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Public Notice
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Ottawa, 30 July 1998 |
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Public Notice CRTC 1998-81 |
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Proposed Regulations Amending the Radio Regulations, 1986 -
Acquisition by Radio Licensees of Equity in Other Stations in the same Market
and Language
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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. |
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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. |
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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. |
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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. |
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BACKGROUND |
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5. In Public Notice
CRTC 1998-41, the Commission
announced a revised common ownership policy. The policy stipulates: |
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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. |
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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. |
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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. |
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THE PROPOSED AMENDMENTS |
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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. |
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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%. |
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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. |
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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. |
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COMMENTS |
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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. |
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Laura M. Talbot-Allan
Secretary General |
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This document is available in alternative
format upon request. |
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JUS-600460
(CG-I/GC-I) |
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REGULATIONS AMENDING THE RADIO REGULATIONS, 1986 |
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amendments |
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1. (1) The definition "common shares" (1) in
subsection 11(1) of the Radio Regulations, 1986 2 is replaced by the
following: |
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" 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) |
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(2) Paragraph 11(4)(d) (3) of the Regulations
is replaced by the following: |
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(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 |
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(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 |
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(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 |
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2. These Regulations come into force on
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1 SOR/93-355
2 SOR/86-982
3 SOR/96-324 |