Akakū Maui Community Media plans to appeal a Maui Circuit Court decision that allowed the state to issue a 15-year nonexclusive license to Spectrum Oceanic LLC in Maui County.

The license renewal allows Spectrum to take back $400,000 or 1% gross, whichever is greater, for in-kind donations, reducing the amount of revenues to Maui Community Television Inc., also known as Akakū.

Akakū Chief Executive Officer Jay April said the take-back from in-kind donations could have a significant impact on the nonprofit’s operations, which rely on $1.2 million in franchise fees. The franchise fees are paid by Spectrum and distributed by the state to public cable access groups.

Akakū is asking the director of the Hawaii Department of Commerce and Consumer Affairs to conduct further public proceedings, identifying the needs and interests of the cable-related community and reviewing the performance of the cable operator under the franchise agreement.

Akakū has also challenged a state decision to allow Spectrum’s parent company, Charter Communications, to acquire Oceanic Time Warner Cable, saying a review of the transfer was inadequate.

In March, Maui Circuit Judge Kirstin M. Hamman dismissed Akakū’s claim, saying the nonprofit lacked standing and the department had complied with state and federal laws.

As a cable provider for Maui County, Akakū offers programs on three main channels, including 53, 54, and 55 for Spectrum cable. This includes coverage of the Maui County Council and Planning Commission hearings, along with “The Maui Daily” live news show.

April said the department has not been transparent in evaluating Spectrum’s operation and the $400,000 or more of in-kind donations.

The department said it went through a review studying the impact of the transfer, including testimony from Akakū. The department argued a previous circuit judge’s ruling determined Akakū lacked sufficient interest to seek relief.

“Only the applicant Spectrum has concrete interests in its franchise renewal application,” the department said.

The department added that Akakū may have an opportunity to comment during the process, but it holds no concrete interest.

“Akakū is merely a third-party contractor with no legal relation, status, right or privilege in the franchise renewal process,” the department said.

April, who disagrees with the state, was critical of the department for allowing Spectrum to “claw back” an additional $400,000 or up to 1% in revenues.

April said a rule passed by the Federal Communications Communication in 2019 allows cable operators to deduct in-kind contributions for construction and maintenance of an Institutional Network, also known as an INET, from the franchise fees, potentially reducing monetary contributions to public access cable nonprofit groups.

“We have an administration in Washington right now that is eviscerating public community television and wants it to go away,” April said.

April said he’s filed several Freedom of Information Act requests over the past year regarding the INET and could find very little information or transparency about it.

April said it was not until the April 1 decision came out that he found out there had been a study by the department about INET.

“We haven’t seen the report,” he said.

April said the rule hasn’t been adjudicated and is still making its way through the courts.

He warned that Akakū may have to reduce services, including public access television programs produced on Molokai and a news program on Maui.

Spectrum exercised the take-back rule on Kauai affecting the nonprofit Ho’ike Kaua’i Community Television after receiving a 15-year nonexclusive license.

Ho’ike President Allegra Gaines said the impact is significant — about $115,000 annually for the next 15 years of the franchise agreement. Ho’ike has an annual budget of about $600,000.

“It’s a huge loss,” Gaines said.

Gaines said the loss has been partially offset by funding from the Kauai County Council, and she is looking for ways to raise the remainder.

“I’m hoping we don’t have to cut back,” she said.

The department said the $400,000 or more in take-back for in-kind donations was negotiated with Spectrum Oceanic LLC and that Akakū was ineligible to view certain details in the negotiations based on its lack of standing.