BILL NUMBER: SB 844	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Schiff
   (Principal coauthor: Assembly Member Wright)

                        FEBRUARY 25, 1999

   An act to repeal and add Chapter 10 (commencing with Section 8800)
of Division 1 of Title 2 of the Government Code, relating to public
broadcasting.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 844, as introduced, Schiff.  California Public Broadcasting Act
of 1999.
   The California Public Broadcasting Act of 1975 establishes the
California Public Broadcasting Commission, to develop and support
statewide policy for the growth and development of public
broadcasting in the state, and sets forth the powers and duties of
the commission in that regard.
   This bill would repeal those provisions and instead would enact
the California Public Broadcasting Act of 1999.  It would establish
the California Public Broadcasting Council, and set forth the duties
of the council in the development of a plan for public broadcasting
services and necessary levels of funding for those services.  It
would express the intent of the Legislature that funds be made
available through the annual Budget Act for specified grants and
projects according to specified criteria, and require the Controller
to perform certain duties in regard to the disbursement of those
funds, with the assistance of the council.  It would authorize state
agencies to provide assistance and services to the council to the
extent resources permit.
   The bill would provide that any person or organization knowingly
and willfully filing false information in an attempt to secure
funding under these provisions is guilty of a misdemeanor.  By
creating a new crime, this bill would impose a state-mandated local
program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares the following:
   (a) Public broadcasting provides great benefits to the citizens
and governmental agencies of the State of California, because it does
all of the following:
   (1) Assists in informing and educating citizens concerning public
issues and thereby helps them participate in the democratic process.

   (2) Provides time for extended debate of political issues and
provides time for political candidates to explain their positions to
the voters.
   (3) Provides educational basic-skills programming that prepares
young people for school and assists schools in their primary mission.

   (4) Provides high school equivalency education and advanced skills
education to the citizens of this state, delivered directly to their
homes, thus providing additional opportunities for workers and
assistance to industry in maintaining a highly skilled work force.
   (5) Brings general educational and cultural programming to every
home and automobile in California.
   (6) Respects the cultural diversity of this state by producing and
distributing programs and educational materials that reflect many
points of view.
   (7) Assists in the economic development of this state by providing
basic training, adult education, and literacy training for adult
workers.
   (8) Provides cost-effective educational resources to colleges and
universities and assists in management of explosive college
enrollment patterns.
   (9) Provides agricultural information of benefits to one of
California's most important industries.
   (10) Provides mechanisms for statewide delivery of emergency
information and dissemination of instructions for maintenance of
public safety.
   (11) Enriches the quality of life and makes life-long learning
opportunities available to California citizens.
   (b) The federally mandated conversion to digital television
broadcasting will provide even greater opportunities for service,
including economic development, assistance to California industry,
educational assistance for day-care providers, education, and
training for prison inmates, and multilingual training, and that this
conversion and future operations will require substantial
expenditures by public broadcasting stations for equipment and
program material.
  SEC. 2.  Chapter 10 (commencing with Section 8800) of Division 1 of
Title 2 of the Government Code is repealed.
  SEC. 3.  Chapter 10 (commencing with Section 8800) is added to
Division 1 of Title 2 of the Government Code, to read:

      CHAPTER 10.  CALIFORNIA PUBLIC BROADCASTING ACT OF 1999
      Article 1.  General Provisions and Definitions

   8800.  This chapter shall be known and may be cited as the
California Public Broadcasting Act of 1999.
   8801.  For purposes of this chapter, the following definitions
shall apply, unless the context requires otherwise:
   (a) "Audited financial statement" means a report that, among other
things, provides data concerning a station's nonfederal, nonstate
financial support and the expenditure of any funds provided under
this chapter.  This data shall be audited and prepared as a report by
a certified public accountant who is licensed in the State of
California and is independent of the station being audited.  The
statement shall also verify the integrity of the station's financial
operations and the integrity of the station's report of its use of
funds provided under this chapter.
   (b) "Council" means the California Public Broadcasting Council
established pursuant to Section 8810.
   (c) "Eligible radio station" means a radio station that, at the
time of applying for a grant under this chapter, has met all of the
following requirements for a period of two years:
   (1) It is licensed by the Federal Communications Commission as a
noncommercial educational station, or is operating under program test
authority pending the grant of a license.
   (2) It has its community of license and principal administrative
offices in this state and is not owned, controlled, managed, or
primarily financed by any corporation or entity outside of this
state.
   (3) It provides a program service that meets the requirements for
a Community Service Grant from the Corporation for Public
Broadcasting.
   (4) It provides significant locally originated programming in its
community of license.
   (5) It broadcasts not less than 18 hours per day, 365 days per
year.
   (6) It participates in statewide public broadcasting projects and
the work and deliberations of the California Public Broadcasting
Council.
   (7) It has provided, prior to its application for a grant under
this chapter, an audited financial statement for the years on which
the grant is based.
   (8) It does either of the following:
   (A) Meets the criteria for receipt of a Community Service Grant
from the Corporation for Public Broadcasting that were in effect on
June 30, 1995.
   (B) Has a full-time staff of at least two professionals paid not
less than the California minimum wage, and is certified by the
council as providing a needed service to its community of license.
   (d) "Eligible television station" means a television station that,
at the time of applying for a grant under this chapter, has met all
of the following requirements for a period of two years:
   (1) It is licensed by the Federal Communications Commission as a
noncommercial educational television station, or is operating under
program test authority pending the grant of a license.
   (2) It has its community of license and principal administrative
offices in this state, and is not owned, controlled, managed, or
primarily financed by any corporation or entity outside of this
state.
   (3) It provides a program service that meets the requirements for
a Community Service Grant from the Corporation for Public
Broadcasting.
   (4) It provides substantial and significant locally originated
programming in its community of license.
   (5) It broadcasts not less than 3,000 hours per year.
   (6) It participates in statewide public broadcasting projects and
the work and deliberations of the California Public Broadcasting
Council.
   (7) It meets the criteria for receipt of a Community Service Grant
from the Corporation for Public Broadcasting that were in effect on
June 30, 1995.
   (8) It has provided, prior to its application for a grant under
this chapter, an audited financial statement for the years on which
the grant is based.
   (e) "Nonfederal financial support" means the total sum of revenues
from nonfederal sources derived by a licensee in a fiscal year and
reported in an audited financial statement thereof, and does not
include in-kind services, funds received for the purpose of
constructing or remodeling a building, funds received from other
public broadcasting stations or networks for the production of
programming or for other services to those stations or networks, or
funds provided to stations under this chapter.  Interest income
generated from any source may be included in "nonfederal financial
support."
   (f) "Station" or "public broadcasting station" means any eligible
radio or television station.

