REPORT TITLE:
Public Television



DESCRIPTION:
Transfers the assets of the Hawaii Public Broadcasting Authority
to the Hawaii Public Television Foundation, a private not-for-
profit organization.  Gives the State first rights to the assets
of Hawaii Public Broadcasting Authority if Hawaii Public
Television Foundation is no longer useful, or if Hawaii Public
Television Foundation is dissolved or discontinues public
broadcasting in Hawaii. (HB154 CD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        154
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                S.D. 1
STATE OF HAWAII                                            C.D. 1
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO PUBLIC TELEVISION. 


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

 1      SECTION 1.  The purpose of this Act is to provide for the
 
 2 orderly transfer of the licenses, assets, responsibilities, and
 
 3 functions of the Hawaii public broadcasting authority, also
 
 4 commonly known as Hawaii Public Television, to the Hawaii Public
 
 5 Television Foundation, a private, not-for-profit organization
 
 6 under section 501(c)(3) of the Internal Revenue Code of 1986, as
 
 7 amended.  The transfer is contingent upon the approval of the
 
 8 Federal Communications Commission.  This transfer represents a
 
 9 significant step in the direction of a redefined relationship
 
10 between the State and public television in Hawaii.       
 
11      The legislature recognizes that the transfer is necessary as
 
12 the result of significant reductions in state and federal funding
 
13 of the Hawaii public broadcasting authority.  At the instruction
 
14 of the 1996 legislature, the Hawaii public broadcasting authority
 
15 developed a strategic plan that was presented at the 1997 regular
 
16 session.  The purpose of this plan was to develop a blueprint
 
17 that demonstrated how public television could make the transition
 
18 to a community-based system.  
 
19     The plan created a new relationship with the State to
 
20 preserve the important role Hawaii Public Television plays in
 

 
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 1 creating and broadcasting educational programs for the department
 
 2 of education, the University of Hawaii, and other educational
 
 3 institutions.  The plan also enabled Hawaii Public Television to
 
 4 innovate and efficiently pursue its role in broadcasting cultural
 
 5 and public affairs programs that enhance the quality of life in
 
 6 the community.       
 
 7     In supporting the educational, cultural, and historical
 
 8 contributions of noncommercial public television programming, it
 
 9 remains essential to ensure the continued creative and financial
 
10 health of public television in Hawaii, and its ability to operate
 
11 in a rapidly changing and advancing technical environment. 
 
12     The strategic plan submitted by Hawaii public broadcasting
 
13 authority provided for the establishment of a foundation,
 
14 initially for fundraising and eventually to operate the public
 
15 television network in Hawaii.  The Hawaii Public Television
 
16 Foundation was established in December, 1997, with a board of
 
17 directors of twenty-five community leaders, and will be prepared
 
18 to assume all responsibilities of management and operation of the
 
19 public television system in Hawaii, effective July 1, 2000.       
 
20     SECTION 2.  (a)  Notwithstanding any law to the contrary,
 
21 including chapter 103D, parts XI and XII, Hawaii Revised
 
22 Statutes, the Hawaii public broadcasting authority shall transfer
 
23 to the Hawaii Public Television Foundation on July 1, 2000, the
 
24 following:  
 

 
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                                                        C.D. 1

 
 1      (1)  All records, equipment, and other property of Hawaii
 
 2           Public Broadcasting Authority, including without
 
 3           limitation all broadcast equipment, non-broadcast
 
 4           equipment, machines, files, supplies, records,
 
 5           documents, maps, and other physical assets and personal
 
 6           property heretofore made, used, acquired, or held by
 
 7           the Hawaii public broadcasting authority;
 
 8      (2)  All licenses issued by the Federal Communications
 
 9           Commission that are held by Hawaii public broadcasting
 
10           authority; and
 
11      (3)  All rights and obligations of Hawaii public
 
12           broadcasting authority under deeds, leases, licenses,
 
13           permits, loans, agreements and contracts, excluding any
 
14           employment contracts or collective bargaining
 
15           agreements, executed or entered into with owners of
 
16           real property, independent contractors, or other
 
17           broadcasting or production entities and public bodies
 
18           on behalf of or by the Hawaii public broadcasting
 
19           authority to the extent that such rights and
 
20           obligations are transferrable.
 
