Honolulu, Hawaii
                                                     , 1999

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

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Education and Technology, to which was
referred S.B. No. 1138 entitled: 


begs leave to report as follows:

     The purpose of this measure is to transfer all licenses,
assets, responsibilities, and functions of the Hawaii Public
Broadcasting Authority to the Hawaii Public Television

     Testimony in support of this measure was submitted by the
Hawaii Public Broadcasting Authority.  Testimony in opposition
was submitted by the Hawaii Government Employees Association.
Verbal testimony in opposition was given by a concerned

     Your Committee finds that continuing and significant
reductions in public funding of public television in this decade
have resulted in major downsizing of the system, cancellation of
long-running programs, reduction of broadcast hours, and a
gradual deterioration of the physical plant.  Because of the
ongoing inability for the State to provide adequate support to
public television, a strategic plan to take the system from a
state agency to a non-profit community foundation was developed
by the Hawaii Public Broadcasting Authority three years ago.
Budget cuts from the State reduced support by 76 percent in six
years, thus making an expedient transfer necessary to ensure a

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continued existence for public television.  The Hawaii Public
Television Foundation has the resources necessary to garner more
funding and improve the quality of programming for public

     Your Committee has amended this measure as follows:

     (1)  By adding a provision giving the State of Hawaii first
          right, at no cost, to the equipment if the Hawaii
          Public Television Foundation should determine that any
          of the equipment listed on the inventory of the Hawaii
          Public Broadcasting Authority as of June 30, 2000, is
          no longer useful; and

     (2)  By changing the provision regarding transfer of assets
          if the Hawaii Public Television Foundation should
          dissolve or discontinue public broadcasting in Hawaii,
          to give the State first right, at no cost, to the
          assets instead of requiring the transfer to another
          public or private entity authorized to conduct public
          broadcasting.  This amendment also provides that all
          assets not claimed by the State will be transferred,
          along with licenses and rights, to a public or private
          entity qualified contractually to succeed the
          foundation as the public broadcasting affiliate in

These amendments ensure that the State will be able to recoup any
loss incurred in this transfer if the foundation decides to
discard any equipment, or if the foundation is unsuccessful and

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

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

                                   DAVID Y. IGE, Chair

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