CONFERENCE COMMITTEE REP. NO. 13-14

Honolulu, Hawaii

                 , 2014

RE:    S.B. No. 2048

       S.D. 1

       H.D. 2

       C.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2048, S.D. 1, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO CABLE TELEVISION SYSTEMS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to:

     (1)  Amend the definition of "service area" to include "franchise area";

     (2)  Authorize the Director of Commerce and Consumer Affairs to designate access organizations in each franchise area;

     (3)  Delete the requirement that the Department of Commerce and Consumer Affairs conduct annual management and financial audits of designated public, educational, or governmental access channels; and

     (4)  Remove the sunset provision in Act 19, Session Laws of Hawaii 2011.

     Your Committee on Conference finds that this measure allows the Director of Commerce and Consumer Affairs to permanently designate an access organization in each franchise area to oversee public, educational, or governmental channels and ensures that the Cable Advisory Committee retains the ability to advise the Director and access organizations on certain matters.

     Your Committee on Conference further finds that this measure deletes the requirement that the Department of Commerce and Consumer Affairs conduct annual management and financial audits of designated public, educational, or governmental access organizations, as these organizations are already required to provide annual independently audited financial statements to the Department.  However, your Committee on Conference notes that according to the Department of Commerce and Consumer Affairs, the Department still retains the authority and discretion to conduct periodic audits of designated public, educational, or governmental access organizations.  The Department of Commerce and Consumer Affairs has also indicated a willingness to mandate periodic management and financial reviews in the contracts with the designated public, educational, or governmental access organizations, thus ensuring sufficient oversight and transparency.

     Your Committee on Conference has amended this measure by inserting an effective date of June 29, 2014.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2048, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2048, S.D. 1, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ ANGUS L.K. MCKELVEY, Co-Chair	____________________________ ROSALYN H. BAKER, Chair
____________________________ KARL RHOADS, Co-Chair