Bill changes rules of KOCE-TV sale

In one of its final acts of the legislative session, the state Assembly passed a bill that would allow the Coast Community College District to sell KOCE-TV for less than fair market value — in essence, sidestepping a court decision that blocked the station’s sale to the KOCE--TV Foundation.

The district sold the station — Orange County’s only public television station — to the fundraising foundation in 2004 to raise money for educational purposes. The sale was challenged by the Daystar Television Network, a Texas-based Christian broadcaster that also bid for the station and offered more cash than the foundation, which included credit in its bid.

An Orange County Appellate Court judge in May voided the sale and ordered the foundation, which is now operating the station, to return it to the college district.

If the governor signs the Assembly bill, it would allow the district to auction off the station again and sell it to someone other than the highest bidder if it would be in the public interest — for example, to provide a venue for public and educational programs.

Coast Community College District attorney Milford Dahl said Friday he’s pleased that the bill passed, but the district wanted it to apply statewide. A legislative committee rewrote it to only apply to Coast Community College District.

But the bill doesn’t cut the red tape Dahl said was created by the recent court decision. College district officials must still meet with a judge, who will lay out exactly how to “unwind” the sale to the KOCE-TV Foundation, Dahl said.

The district then would have to put the station up for sale again.

Under the bill, which the Assembly passed on Thursday, Dahl said: “Ultimately, yeah, we could do the same thing we did and it would be lawful, but we still have to go through the process. The district’s made no decision whether they will or will not do that.”

An attorney for Daystar did not return a call for comment.

No Assembly Republicans voted for the KOCE bill. One of the arguments against it was that “this is essentially taking money away from college kids,” Newport Beach Assemblyman Chuck DeVore said.

“There were questions raised at the end that made it seem like it was a gift of public funds,” he said. “I was not at all moved by the arguments that there was somehow some anti-religious bias in the decision.”

Even if the governor vetoes the bill, DeVore said, the district can still take new bids for the station, though officials may need to spell out more clearly how they’ll consider cash versus credit offers. The governor has 30 days to sign the bill.