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HomeMy WebLinkAboutCOM 0618.000 2002-2004 Dr. Fred Holshuh County Council Representative Re: Public Access Cable Television f~84 (`1RR 30 ~i`I ].0 S March 25, 2004 COUra, ~ Dear Mr. Holshuh, I am presenting this synopsis of the PEG (Public ,Educational & Governmental) cable television issues currently taking place in the State of Hawaii. You may be already aware of public access television via the taping and airing on channel 52 of the County Council meetings and hearings. The Big Island's local Public access center is Na Leo O' Hawaii. It is a private nonprofit corporation. My involvement with access centers date back to the late 80's. I was chosen by former Department of Commerce and Consumer Affairs Director, Robert Alm, to represent the public's concerns on the original planning committee for ublic access. This planning committee was responsible for the formation of N ii. I had also written proposals to the state advocating the public's best interest to have access centers on each island. In addition to being active on the committee, I have been a video production teacher and long time producer of access programing for 10 years. I would like to have the opportunity to discuss with you and your colleagues the benefits of having our local county government take over management of the access center. A large percentage of access centers on the mainland are managed and administered by local city and county governments. If possible, I would like to to present this issue before the Council at a committee meeting or other appropriate venue. Resp ully, Jo n Morales 898-1450 959-8928 PO Box 1385 Kea'au HI. 96749 Comm. No. 6~ D Ref. To: Ref. Uafe January 2004 Department of Commerce and Consumer Affairs' ("DCCA'9 Plan For Public. Education, and Government ("PEG'S Access In exchange for the use of valuable public rights-of--way, cable franchise holders are required to set aside channels for public, education and government uses ("PEG"). Public access channels are often the video equivalent of the speaker's soap box or the electronic parallel to the printed leaflet. They contribute to an informed citizenry in many ways, whether through giving a voice to those who might otherwise not have one, through bringing educational opportunities to our homes, or by showing our local and state governments at work. In the spring of 2003, DCCA decided to reassess the State's policies on PEG access, and to create a plan to guide the future development of PEG access television in Hawaii. To that end, the DCCA developed a discussion document that identified 16 issues relating to PEG access, and set forth possible policy options for many of those issues. The public was invited to comment on the issues identified in the document, as well as any other issues that they believed should be addressed. In order to facilitate that process, public comment meetings were held in Hilo, Kona, Honolulu, Kahului and Lihue. The response received by the DCCA reflects a strong public interest in cable access. 187 individuals and entities submitted written comments in some form. A total of 224 people attended the public comment meetings, and 100 spoke at the meetings. The public comment meetings were videotaped, and the meetings in Kahului and Honolulu were broadcast live over PEG access channels. Public comments are available for review at DCCA's offices. Additionally, the written comments aze posted on our website (ww w.hawal i.gov/dcea/catv). The public testimony and comments show that PEG access is fulfilling its mission of providing a foram for free expression for the people of Hawaii. Across the State, citizens repeatedly told the DCCA about the opportunities that PEG access had given them to reach their fellow citizens. At the same time, the public comment process identified many challenges and areas for improvement. These included: (1) the fact that conditions in each county are different, and an approach to PEG access that works in one county may be unsuccessful in another, (2) the fact that there are areas throughout the State, including both Oahu and the neighbor islands, that are underserved by the current PEG access system, (3) a need for a more participatory governance system for PEGS, both in the process of selecting board members and in the rules governing how the PEGS conduct business, (4) a need for DCCA to receive ongoing input from the community on issues relating to PEG access, and (5) a need for periodic, independent review of PEG operations. On November 26, 2003, DCCA issued a Draft of the Plan, and gave the public the opportunity to provide written comments. The DCCA received approximately 20 comments regarding the Draft Plan by the requested due date of 12-10-03. -1- January 2004 DCCA's PEG Oversi¢ht Plan- At the Oration of Each County There is a sign cant diversity between the Counties in the needs, priorities, and challenges faced by their respective PEG entities. Currently, DCCA is responsible for the ovefsight of all those entities, and has entered into contracts with each of them Under the Plan, the State will provide each County with the option to oversee PEG access in that County. If the County accepts: All matters relating to PEG oversight within the County will be delegated to the county by the DCCA, including but not limited to the determination of how to select board members of the PEG entity, and what requirements to place on the PEG entity for "sunshine" in its operations. The current system of funding will remain in place, i.e., 3%o of the cable operator's gross revenues collected in each County will be used for PEG purposes in that County. These fees are currently paid by the cable operator directly to the PEG organization in each County. DCCA will provide the County with funding ($30,000.00/yr.) to assist in the administration