BROADCASTING BROADCASTING AMENDMENT BILL 2002AMENDMENT BILL 2002

Briefing to the Select CommitteeBriefing to the Select Committee

Presentation OutlinePresentation Outline

Section 1- DefinitionsSection 1- DefinitionsSection 3- South African Broadcasting Section 3- South African Broadcasting SystemSystemSection 4- Requirement to Hold licensesSection 4- Requirement to Hold licensesSection 5- Classes of LicencesSection 5- Classes of LicencesSection 6- Public Broadcasting ServicesSection 6- Public Broadcasting ServicesSection 7- Conversion of the CorporationSection 7- Conversion of the CorporationSection 8- Objects of the SABCSection 8- Objects of the SABCSection 9- Organisation of the SABCSection 9- Organisation of the SABCSection 10- Public ServiceSection 10- Public ServiceSection 11- Commercial ServiceSection 11- Commercial Service

Presentation Outline continuedPresentation Outline continued

Section 12– Governance of the Section 12– Governance of the Corporation Corporation

Section 13- Board of the CorporationSection 13- Board of the CorporationSection 14- Executive Committee of the Section 14- Executive Committee of the

Corporation CorporationSection 19- Shareholding in the Section 19- Shareholding in the Corporation CorporationSection 20- Annual Financial StatementsSection 20- Annual Financial StatementsSection 22- Transfer of Broadcasting LicencesSection 22- Transfer of Broadcasting LicencesSection 24- Accounts of the CorporationSection 24- Accounts of the CorporationSection 25- AuditingSection 25- AuditingSection 27- Television LicensesSection 27- Television Licenses

Presentation Outline continuedPresentation Outline continued

Section 28- Annual ReportsSection 28- Annual ReportsSection 30- Commercial Broadcasting Section 30- Commercial Broadcasting

Services ServicesSection 31- Subscription Television Section 31- Subscription Television

Services ServicesSection 32- Community Broadcasting Section 32- Community Broadcasting

Services ServicesSection 34- Signal DistributionSection 34- Signal DistributionSection 40- RegulationsSection 40- RegulationsSchedule- IBA Act provisionsSchedule- IBA Act provisions

Preamble to the ActPreamble to the Act

Preamble is amended to give recognition Preamble is amended to give recognition to the diverse religious backgrounds of to the diverse religious backgrounds of South Africans.South Africans.

Broadcasting system as a whole is Broadcasting system as a whole is required to reflect the diverse religious required to reflect the diverse religious backgrounds in its programming.backgrounds in its programming.

Section 1- Definitions and Section 1- Definitions and InterpretationsInterpretations

Add new definitions like Authorised Add new definitions like Authorised Inspectors, Dealer, Lessor, UseInspectors, Dealer, Lessor, Use

Harmonising Definitions in the Harmonising Definitions in the Broadcasting Act and IBA Act like Broadcasting Act and IBA Act like Broadcasting, Licencee, Multi-channel Broadcasting, Licencee, Multi-channel Distributor Distributor

Clarification of use of terms like Public Clarification of use of terms like Public Service, Division, Commercial ServicesService, Division, Commercial Services

Section 3- S.A. Broadcasting Section 3- S.A. Broadcasting System System

Amendment gives recognition to the Amendment gives recognition to the religious practice of South Africansreligious practice of South AfricansProvides for the programming of the Provides for the programming of the Broadcasting system to include religion.Broadcasting system to include religion.Amendment provides for the Code of Amendment provides for the Code of Conduct to be determined by ICASAConduct to be determined by ICASAProvides for the Broadcasters to comply ti Provides for the Broadcasters to comply ti the Code of Conduct in terms of the IBA the Code of Conduct in terms of the IBA Act. Act.

