1. BROADCASTING AMENDMENT BILL 2002 Briefing to the Select Committee

2. Presentation Outline Section 1- Definitions Section 3- South African Broadcasting System Section 4- Requirement to Hold licenses Section 5- Classes of Licences Section 6- Public Broadcasting Services Section 7- Conversion of the Corporation Section 8- Objects of the SABC Section 9- Organisation of the SABC Section 10- Public Service Section 11- Commercial Service

3. Presentation Outline continued Section 12– Governance of the Corporation Section 13- Board of the Corporation Section 14- Executive Committee of the Corporation Section 19- Shareholding in the Corporation Section 20- Annual Financial Statements Section 22- Transfer of Broadcasting Licences Section 24- Accounts of the Corporation Section 25- Auditing Section 27- Television Licenses

4. Presentation Outline continued Section 28- Annual Reports Section 30- Commercial Broadcasting Services Section 31- Subscription Television Services Section 32- Community Broadcasting Services Section 34- Signal Distribution Section 40- Regulations Schedule- IBA Act provisions

5. Preamble to the Act Preamble is amended to give recognition to the diverse religious backgrounds of South Africans. Broadcasting system as a whole is required to reflect the diverse religious backgrounds in its programming.

6. Section 1- Definitions and Interpretations Add new definitions like Authorised Inspectors, Dealer, Lessor, Use Harmonising Definitions in the Broadcasting Act and IBA Act like Broadcasting, Licencee, Multi-channel Distributor Clarification of use of terms like Public Service, Division, Commercial Services

7. Section 3- S.A. Broadcasting System Amendment gives recognition to the religious practice of South Africans Provides for the programming of the Broadcasting system to include religion. Amendment provides for the Code of Conduct to be determined by ICASA Provides for the Broadcasters to comply ti the Code of Conduct in terms of the IBA Act.

8. SECTION 4- Requirement to hold a licence Streamlines the provisions for licensing Compels all operators to hold a broadcasting licence prior to commencement of operations Provides for the mechanisms to apply for and acquire licences by operators who currently do not have licenses. Provides for a licensing scheme for services broadcasting more than 1 channel.

9. Section 5- Categories of Licenses Streamlines the classes of licenses Removes categories that could lead to duplication and confusion Provides for five main categories Provides for procedures to apply for the licenses Refers to the IBA licensing procedures

10. Section 6- Public Broadcasting Services Amends sections dealing with the Charter of the Corporation Outlines sections that are part of the Charter Provides for the independence of the SABC in accordance with the Constitution Provides for the development of South African expression, national and public interest Provides for the development of guiding policies Provides for public parcitipation in the development of policies

11. Section 6- continued Provides for the submission of these policies to ICASA to ensure compliance with the licence conditions, objectives of the Act. Provides for the Corporation to develop a Code of Practice to ensure compliance with Constitutional principles, right to receive and impart information, high standards of accuracy, fairness and impartiality.

12. Section 8- Conversion of the Corporation Repeals Section 7 of the original Act. Provides for the recognition of the needs of people with disabilities. Requires the Public Service to be responsive to audience needs including the needs of the deaf and the blind and account on how to meet those needs.

13. Section 8A- Conversion Provides clarity on the mechanisms and steps for the conversion of the SABC Provides a mechanism for the Conversion of the Old Corporation to Limited Liability Company Provides for Memorandum and Articles of Association Provides for the deemed conversion on a date determined by the Minister

14. Section 9- Organisation of the SABC Provides for the the SABC to be split into Public and Commercial Services Removes any misunderstanding that the two services will be divisions of the SABC instead of stand alone entities Provides for separation administration of the two divisions, different accounts and financial records

15. Section 10- Public Service Provides for religious programmes to be included in the public services Provides for mechanisms for budget determination for the Public Service Division Provides for the development and approval of a three year business plan Provides for financial reports

16. Section 11- Commercial Service Provides for mechanisms for budget determination for the Commercial Service Division Provides for the development and approval of a three year business plan Provides for financial reports

17. Section 12- Governance of the Corporation Provides for the CEO, COO and CFO to be members of the Board

18. Section 13- Members of the Board Provides for continuity in the functions of the Board. Provides for members of the current Board to constitute the first Board of the converted Corporation Provides a structure to enable the Board to focus on Public and Commercial Services. Provides for two standing committees to oversee the development of Public and Commercial services

19. Section 14- Executive Committee Enlarges the Executive Committee to no more than 14 members Provides for the Executive to be accountable to the Board

20. Section 22-Transfer of Broadcasting Licences Provides for the amendments to the existing licences to reflect the re- organisation of the Corporation. Provides for ICASA to impose conditions necessary for two service divisions to meet their obligations in this Act and IBA Act.

21. Section 22 A- Regional Services Provides for the establishment of regional services Provides for the reflection of all marginalised languages in the regional services Provides for a funding mechanism that will include appropriations, grants, donations and sponsorships Provides for ICASA to determine the extent to which regional services may draw revenues from advertising

22. Section 24- Accounts Requires the Board to ensure compliance with the PFMA

23. Section 25- Auditing Provides for the preparation of annual financial statements in line with both the Companies Act and the PFMA

24. Section 26-Staff of the Corporation Deletes references/ provisions that relate to the transfer of staff from the old to the new corporation. Acknowledges the deemed conversion of the Corporation.

25. Section 27- TV Licences Provides for regulations and mechanisms for an effective Television Licence fee collection. Defines who should pay TV licence fees Outlines procedures for exemptions Imposes stiff penalties for non-payment of fees Imposes an obligation on the SABC to use licence fees for Public Service only

26. Section 28- Annual Reports Provides for the Board to enforce compliance with the PFMA in relation to the preparation and submission of annual reports.

27. Section 30- Licence Requirements: Commercial Broadcasters Provides for commercial broadcasters to reflect the culture, character, religion and needs of the people in their licence areas Provides for subscription broadcasters to contribute to the South African television and music content in terms of regulations prescribed by the Authority.

28. Section 31- Subscription Television Service Removes the onorous requirement to hold an inquiry prior to licensing. Provides for the Authority to conduct a licensing process as for licences classified under section 5 © and (d) as soon as it is reasonably possible Provides for the Authority to make recommendations as to whether sections 49 and 50 of the IBA Act are applicable for multi- channel services pursuant to an inquiry. Provides for recommendations to be submitted to the Minister for tabling in the National Assembly for adoption.

29. Section 33 & 34- Signal Distribution Provides for all signal distributors to hold licences. Deletes requirements for the Authority to conduct Inquiry into applicability of section 49 and 50 in multi-channel environment. Provides for efficient delivery of services using the most effective technologies available at reasonable costs. Requires that those operating without licences to apply for licences and deems their operations valid until the Authority has made the decision.

30. Section 35- Multi-channel Distributors Requires the multi-channel distributors to hold licences. Removes the requirement to hold a separate licence.

31. Section 40- Regulations Provides for the regulations for TV licence fee collection. Regulations to cover period of validity, purpose and place of use of television sets, different categories of TV licences, the duty to keep, maintain and furnish records and information, exemptions from the obligation to be in possession.

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

33. Thank You