ARCHIVED - Public Notice CRTC 84-94

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Public Notice

Ottawa, 15 April 1984
Public Notice CRTC 1984-94
In Public Notice CRTC 1984-56 dated 2 March 1984, the Canadian Radio-television and Telecommunications Commission proposed revised criteria related to the Recognition for Canadian Programs. The Commission recognized the desirability of ensuring, to the maximum extent possible, uniformity between the Government departments and agencies concerned on a definition of what constitutes a Canadian program. Accordingly, the Commission proposed to adopt the Capital Cost Allowance (CCA) point system and criteria currently applied by the Canadian Film and Videotape Certification Office of the Department of Communications (CFVCO) for feature film productions, as the basis for its definition of a Canadian program.
In response to Public Notice CRTC 1984-56, the Commission received 33 submissions from the broadcasting and independent production industries and other members of the public covering a variety of issues related to the proposed criteria. These submissions were taken into account by the Commission in adopting the criteria for Canadian program recognition set out in the appendix to this notice. The criteria come into effect today.
J.G. Patenaude Secretary General
Basic Application Process
Upon request, the Commission will issue an advance ruling, preliminary or final recognition or special recognition, as the case may be, to any licensee, producer or property rights holder, where the program satisfies the requirements of the definition of a Canadian program. Submission of an application for advance ruling or for preliminary recognition is not mandatory; it is at the discretion of the applicant.
Criteria: Recognition for Canadian Programs
In defining a Canadian program, the Commission has used as a basis the requirements of the point system and cost criteria currently used by the Canadian Film and Videotape Certification Office of the Department of Communications (CFVCO) for feature productions, and has provided variances in certain matters, only where appropriate.
I.Basic Definition of a Canadian Program
The Commission will recognize as a Canadian program, a live, videotape or film production of any length, that meets the following:
1. PRODUCER(S): the producer, the individual who controls and is the central decision-maker of the visual production from beginning to end, must be Canadian. Additionally, all individuals fulfilling producer-related functions must be Canadian. Exemptions will be considered for non-Canadians to receive credits for producer-related functions as described in the CFVCO certification process booklet.
2.THE POINT SYSTEM: a production must earn a minimum of six units of production or points based on the following key creative functions being performed by Canadians:
Director - 2 points
Writer - 2 points
Leading performer - 1 point
Second leading performer - 1 point
Head of art department - 1 point
Director of photography - 1 point
Music composer - 1 point
Editor - 1 point
3. Notwithstanding the above, at least one of the director or writer and at least one of the two leading performers must be Canadian. The points for writer may be obtained if all screenwriters are Canadian or if both the principal writer and the author of the original work on which the production is based are Canadian. Determination of leading performers may take into account billing, screen-time and payment; this determination could be changed after further discussions with the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA), Union des artistes and other guilds, producers, CFVCO and the Canadian Film Development Corporation (CFDC).
4. Productions in which non-Canadians are the only leading performers will not be accepted as Canadian, and the addition of Canadians in minor roles will not be sufficient for a production to qualify.
5. Upon application, the Commission may recognize as a Canadian program, a production in which the positions of either:
a) director and writer, or
b) both leading performers are filled by non-Canadians, as long as all other key creative functions are filled by Canadians.
6. Key creative functions could vary for different types of productions. Such variations will be taken into consideration by the Commission for the present purposes. (See attached Schedule)
7. EXPENDITURES: at least 75% of total remuneration paid to individuals, other than the producer and key creative personnel as listed above or for post production work, must be paid to, or in respect of services provided by, Canadians; and at least 75% of processing and final preparation costs must also be paid for services provided in Canada.
8. The Commission may require audited statements and/or affidavits in support of an application.
9. The Canadian content certification given by the Minister of Communication.s upon recommendation by CFDC or, subject to section 4 above, CFVCO will also constitute recognition for Canadian programs by the Commission.
10. Established CFVCO forms and procedures are acceptable to the Commission, except where variances are outlined in this document. The descriptions and interpretations detailed in the CFVCO certification process booklet will he used by the Commission, unless or until the Commission develops its own definitions and interpretations, if need be.