SECTION 4- Requirement to hold a SECTION 4- Requirement to hold a licencelicence

Streamlines the provisions for licensingStreamlines the provisions for licensing

Compels all operators to hold a broadcasting Compels all operators to hold a broadcasting licence prior to commencement of operationslicence prior to commencement of operations

Provides for the mechanisms to apply for and Provides for the mechanisms to apply for and acquire licences by operators who currently do acquire licences by operators who currently do not have licenses.not have licenses.

Provides for a licensing scheme for services Provides for a licensing scheme for services broadcasting more than 1 channel.broadcasting more than 1 channel.

Section 5- Categories of LicensesSection 5- Categories of Licenses

Streamlines the classes of licensesStreamlines the classes of licenses

Removes categories that could lead to Removes categories that could lead to duplication and confusionduplication and confusion

Provides for five main categoriesProvides for five main categories

Provides for procedures to apply for the Provides for procedures to apply for the licenseslicenses

Refers to the IBA licensing proceduresRefers to the IBA licensing procedures

Section 6- Public Broadcasting Section 6- Public Broadcasting ServicesServices

Amends sections dealing with the Charter of the Amends sections dealing with the Charter of the CorporationCorporationOutlines sections that are part of the CharterOutlines sections that are part of the CharterProvides for the independence of the SABC in Provides for the independence of the SABC in accordance with the Constitutionaccordance with the ConstitutionProvides for the development of South African Provides for the development of South African expression, national and public interestexpression, national and public interestProvides for the development of guiding policiesProvides for the development of guiding policiesProvides for public parcitipation in the Provides for public parcitipation in the development of policiesdevelopment of policies

Section 6- continuedSection 6- continued

Provides for the submission of these policies to Provides for the submission of these policies to ICASA to ensure compliance with the licence ICASA to ensure compliance with the licence conditions, objectives of the Act.conditions, objectives of the Act.

Provides for the Corporation to develop a Code Provides for the Corporation to develop a Code of Practice to ensure compliance with of Practice to ensure compliance with Constitutional principles, right to receive and Constitutional principles, right to receive and impart information, high standards of accuracy, impart information, high standards of accuracy, fairness and impartiality.fairness and impartiality.

Section 8- Conversion of the Section 8- Conversion of the CorporationCorporation

Repeals Section 7 of the original Act.Repeals Section 7 of the original Act.

Provides for the recognition of the needs Provides for the recognition of the needs of people with disabilities.of people with disabilities.

Requires the Public Service to be Requires the Public Service to be responsive to audience needs including responsive to audience needs including the needs of the deaf and the blind and the needs of the deaf and the blind and account on how to meet those needs.account on how to meet those needs.

Section 8A- ConversionSection 8A- Conversion

Provides clarity on the mechanisms and Provides clarity on the mechanisms and steps for the conversion of the SABCsteps for the conversion of the SABCProvides a mechanism for the Conversion Provides a mechanism for the Conversion of the Old Corporation to Limited Liability of the Old Corporation to Limited Liability CompanyCompanyProvides for Memorandum and Articles of Provides for Memorandum and Articles of AssociationAssociationProvides for the deemed conversion on a Provides for the deemed conversion on a date determined by the Ministerdate determined by the Minister

Section 9- Organisation of the Section 9- Organisation of the SABCSABC

Provides for the the SABC to be split into Provides for the the SABC to be split into Public and Commercial ServicesPublic and Commercial Services

Removes any misunderstanding that the Removes any misunderstanding that the two services will be divisions of the SABC two services will be divisions of the SABC instead of stand alone entitiesinstead of stand alone entities

Provides for separation administration of Provides for separation administration of the two divisions, different accounts and the two divisions, different accounts and financial recordsfinancial records

Section 10- Public ServiceSection 10- Public Service

Provides for religious programmes to be Provides for religious programmes to be included in the public servicesincluded in the public services

Provides for mechanisms for budget Provides for mechanisms for budget determination for the Public Service determination for the Public Service DivisionDivision

Provides for the development and Provides for the development and approval of a three year business plan approval of a three year business plan

