ARCHIVED - Broadcasting Decision CRTC 2002-377

Broadcasting Decision CRTC 2002-377

Ottawa, 19 November 2002

Cable Public Affairs Channel Inc.
Across Canada

Applications 2002-0127-8 and 2002-0128-6
Public Hearing in the National Capital Region
6 May 2002

Licence renewal for CPAC; and issuance of a distribution order

In this decision, the Commission approves the licence renewal applications by Cable Public Affairs Channel Inc. (CPAC) in respect of its English- and French-language satellite-to-cable programming undertakings. The Commission also approves the applicant's plans to expand the range of programming categories that make up the service to include, among other things, long-form documentaries, and CPAC's proposal for a new funding model predicated on the introduction of a new monthly subscriber fee. Further, the Commission grants the applicant's request that its service be designated for mandatory distribution by broadcasting distribution undertakings, and issues Distribution Order 2002-1 to this effect.

Background

1.

Cable Public Affairs Channel Inc.(CPAC) is a federally incorporated, not-for-profit company that is owned by companies in the cable television industry. CPAC is licensed to provide, in English and in French, a public affairs programming service that is complementary to the exempt programming service that CPAC also operates. The exempt service includes "gavel-to-gavel" coverage of the proceedings of the House of Commons. It also includes coverage of the committees of the House of Commons. The exempt service has been operated by CPAC pursuant to House of Commons and Provincial or Territorial Legislature Proceedings Exemption Order, Public Notice CRTC 1992-6, 17 January 1992, (the Exemption Order) and in accordance with CPAC's agreement with the Speaker of the House of Commons.

2.

The "wrap-around" programming provided by CPAC's licensed service complements the exempt service, and consists of both long-form programming and in-depth public affairs programming. The long-form programming of the service as currently licensed includes coverage of conferences and hearings of government departments and agencies, and coverage of special events and public inquiries. CPAC's in-depth public affairs programming consists of interviews, talk shows and in-depth reviews of key national events and policy issues.

3.

Since CPAC's inception in 1993, its licensed and exempt services have been funded by payments made by broadcasting distribution undertakings (BDUs) that distribute the service (affiliates). Currently, these include the licensees of more than 80 licensed cable BDUs and two national direct-to-home (DTH) BDUs. Together, they ensure the delivery of CPAC to well over 95% of all BDU subscribers across Canada as part of the basic service. Hitherto, there has been no basic rate authorized for CPAC. Thus, subscribers have not been charged any direct fee for CPAC as part of their subscription rate.

4.

In The distribution of the House of Commons on CPAC, Public Notice CRTC 2001-115, 6 November 2001 (Public Notice 2001-115), the Commission underscored the importance it places on ensuring access by Canadians to coverage of the proceedings of the House of Commons and its committees, and announced its decision to ensure the availability of such coverage, in both official languages, to most cable and DTH satellite subscribers across the country. The amendments to the Broadcasting Distribution Regulations (the Distribution Regulations) came into effect on 1 September 2002, making carriage of the proceedings of the House of Commons and its committees mandatory for most BDUs (see Amendments to the Broadcasting Distribution Regulations - Distribution of the proceedings of the House of Commons and its various committees,Public Notice CRTC 2002-72 of today's date).

The renewal applications

5.

In its renewal applications, the licensee proposed to introduce certain new programming categories to its licensed service, and to implement various other programming-related initiatives in the new licence term. The programming changes proposed by CPAC include the broadcast of programming drawn from category 2a¹ (Analysis and interpretation), 2b (Long-form documentary) and 5b (Informal education/Recreation and leisure). These categories would be in addition to category 3 programming (Reporting and actualities) currently specified in the definition of CPAC's nature of service. Inclusion of these proposed new programming categories would be through an amendment to CPAC's existing nature of service definition. CPAC's plans also include expenditures on improved closed captioning, enhanced French-language programming and the provision of greater regional reflection. CPAC emphasized that the proposed programming changes would not represent any significant shift in the existing mandate of the service, but rather would allow the service to more fully meet that mandate.

6.

CPAC noted that, from the time it was first licensed, the service has been financed entirely by payments made by BDUs who distribute it. The licensee submitted that rising costs and the increasingly competitive state of the Canadian broadcasting distribution industry have made the current CPAC funding model unsustainable. To replace the existing method of funding, as well as to finance its new programming plans, the licensee requested that the Commission authorize CPAC to charge BDUs distributing the service a new monthly per subscriber fee. The proposed maximum fee of $0.10 per month per subscriber, increasing to $0.11 in the third year, would be for CPAC's licensed and exempt services, together. CPAC proposed that BDUs absorb $0.03 of this maximum fee using their general revenues to ensure that Canadians continue to receive the Parliamentary coverage provided by CPAC at no charge. The remainder of the maximum fee ($0.07 in the first year and $0.08 thereafter) would be passed through by BDUs to their subscribers, and the revenues used to support the production and broadcast of CPAC's complementary wrap-around programming.

7.

CPAC further requested that the Commission authorize the distribution of its service on a dual status basis. Under the distribution and linkage requirements, when a specialty service with dual status is distributed, it must be carried as part of the basic service unless the licensee of the service agrees in writing to its distribution as part of a discretionary tier.CPAC argued that a Commission decision to accord its service dual status would ensure that the service continues to be broadly available across Canada. It stated that this would be consistent with CPAC's public service mandate and with the Commission's policy for the distribution of the proceedings of the House of Commons and its committees.

