Judge denies Akaku’s petition for inclusion in cable franchise negotiations
On Wednesday, Judge Kelsey T. Kawano denied Akakū’s petition seeking participation in negotiations with Spectrum Cable and the state Department of Commerce and Consumer Affairs regarding Spectrum’s cable franchise renewal.
The judge affirmed the department’s decision to deny Akakū a chance to participate in the franchise renewal process. Akakū initially brought its case before the Second Circuit Court judge in Wailuku on July 23.
Leadership at the public access media company decried what it says is an unjust denial of a seat at the table with the department and the cable giant.
Jay April, CEO and president of Akakū, said the public access station faces sharp, impending budget cuts. April described the process that excludes Akakū from the proceeding as a “flawed plan to siphon millions of dollars in Akakū legacy funding.”
April said the station was evaluating next steps including an appeal and other options.
“We will continue to fight for Akakū,” he said.
Akakū’s lawyer Lance Collins said Kawano did not feel the timing for Akakū’s petition for inclusion was not quite “ripe,” meaning that the appeal was premature and Kawano suggested it should be filed once the state takes action on the renewal application.
Kawano complimented Akakū for trying to get ahead of the issue but determined that Akakū had no standing in the matter since no final decision on a Maui franchise decision has yet been made. He affirmed the discretionary power of the department and sided with the state.
April said when Collins asked Kawano for clarification regarding Akakū’s timing of the petitions to intervene, Kawano indicated that if and when the state does issue a Maui franchise renewal, things may change.
Akakū is known as a public, education, government service, or PEG, and it is one of four in the state. Akakū achieved this status in 1999, according to state records. The agreement was extended from Dec. 31, 2024, to Dec. 31, 2025. After that the parties can mutually decide to further extend the agreement.
April said Akakū disagreed with the judge’s assessment that it has not been formally designated as the PEG access provider for Maui County.
“We were established as the Maui County PEG provider in 1992 and have been “de facto” designated ever since,” April said.
At the July 23 hearing, Collins argued that among other things, Akakū has First Amendment rights and standing that merited the nonprofit due process and inclusion. He said Akakū has a strong legal entitlement and a “long standing function” in the community, and must be included in the process.
Collins said the department did not even read the petition before denying it, and he called the department’s actions “arbitrary and capricious.”
Hawaii Deputy Attorney General Sherie Wong and Claire Black, counsel for Spectrum, argued at the time that there was no precedent that allowed franchise holders to be part of the negotiations. They argued that public notice was the only requirement, and that public meetings were sufficient due process. They also stated a contract could be terminated with no notice.
In his rebuttal, Collins seized upon what he saw as a sharp distinction.
“The state is not entering a contract,” he said. “They are granting a privilege to a business in the public’s interest. It is not a contract negotiation.”
As Maui County’s public access television network, Akakū provides news coverage of local government and a variety of other community programming and services.
In November, Kauai’s PEG saw funding cuts when Spectrum adjusted its franchise fees.
April anticipated the same could happen in Maui County as the state works to finalize details with Spectrum over a new 15-year contract for operations on Maui, Molokai and Lanai.
April said it is difficult at this point to determine how deep the cuts might be.
He previously referred to the ongoing conflict with state and Spectrum as “death by a thousand cuts.”
According to Akakū leadership, the nonprofit media agency is battling to prevent the loss of significant funding from cable company franchise fees, which state officials say is due to a decision by the Federal Communications Commission during President Donald Trump’s first administration.