Report Title:

Cable Television; Additional Funding

Description:

Authorizes DCCA to implement a 3-year pilot program to provide additional funding to support public, educational, and governmental cable television access in underserved areas. Appropriates $800,000 for the initial year of the pilot

program.

THE SENATE

S.B. NO.

2912

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO CABLE TELEVISION.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. In exchange for the use of valuable public rights-of-ways, cable franchise holders are required to set aside channels for public, education, and government (PEG) access. It has been argued that public access channels are often the video equivalent of the speaker's soap box or the electronic parallel to the printed leaflet.

In the spring of 2003, the department of commerce and consumer affairs (department) decided to reassess the State's policies on PEG access, and to create a plan to guide the future development of PEG access in Hawaii. The public was invited to comment on issues regarding PEG access. To facilitate that process, the department held public comment meetings in Hilo, Kona, Honolulu, Kahului, and Lihue.

The responses received by the department reflect a strong public interest in PEG access. Public comments indicate that PEG access is fulfilling its mission of providing a forum for free expression for the people of Hawaii.

However, the public comment process also identified many challenges and areas for improvement. One of the areas that was identified as needing improvement was that there are areas throughout the State, on Oahu as well as on the neighbor islands, that are underserved by the current PEG access system.

To address that concern, the department intends to implement a three-year pilot program that will provide additional funding to meet the PEG access needs of underserved areas. To accomplish this, the department plans to reallocate funds that are currently used to support its administration of cable regulation in Hawaii. In the past, up to $500,000 of the funds used to administer the department's cable regulation responsibilities have been allocated to support the INET (a fiber optic cable network that state agencies use). Because the INET is largely deployed, current expenditure levels are unlikely to be needed in the future. Accordingly, the department intends to reallocate much of the current INET funding and redirect it to support PEG access in underserved areas. This plan represents a revenue and expenditure neutral pilot program.

The purpose of this bill is to provide the department with explicit statutory authority to implement a three-year pilot program to provide additional funding to support public, education, and government cable television access in underserved areas of the State and to appropriate funds for the initial year of the pilot program.

SECTION 2. Section 26-9, Hawaii Revised Statutes, is amended by amending subsection (o) to read as follows:

"(o) Every person licensed under any chapter within the jurisdiction of the department of commerce and consumer affairs and every person licensed subject to chapter 485 or registered under chapter 467B shall pay upon issuance of a license, permit, certificate, or registration a fee and a subsequent annual fee to be determined by the director and adjusted from time to time to ensure that the proceeds, together with all other fines, income, and penalties collected under this section, do not surpass the annual operating costs of conducting compliance resolution activities required under this section. The fees may be collected biennially or pursuant to rules adopted under chapter 91, and shall be deposited into the special fund established under this subsection. Every filing pursuant to chapter 514E or section 485-6(15) shall be assessed, upon initial filing and at each renewal period in which a renewal is required, a fee that shall be prescribed by rules adopted under chapter 91, and that shall be deposited into the special fund established under this subsection. Any unpaid fee shall be paid by the licensed person, upon application for renewal, restoration, reactivation, or reinstatement of a license, and by the person responsible for the renewal, restoration, reactivation, or reinstatement of a license, upon the application for renewal, restoration, reactivation, or reinstatement of the license. If the fees are not paid, the director may deny renewal, restoration, reactivation, or reinstatement of the license. The director may establish, increase, decrease, or repeal the fees when necessary pursuant to rules adopted under chapter 91.

There is created in the state treasury a special fund to be known as the compliance resolution fund to be expended by the director's designated representatives as provided by this subsection. Notwithstanding any law to the contrary, all revenues, fees, and fines collected by the department shall be deposited into the compliance resolution fund. Unencumbered balances existing on June 30, 1999, in the cable television fund under chapter 440G, the division of consumer advocacy fund under chapter 269, the financial institution examiners' revolving fund, section 412:2-109, the special handling fund, section 414-13, and unencumbered balances existing on June 30, 2002, in the insurance regulation fund, section 431:2-215, shall be deposited into the compliance resolution fund. This provision shall not apply to the drivers education fund underwriters fee, section 431:10C-115, insurance premium taxes and revenues, revenues of the workers' compensation special compensation fund, section 386-151, the captive insurance administrative fund, section 431:19-101.8, the insurance commissioner's education and training fund, section 431:2-214, the medical malpractice patients' compensation fund as administered under section 5 of Act 232, Session Laws of Hawaii 1984, and fees collected for deposit in the office of consumer protection restitution fund, section 487-14, the real estate appraisers fund, section 466K-1, the real estate recovery fund, section 467-16, the real estate education fund, section 467-19, the contractors recovery fund, section 444-26, the contractors education fund, section 444-29, and the condominium management education fund, section 514A-131. Any law to the contrary notwithstanding, the director may use the moneys in the fund to employ, without regard to chapter 76, hearings officers, investigators, attorneys, accountants, and other necessary personnel to implement this subsection. Any law to the contrary notwithstanding, the moneys in the fund shall be used to fund the operations of the department. Any law to the contrary notwithstanding, the director may use moneys in the fund deposited under chapter 440G to support public, educational, and governmental access facilities in underserved areas pursuant to rules adopted in accordance with chapter 91. The moneys in the fund may be used to train personnel as the director deems necessary and for any other activity related to compliance resolution.

As used in this subsection, unless otherwise required by the context, "compliance resolution" means a determination of whether:

(1) Any licensee or applicant under any chapter subject to the jurisdiction of the department of commerce and consumer affairs has complied with that chapter;

(2) Any person subject to chapter 485 has complied with that chapter;

(3) Any person submitting any filing required by chapter 514E or section 485-6(15) has complied with chapter 514E or section 485-6(15);

(4) Any person has complied with the prohibitions against unfair and deceptive acts or practices in trade or commerce; or

(5) Any person subject to chapter 467B has complied with that chapter;

and includes work involved in or supporting the above functions, licensing, or registration of individuals or companies regulated by the department, consumer protection, and other activities of the department.

The director shall prepare and submit an annual report to the governor and the legislature on the use of the compliance resolution fund. The report shall describe expenditures made from the fund including non-payroll operating expenses."

SECTION 3. Section 440G-15, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Each cable operator shall pay an annual fee to be determined by the director. The fees collected under this section shall be deposited into the compliance resolution fund established under section 26-9(o)[.], and may be used to support public, educational, and governmental access facilities in underserved areas pursuant to rules adopted in accordance with chapter 91."

SECTION 4. There is appropriated out of the compliance resolution fund established in section 26-9(o), Hawaii Revised Statutes, the sum of $800,000, or so much thereof as may be necessary for fiscal year 2004-2005, to support public, educational, and governmental access facilities in underserved areas.

SECTION 5. The sum appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this Act.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval; provided that section 4 shall take effect on July 1, 2004; provided further that on June 30, 2007, sections 2 and 3 of this Act shall be repealed and sections 26-9(o) and 440G-15(a), Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day before the effective date of this Act.

INTRODUCED BY:

_____________________________

BY REQUEST