HAR §16-133-15. Presumptive disqualifiers of approval of application

(a) The following factors shall give rise to a rebuttable presumption that an applicant fails to meet the character criterion of section 440G-8(b), HRS, for issuance or transfer of a cable franchise: 133-6 §16-133-15 (1) During the ten-year period immediately preceding filing of the application, criminal, civil, or administrative judgments, consents or orders, and any indictments, formal investigations, examinations, or civil or administrative proceedings, excluding routine or customary audits, inspections, and investigations that terminated in any agreements, undertakings, consents or orders, resolutions, ordinances, or revocation, suspension or alteration of a cable franchise involving the applicant or affiliates of the applicant by any federal or state court, any department, agency, or commission of the United States government, any state or municipality, any cable franchising authority, any self-regulatory trade or professional organization, or any foreign government or governmental entity, which involve: (A) Unfair or deceptive trade practices, perjury, fraud, dishonesty, organized crime or racketeering; (B) Violation of applicable federal, state, or local cable communications laws or rules; (C) Violation of cable franchise provisions; or (D) Violation of the rules, regulations, codes of conduct, or ethics of a self-regulatory trade or professional organization; (2) Denial, or withdrawal after receipt of formal or informal notice of an intent to deny, by the applicant or affiliates of the applicant, of: (A) Any application relating to the issuance of a cable franchise; (B) Any application relating to a change in ownership of a cable operator; (C) Any application relating to the transfer of a cable franchise; or (D) Any application relating to the renewal of a cable franchise; (3) Felony conviction of the applicant, an affiliate of the applicant, or a management official of the applicant or affiliate of the applicant; (4) Knowingly making any written or oral statement in connection with an application or other filing that is false or misleading with respect to a material fact or omits to state a material fact with respect to information furnished or requested in connection with such an application or other filing; or (5) Failure to provide information required by law or rule to be submitted or information requested by the director. (b) The following factors shall give rise to a rebuttable presumption that an applicant fails to meet the financial responsibility criterion of section 440G-8(b), HRS: 133-7 §16-133-15 (1) The inability to obtain a bond in connection with the construction or operation of a cable system; (2) Failure to demonstrate adequate cash flow to support proposed debt and operating expenses; (3) Liability or proposed liability for amounts of debt which, in the opinion of the director or division, creates excessive risks of default or pressure on the applicant to be acquired, or significantly impairs the ability of the applicant to borrow needed additional funds; or (4) Transactions between affiliates which in the director’s or division’s opinion are detrimental to the cable operator. (c) The following factors shall give rise to a rebuttal presumption that an applicant fails to meet the reasonable cost criterion of section 440G-8(b), HRS: (1) Failure to demonstrate adequate cash flow to meet debt service and operating expenses; (2) Failure to demonstrate adequate funding proposed or necessary for capital or operational expenditures; (3) Liabilities which, in the opinion of the director, create excessive risks of default, significantly impair the ability of the applicant to make further necessary borrowings, or otherwise create unwarranted upward pressure on rates; or (4) Transactions between affiliates which in the director’s opinion are detrimental to the cable operator. [Eff 7/28/88; comp 4/22/94] (Auth: HRS §§26-9, 91-2, 440G-12) (Imp: HRS §§26-9, 91-2, 440G-12)