Akaku filed its objections with the state Procurement Office on Monday, demanding that the request for proposals procedure be canceled. The RFP seeks proposals from organizations to operate and manage public, educational and governmental access channels, cable fees, facilities and equipment for the state.

Previously, the state Cable Television Division contracted directly with nonprofit organizations in each of the counties to manage the public access channels, which are required under state law licensing cable television franchises. On Maui, the PEG (public-educational-government) contract has been granted since 1998 to Akaku to manage five cable channels designated for PEG access. Maui Community College on Channel 55 and the state Department of Education on Channel 56 each manage their own programming, while Akaku operates Channels 52, 53 and 54.

Each cable television operator — Oceanic Time-Warner in Maui County — is required to pay a percentage of its cable revenues to fund the PEG access operations.

On July 30, the state Procurement Office issued its request for proposals for management of public access channels on each of the cable operations. The proposals are due Oct. 1.

The RFP was required after questions were raised over the direct contracts provided to Akaku during a 2005 dispute over management and allocation of funds for educational programming.

In the dispute, the Akaku board was divided, with board Chairman Myles Inokuma removed from his post and Akaku Chief Executive Officer Sean MacLaughlin dismissed.

After the state procurement officer ruled that the public access contracts should issued through a competitive process, the Cable Television Division asked for an exemption, but was denied.

Aaron Fujioka, administrator at the state Procurement Office on Oahu, said Tuesday that Akaku's protest is under review and the Procurement Office is unable to comment on it.

Akaku Chief Executive Officer Jay April said he expects Akaku "can and will" prevail in the RFP process, but he is concerned that the state did not adequately publicize the RFP rules for the public to comment.

Under the RFP that was issued, he said the state Department of Commerce and Consumer Affairs will be able to micromanage the public access operations.

"What we are talking about is electronic democracy . . . home rule," April said during a presentation broadcast live on its cable channels. "This is a very important crossroads on Maui and throughout the state."

Akaku attorney Lance Collins said the protest to the Procurement Office will hold up the RFP process until Fujioka resolves the issues raised by the protest.

The chief procurement officer is required to issue a decision to uphold or deny the protest.

If it is denied, the issue would be taken up in administrative hearing and could go to court for a decision, Collins said.

Collins said the RFP conditions exceed the authority of the DCCA director and the state procurement code, and violate the U.S. Constitution and principles of public procurement.

He called the RFP conditions "arbitrary and capricious."

Among other points, Akaku's protest charges the state is requiring Akaku to disclose proprietary information as a condition of the RFP, is taking over assets acquired by Akaku without compensation and is interfering with programming of government access materials.