BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 2012| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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. CONTINUED SB 2012 Page 2 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 SB 2012 Page 3 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 SB 2012 Page 4 Numerous individuals NC:sl 5/26/00 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****