21      (b) The transfers in subsection (a) shall not require the
 
22 consent of any public agency except any required approvals of the
 
23 Federal Communications Commission. 
 

 
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 1      (c) To the extent consistent with federal law and
 
 2 regulations and with the agreements executed by Hawaii public
 
 3 broadcasting authority, the transfers contemplated by this Act
 
 4 are made on the express condition that the application to
 
 5 transfer the broadcasting licenses from Hawaii public
 
 6 broadcasting authority to Hawaii Public Television Foundation is
 
 7 approved by the Federal Communications Commission.  
 
 8      (d)  The assets and licenses transferred to the Hawaii
 
 9 Public Television Foundation shall be used by the foundation
 
10 throughout their terms and useful lives, for the purposes of
 
11 continuing and advancing public broadcasting in Hawaii.  If the
 
12 Hawaii Public Television Foundation determines that any of the
 
13 equipment listed on the inventory of Hawaii public broadcasting
 
14 authority as of June 30, 2000, is no longer useful, the State of
 
15 Hawaii shall have first right, at no cost to the State, to
 
16 receive possession and ownership of the equipment, which has been
 
17 determined to be no longer useful.  If the Hawaii Public
 
18 Television Foundation is dissolved, voluntarily or involuntarily,
 
19 or discontinues public broadcasting in Hawaii, at any time, the
 
20 State of Hawaii shall have first right to acquire, at no cost to
 
21 the State, all of the unencumbered assets and licenses
 
22 transferred to the Hawaii Public Television Foundation under this
 
23 Act; provided that such assets or licenses not claimed by the
 

 
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 1 State shall be transferred to a public or private entity
 
 2 qualified contractually to succeed the Hawaii Public Television
 
 3 Foundation as the public broadcasting affiliate in Hawaii. 
 
 4      SECTION 3.  The Hawaii public broadcasting authority is
 
 5 granted all necessary authority to perform all acts necessary to
 
 6 carry out the transfers described in this Act, including the
 
 7 authority to convey property and assign contracts.  The Hawaii
 
 8 public broadcasting authority shall perform all acts necessary
 
 9 for a timely transfer of licenses held to the Hawaii Public
 
10 Television Foundation.
 
11      SECTION 4.  Notwithstanding any law to the contrary,
 
12 including chapter 103D, parts XI and XII, Hawaii Revised
 
13 Statutes, the executive director of Hawaii public broadcasting
 
14 authority shall deliver to the officers or representative of the
 
15 Hawaii Public Television Foundation all records and property
 
16 within the possession of the Hawaii public broadcasting authority
 
17 that relate to the assets, licenses, leases, and contracts being
 
18 transferred under this Act. 
 
19      SECTION 5.  Any and all funds remaining in the Hawaii public
 
20 broadcasting authority revolving fund as of July 1, 2000, shall
 
21 be transferred to the Hawaii Public Television Foundation on July
 
22 1, 2000.
 

 
 
 
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 1      SECTION 6.  The Hawaii public broadcasting authority shall
 
 2 continue to retain and perform all responsibilities set forth in
 
 3 chapter 314, Hawaii Revised Statutes, until July 1, 2000.
 
 4      SECTION 7.  Chapter 314, Hawaii Revised Statutes, is
 
 5 repealed.
 
 6      SECTION 8.  This Act shall take effect upon its approval;
 
 7 except that:
 
 8      (1)  Section 5 shall take effect only upon the approval by
 
 9           the Federal Communications Commission of the transfer
 
10           of Hawaii public broadcasting authority's broadcast
 
11           licenses to the Hawaii Public Television Foundation;
 
12           and
 
13      (2)  Section 7 shall take effect on July 2, 2000; and
 
14           provided further that the Federal Communications
 
15           Commission approves of the transfer of Hawaii public
 
16           broadcasting authority's broadcast licenses to the
 
17           Hawaii Public Television Foundation.