      Article 2.  California Public Broadcasting Council

   8810.  (a) The California Public Broadcasting Council is hereby
established as a body corporate and politic within the state.
   (b) The council shall be governed by a board of directors
consisting of one representative of each participating eligible radio
station, as defined in subdivision (c) of Section 8801, and each
eligible television station, as defined in subdivision (d) of Section
8801.  The directors shall serve without pay, but may be reimbursed
by the council for reasonable and necessary expenses as determined by
the board.
   (c) The council shall function under bylaws that shall be written
by the initial board of directors and amended as necessary from time
to time.  The bylaws shall be in conformity with the laws of this
state and the provisions of this chapter.
   (d) The bylaws of the California Public Broadcasting Council shall
provide for the election of any officers as may be required.
   (e) The meetings of the council shall be subject to the Ralph M.
Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of
Division 2 of Title 5), and its records subject to the California
Public Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1).
   (f) Expenses of the council shall be paid by the licensees
represented on its board of directors, in the proportion as may be
determined by the board.
   8811.  The California Public Broadcasting Council shall do all of
the following:
   (a) Notwithstanding Section 7550.5, report annually to the
Governor and the Legislature concerning the use of funds provided to
eligible stations and to the council under this chapter.
   (b) Provide annually to the Governor and the Legislature an
updated comprehensive plan for future public broadcasting services to
the citizens of California and necessary levels of funding in future
years.
   (1) The plan shall have been discussed and voted upon by the board
of directors of the council.
   (2) The plan shall take into account changing technologies,
changing needs of California citizens and institutions, changing
capabilities of the council and its member stations, and available
funding.
   (c) Certify annually to the Controller the eligibility of any
station applying for a grant under this chapter, and attesting that
each station applying for a grant has participated significantly in
the work and deliberations of the council as required by paragraph
(6) of subdivision (c) or paragraph (6) of subdivision (d), as
applicable, of Section 8801.
   (d) Assist the Controller in carrying out the requirements of this
chapter by providing information and technical advice.
   (e) Coordinate and assist efforts of stations engaged in
multistation projects funded under this chapter.
   (f) Encourage the development of public broadcasting in California
and the development of services for the citizens of this state.
   8812.  (a) Recognizing the necessity of converting California
stations to the technologies of digital broadcasting and the
continuing need for replacement of broadcasting equipment, the
Legislature intends that funds may be made available through the
annual Budget Act for the purchase of equipment by eligible stations,
the installation of that equipment, or purchase of other materials
related to that equipment.
   (b) (1) Seventy-five percent of any equipment purchase funds
appropriated pursuant to subdivision (a) shall be placed in an
equipment grant pool for eligible television stations, and 25 percent
shall be placed in an equipment grant pool for eligible radio
stations.
   (2) Fifty percent of the funds in each grant pool shall be divided
equally among the stations in that grant pool.
   (3) The remaining 50 percent of the funds in each grant pool shall
be divided among stations in that grant pool in proportion to their
nonfederal financial support.
   (c) (1) Funds provided under this section shall be granted on a
matching basis, with each station required to raise from other
sources an amount equal to the funds provided to it under this
section.
   (2) If any funds remain in either grant pool because of the
limitations set forth in paragraph (1), the remaining funds shall be
returned to the same pool for distribution to other stations that
have raised the required matching funds, in amounts proportionate to
the nonfederal financial support of those stations.
   8813.  (a) Recognizing the many educational, informational, and
cultural benefits provided by California public broadcasting stations
to all citizens of the state, and the economic benefits provided to
the state by these stations, the Legislature intends that funds may
be made available through the annual Budget Act for the operation of
eligible stations and to assist these stations in improving their
services to the citizens of the State of California.
   (b) (1) Seventy-five percent of the operating grant funds shall be
placed in a grant pool for eligible television stations, and 25
percent shall be placed in a grant pool for eligible radio stations.