11. Interpretation Notes
a) Producer. The producer is expected, inter alia, to be involved in acquiring and developing the story, selecting and engaging the key creative personnel, budget preparation, financing, control of expenditures and distribution of the production.
b) In productions where not all of the key creative positions are utilized, and there are fewer than six points possible, recognition will be granted if Canadians perform all key creative functions.
c) Points will only be awarded in respect of a particular position if all persons sharing the duties of that position are Canadian.
d) Head of Art Department. The Head of the Art Department will generally be the Production Designer. If there is no production designer the Art Director is considered Head of the Art Department.
e) Director of photography - or Technical Producer/Director. The lighting director is not accepted as a technical director on videotape productions.
f) Music composer. The point is awarded only if a Canadian has composed the original music and/or lyrics for the production. The rearrangement of existing music does not warrant a point. The position of music director is not accepted as a music composer.
g) Editor. Means film or videotape editor. The positions of sound or music editor will not be acceptable.
h) Expenditures. Services exclude goods. Payments for the purchase of goods such as film or videotape stock, supplies and equipment, and for the acquisition of music, story and copyrights, and non production-related fees, such as legal and accounting fees, are excluded from the 75% calculations.
Co-ventures are defined as international co-productions not included under the treaties administered by the CFDC. They include all ventures with co-producers of any foreign country that does not have a film or television production treaty with Canada, and ventures with co-producers of any treaty country, where such ventures are not specifically covered by any treaty. The key function in these co-ventures is that of the producer.
Such co-ventures will qualify for special recognition and will be given 100% Canadian program credit when broadcast or otherwise distributed by an licensee of the CRTC, even though some of the producer functions are performed by non-Canadians, where co-venture agreements and other documentation substantiate that the Canadian production company:
-has no less than an equal measure of decision-making responsibility with other co-venture partners on all creative elements of the production, and
-is responsible for the administration of not less than the Canadian element of the production budget.
A "Canadian production company" is a licensee of the CRTC or is a Canadian company which carries on business in Canada with a Canadian business address, which is owned or controlled by Canadians and whose principal business is the production of film, videotape or live programs for distribution on television or in theatrical, industrial or educational markets.
The application for Canadian recognition must be made by the Canadian production company and must be accompanied or supported by signed agreements between the co-venture partners. Such co-venture agreements will be kept confidential.
The decision-making responsibility for the production will be deemed to he in the hands of a Canadian production company when that company:
a) has sole or co-signing authority on the production bank account: for co-ventures shot entirely in Canada, the production hank account must be in Canada; for those shot partially in Canada, a Canadian bank account would be required for that portion of the production shot in Canada; in the case of co-ventures shot entirely outside Canada, there must be a Canadian bank account for payment of the Canadian elements of the program;
b) has an equity position in the production and the entitlement to profit sharing;
c) is at financial risk and/or has budgetary responsibility;
d) has no less than an equal measure of approval over all elements of the production with the co-venture partners, regardless of the number of foreign persons fulfilling the functions of executive producer or producer.
With regard to points and expenditures, a co-venture with a co-producer from a Commonwealth or French-language country, or a country with which Canada has a film or television production treaty, will be considered as qualifying for Canadian program special recognition where, in addition to meeting the foregoing requirements, it attains 5 points, and at least 50% of the total remuneration paid to individuals, other than the producer and the key creative personnel listed above, or for post production work, is paid to, or in respect of services provided by, Canadians, and at least 50% of processing and final preparation costs are paid for services provided in Canada. Notwithstanding the above, the director or the writer and at least one of the two leading performers must be Canadian. All other considerations for recognition of a Canadian program apply to such a co-venture.
Any other co-venture will be required to meet the same points and expenditure minimum requirements as a domestic production.
Recognizing that the production elements of a series of programs may vary and that some of the episodes, if considered individually, could fall below the minimum requirements of the point system, the Commission will examine a series in its entirety and may grant it recognition if, on an overall average, it meets the minimum requirements.
For the present purposes, a "series" means two or more programs produced by the same production company, having a common theme, situation, or set of characters, and completed within a 12-month period.
A licensee will only be entitled to claim Canadian program recognition for any episodes in a series which might not meet the Canadian program recognition criteria when at least the same number of offsetting episodes which exceed such criteria are broadcast or otherwise distributed, at equitable times.
For the present purposes, a "production package" means two or more co-productions or co-ventures, undertaker. by a Canadian production company together with one or more non-Canadian production companies, where a production that qualifies as a Canadian production, with minor foreign involvement, is matched with a foreign production, with minor Canadian involvement.
The production packages may be accepted as Canadian, where a Canadian production company is involved and the co-production partners are the same for all the productions. The role of the Canadian production company is as defined for co-ventures. In assessing a production package, the Commission will examine it in its entirety and may qualify it if, on an overall average, the minimum requirements for co-ventures are met. Furthermore, a licensee will not receive credit for the production with fewer Canadian elements unless it also carries the production with the larger number of Canadian elements, at equitable times.
