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Ottawa, 30 April 1993
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Public Notice CRTC 1993-43
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EXEMPTIONS FROM LICENSING REQUIREMENTS
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In Public Notice CRTC 1991-63 dated 19 June 1991, the Commission announced that it was examining the possibility of issuing orders granting exemptions from licensing requirements to persons operating certain classes of broadcasting undertakings, pursuant to powers of exemption granted to the Commission under subsection 9(4) of the Broadcasting Act (the Act). It is important to note that this in itself does not exempt any undertaking from the requirements of any other applicable act, including the Radiocommu- nication Act, which is administered by the Department of Communications (DOC).
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In Public Notice CRTC 1992-5 dated 17 January 1992, the Commission made specific proposals for exemptions in the case of low-power radio undertakings, temporary networks, closed circuit video programming undertakings, and other broadcasting undertakings. In response to these proposals, the Commission received approximately 170 submissions; virtually all offered general support for the Commission's proposals, and 10 offered detailed comments or suggestions for modifications.
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The Commission has carefully considered the submissions and is today issuing Exemption Orders relating to certain classes of undertakings. Specifically, the Commission has exempted from the requirement to hold a broadcasting licence persons operating:
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* Temporary Resource Development Distribution Undertakings (Public Notice CRTC 1993-44),
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* Limited Duration Special Event Facilitating Undertakings (Public Notice CRTC 1993-45), and
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* Ultra Low-Power Announcement Service Undertakings designated by DOC as LPAS Undertakings (Public Notice CRTC 1993-46),
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all of which are classes of low-power radio undertakings. The Commission has also exempted those persons operating the following classes of undertakings:
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* Temporary Networks Special Events -- Types 1 and 2 (Public Notices 1993-48 and 1993-49),
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* Closed Circuit Video Programming Undertakings (Public Notice 1993-50),
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* Still Image Programming Service Undertakings (Public Notice CRTC 1993-51),
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* Terrestrial Relay Distribution Network Undertakings (Public Notice CRTC 1993-53), and
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* Community Programming Network Undertakings, (Public Notice CRTC 1993-52).
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In addition the Commission is issuing today an order exempting from the requirement to hold a licence, persons operating the following:
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* Carrier Current Undertakings whose services are not distributed via cable distribution undertakings (Public Notice CRTC 1993-47).
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The proposal for this exemption was contained in Public Notice CRTC 1991-118 dated 20 November 1991; the determination to issue an exemption order was contained in Public Notice CRTC 1992-38 dated 29 May 1992. The Commission intends shortly to issue for public comment proposed changes to the Cable Television Regulations, 1986, one of which would be to prohibit cable distribution undertakings from distributing the service of any Carrier Current Undertaking without the Commission's prior approval. In the interim, the Commission expects licensees of cable distribution undertakings not to add the distribution of any signal produced by undertakings in this exempted class.
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Notwithstanding these exemptions, the Commission expects operators of undertakings falling within exempt classes to carry on their undertakings in a responsible manner, and in accordance with the spirit of the Act and regulations, respecting, for example, the Act's call for services of high standard, and the regulatory prohibition against abusive comment.
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Parties operating undertakings exempted from licensing requirements should be mindful that if at any time the Commission deems it neces- sary or advisable, it may revoke or amend the exemption order for any class of undertaking.
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The operators of all undertakings in the above classes are exempt from licensing requirements provided the undertakings meet the various criteria set out in the orders, as may be amended from time to time by the Commission. Any undertaking that does not meet all of the criteria applicable to its class continues to require a licence from the Commission.
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General Criteria
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There are three criteria that deal with general issues. The first states that the undertaking must be one that the Commission would not be prohibited from licensing pursuant to any Direction to the Commission by the Governor in Council. These directions currently place restrictions on the level of foreign ownership and control of an undertaking, and the circumstances under which educational authorities and municipalities may hold licences. The operators of exempted undertakings should be mindful of the possibility that new directions may be issued by the Governor in Council, and should conduct themselves accordingly.
