BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 2012
                                                                  Page  1

          Date of Hearing:  July 6, 2000

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE 
                              Roderick D. Wright, Chair
                    SB 2012 (Speier) - As Amended:  June 29, 2000

           SENATE VOTE  :  31-6
           
          SUBJECT  :  California Public Broadcasting Act of 1975: emergency  
          broadcasting grants.

           SUMMARY  :  Appropriates $25 million to the Office of Emergency  
          Services (OES) for matching fund grants to public television and  
          radio stations to install digital broadcasting equipment, and  
          requires stations receiving funding to dedicate an emergency  
          broadcast channel.

          EXISTING LAW  :  Pursuant to federal law, requires all television  
          stations to convert their broadcast signal from analog to  
          digital by 2003.

           FISCAL EFFECT  :  Unknown.

           COMMENTS  :

           1)Federal Mandate  .  Pursuant to the Telecommunications Act of  
            1996, the Federal Communications Commission requires that  
            public television stations change their broadcast signal from  
            an analog signal to a digital signal by 2003.  Commercial  
            television stations are required to convert to digital by an  
            earlier date.  While the federal mandate only pertains to the  
            television signal broadcast function, and not the television  
            signal production function, this bill provides matching grant  
            funding for both.  According to the author, public television  
            broadcasters foresee a need to digitalize the production  
            function in order to take full advantage of the digital  
            broadcast signal.  Additionally, this bill provides matching  
            grant funding for public radio stations, which are not covered  
            under the federal mandate.

           1)Digital Television  .  Conversion to digital broadcasting will  
            provide numerous benefits, including a clearer picture, CD  
            quality audio, interactive features, and increased  
            transmission capacity.  Digital conversion provides television  
            stations with the capacity to simulcast four separate  








                                                                  SB 2012
                                                                  Page  2

            television channels and two data channels over the digital  
            television spectrum assigned to each station.

           1)Cost of Digital Conversion  .  There are 14 public television  
            stations and 23 public radio stations in California.  The  
            total estimated digital conversion costs for California's  
            public television and radio stations-including both the  
            broadcast and production functions-is $140 million.  This bill  
            provides $25 million in matching grants to public television  
            and radio stations, with 75 percent allocated to television  
            stations and 25 percent to radio stations.  Fifty percent  
            (50%) of the funds in each pool is divided equally among the  
            stations in that grant pool.  The remaining 50% of the funds  
            in each grant pool is divided among stations in proportion to  
            their non-federal financial support.  Funds are provided on a  
            matching basis, with each station required to raise from other  
            sources an amount equal to the funds provided to it under this  
            bill.

           1)Recent Budget Action  .  The recently enacted Budget Act of  
            2000-2001 appropriated $5 million to assist public television  
            stations convert to digital.  This bill would appropriate an  
            additional $25 million for television and radio stations. 

           1)OES and Emergency Information  .  Conversion to digital  
            broadcasting creates additional broadcast capacity.  A digital  
            signal can be broadcast in a variety of ways, including four  
            regular-quality signals or one high-quality signal.  In order  
            to receive funding under this bill, the public broadcasting  
            station is required to enter into a permanent agreement with  
            OES to dedicate, as necessary, a broadcast channel for the  
            provision of emergency information in a formal accessible to  
            the deaf, hearing-impaired, and non-English speaking  
            populations.  Numerous local sheriff's departments have  
            indicated support for this bill, which they assert will play  
            an important role in expanding emergency broadcast  
            capabilities and increasing their ability to reach everyone in  
            the community, including deaf, hearing-impaired, and  
            non-English-speaking residents.

           1)Prior Legislation  :  Last year, SB 844 (Schiff), which would  
            have revised the membership of the California Broadcasting  
            Commission and stated legislative intent that funding be made  
            available through the state budget to help public television  
            stations convert to a digital signal, was held in the Senate  








                                                                  SB 2012
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            Appropriations Committee.

           REGISTERED SUPPORT / OPPOSITION  :

           Support  

          California multicultural Community Radio consortium
          California Center for Law and the Deaf
          California state University, Chico
          Capital Research and Management Company
          Hon. Delaine Eastin, Superintendent of Public Instruction
          Fresno County Sheriff's Department
          Humboldt County Sheriff's Department
          The J. Paul Getty Trust
          KCSM
          KCET
          KRCB
          KUSP
          KVIE
          Los Angeles County Board of Supervisors
          Los Angeles County Sheriff's Department
          Sacramento Metropolitan Chamber of Commerce
          San Mateo County Sheriff's Department
          Valley Public Radio (KVPR-KPRX)
          Water Education Foundation
          Sacramento Bee
          20 constituents

           Opposition  

          None on file.


           Analysis Prepared by  :    Joseph Lyons / U. & C. / (916) 319-2083