PEG access nonprofits fight to preserve funding

Nonprofit organizations providing public access to cable television – Olelo on Oahu, Akaku on Maui, Hoike on Kauai and Na Leo on Hawaii Island – are working at the Legislature to protect their cable franchise fee funding and to exempt providers of Public Education and Government access services from the state procurement law.

As introduced, House Bill 2902 would have split public, educational and government (PEG) access and divided the cable franchise fee from Oceanic Time Warner into thirds shared equally by providers of each, which would have drastically reduced the funding of the community media organizations.

After the House Legislative Management Committee received written and oral testimony opposing that proposal, it adjusted the language in the bill to remove any reference to splitting PEG access. A revised version of HB2902 passed through the LMG committee and the House Finance Committee. Committee Chair James Tokioka said at the hearing the bill’s purpose was not to harm public access but rather to find a way to fund government access programming.

The revised version of bill calls for an auditor to conduct an analysis of the allocation of cable operator franchise fees to PEG access organizations, the Hawaii Public Television Foundation and the Department of Commerce and Consumer Affairs Cable Television Division. It also calls for a financial review or audit of Olelo to determine the effectiveness with which it implements its programs through the allocation of resources. The review or audit shall include, but not be limited to, an examination of financial records, overall financial health, and operating expenses.

Olelo already has annual financial audits conducted and audits can be costly, but “Olelo has and will cooperate with a State audit, should HB2902 pass,” said CEO Kealii Lopez. “We are certain that if the DCCA removed the arbitrary cap on Olelo’s funding, there would be greater opportunity to support government access programming and other PEG access services that could benefit our communities.”

The imposition of the cap by the DCCA has resulted in Olelo receiving only about 60 percent of what is collected from cable customers for PEG access on Oahu, she said. “For the years 2009 and 2010 alone, the funds diverted from community access services on Oahu amount to nearly $4 million.”

Legislation would exempt PEG access providers from state procurement

Another bill on PEG Access, SB 707, would make it possible for the director of the DCCA to designate a provider for PEG services provided that the designation is exempt from procurement law. “We support this bill because it could provide the opportunity for PEG operators like Olelo to be exempt from the request-for-proposal process,” Lopez said.

The State Procurement Board has ruled that PEG Access is not exempt from the procurement process under current law despite difficulties drafting an RFP to invite others to bid for a state contract.

“Imagine taking twenty years to build a successful business that people relied on, a business that taught people how to talk to each other in meaningful ways, a business that became a national model and an essential community resource by actually helping people succeed,” testified Jay April, president and CEO of Akaku, Maui Community Television.

“Let’s say you built such a business and the state came in, asked you to show them how you did it, counted up all your money and assets, and told you it was taking over and putting everything you built out to bid to the lowest bidder,” she said.

“These dedicated community-based nonprofit public access organizations have been serving communities throughout the state for over 20 years,” testified Gordon Fuller of the Hawaii Centers for Independent Living.

Added Chris Conybeare, president of the Media Council of Hawaii: “We believe that to subject Hawaii’s successful PEG Access providers to the State procurement process represents the potential waste of valuable assets. We believe that these organizations are more correctly viewed as ‘sole source’ providers.”