BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 2012
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          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
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          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
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           Analysis Prepared by  :   Joseph Lyons / U. & C. / (916) 319-2083 

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