ARCHIVED -  Public Notice CRTC 1998-81

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ARCHIVED - Public Notice CRTC 1998-81 | CRTC
 

Public Notice

  Ottawa, 30 July 1998
  Public Notice CRTC 1998-81
 

Proposed Regulations Amending the Radio Regulations, 1986 - Acquisition by Radio Licensees of Equity in Other Stations in the same Market and Language

  1.  The Commission proposes to make amendments to section 11 of the Radio Regulations, 1986, SOR/86-982, as amended (the existing regulations). A copy of the proposed Regulations Amending the Radio Regulations, 1986 (the proposed amendments) is appended to this public notice.
  2.  The proposed amendments result from the process initiated by the Commission in Public Notice CRTC 1997-104 to review its commercial radio policy. Following a public process that included written and oral phases, the Commission issued Public Notice CRTC 1998-41, dated 30 April 1998 and entitled Commercial Radio Policy 1998, setting out its revised policy for conventional commercial radio stations.
  3.  In Public Notice CRTC 1998-80 issued today, the Commission is also proposing amendments to sections 2 and 8, as well as to the Schedule of the existing regulations, to give effect to the Commission's revised policy with respect to the content of commercial radio programming. These amendments are proposed to come into effect on 3 January 1999.
  4.  The proposed amendments that are the subject of this public notice relate to acquisitions by licensees of equity in other radio stations operating in the same market and in the same language. These amendments are proposed to come into effect on the date of their registration.
  BACKGROUND
  5.  In Public Notice CRTC 1998-41, the Commission announced a revised common ownership policy. The policy stipulates:
   In markets with less than eight commercial stations operating in a given language, a person may be permitted to own or control as many as three stations operating in that language, with a maximum of two stations in any one frequency band. In markets with eight commercial stations or more operating in a given language, a person may be permitted to own or control as many as two AM and two FM stations in that language.
  6.  The Commission stated that, in assessing a particular application under the new ownership policy, it would take into account, amongst other matters, the amount of equity (voting and non- voting) that the applicant may have in other radio stations operating in the same language in the market concerned.
  7.  In addition, the Commission indicated that it would propose an amendment to the existing regulations specifying that the licensee of a radio station must obtain the Commission's approval prior to acquiring a certain level of equity in another radio station operating in the same language and in the same market. These amendments are summarized below.
  THE PROPOSED AMENDMENTS
  8.  Under the proposed amendments, prior approval would be required for transactions in which the licensee of a radio station, its associate, or both taken together, acquire 30% or more of the common shares of another radio station operating in the same market and in the same language. Prior approval would also be required in circumstances where the licensee, its associate, or both taken together, acquire 40% or more of the common shares of another such station.
  9.  These requirements for prior Commission approval of share transactions would be in addition to those contained in sections 11(4)(b) and 11(4)(c) of the existing regulations with respect to transactions that result in the ownership of 50% or more of the common shares. Prior approval, however, would not be required in respect of transactions increasing the ownership of common shares from 30% or more to less than 40%, or from 40% or more to less than 50%.
  10.  The proposed amendments include a revised definition of "common shares" to include the notion of a security convertible into common shares. This amendment is consistent with the definition of "voting share" in the existing regulations.
  11.  As stated in Public Notice CRTC 1998-41, the Commission is interested, in particular, in receiving comments as to the proposed level of equity that should trigger the filing of an application for its approval.
  COMMENTS
  12.  Interested parties wishing to comment on the proposed regulations must send their submissions to the Secretary General, Canadian Radio-television and Telecommunications Commission, Ottawa, Ontario, K1A 0N2, by 15 September 1998. To be considered as part of the proceeding, a submission must be actually received by the Commission and not merely mailed by that date. While receipt of submissions will not be acknowledged, they will be considered by the Commission and will form part of the public record of the proceeding.
  Laura M. Talbot-Allan
Secretary General
  This document is available in alternative format upon request.
  JUS-600460
(CG-I/GC-I)
  REGULATIONS AMENDING THE RADIO REGULATIONS, 1986
  amendments
  1. (1) The definition "common shares" (1) in subsection 11(1) of the Radio Regulations, 1986 2 is replaced by the following:
  " common shares" means the shares that represent the residual equity in the earnings of the corporation, and include securities that are convertible into such shares at all times at the option of the holder and the preferred shares to which are attached rights to participate in the earnings of the corporation with no upper limit. (actions ordinaires)
  (2) Paragraph 11(4)(d) (3) of the Regulations is replaced by the following:
  (d)  another A.M. or F.M. licensee that broadcasts in the same market and in the same language as the licensee, an associate of that other licensee or that other licensee together with its associate, who own less than
  (i) 30  per cent of the issued common shares of the licensee or of a person who has, directly or indirectly, effective control of the licensee, owning 30 per cent or more but less than 40 per cent of those shares, or
  (ii) 40  per cent of the issued common shares of the licensee or of a person who has, directly or indirectly, effective control of the licensee, owning 40 per cent or more but less than 50 per cent of those shares. coming into force
  2. These Regulations come into force on _______________
  _______________
1 SOR/93-355
2 SOR/86-982
3 SOR/96-324
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