Authority: Title 2.1 2.2, Chapter 35.2 24, Article 6.1 12, Code of Virginia.

A. Out of this appropriation shall be expended $3,799,602 the first year and $3,799,602 the second year for community service grants to public television stations and $791,264 the first year and $791,264 the second year for community service grants to public radio stations. Of the amounts for community service grants to public radio, $10,000 the first year and $10,000 the second year shall be allocated to Alleghany Mountain Radio. Grants to public television stations shall be used to develop, acquire, produce and deliver programs and services which support preschool and adult education, disseminate information on governmental and public affairs issues, promote tourism and economic development within the Commonwealth, and inform, educate, and entertain families with program content which offers alternatives to commercialized television programming.

B. Out of this appropriation, $10,000 the first year and $8,500 the second year shall be set aside for the expenses of the Virginia Public Broadcasting Board, with 75 percent of this amount to be taken from community service grants for public television and 25 percent of this amount to be taken from community service grants for public radio.

C. The funds herein appropriated are to be administered by the Virginia Public Broadcasting Board in accordance with such rules and regulations as it may prescribe provided that: (1) the Virginia Public Broadcasting Board shall certify that recipients of the community service grants provided for in paragraph A of this Item are noncommercial radio and television stations that are owned and operated by entities which qualified to receive community service grants from the Corporation for Public Broadcasting, and whose offices, studios and transmitters are located in the Commonwealth and (2) it shall carry out its purposes and functions and engage in its activities in ways that will most effectively assure the maximum freedom of the aforesaid noncommercial radio and television entities and systems from interference with, or control of, program content or other activities.

D. Community service grants to public television and public radio stations shall be paid in equal quarterly installments.

E. The provisions of § 2.1-563.27:7 Code of Virginia, nothwithstanding, included within the amounts provided for in this Item are funds sufficient to provide staff support for the Virginia Public Broadcasting Board on an other than full-time basis.

F.1. The Virginia Public Broadcasting Board is authorized to lease or otherwise finance equipment for the conversion of Virginia's public television stations to the Federal Communications Commissions' new digital standard. The total value of such equipment shall not exceed $23,695,064.

2. The Virginia Public Broadcasting Board shall allocate such equipment to Blue Ridge Public Television, Incorporated; Central Virginia Educational Telecommunications Corporation (excluding WCVW-TV); Hampton Roads Educational Telecommunications Association, Incorporated; Shenandoah Valley Educational Television Corporation, and Washington Educational Television Association, based upon a formula that, at a minimum, considers equity of station resources, the efficiency of public television coverage, and the level of public services provided to Virginia citizens.

3. The Secretary of Finance and the Treasurer shall develop a plan for the acquisition of the required equipment and the transfer, sublease, or loan of such equipment to the affected public television stations.

G. The appropriation reduction in this Item is pursuant both to productivity savings reflected in Item 541 of this act and to savings pursuant to Executive Order 74(01) reflected in Item 543.05 of this act.