HI Pub. Broadcasting Authority

Transfers all licenses, assets, responsibilities, and functions
of the Hawaii Public Broadcasting Authority to the Hawaii Public
Television Foundation.  (SB1138 HD1)

THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                H.D. 1
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 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 (HPBA),
 4 also known as Hawaii Public Television, to the Hawaii Public
 5 Television Foundation (HPTF), a private, not-for-profit
 6 organization under section 501(c)(3) of the Internal Revenue Code
 7 of 1986, as amended.  The transfer is contingent upon the
 8 approval of the Federal Communications Commission (FCC).  This
 9 transfer represents a significant step in the direction of a
10 redefined relationship between the State and public television in
11 Hawaii.
12      The legislature recognizes that the transfer is necessary as
13 the result of significant reductions in state and federal funding
14 of HPBA.  At the instruction of the 1996 legislature, HPBA
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 transition to a
18 community-based system.

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 1      The plan created a new relationship with the State to
 2 preserve the important role Hawaii Public Television plays in
 3 creating and broadcasting educational programs for the department
 4 of education, the University of Hawaii, and other educational
 5 institutions.  The plan also enabled Hawaii Public Television to
 6 innovate and efficiently pursue its role in broadcasting cultural
 7 and public affairs programs that enhance the quality of life in
 8 the community.
 9      In supporting the educational, cultural, and historical
10 contributions of non-commercial public television programming, it
11 remains essential to ensure the continued creative and financial
12 health of public television in Hawaii, and its ability to operate
13 in a rapidly changing and advancing technical environment.
14      The strategic plan submitted by HPBA provided for
15 establishment of a foundation, initially for fund-raising and
16 eventually to operate the public television network in Hawaii.
17 The foundation (HPTF) was established in December, 1997, with a
18 board of directors of twenty-five community leaders and will be
19 prepared to assume all responsibilities of management and
20 operation of the public television system in Hawaii, effective
21 July 1, 2000.
22      SECTION 2.  Chapter 37, Hawaii Revised Statutes, is amended
23 by adding a new section to be appropriately designated and to
24 read as follows:

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                                     S.B. NO.           S.D. 1
                                                        H.D. 1

 1      "37-    Hawaii Public Television Foundation.  The
 2 qualifying standards and conditions related to the receipt of
 3 funds contained in chapter 42D shall not apply to funds received
 4 by the Hawaii Public Television Foundation; provided that if the
 5 Hawaii Public Television Foundation in turn contracts with a
 6 recipient or provider, then the qualifying standards, conditions,
 7 and other provisions of chapter 42D shall apply to the recipient
 8 or provider and the contract."
 9      SECTION 3.  Chapter 314, Hawaii Revised Statutes, is
10 repealed on July 2, 2000.
11      SECTION 4.  (a)  Notwithstanding any law to the contrary,
12 including but not limited to chapter 103D, parts XI and XII,
13 Hawaii Revised Statutes, the following are transferred to the
14 Hawaii Public Television Foundation on July 1, 2000:
15      (1)  All records, equipment, and other property of the
16           Hawaii public broadcasting authority, including without
17           limitation all broadcast equipment, non-broadcast
18           equipment, files, supplies, records, documents, and
19           other physical assets of the Hawaii public broadcasting
20           authority;
21      (2)  All licenses issued by the Federal Communications
22           Commission that are held by the Hawaii public
23           broadcasting authority; and

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                                     S.B. NO.           S.D. 1
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 1      (3)  All rights and obligations of the Hawaii public
 2           broadcasting authority under leases, licenses, and
 3           contracts, executed or entered into with owners of real
 4           property, independent contractors, or other
 5           broadcasting or production entities and public bodies.
 6      (b)  The transfers in subsection (a) shall not require the
 7 consent of any public agency except any required approvals of the
 8 FCC.
 9      (c)  To the extent consistent with federal law and
10 regulations and with agreements executed by the Hawaii public
11 broadcasting authority, the transfers accomplished by this
12 section are made on the condition that the application to
13 transfer the broadcasting licenses from the Hawaii public
14 broadcasting authority to the Hawaii Public Television Foundation
15 is approved by the FCC.
16      (d)  The assets and licenses transferred to the Hawaii
17 Public Television Foundation shall be used by the Hawaii Public
18 Television Foundation throughout their terms and useful lives,
19 for the purposes of continuing and advancing public broadcasting
20 in Hawaii.  If the Hawaii Public Television Foundation determines
21 that any of the equipment listed on the inventory of the Hawaii
22 public broadcasting authority as of June 30, 2000, is no longer
23 useful, the State of Hawaii shall have first right, at no cost to

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                                     S.B. NO.           S.D. 1
                                                        H.D. 1

 1 the State, to the equipment.  If the Hawaii Public Television
 2 Foundation dissolves or discontinues public broadcasting in
 3 Hawaii, at any time, the State of Hawaii shall have first right,
 4 at no cost to the State, to all the assets of the Hawaii Public
 5 Television Foundation; provided that assets not claimed by the
 6 State shall be transferred, along with licenses and rights, to a
 7 public or private entity qualified contractually to succeed the
 8 foundation as the public broadcasting service (PBS) affiliate in
 9 Hawaii.
10      SECTION 5.  The Hawaii Public Television Foundation shall
11 receive an annual appropriation from the general revenues of the
12 State of Hawaii.
13      SECTION 6.  The Hawaii public broadcasting authority is
14 granted all necessary authority to perform all acts necessary to
15 carry out the transfers described in this Act, including the
16 authority to convey property and assign contracts.  The Hawaii
17 public broadcasting authority shall perform all acts necessary
18 for a timely transfer of licenses held to the Hawaii Public
19 Television Foundation.
20      SECTION 7.  Notwithstanding any law to the contrary,
21 including but not limited to chapter 103D, parts XI and XII,
22 Hawaii Revised Statutes, the executive director of the Hawaii
23 public broadcasting authority shall deliver to the officers or

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                                     S.B. NO.           S.D. 1
                                                        H.D. 1

 1 representative of the Hawaii Public Television Foundation all
 2 records and property within the possession of the Hawaii public
 3 broadcasting authority that relate to the assets, licenses,
 4 leases, and contracts being transferred under this Act.
 5      SECTION 8.  Any funds remaining in the the Hawaii public
 6 broadcasting authority revolving fund as of July 1, 2000, shall
 7 be transferred to the Hawaii Public Television Foundation on July
 8 1, 2000.
 9      SECTION 9.  The Hawaii public broadcasting authority shall
10 continue to retain and perform all responsibilities set forth in
11 chapter 314, Hawaii Revised Statutes, until July 1, 2000.
12      SECTION 10.  This Act shall take effect upon its approval;
13 except that sections 2, 3, 4, 5, 7, 8, and 9 shall take effect
14 only upon the approval by the FCC of the transfer of the Hawaii
15 public broadcasting authority's broadcast licenses to Hawaii
16 Public Television Foundation.