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The second criterion applicable to most of the exempt programming undertakings states that the undertaking must be one that does not broadcast programming that is reli- gious or political in nature, other than that contained in the programming it receives and rebroadcasts from a station licensed by the Commission. Any undertaking planning to originate such programming (whether locally-produced or not) does not fall within the exemption criteria, and must submit an application for a licence to the Commission.
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The third general criterion is that exempted undertakings must meet all technical requirements of the DOC and must possess all authorizations or certificates prescribed by the Department. The Commission reminds operators of undertakings exempted from licensing requirements that the DOC may alter its technical requirements from time to time, and that it is their responsibility to keep themselves informed of any changes.
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There are some other matters the Commission wishes to note or clarify.
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Low-Power Radio
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The Commission notes that there is no allotment plan for low-power AM or FM stations. Frequencies approved by the DOC for low-power undertakings are unprotected. Consequently, if an application for a licence to operate a conventional AM or FM station on the same frequency in the same service area were approved, the low-power station affected would have to change to another frequency or cease operation. The only protection they now enjoy is from interference created by any low-power AM or FM frequencies that may be approved for use in their areas in the future. The DOC advises that these provisions will continue to hold for exempted as well as for non-exempted undertakings.
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The criteria that the Commission has adopted for exempting Temporary Resource Development Distribution Undertakings, Special Event Facilitating Undertakings and Ultra Low-Power Announcement Service (LPAS) Undertakings, are substantially the same as those proposed in Public Notice CRTC 1992-5. The Commission emphasizes that this exemption order does not apply to Low-Power Television (LPTV) Undertakings.
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Carrier Current
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Carrier current stations generally are in-house university and college campus operations that make use of low-power AM transmitters that radiate a signal through the electrical system of one or more buildings. The signal can only be received by AM receivers in or near these buildings.
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The Commission's licensing policy with respect to student carrier current operations was intended to allow a campus radio club to for-malize operations, as an introductory step toward full-fledged campus FM operations, and to facilitate their carriage by cable.
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The Commission considers that the student carrier current policy has been effective in ensuring the emergence of campus radio as a valuable contributor to the overall programming fare in many Canadian commu- nities. With this maturation of campus broadcasting, the need for licensing carrier current operations has significantly diminished, particularly for those carrier current operations whose programming is not extended beyond the campus. For these reasons, the Commission determined in Public Notice CRTC 1992-38 to exempt from licence requirements those persons operating carrier current systems that are not carried on a cable system.
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Current Commission policy and regulations require student carrier current operators to program a Canadian content level of at least 30% and to maintain program logs and logger tapes. While compliance with these requirements will no longer be obligatory for the operators of these exempted undertakings, the Commission is confident that they will continue to program a high proportion of Canadian music.
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Temporary Networks
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With respect to temporary networks, the Commission will maintain the two classes proposed in Public Notice CRTC 1992-5. It notes that the first class is applicable to radio or television or both, while the second is applicable only to cable.
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Radio and Television Temporary Network Special Event Type 1 Undertakings are those undertakings providing live or same-day coverage of unexpected, non-recurring, one-time events of relatively short duration (a maximum of one consecutive 24-hour period). Regularly-scheduled programs and concerts, or recurring events such as sports play-off series, do not qualify for this exemption. Also in the first class are undertakings providing live or same-day coverage of public emergencies over a period not exceeding seven consecutive days. The program coverage must be distributed live or on a tape-delayed basis and, if taped, must be distributed within a 24-hour period of the original recording.
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Cable Temporary Network Special Event Type 2 Undertakings offer live or same-day coverage of special not-for-profit events of limited duration, such as the Montreal Jazz Festival or The Alberta Summer Games. The program coverage must be distributed live or on a tape-delayed basis and, if taped, must be distributed within a 24-hour period of the original recording. The Commission intends soon to propose for public comment an appropriate amendment to the Cable Television Regulations, 1986 with a view to authorizing cable television licensees to distribute the programming service of an exempt Cable Temporary Network Special Event Type 2 Undertaking.
