BILL ANALYSIS SB 2012 Page 1 SENATE THIRD READING SB 2012 (Speier) As Amended August 25, 2000 2/3 vote SENATE VOTE :31-6 UTILITIES & COMMERCE 10-0 APPROPRIATIONS 20-0 ----------------------------------------------------------------- |Ayes:|Wright, Pescetti, |Ayes:|Migden, Campbell, | | |Calderon, Cardenas, | |Ackerman, Alquist, | | |Frusetta, Maddox, | |Aroner, Ashburn, Brewer, | | |Mazzoni, Reyes, Vincent, | |Cedillo, Corbett, Davis, | | |Wesson | |Kuehl, Maldonado, Papan, | | | | |Romero, Shelley, Thomson, | | | | |Wesson , Wiggins, Wright, | | | | |Zettel | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : Appropriates $5 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 FEDERAL LAW requires all television stations to convert their broadcast signal from analog to digital by 2003. FISCAL EFFECT : One-time $5 million General Fund appropriation. (The 2000-01 Budget Act appropriated $5 million to assist public television stations convert to digital.) COMMENTS : 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 SB 2012 Page 2 broadcast signal. 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 television channels and two data channels over the digital television spectrum assigned to each station. 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 $5 million in matching grants to public television and radio stations, with 75% allocated to television stations and 25% to radio stations. Fifty percent 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. 2000-2001 Budget: The Budget Act of 2000-2001 appropriated $5 million to assist public television stations convert to digital. This bill appropriates an additional $5 million for television and radio stations. 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, public broadcasting stations are required to enter into permanent agreements with OES to dedicate, as necessary, a broadcast channel for the provision of emergency information in a form 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. SB 2012 Page 3 Analysis Prepared by : Joseph Lyons / U. & C. / (916) 319-2083 FN: 0006552