BILL ANALYSIS 1 1 SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE DEBRA BOWEN, CHAIRWOMAN ------------------------------------------------------------ |SB 844 - Schiff |Hearing Date:April 13, | S| | |1999 | | |------------------------------+--------------------------+--| |As Introduced: February 25, | | B| |1999 | | | |------------------------------+--------------------------+--| | | | | |------------------------------+--------------------------+--| | | | 8| |------------------------------+--------------------------+--| | | | 4| |------------------------------+--------------------------+--| | | | 4| |------------------------------+--------------------------+--| | | | | |------------------------------+--------------------------+--| | | | | ------------------------------------------------------------ DESCRIPTION Current law establishes the California Public Broadcasting Commission (Commission). This Commission, comprised of appointments by the Governor, the Assembly Speaker, the Senate Rules Committee, the Superintendent of Public Instruction, and the Director of the Postsecondary Education Commission, is charged with developing and supporting a statewide policy to encourage the growth and development of public broadcasting services. This bill creates the California Public Broadcasting Council (Council), which is chartered to provide the Governor and the Legislature with an annually updated plan for future public broadcasting services. The Council, which is governed solely by representatives of public radio and public television, shall also assist in the disbursement of funds as described below. This bill creates three programs for spending any state funds which may be granted to public broadcasting: 1) The first program is for the purchase of equipment. These funds, when made available through the state Budget Act, are allocated to eligible stations pursuant to a statutory formula allocating 75% of the funds for public television and 25% for public radio. Within those percentages, half of the money is allocated equally to all eligible public broadcasting stations, while the remaining funds are divided between stations in proportion to the amount of nonfederal funds they raise. Funds are only provided on a matching basis. 2) The second program is for the operation of public broadcasting stations. These funds, when made available through the state Budget Act, are allocated on the same basis as the first program. 3) The third program helps fund multistation projects, or projects when benefit more than one station. These funds are allocated at the discretion of the Council. This bill does not provide any funding. KEY QUESTIONS 1)Should the state create a new, privately run council to encourage the development of public broadcasting, create a plan for future public broadcasting services, and help allocate any state monies made available for public broadcasting? 2)Should a formula to allocate funds to public broadcasting be created in statute? 3)Would a better solution be to apply the spending formulas in this bill to the existing California Public Broadcasting Commission? BACKGROUND Public broadcasting includes both public television and public radio. Today, there are 14 public television stations and 23 public radio stations in California, none of which receive state support. According to the public broadcasters, California is one of the few states in the nation that provides no public support for public broadcasting. They cite several examples of the funding provided in other states, using a per capita number: Utah ($7.76); Alaska ($7.00); Kentucky ($4.26); West Virginia ($3.72); Mississippi ($2.82); and Georgia ($2.36). The impetus for public broadcasting's effort to call for state support is a federal requirement that public television stations change their broadcast signal from an analog signal to a digital signal by 2003. (Commercial television must also change to a digital signal, but their schedule is more compressed.) Digital television may well change the nature of television by providing clearer pictures, increasing the number of channels, and providing data and interactive features. The cost of this mandate is significant, both for the broadcasters and for owners of television sets. The Public Broadcasting Service estimates the cost of complying with the mandate and upgrading its production facilities to digital, which is not required by the mandate, will be $1.7 billion nationwide. Some of these costs may be funded by the federal government, but most will be funded by other public and private sources. A similar digital mandate for public radio does not exist, but some speculate that such a mandate will come soon. The Public Broadcasting Act of 1975 created the California Public Broadcasting Commission (Commission). The Commission is required to "develop and support a statewide policy to encourage the orderly growth and development of public broadcasting service responsive to the informational, cultural, and educational needs of the people of California." The Commission is empowered to: a) make grants to public broadcasting stations for operations, programming, and capital facilities; and, b) establish an interconnection system between public broadcasting stations to facilitate statewide distribution of programs. The Commission consists of 11 members of which five are appointed by the Governor, two are appointed by the Speaker of the Assembly, two are appointed by the Senate Rules Committee, one is the Superintendent of Public Instruction, and the last is the Director of the Postsecondary Education Commission. While it still exists in statute, the Commission hasn't been funded since the mid-1980's. COMMENTS 1)The federal mandate for television broadcasters to digitalize their signals has galvanized public broadcasting. While the mandate currently pertains only to the television signal transmission function, public television broadcasters foresee a need to digitalize production facilities to take advantage of the digital broadcast signal. Public radio, which is under no mandate to digitalize either its signals or its production facilities, is a believer in the benefits of digitalization and feels it may face a mandate to digitalize in the future. 2)While this bill does not appropriate any money, it does create a statutory formula for dividing any state money provided for capital improvement and operations. This formula provides 75% of funding to television and 25% to radio. According to the public broadcasters, this is the same split used by Congress when it appropriates money. Within these percentages, the funding is split into two equal pots. The first pot is shared equally among all eligible stations, while the second pot is split proportionately among the stations based upon the amount of nonfederal money raised by each station. This formula has been agreed upon by the public broadcasters. The bill also provides that any monies provided for projects which benefit multiple stations be divided by the Council. However, because the Council is governed solely by public broadcasters, the Committee may wish to consider whether it's appropriate to let them divide up the public money among themselves. 3)Rather than create a new, non-public organization to help plan how public broadcasting will benefit the citizens of the state, the Committee and the author may wish to consider whether it would be more appropriate to reconstitute the existing California Public Broadcasting Commission. The structure of the Commission is public and established, and its mission of the Commission is very similar to that conceived for the Council. An additional benefit is that the Commission is more systematically affiliated with the state's educational interests, which arguably should be one of the prime benefactors of public broadcasting. The funding formulas envisioned in the current bill could simply be imported into the existing statute. POSITIONS Support: California Council for the Humanities California Public Television and Radio Broadcasters Oppose: None reported to Committee. Randy Chinn SB 844 Analysis Hearing Date: April 13, 1999