Resolutions passed by the CPB Board of Directors

Resolution of the Board of Directors of the Corporation for Public Broadcasting
November 16, 2001

CPB Board Clarifies Rule on Revenues Derived from Ancillary and Supplementary Services

Unanimously

WHEREAS,

The Corporation for Public Broadcasting is a private, nonprofit corporation created by Congress in 1967 whose mission is to facilitate the development of, and insure universal access to noncommercial, high-quality programming and telecommunications services in conjunction with noncommercial educational telecommunications licensees across America; and

WHEREAS,

The Board of Directors of the Corporation for Public Broadcasting believes the conversion to digital technology will allow public broadcasters additional spectrum to reach wider and more diverse audiences with noncommercial educational, informational, and cultural services to meet our country"s needs; and

WHEREAS,

The additional spectrum that will be made available when the conversion to digital is complete will allow public broadcasting to fulfill its mandate as stated in the Communications Act of 1934, as amended ("the Act"), which states at Section 396(a)(5) "it furthers the general welfare to encourage public telecommunications services which will be responsive to the interests of people both in particular localities and throughout the United States, which will constitute an expression of diversity and excellence, and which will constitute a source of alternative telecommunications services for all the citizens of the Nation;" and

WHEREAS,

The additional spectrum will also further the public interest as stated in Section 396(a)(6) of the Act which states that "it is in the public interest to encourage the development of programming that involves creative risks and that addresses the needs of unserved and underserved audiences, particularly children and minorities;" and

WHEREAS,

The CPB Board of Directors recognizes that present funding sources do not meet public broadcasting stations" needs, especially with respect to the funding required to make the transition to, and most effective use of, digital broadcsating; and

WHEREAS,

It is also true that if some of the newly allocated spectrum is made available for commercial purposes, it will not be available for noncommercial, educational purposes;

NOW, THEREFORE, BE IT RESOLVED,

That the CPB Board of Directors would view with great concern any increased commercialization of public broadcasting; and

BE IT FURTHER RESOLVED,

That while the CPB Board of Directors agrees that public broadcasters must find additional funding to support their vital mission, the public broadcasting industry must act in ways that reaffirm its commitment to a noncommercial foundation; and

BE IT FURTHER RESOLVED,

That CPB will not include revenues raised from commercial ancillary and supplementary services when calculating any grant to a public broadcasting station that is based upon non-Federal financial support; and

BE IT FURTHER RESOLVED,

That CPB management is authorized to ensure that CPB funds are spent in accordance with Section 399B of the Act; and

BE IT FURTHER RESOLVED,

That CPB management act to exclude revenues generated by the provision of advertiser-supported ancillary and supplementary services in the calculation of non-Federal financial support upon which CPB grants are based.

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