act, including the authority to convey property and
15 assign contracts.  HPBA shall perform all acts necessary for a
16 timely transfer of licenses held to the HPTF.
17      SECTION 4.  Notwithstanding any law to the contrary,
18 including but not limited to chapter 103D, parts XI and XII,
19 Hawaii Revised Statutes, the executive director of HPBA shall
20 deliver to the officers or representative of the HPTF all records
21 and property within the possession of HPBA that relate to the
22 assets, licenses, leases, and contracts being transferred under
23 this Act.

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                                     S.B. NO.           S.D. 1

 1      SECTION 5.  Any funds remaining in the HPBA revolving fund
 2 as of July 1, 2000, shall be transferred to the HPTF on July 1,
 3 2000.
 4      SECTION 6.  HPBA shall continue to retain and perform all
 5 responsibilities set forth in chapter 314, Hawaii Revised
 6 Statutes, until July 1, 2000.
 7      SECTION 7.  Chapter 314, Hawaii Revised Statutes, is
 8 repealed on July 2, 2000.
 9      SECTION 8.  This Act shall take effect upon its approval;
10 except that sections 2, 4, 5, 6, and 7 shall take effect only
11 upon the approval by the FCC of the transfer of HPBA's broadcast
12 licenses to HPTF.