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Coverage of these events -- up to a maximum of 28 consecutive days -- is restricted to distribution by cable licensees, and must be presented on either special programming or community channels. While such events may have commercial sponsorship, the network coverage must not include any conventional commercial acti- vity. Sponsorship and contra mes- sages must meet the restrictions applicable to the community channel, as contained in Public Notice CRTC 1991-59 or regulations as amended from time to time by the Commission. No separate charge may be made to subscribers for the delivery of the network programming.
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The programming carried on this second class of temporary network must have a Canadian source or cover a Canadian event. Accordingly, networks providing coverage of such annual fundraising events as those carried out by the Jerry Lewis and the Children's Miracle networks will still require a licence.
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Closed Circuit Video Programming Undertakings
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With respect to Closed Circuit Video Programming Undertakings, the Commission has decided to adopt a somewhat simpler approach than that proposed in Public Notice CRTC 1992-5. Taking into account the fact that such undertakings, prima-rily Closed Circuit Hotel Pay-per-View (PPV) systems, have been in operation for several years without regulation and with negligible impact on licensed broadcasters, the Commission has decided not to adopt any detailed criteria as to the nature and source of the programming provided.
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The Commission has determined not to prohibit the broadcast by Closed Circuit Video Programming Undertakings of feature films intended for theatrical release that may contain religious or political subject matter.
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As proposed in Public Notice CRTC 1992-5, the exemption of Closed Circuit Video Programming Undertakings necessitates certain changes to the MATV exemption criteria (Public Notice CRTC 1989-47 dated 18 May 1989). In order to permit certain non-residential MATV systems to distribute the services of Closed Circuit Video Programming Undertakings, namely those distributing close-circuit PPV programming, the seven existing criteria that, together, define MATV undertakings qualifying for exemption must be expanded through inclusion of the following:
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8. Notwithstanding paragraphs 5 and 7 above, an undertaking serving the temporary residents of hotels, motels and hospitals or the inmates of prisons may distribute the programming authorized for distribution by Closed Circuit Video Programming Undertakings, as set out in Public Notice CRTC 1993-50 dated 30 April 1993.
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Accordingly, the Commission hereby revokes the exemption order respecting Master Antenna Television Systems contained in Public Notice CRTC 1989-47, and substitutes therefor the exemption order published today in Public Notice CRTC 1993-54.
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The new exemption order differs from the old in certain other respects. The changes, however, are either minor in nature or have been made to include reference to the appropriate subsections of the Act. No Closed Circuit Video Programming undertaking exempted under the accompanying orders may be carried on cable, unless authorized by the Commission.
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Still Image Programming Service Undertakings
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The Commission has decided to make one substantive change to the criteria proposed in Public Notice CRTC 1992-5. After considering the comments of a number of parties concerning the restrictive nature of the proposed spoken word content of an exempt service, the Commission has decided to amend this criterion so as to allow spoken words that relate to what is represented by the visual component of the programming.
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The Commission also wishes to confirm that graphic designs may be included within the still image format of an exempt undertaking. The Commission notes that it will soon be proposing for public comment an appropriate amendment to the Cable Television Regulations, 1986, with a view to authorizing cable licensees to distribute the programming service provided by an exempt Still Image Programming Service Undertaking.
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Terrestrial Relay Distribution Network Undertakings
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With respect to Terrestrial Relay Distribution Network Undertakings, the Commission has adopted criteria substantially the same as those proposed in Public Notice CRTC 1992-5. The Commission has considered the proposal put forward in one of the comments received that the exemption criteria should not prohibit the use of satellites for the distribution of programming. In the Commission's view, this proposal goes beyond the scope of the exemption contemplated in Public Notice CRTC 1992-5, and raises a number of policy issues that need to be addressed before such a proposal may be considered. Community Programming Network Undertakings
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In response to comments received, the Commission has deleted the requirement that only adjacent cable systems may carry programming received from an exempt undertaking. It has substituted therefor a requirement that the cable systems participating in such a network serve a common urban area. In addition, the Commission has removed restrictions on the technical means of interconnection so as to make it technology-neutral.
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Allan J. Darling
Secretary General
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