1 Who owns KOCE-TV?
Answer: KOCE-TV was purchased in 2004 by the KOCE-TV Foundation which owns and operates the station on behalf of the people of Orange County. The KOCE-TV Foundation is a not-for-profit educational foundation governed by a board of local community, business, and education leaders.
2 Why is there a legal dispute regarding KOCE’s ownership?
Answer: The KOCE-TV Foundation, which had been operating for decades as KOCE’s private fundraising arm, purchased the station from the Coast Community College District after bidding $32 million in cash and terms for the station. A Texas based religious broadcast network known as Word of God Fellowship or Daystar alleged that its $25 million dollar bid should have been selected because it was all cash. The District has said that Daystar’s was not a qualified bid because it refused to indemnify the District against future liability.
3 What have the courts said about the sale of KOCE-TV?
Answer: California Superior Court in Santa Ana ruled that the sale was conducted properly as did the Federal Communications Commission when they granted the KOCE broadcast license to the KOCE-TV Foundation. A State Appellate Court ruled that the sale was invalid because the law that dictates how college districts should dispose of surplus “personal property” requires that such items as surplus furniture or vehicles be sold for cash. It is worth noting the court did not attempt to award the station to Daystar.
4 Why does the KOCE-TV Foundation feel the original sale was valid?
Answer: Because the FCC has ruled that broadcast licenses are not “personal property” and should not be treated as such. Therefore, we believe the statute being applied by the Appellate Court should not apply to the sale of KOCE-TV.
5 Why have newspapers reported that the “deal was changed” during the sale process?
Answer: As highest bidder, the KOCE-TV Foundation was invited by the District to negotiate the details of the purchase. During those discussions, there was a “credit” given to the Foundation for promised broadcast time for District telecourses and for some station equipment the Foundation had already paid for as the fundraising arm of the station. We contend that the “credit” in question did not change the total value of the deal. We also believe the sale to the Foundation was consistent with the stated District goal of finding the “best, highest use” of KOCE.
6 Does the sale to the KOCE-TV Foundation provide fewer funds to Coast District students?
Answer: No. Those who claim accepting the KOCE-TV Foundation bid will cost the District money and constitutes a “gift of public funds” are ignoring the many financial liabilities the District would face if they sold to Daystar. The Corporation for Public Broadcasting has notified the District it may demand return of all or part of the $23 million in Community Service Grant funds to KOCE. The Commerce Department will enforce its liens on KOCE equipment it helped fund. Past donors, who have contributed over $50 million to KOCE, are preparing a class action lawsuit if KOCE ceases to be a PBS station. Also in question is FCC approval for Daystar to hold the license over the objection of the people of Orange County who don’t want to lose their only local station. All these factors argue that the District was fiscally wise in awarding the station to the KOCE-TV Foundation.
7 How is KOCE surviving the controversy?
Answer: Under the leadership of the KOCE-TV Foundation, KOCE is fiscally healthy with growing audiences and new supporters and members. KOCE is now one of the most watched PBS stations in the country. KOCE’s Orange County shows such as Real Orange and Inside OC have more resources than ever and are improving their ability to fill the Orange County broadcast media void. KOCE Classroom is serving increasing numbers of students and school districts and is creating new ways of using TV and the internet to support K-14 teachers and students in the classroom.
8 What happens now?
Answer: The KOCE-TV Foundation is prepared to respond to any possible scenario:
• Pursue additional legal options to preserve license for KOCE-TV Foundation.
• Re-acquire KOCE if the courts deem the sale must be undone.
• Attempt to get the District to allow the Foundation to manage and operate KOCE should the District get the license back and choose not to resell the station.
9 What is the status of KOCE's broadcast license?
In
December of 2006, KOCE received from the FCC a renewal of its license to broadcast effective through the year 2014.
