Bill would alter TV-sale rules

The rumble over KOCE-TV, which the Coast Community College District sold two years ago in a controversial deal, doesn’t appear to be subsiding any time soon. But California Assemblyman Tom Umberg’s recent bill could prevent a similar situation from happening again.

As the court battle over KOCE enters its third year, Umberg (D-Anaheim) submitted a proposed law that would prevent community college districts from having to sell television stations to the highest cash bidder. Milford Dahl, the Coast Community College District’s attorney, and Jerry Patterson, a district trustee, helped draft the bill.

Unless the district puts KOCE up for auction again, it is unlikely that Umberg’s bill, even if passed, would affect the current dispute.

“My idea of having the bill was to give them all the flexibility they’ll need to do the right thing in the future,” Dahl said.

In 2003, the district put KOCE up for bidding, citing a need for more educational funds. The following year, it sold the station to the KOCE-TV Foundation, which had bid $8 million in cash and $24 million in credit. The Daystar Television Network, a nationwide Christian broadcaster, bid $25.1 million in cash and later sued the district, claiming that its bid had been unfairly slighted.

The core of Daystar’s argument is the state law that requires college districts to sell property to the highest responsible bidder. While the district and foundation have faulted Daystar’s bid on a number of levels, the Assembly bill would relieve districts from having to choose the money offer.

“If they’re selling old furniture, this doesn’t apply, but with a TV station, there’s a community of interest that’s focused on this,” Umberg said. “This is valued with something other than dollars here in Orange County.”

The foundation still owns the license to KOCE, but an appellate judge ruled in May that the sale was invalid. The court did not order an immediate transfer of ownership to Daystar, however, noting that the district could still keep KOCE and decide not to sell it.