Provides for financial reportsProvides for financial reports

Section 11- Commercial ServiceSection 11- Commercial Service

Provides for mechanisms for budget Provides for mechanisms for budget determination for the Commercial Service determination for the Commercial Service DivisionDivision

Provides for the development and Provides for the development and approval of a three year business plan approval of a three year business plan

Provides for financial reportsProvides for financial reports

Section 12- Governance of the Section 12- Governance of the CorporationCorporation

Provides for the CEO, COO and CFO to Provides for the CEO, COO and CFO to be members of the Boardbe members of the Board

Section 13- Members of the BoardSection 13- Members of the Board

Provides for continuity in the functions of the Provides for continuity in the functions of the Board.Board.Provides for members of the current Board to Provides for members of the current Board to constitute the first Board of the converted constitute the first Board of the converted CorporationCorporationProvides a structure to enable the Board to Provides a structure to enable the Board to focus on Public and Commercial Services.focus on Public and Commercial Services.Provides for two standing committees to oversee Provides for two standing committees to oversee the development of Public and Commercial the development of Public and Commercial servicesservices

Section 14- Executive CommitteeSection 14- Executive Committee

Enlarges the Executive Committee to no Enlarges the Executive Committee to no more than 14 membersmore than 14 members

Provides for the Executive to be Provides for the Executive to be accountable to the Boardaccountable to the Board

Section 22-Transfer of Section 22-Transfer of Broadcasting LicencesBroadcasting Licences

Provides for the amendments to the Provides for the amendments to the existing licences to reflect the re-existing licences to reflect the re-organisation of the Corporation.organisation of the Corporation.

Provides for ICASA to impose conditions Provides for ICASA to impose conditions necessary for two service divisions to necessary for two service divisions to meet their obligations in this Act and IBA meet their obligations in this Act and IBA Act.Act.

Section 22 A- Regional ServicesSection 22 A- Regional Services

Provides for the establishment of regional Provides for the establishment of regional servicesservicesProvides for the reflection of all marginalised Provides for the reflection of all marginalised languages in the regional serviceslanguages in the regional servicesProvides for a funding mechanism that will Provides for a funding mechanism that will include appropriations, grants, donations and include appropriations, grants, donations and sponsorshipssponsorshipsProvides for ICASA to determine the extent to Provides for ICASA to determine the extent to which regional services may draw revenues from which regional services may draw revenues from advertisingadvertising

Section 24- AccountsSection 24- Accounts

Requires the Board to ensure compliance Requires the Board to ensure compliance with the PFMAwith the PFMA

Section 25- AuditingSection 25- Auditing

Provides for the preparation of annual Provides for the preparation of annual financial statements in line with both the financial statements in line with both the Companies Act and the PFMACompanies Act and the PFMA

Section 26-Staff of the CorporationSection 26-Staff of the Corporation

Deletes references/ provisions that relate Deletes references/ provisions that relate to the transfer of staff from the old to the to the transfer of staff from the old to the new corporation.new corporation.

Acknowledges the deemed conversion of Acknowledges the deemed conversion of the Corporation.the Corporation.

Section 27- TV Licences Section 27- TV Licences

Provides for regulations and mechanisms Provides for regulations and mechanisms for an effective Television Licence fee for an effective Television Licence fee collection.collection.Defines who should pay TV licence feesDefines who should pay TV licence feesOutlines procedures for exemptionsOutlines procedures for exemptionsImposes stiff penalties for non-payment of Imposes stiff penalties for non-payment of feesfeesImposes an obligation on the SABC to use Imposes an obligation on the SABC to use licence fees for Public Service onlylicence fees for Public Service only

Section 28- Annual ReportsSection 28- Annual Reports

Provides for the Board to enforce Provides for the Board to enforce compliance with the PFMA in relation to compliance with the PFMA in relation to the preparation and submission of annual the preparation and submission of annual reports.reports.

