BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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                                 THIRD READING
                                        

          Bill No:  SB 2012
          Author:   Speier (D), et al
          Amended:  5/2/00
          Vote:     27

            
           SENATE ENERGY, U.&C. COMMITTEE  :  9-0, 4/25/00
          AYES:  Bowen, Brulte, Kelley, Mountjoy, Murray, Peace,  
            Solis, Speier, Vasconcellos
          NOT VOTING:  Alarcon, Hughes

           SENATE APPROPRIATIONS COMMITTEE  :  8-3, 5/25/00
          AYES:  Johnston, Alpert, Bowen, Burton, Escutia, Karnette,  
            Perata, Vasconcellos
          NOES:  Kelley, McPherson, Mountjoy
          NOT VOTING:  Johnson, Leslie
           

           SUBJECT  :    California Public Broadcasting Act of 1975

           SOURCE  :     Author

           
           DIGEST  :    This bill would appropriate $25 million to be  
          administered by the Office of Emergency Services (OES) for  
          matching fund grants to public television and radio  
          stations to install digital broadcasting equipment.  The  
          bill would require stations receiving funding to dedicate  
          an emergency broadcast channel.

           ANALYSIS  :    Current federal law requires all television  
          stations to convert their broadcast signal from analog to  
          digital by 2003.

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          This bill provides $25 million in matching grants to public  
          television and radio broadcast stations to purchase and  
          install digital broadcasting equipment.  To be eligible for  
          this funding, the public broadcasting station must enter  
          into a permanent agreement with OES to dedicate, as  
          necessary, a broadcast channel for the provision of  
          emergency information in a format which is accessible by  
          the deaf, hearing-impaired, and non-English speaking  
          populations.

          This bill allocates 75% of the funding to public television  
          broadcasters and 25% of the funding to public radio  
          broadcasters.  Within those categories, half of the funding  
          is divided equally between the stations and the other half  
          is divided in proportion to the non-federal funding each  
          station receives.

           Background
           
          "Public broadcasting" includes both public television and  
          public radio, although the federal mandate to move from an  
          analog signal to a digital signal only applies to  
          television stations, not radio stations.  There are 14  
          public television stations and 23 public radio stations in  
          California, none of which receive state support, and  
          according to the public broadcasters, California is one of  
          the few states in the nation that provides no public  
          support for public broadcasting. 

          Pursuant to an act of Congress, the Federal Communications  
          Commission (FCC) has required that public television  
          stations change their broadcast signal from an analog  
          signal to a digital signal by 2003.  Commercial television  
          stations also have to change to a digital signal, but they  
          have to accomplish the switch sooner than the public  
          television stations.  

          Digital television may well change the nature of  
          television, much as it changed the nature of  
          telecommunications, 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  







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          the cost of complying with the mandate and upgrading its  
          production facilities to digital - which isn't required by  
          the mandate - will average $9 million per station, though  
          for large stations providing programming the cost could go  
          as high as $20 million.  Some of these costs may be funded  
          by the federal government (though no federal money has yet  
          been made available), 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 total estimated digital  
          conversion costs for all of California's public  
          broadcasters, both television and radio, is estimated at  
          $140 million.

          One of the significant benefits of the digital broadcast  
          mandate is that it creates additional broadcast capacity.   
          By broadcasting digitally, the broadcaster can use the  
          signal in different ways, such as to broadcast four  
          "regular-quality" signals or one high quality signal.  This  
          bill encourages public television broadcasters to enter  
          into an agreement with OES to dedicate a channel for  
          emergency information by making state funding available for  
          the digital conversion to those stations that reach such an  
          agreement.  This same incentive applies to public radio  
          broadcasters, although public radio broadcasters aren't  
          laboring under that same digital broadcast mandate.  Public  
          broadcasters who do not enter into an agreement with OES  
          are not eligible for the grant.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          Appropriates $25 million from the General Fund.

           SUPPORT  :   (Verified  5/26/00)

          California Institute of the Arts
          California Public Radio
          California State University, Chico
          The J. Paul Getty Trust
          KRCB TV and Radio
          KVPT-TV
          Daniel J. Lanahan, Board Member KCSM TV and Radio 
          Wells Fargo







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          Numerous individuals


          NC:sl  5/26/00   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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