THE SENATE

S.R. NO.

90

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 
   


SENATE RESOLUTION

 

REQUESTING A FRANCHISE AUDIT OF AOL TIME WARNER CABLE'S MONOPOLY CABLE FRANCHISE.

 

WHEREAS, cable franchise audits are common regulatory mechanisms used by cable and telecommunications regulators in jurisdictions across the country to evaluate compliance with regulatory franchise requirements by cable operators; and

WHEREAS, while traditional audits are used to ensure that acceptable accounting practices have been used, franchise compliance audits cover more specific issues, such as the review of city annexations, new industrial developments, state and federal initiatives, and other issues that may affect the amount and use of revenues and other public benefits provided by cable operators as part of the compensation they pay for their private use of public rights of way; and

WHEREAS, experience nationally indicates that a cable franchise audit will more than pay for its cost through savings to cable subscribers, payments due to beneficiaries and service improvements and enhancements; and

WHEREAS, in instances where a government has taken an aggressive lead in franchise management, significant new money has been discovered in the form of unpaid or underpaid fees; which can then be used to support the public access organizations and general administration; and

WHEREAS, if a cable franchisee has been found not to be in compliance, the establishment of a franchise compliance program can resolve outstanding issues; and

WHEREAS, a franchise audit is particularly appropriate at this time in Hawaii as AOL Time Warner Cable has recently obtained a statewide monopoly as a cable television provider, and as such maintains control over all cable television in this State and owes a duty to provide public, education, and government access to state residents; and

WHEREAS, an independent review can confirm that no undue influence has benefited AOL Time Warner Cable in Hawaii and its subsidiaries; and

WHEREAS, an independent cable franchise audit will clear the air of past issues, and will empower the Department of Commerce and Consumer Affairs and AOL Time Warner Cable to proceed on an open and honest footing; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-Second Legislature of the State of Hawaii, Regular Session of 2004, that the Director of Commerce and Consumer Affairs is requested, in consultation with the National Association of Telecommunications Officers and Advisors and the cable advisory committee, to commission a franchise audit of AOL Time Warner Cable of Hawaii, the sole cable television provider in the State, to assure that the franchise is being properly administered both for the benefit of AOL Time Warner Cable and of state residents; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Director of Commerce and Consumer Affairs, the Chief Executive Officer of AOL Time Warner Cable of Hawaii, the head of the National Association of Telecommunications Officers and Advisors, and the chair of the cable advisory committee.

 

 

 

OFFERED BY:

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Report Title:

AOL Time Warner Cable Franchise; Franchise Audit