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

A. Out of this appropriation shall be expended $3,418,629 the first year and $3,418,629 the second year for community service grants to public television stations and $780,889 the first year and $780,889 the second year for community service grants to public radio stations. 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, $8,500 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 and studios 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 Virginia Public Broadcasting Board shall monitor the progress of Virginia’s public television stations toward achieving the Federal Communications Commission’s new digital standard, and shall oversee the expenditure of state funds allocated and disbursed to these stations under the financing plan authorized by Item 89F of Chapter 1073, 2000 Acts of Assembly. The Virginia Public Broadcasting Board shall require public television stations to provide semiannual reports itemizing the expenditures of state funds for the digital conversion. The Virginia Public Broadcasting Board shall report annually by November 1 to the Governor and the chairmen of the Senate Finance Committee and the House Appropriations Committee on the expenditure of state funds disbursed for the digital conversion and on the progress of Virginia public television stations toward achieving the Federal Communications Commission mandate.