and management of PEG access in that county. These funds will come from the cable subscribers' fees that are currently collected to support the administration of DCCA's cable program. The current contract between the DCCA and the County's PEG access organization will be voided once a new contract is executed between the PEG access organization and the County, as well as between the County and DCCA. Specific terms of the contracts between the County and DCCA, as well as between the PEG access organization and the County, will be negotiated by the parties. Issues such as the length of the contracts will be addressed during those negotiations. The County will be required to indemnify the State for any liability associated with the County's oversight of the PEG entity, and to require the PEG to cooperate with periodic audits (see issue 17 below). if the County declines: DCCA will continue to oversee the operation of the PEG entity located in that county. ISSUE #2: Governance -PEG Board Appointment Process Currently, members of the PEG board of directors are appointed by the Director of the DCCA and by the cable operator for each County. The number of board members for each PEG entity differs, reflecting the unique needs and wishes of each board. ' 2 ISSUE #4: Funding -Financial Resources Franchise fee assessments aze consistent statewide, except for an agreed upon limitation that is in place for `Olelo on Oahu. `Olelo is subject to a $3.7M cap that may increase annually based on the Consumer Price Index ("CPI"). This calculated cap amount is compared against the actual 3% calculation, and the lower amount is remitted to `Olelo. As stated previously, the distribution of franchise fees collected are as follows: 1) 3% of gross revenues to the PEG access organization for the specific County where fees are collected; 2) 1% of gross revenues to the Hawaii Public Television Foundation (Public Television - PBS); and 3) 1% of standard service revenues to the DCCA Note: This is equal to approximately 0.64% of gross revenues Due to the differences in population as well as differences in cable services purchased by subscribers, franchise fees vary widely among the four Counties. Under current DCCA policy, the fees collected in each County remain m that County. The fees collected for each PEG access organization in 2002 were: Hawad $547,243.00 Kauai $270,569.00 Maui $608,510.00 Oahu $3,387,288.00 Franchise fees for PEG access collected in a particular County currently remain there for the bevel of its residents. There has been much debate regarding the issue of redistribution of franchise fees regardless of their source. Many members of the public support the current system, under which fees remain in the County in which they aze collected. Others suggest that there should be some mechanism to redistribute franchise fees so that neighbor islands receive a larger percentage of the statewide total. They suggest that absent such redistribution, some azeas of the neighbor islands aze not able to receive even a minimal "baseline' of PEG access services. In any event, it is clear that there aze a number of areas which are underserved by the current system. These include islands such as Molokai and Lanai, rural azeas on the neighbor islands such as Hana, and portions of Oahu such as the windwazd side. It is also cleaz that some of the recent successes in PEG access have occurred when PEG access services are brought into communities where there is a strong need and support for them, such as Waianae and Palolo on Oahu. Background The regulation of the cable television ("tv") industry is based on federal laws that allow local regulation by a local franchising authority ("LFA"). The DCCA was designated by the Legislature . as the LFA for the State of Hawaii. PEG access was initiated through the collaboration of the DCCA, the cable tv operators, and the four Counties. A PEG access organization was established ~in each County as a private, non-profit 501(C)(3) corporation to serve the unique requirements of that County. The following are the PEG corporations: 3 Hawaii Na Leo `O Hawaii, Inc. ("Na Leo") Kauai Hoike -Kauai Community Television, Ina ("Hoike") Maui Akaku -Maui County Community Television, Inc. ("Akaku") Oahu `Olelo -The Corporation for Community Television ("'Olelo") Each of these access organizations is funded by fees which are collected by the cable operator fron its subscribers. Federal law states that an LFA can assess up to 5% of the cable tv operator's gross revenues for purposes of these franchise fees. The recipients of these fees include the four PEG access organizations, the DCCA and the Hawaii Public Television Foundation ("HPTF"). The HPTF is better known to many as KHET Public Television or PBS Hawaii. The current distribution of franchise fees collected in each County is: 3% To the PEG access organization for the specific County where fees are collected 1% To the Hawaii Public Television Foundation (Public Television -PBS ) .64% To the DCCA to support the administration of the program Note: DCCA receives 1% of standard service revenues, not gross revenues. 1% of standazd service revenues are approximately .64% of gross revenues. In addition to operating funds collected from cable subscribers, the cable operator also makes capital fund payments to the PEGs for the purchase of items including equipment, furniture, and fixtures. These payments are not a part of the franchise fee cap of 5%, and are not directly assessec to subscribers on their invoices. The capital fund payment amounts are the result of negotiations that involve the DCCA and cable operator with input from the PEGS. At certain designated dates within the franchise period, the PEGS are requested to work with the cable operator to develop a capital payment plan that is then submitted to the DCCA for consideration. 'T