Section 30- Licence Requirements: Section 30- Licence Requirements: Commercial BroadcastersCommercial Broadcasters

Provides for commercial broadcasters to Provides for commercial broadcasters to reflect the culture, character, religion and reflect the culture, character, religion and needs of the people in their licence areasneeds of the people in their licence areas

Provides for subscription broadcasters to Provides for subscription broadcasters to contribute to the South African television contribute to the South African television and music content in terms of regulations and music content in terms of regulations prescribed by the Authority.prescribed by the Authority.

Section 31- Subscription Television Section 31- Subscription Television ServiceService

Removes the onorous requirement to hold an Removes the onorous requirement to hold an inquiry prior to licensing.inquiry prior to licensing.Provides for the Authority to conduct a licensing Provides for the Authority to conduct a licensing process as for licences classified under section process as for licences classified under section 5 © and (d) as soon as it is reasonably possible5 © and (d) as soon as it is reasonably possibleProvides for the Authority to make Provides for the Authority to make recommendations as to whether sections 49 and recommendations as to whether sections 49 and 50 of the IBA Act are applicable for multi-50 of the IBA Act are applicable for multi-channel services pursuant to an inquiry.channel services pursuant to an inquiry.Provides for recommendations to be submitted Provides for recommendations to be submitted to the Minister for tabling in the National to the Minister for tabling in the National Assembly for adoption. Assembly for adoption.

Section 33 & 34- Signal DistributionSection 33 & 34- Signal Distribution

Provides for all signal distributors to hold Provides for all signal distributors to hold licences.licences.Deletes requirements for the Authority to Deletes requirements for the Authority to conduct Inquiry into applicability of section 49 conduct Inquiry into applicability of section 49 and 50 in multi-channel environment.and 50 in multi-channel environment.Provides for efficient delivery of services using Provides for efficient delivery of services using the most effective technologies available at the most effective technologies available at reasonable costs.reasonable costs.Requires that those operating without licences to Requires that those operating without licences to apply for licences and deems their operations apply for licences and deems their operations valid until the Authority has made the decision.valid until the Authority has made the decision.

Section 35- Multi-channel Section 35- Multi-channel DistributorsDistributors

Requires the multi-channel distributors to Requires the multi-channel distributors to hold licences.hold licences.

Removes the requirement to hold a Removes the requirement to hold a separate licence.separate licence.

Section 40- RegulationsSection 40- Regulations

Provides for the regulations for TV licence Provides for the regulations for TV licence fee collection.fee collection.

Regulations to cover period of validity, Regulations to cover period of validity, purpose and place of use of television purpose and place of use of television sets, different categories of TV licences, sets, different categories of TV licences, the duty to keep, maintain and furnish the duty to keep, maintain and furnish records and information, exemptions from records and information, exemptions from the obligation to be in possession. the obligation to be in possession.

Schedule- Other lawsSchedule- Other laws

Amends the section 13 of IBA Act to provide for the Authority to Amends the section 13 of IBA Act to provide for the Authority to administer and manage Broadcasting Services Frequency Bands.administer and manage Broadcasting Services Frequency Bands.Amends section 21 to provide for the Authority to establish a Amends section 21 to provide for the Authority to establish a Broadcasting Monitoring and Complaints CommitteeBroadcasting Monitoring and Complaints CommitteeAmends section 44 to provide for mechanisms for the application for Amends section 44 to provide for mechanisms for the application for renewal of broadcasting licencesrenewal of broadcasting licencesAmends section 56 to provide for the Authority to prescribe the Amends section 56 to provide for the Authority to prescribe the Code of Conduct.Code of Conduct.Amends section 69 to provide for the Authority to delegate certain Amends section 69 to provide for the Authority to delegate certain duties to committees of Council.duties to committees of Council.Amends section 17 of ICASA Act to remove reference to the Amends section 17 of ICASA Act to remove reference to the Broadcasting Technical Committee. Broadcasting Technical Committee.

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