   (2) Within each pool, 50 percent of the funds shall be distributed
equally among the eligible stations as a base grant, and the
remaining 50 percent shall be distributed as an incentive grant among
the eligible stations in proportion to their nonfederal, nonstate
financial support, thus encouraging their local fundraising efforts.

   (3) No station may receive funds under this section that would
constitute more than 25 percent of its nonfederal financial support
for the second previous fiscal year.  Any amount forfeited under this
limitation shall be returned to the grant pool for distribution to
the remaining stations in the pool in proportion to their nonfederal
financial support.
   8814.  (a) Recognizing the benefits to the people of the state and
the efficiency of cooperative projects, the Legislature intends that
"multistation project funds" may be made available through the
annual Budget Act for use by more than one station in execution of
projects benefiting the listeners or viewers of several stations in
the system.  These multistation project funds shall be provided to
the council, which shall manage the funds in the best interest of the
citizens of this state in determining which projects shall be funded
and the appropriate level of funding for each project.
   (b) Upon the determination of the council, some portion of
available funds in this pool may be used to assist stations that do
not meet one or more of the eligibility criteria to become eligible
stations as defined in subdivision (c) or subdivision (d), as
applicable, of Section 8801.  However, that assistance may not be
provided to any one station for more than two years.
   (c) Upon the determination of the council, funds provided to the
council under this section may be used to purchase equipment that can
be shared by eligible stations or used for the generation of revenue
to benefit the council and eligible stations.
   (d) It is recognized that some program projects and facilities
improvement projects may take a considerable length of time to
complete. Therefore, funds provided under this section and not
expended by the end of any fiscal year shall be placed in escrow by
the council and expended in subsequent years for the purposes set
forth in this section.
   8815.  The Legislature recognizes that projects undertaken by the
council and its member stations may be sufficiently large and complex
as to require more than one year to complete, or may require more
funding than is available in a single fiscal year, and encourages the
council and its member stations to use funds provided under this
chapter and interest that may be generated from unexpended funds in
the best and most productive way, to benefit the citizens of this
state.
   8816.  All funds appropriated for the purposes of this chapter
shall be appropriated to the Controller.  Funds appropriated for
allocation and distribution under this chapter shall be distributed
under the formulas set forth in this chapter.  The Controller shall
perform only the following duties in this regard:
   (a) Determining, in consultation with the council, the form in
which applications for funding shall be presented and the date by
which the applications shall be submitted.
   (b) Determining that each applicant has provided the necessary
audited financial statement as required by paragraph (7) of
subdivision (c) or paragraph (8) of subdivision (d), as applicable,
of Section 8801.
   (c) Determining that the council has certified the eligibility of
each applicant.
   (d) Determining compliance with the certification requirements of
Section 8810, when needed.
   (e) Calculating the funding for which each grantee is eligible
under the formulae set forth in this chapter.
   (f) Making timely payment of the funds for which each grantee is
eligible under the formulae set forth in this chapter.
   8817.  Nothing in this chapter shall be construed to confer upon
any officer, employee, or elected official of the state any authority
to influence or attempt to influence the content or scheduling of
any program or programs produced or broadcast by any eligible
station, whether or not any such influence or attempted influence is
related in any way to receipt of a grant under this chapter.  It is
the intent of the Legislature that all decisions relating to content
and scheduling of programming shall be solely the responsibility of
each licensee and shall be free from improper influence.
   8818.  It is the intent of the Legislature that any funds provided
to stations under this chapter shall supplement, rather than
supplant, funds provided from other sources.  To that end,
institutions that have heretofore provided funding to stations
licensed to them shall certify, in applying for grants under this
chapter, that they have not previously and will not in the future use
funds provided under this chapter to supplant institutional support
of their stations.
   8819.  (a) No station that is eligible under this chapter shall be
required to participate in the work or projects of the council.  Any
station choosing not to participate shall forfeit its right to
funding under this chapter.  Any station choosing not to participate,
or any station that withdraws from the work of the council, shall be
considered ineligible for funding under this chapter for a period of
not less than two years following its nonparticipation or withdrawal
from the work of the council.
   (b) The council shall have sole responsibility for determining by
majority vote of its board of directors whether an otherwise eligible
station has adequately participated in the work of the council as
required under this chapter, and shall report to the Controller any
determination that a station has not adequately participated and is
therefore ineligible under this section.
   8820.  It is the intent of the Legislature to support the services
provided by public broadcasting stations of this state, and to
augment the ability of eligible stations to serve their local
communities and the citizens of this state.  To that end, state
agencies may render assistance and provide services to the council to
the extent resources permit.
   8821.  Any person or organization knowingly and willfully filing
false information in an attempt to secure funding under this chapter
shall be guilty of a misdemeanor.
  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.