ARCHIVED -  Decision CRTC 96-727

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Ottawa, 29 October 1996
Decision CRTC 96-727
CHUM Limited
Winnipeg, Manitoba - 951406800
Short-term licence renewal for CHIQ-FM Winnipeg
Following a Public Hearing in Calgary beginning on 15 July 1996, the Commission renews the broadcasting licence for CHIQ-FM Winnipeg from 1 December 1996 to 31 August 1998, subject to the conditions in effect under the current licence, as well as to those conditions specified in this decision and in the licence to be issued.
This term will enable the Commission to assess at an early date the licensee's compliance with the Radio Regulations, 1986 (the regulations) and CHIQ-FM's conditions of licence.
In Notice of Public Hearing CRTC 1996-7 dated 17 May 1996, the Commission called the licensee to appear at the July hearing to discuss its apparent non-compliance with CHIQ-FM's condition of licence requiring that it broadcast less than 50% hits each week. The Commission advised the licensee that it would be expected to show cause at the hearing why the Commission should not issue a mandatory order requiring CHIQ-FM to comply with this condition of licence.
This is the second time that the Commission has issued a short-term licence renewal for CHIQ-FM due to concerns relating to the licensee's non-compliance. In Decision CRTC 94-582 dated 11 August 1994, the Commission gave CHIQ-FM a short-term licence renewal because of the licensee's failure to comply with subsection 2.2(3) of the regulations which requires, among other things, that at least 30% of all musical selections broadcast each week from content category 2 be Canadian.
During the current licence term, the Commission asked the licensee to submit CHIQ-FM's logger tapes and other material for the programming broadcast during the week of 27 August to 2 September 1995. In a letter dated 21 December 1995, the Commission advised the licensee that the Commission's analysis of the logger tapes in question revealed that CHIQ-FM had failed to comply with its condition of licence requiring that the station broadcast less than 50% hits each week. According to the Commission's analysis, the estimated hit level for that week was 50.8%.
In a letter dated 17 January 1996, the licensee claimed that, according to the publication "Maple Music", three of the Canadian musical selections identified in the Commission's analysis as hits should be considered as non-hits. The licensee also explained that a malfunction in its music computer system as well as human error resulted in a discrepancy in its self-assessment of the hit-to-non-hit levels of musical selections broadcast during the week in question and the Commission's findings that CHIQ-FM had broadcast more than 50% hits during that week.
The licensee further outlined the measures it planned to implement to ensure compliance. Specifically, the licensee stated that, to prevent future technical errors, its music computer software manufacturer was redesigning CHIQ-FM's software. The licensee expected that this new software would be ready by the spring of 1996.
The Commission allows radio stations to identify Canadian music selections that are hits as non-hits for one year after they have attained hit status. The licensee, however, indicated that CHIQ-FM will use only nine months of that grace period. In addition, the licensee stated that nine months after a Canadian selection has attained hit status, CHIQ-FM's new music software will automatically identify that selection as a hit.
With regard to the licensee's claim that three Canadian musical selections identified by the Commission as hits should be considered as non-hits, the Commission, in a letter dated 6 February 1996, advised the licensee that these selections had achieved hit status on the RPM Country Chart and were indeed hits. The Commission explained that the information identified by the licensee from "Maple Music" refers only to Pop/Rock format hits, and not to Country format hits. Furthermore, the Commission estimated that, over the week analysed, 38 selections that the licensee claimed to be non-hits were, in fact, hits.
At the hearing, the licensee acknowledged its non-compliance with the requirements of its condition of licence and indicated that it had implemented the procedures described in its 17 January 1996 letter to ensure that CHIQ-FM operates in compliance.
Having considered all the evidence available to it, the Commission is satisfied that the licensee has taken steps to correct the problem identified in 1995 and has put in place procedures to ensure that CHIQ-FM operates in compliance with its conditions of licence. Nevertheless, the Commission considers that a short-term licence renewal is necessary to enable the Commission to assess, at an early date, the licensee's compliance with the regulations and its conditions of licence during the new licence term. The Commission will monitor closely the licensee's performance during the new licence term and directs the licensee to take all necessary measures to ensure that it adheres to the regulations and its conditions of licence at all times.
It is a condition of licence that this station not be operated within the Specialty format as defined in Public Notice CRTC 1995-60, or as amended from time to time by the Commission.
Canadian Talent Development
The licensee is required, by condition of licence, to make payments to third parties involved in Canadian talent development at the level identified for it in the Canadian Association of Broadcasters' (CAB) "Distribution Guidelines For Canadian Talent Development", as set out in Public Notice CRTC 1995-196 or as amended from time to time and approved by the Commission, and to report the names of the third parties associated with Canadian talent development, together with the amounts paid to each, on its annual return. The payments required under this condition of licence are over and above any outstanding commitments to Canadian talent development offered as benefits in an application for approval to acquire ownership or control of the undertaking.
Employment equity
In Public Notice CRTC 1992-59 dated 1 September 1992 and entitled "Implementation of an Employment Equity Policy", the Commission announced that the employment equity practices of broadcasters would be subject to examination by the Commission. In this regard, 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.
This decision is to be appended to the licence.
 Allan J. Darling
 Secretary General

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