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Route reference: 2013-315

Ottawa, 11 December 2013

Bayshore Broadcasting Corporation
Wasaga Beach, Ontario

Application 2013-0137-4, received 24 January 2013

CHGB-FM Wasaga Beach – Licence renewal

The Commission renews the broadcasting licence for the English-language commercial radio station CHGB-FM Wasaga Beach from 1 January 2014 to 31 August 2019. This short-term licence renewal will allow for an earlier review of the licensee’s compliance with its condition of licence and with the Radio Regulations, 1986.

Introduction

1. The Commission received an application by Bayshore Broadcasting Corporation (Bayshore) to renew the broadcasting licence for the English-language commercial radio station CHGB-FM Wasaga Beach, Ontario, which expires 31 December 2013.[1] The Commission did not receive any interventions in connection with this application.

Non-compliance

2. In Broadcasting Notice of Consultation 2013-315, the Commission noted that the licensee was in apparent non-compliance with its condition of licence relating to Canadian talent development (CTD) contributions, for each of the 2007-2008 through 2011-2012 broadcast years.

3. As set out in the appendix to Broadcasting Decision 2006-507, Bayshore is required, by condition of licence, to contribute $6,000 per broadcast year to CTD, allocated as follows: $400 to FACTOR (as per Public Notice 1999-137), $3,000 to the Nancy Island Jazz in the Park Concert Series, and $2,600 to a discretionary fund to support Canadian talent within the principal marketing area of the undertaking. In regard to the third initiative, should these funds not be totally expended by the end of each year, the remainder must be devoted to FACTOR.

4. For the initiatives relating to FACTOR and the discretionary fund, the licensee incurred a total shortfall of $1,400 for the 2007-2008 and 2008-2009 broadcast years, but also made overpayments totalling $2,600 for the 2009-2010 and 2011-2012 broadcast years. As such, the licensee made a CTD over-contribution of $1,200 during CHGB-FM’s first licence term.

5. In regard to the concert series initiative, the Commission notes that Bayshore made a contribution of $15,000 ($3,000 per broadcast year for five broadcast years), but failed to direct its contribution to the Nancy Island Jazz in the Park Concert Series. The licensee stated that it misinterpreted its condition of licence, understanding that its obligation was to the organization itself rather than to the specific genre of musical entertainment being provided at a given time. It noted that the organization considered in the original licensing application experienced a period of change and development to become the Historic Military Establishment of Upper Canada. According to Bayshore, this organization has a musical component that reached beyond Nancy Island to encompass Wasaga Beach and, in 2013, Collingwood, Ontario.

6. Bayshore acknowledged that it should have applied to the Commission to amend its condition of licence to read “Nancy Island events” rather than “Jazz in the Park.” It submitted, however, that it had acted in good faith by endeavouring to reflect the requirements of its condition of licence in the CTD contributions that it made, and by continuing to fund events on Nancy Island.

7. Bayshore further stated that it replaced both the station manager and the operations manager for the station in 2012, and that supervision of the station is currently the responsibility of the company’s president, a change it believes will ensure future compliance.

8. Where a licensee has made the necessary financial contributions to CTD and to Canadian content development (CCD)[2] but has failed to contribute to the initiative required by condition of licence, the Commission generally does not require that new contributions be directed to the correct initiatives. Nevertheless, it considers that Bayshore, as an experienced broadcaster, should have known that it required prior Commission approval before making any changes to such contributions required by condition of licence. Consequently, the Commission finds the licensee in non-compliance with its condition of licence relating to CTD contributions for each of the 2007-2008 through 2011-2012 broadcast years.

9. The Commission notes that CHGB-FM’s current conditions of licence will expire 31 December 2013,[3] and that the final CTD contributions will be made in the 2013-2014 broadcast year to cover the remaining balance of the pro-rated contribution made in 2007-2008. During the station’s next licence term, the licensee will be required to make CCD contributions in line with section 15 of the Radio Regulation, 1986 (the Regulations).

Regulatory measures

10. In Broadcasting Information Bulletin 2011-347, the Commission announced a revised approach to non-compliance by radio stations. Specifically, the Commission indicated that each instance of non-compliance would be evaluated in its context and in light of factors such as the quantity, recurrence and seriousness of the non-compliance. The Commission also indicated that it would consider the circumstances of the non-compliance, the arguments provided by the licensee and the measures taken to rectify the situation.

11. The Commission considers that initiatives relating to the development of Canadian content and talent not only help to develop and advance the careers of emerging Canadian artists, but increase the supply of high-quality Canadian music in a variety of genres and the demand for Canadian music by listeners. Accordingly, it is important that radio licensees make their required contributions to the development of Canadian content and talent.

12. The Commission has reviewed the record for this application and is satisfied with the licensee’s explanations and with the measures it has put in place to address the non-compliance. However, given the nature and extent of the non-compliance, the Commission considers that a short-term renewal for CHGB-FM is appropriate.

Conclusion

13. In light of the above, the Commission renews the broadcasting licence for the English-language commercial radio programming undertaking CHGB-FM Wasaga Beach from 1 January 2014 to 31 August 2019. This short-term renewal will allow for an earlier review of the licensee’s compliance with its conditions of licence and with the Regulations. The terms and conditions of licence are set out in the appendix to this decision.

Reminder

14. Pursuant to section 22 of the Broadcasting Act, the Commission reminds the licensee that the broadcasting licence will cease to have any force or effect if the broadcasting certificate issued by the Department of Industry lapses.

Secretary General

Related documents

*This decision is to be appended to the licence.

Appendix to Broadcasting Decision CRTC 2013-670

Terms, conditions of licence and encouragement for the English-language commercial radio programming undertaking CHGB-FM Wasaga Beach, Ontario

Terms

The licence will expire 31 August 2019.

Conditions of licence

  1. The licensee shall adhere to the conditions set out in Conditions of licence for commercial AM and FM radio stations, Broadcasting Regulatory Policy CRTC 2009-62, 11 February 2009, as amended from time to time.
  2. The licensee shall, as an exception to the percentage of Canadian musical selections set out in sections 2.2(8) and 2.2(9) of the Radio Regulations, 1986, (the Regulations), in any broadcast week:

a) devote, in that broadcast week, a minimum of 40% of its musical selections from content category 2 (Popular Music) to Canadian selections broadcast in their entirety; and

b) devote, between 6:00 a.m. and 6:00 p.m., in the period from Monday to Friday of the same broadcast week, a minimum of 40% of its musical selections from content category 2 to Canadian selections broadcast in their entirety.

For the purposes of this condition, the terms “broadcast week,” “Canadian selection,” “content category” and “musical selection” shall have the same meaning as set out in the Regulations.

Encouragement

In accordance with Implementation of an employment equity policy, Public Notice CRTC 1992-59, 1 September 1992, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

Footnotes

[1] The original licence expiry date for CHGB-FM was 31 August 2013. The licence was administratively renewed until 31 December 2013 in Broadcasting Decision 2013-418.

[2] In Broadcasting Public Notice 2006-158, the Commission replaced the CTD regime with the CCD regime.

[3] Although CHGB-FM’s first licence term ended 31 August 2013, the Commission stated in Broadcasting Decision 2013-418, in which the broadcasting licence was administratively renewed, that the station would be subject to the same terms and conditions in effect under its current licence until 31 December 2013.

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