Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1138
                                     S.D. 1
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Culture and the Arts, to which was
referred S.B. No. 1138, S.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to enable the transition of
public television from a public entity to a private entity by
transferring the assets and obligations of the Hawaii Public
Broadcasting Authority (HPBA) to the Hawaii Public Television
Foundation (HPTF).

     HPBA submitted testimony in support of the bill.  The
Department of Budget and Finance concurred with the intent of the
bill.  The Hawaii Government Employees Association opposed the
intent and purpose of the bill, expressing the concern that
without State support, it will be impossible to keep public
television financially viable.

     Your Committee finds that, due to the State's financial
situation, State funding for public television has been
dramatically reduced in recent years.  Federal funding has also
been reduced, and public funding for public television is not
expected to improve in the forseeable future.

     HPTF was created for the initial purpose of fundraising,
then eventually for operating public television in Hawaii.  Your
Committee finds that, under current economic conditions, the

                                 STAND. COM. REP. NO. 1398
                                 Page 2

transfer of public television to this private entity is the most
viable means of maintaining public television in Hawaii.

     Your Committee has amended the bill by:

     (1)  Exempting State appropriations to HPTF from the State's
          grants, subsidies, and purchase of services
          requirements of Chapter 42D, Hawaii Revised Statutes,
          and authorizing direct appropriations to HPTF; and

     (2)  Making technical, nonsubstantive revisions for style
          and clarity.

     As affirmed by the record of votes of the members of your
Committee on Culture and the Arts that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1138, S.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
1138, S.D. 1, H.D. 1, and be referred to the Committee on

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Culture and the

                                   K. MARK TAKAI, Chair