All other considerations for recognition for Canadian programs apply.
The Commission will follow closely the extent to which licensees make use of co-venture productions or production packages to meet Canadian content requirements. It will review before April 1987 the suitability of continuing to accept production packages for the present purposes.
Productions of sports events or tournaments will be considered Canadian where a Canadian licensee or Canadian production company has production control and provides the commentators, whether the event takes place inside or outside Canada; in the latter case, the production would qualify only where Canadian teams or athletes participate in these events or tournaments.
In the case of broadcasts of sports events originating outside Canada, involving non-Canadian teams or athletes and for which a French-language commentary is provided by a Canadian producer, one-quarter of the program time attached thereto shall be deemed to be Canadian.
1) Where a program is not a Canadian program and is produced in an official language of Canada or a native Canadian language, and the audio portion of that program is converted into the other official language of Canada or a native Canadian language by a process of lip synchronization done in Canada, using Canadian resources, one-quarter of the program time attached thereto shall be deemed to be Canadian.
2) Where a program is not a Canadian program and is produced in a language other than an official language of Canada or a native Canadian language, and the audio portion of that program is converted into an official language of Canada or a native Canadian language by a process of lip synchronization done in Canada, using Canadian resources, one-half of the program time attached thereto, to a maximum of 50 hours during each six-month reporting period, shall be considered as Canadian.
To be recognized as Canadian, programs produced by licensees must meet the Canadian program recognition criteria stipulated in this Notice. However, licensees need not apply for recognition or submit production information unless specifically requested to do so by the Commission. If no such request is made by the Commission, programs produced by licensees shall be recognized as Canadian.
The criteria for the recognition for Canadian programs do not apply to news and public affairs programs produced by licensees. Such programs shall be recognized as Canadian.
Definition of a Canadian Music Video
Music videos, the short film or videotape productions or concert excerpts (clips) not produced primarily for the particular program in which they are presented, which normally contain one musical selection with visual material, will be recognized as Canadian where:
1) at least two of the audio requirements a) through d) which follow, and three of the requirements a) through f) are met:
a) instrumentation or lyrics are principally performed by a Canadian;
b) music is composed by a Canadian;
c) lyrics are written by a Canadian;
d) performance is in Canada;
e) video director or production company is Canadian;
f) video production facilities are located in Canada; and
2) as of 1 January 1986, at least one of the two video requirements e) or f) is met.
Music Video Programs
For programs consisting predominantly of music videos and in some cases including a host and other programming elements, Canadian program recognition will be awarded if all elements other than the music videos are Canadian, and a minimum of 30% of the music videos are Canadian.
This last provision would not apply to music specialty services.
The Commission will award a 150% time credit for a drama carried by a licensee which meets the following criteria:
a) is produced by a licensee or an independent production company after 15 April 1984;
b) is recognized as a Canadian program and achieves 10 points; and
a) is scheduled to commence
b) (i) between the hours of 7:00 p.m. and 10:00 p.m., or
ii) in the case of a dramatic program intended for children, at an appropriate children's viewing time.
Each licensee will receive a dramatic programming credit for each showing of a drama occurring within a two year period from the date of first showing.
This new definition of a Canadian program comes into force 15 April 1984. Canadian programs already certified by the Commission, CFDC or CFVCO will continue to be recognized. Other interim arrangements may be considered by the Commission to be acceptable for "work in development." For present purposes, the following definition of "work in development", similar to that used by CFVCO, will apply:
Generally, when the property has been acquired, the screenplay completed, a preliminary budget has been prepared, financing started to be obtained and some of the key creative personnel have been retained.
As stated in Public Notice CRTC 1984-56, the Commission emphasizes that these criteria constitute minimum requirements and it expects to undertake periodic reviews with all parties concerned to evaluate their effectiveness and practical application.
Position Drama Variety Animation Documentary Video Game Show (generally (including videotape) instruction)
Director X X X X X Screenwriter X X X X Some Leading Leading Leading Leading Leading Leading Performer actor performer actor host/commen- host/MC/Quiz e.g. dancer, who reads the tator/narrator/ master comedian, part of a interviewer singer, character specialty act
Second leading Second Second leading Second leading Second leading Second leading Performer leading performer character host/commentator/ host/MC/Quiz actor voice interviewer master
Director of X Technical Head of Camera X Technical Photography Producer/Director Department Producer/Director
Music composer X X X X X Picture Editor X X X X X Head of Art X X Head of Design X X Department
X - Use same position title as listed in column I

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