BILL ANALYSIS                                                                                                                                                                                                    1
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   SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                  DEBRA BOWEN, CHAIRWOMAN


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|SB 844 - Schiff               |Hearing Date:April 13,    | S|
|                              |1999                      |  |
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|As Introduced:  February 25,  |                          | B|
|1999                          |                          |  |
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|                              |                          | 8|
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|                              |                          | 4|
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                         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