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 Page 3 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