The process

8.

In Broadcasting Notice of Public Hearing CRTC 2002-2, 1 March 2002 announcing CPAC's renewal applications, the Commission sought comment on the applicant's programming plans, and on CPAC's proposal to institute a monthly fee. The Commission noted that only certain analog specialty programming services have been authorized for distribution on a dual status basis. Accordingly, the Commission sought comment on whether it would be appropriate to license CPAC as a specialty service with dual status, and on "any other options and/or methods for according CPAC distribution on a dual status basis, should the Commission wish to grant CPAC's request." Further, the Commission sought comment on the appropriate steps to implement the various options and/or methods proposed.

9.

The Commission received 43 interventions addressed to CPAC's renewal applications and the Commission, in its deliberations, has taken all into account. The vast majority of these were in support of CPAC's renewal and of the applicant's proposed programming plans. Five interveners, however, were opposed to one or more aspects of CPAC's renewal applications, including its request for authority to broadcast long-form documentaries and programming in other new categories, its proposal for mandatory carriage, and its request for a regulated fee to fund the operation of the service. The opposing interveners were the partners of Stornoway Communications Limited Partnership (Stornoway), the Canadian Broadcasting Corporation (CBC), the Canadian Association of Broadcasters (CAB), the National Film Board of Canada (NFB) and Mr. Walter Naherny of Winnipeg. Two other interveners, namely Canadian Cable Systems Alliance Inc. (CCSA) and the partners of Bell ExpressVu Limited Partnership (Bell ExpressVu) did not oppose CPAC's renewal applications, but expressed certain concerns, CCSA about the applicant's proposal for a new monthly fee, and Bell ExpressVu about CPAC's request for mandatory distribution. In one further intervention, the Standing Committee on Internal Economy, Budgets and Administration of the Senate of Canada also expressed concern about certain of CPAC's proposals, and requested that CPAC be required to expand its coverage of the Senate's activities.

10.

Based on its examination of the two applications before it, and taking into consideration the views of interveners, the Commission is satisfied that a long-term renewal of the licences issued to CPAC for its French- and English-language satellite-to-cable programming undertakings is justified. Accordingly, the Commission renews CPAC's licences from 1 December 2002 to 31 August 2009². The licences will be subject to the conditions set out in Appendix 1 to this decision, as well as to those contained in the licences to be issued.

Summary of the Commission's determinations

11.

In the following sections of this decision, the Commission presents its analysis of, and its decision to approve, the applicant's programming plans, its proposals to modify the nature of its service through an expansion of the range of programming categories offered, and CPAC's request to introduce a new maximum monthly fee, a portion of which BDUs would pass on to their subscribers. Further, the Commission examines the issue of CPAC's coverage of the Senate of Canada, and announces that it has amended the Exemption Order to describe the programming provided by the exempt service as including coverage of the Senate and its various committees.

12.

The Commission also announces its determination to grant CPAC's licensed service mandatory distribution by BDUs, on a national basis and in both official languages, as part of the basic service. Accordingly, pursuant to section 9(1)(h) of the Broadcasting Act (the Act), the Commission issues Distribution of the public affairs programming service of Cable Public Affairs Channel Inc. known as CPAC by persons licensed to carry on certain types of broadcasting distribution undertakings, Distribution Order 2002-1, attached as Appendix 2 to this decision, setting out the specific requirements for CPAC's distribution.

Programming plans and initiatives

Nature of service - the addition of new program categories and a definition of long-form programming

13.

CPAC's current conditions of licence stipulate that 100% of all programming broadcast by CPAC be drawn from categories 3 (Reporting and actualities) or 12 (Filler programming). CPAC applied to amend its conditions of licence by expanding the authorized programming categories to include category 2a (Analysis and interpretation), 2b (Long-form documentary) and category 5b (Informal education/Recreation and leisure). CPAC proposed to restrict, to a maximum of 5% per semester, the amount of programming that would be drawn from each of the categories of Long-form documentary and Informal education/Recreation and leisure. CPAC also proposed to replace Filler programming (formerly category 12) with current category 12 (Interstitials).

Interveners' concerns

14.

Although most interveners supported CPAC's programming proposals, four opposed the changes. The NFB and Stornoway expressed concern that the proposed addition of documentary programming would have a negative impact on newly launched specialty services in which they have ownership interests, namely The Canadian Documentary Channel and i channel, respectively. The CAB, and the CBC in its capacity as licensee of Newsworld and Le Réseau de l'Information (RDI), suggested that the changes would bring about a fundamental and unacceptable shift away from CPAC's current nature of service, and towards the introduction of a service competing with other existing services, contrary to Commission policy. The CBC also argued that the licensee is currently in non-compliance as a consequence of CPAC offering, as part of its service, programming in categories other than those authorized in its nature of service definition. The CBC further suggested that the programming and other changes proposed by CPAC would effectively create a new service and should thus have triggered a competitive licensing process.

Applicant's reply

15.

CPAC, in reply to the interventions by the NFB, Stornoway, the CBC and the CAB, stated that its proposed changes do not constitute a significant shift in its mandate. CPAC argued that, in Licence renewals, Decision CRTC 95-22, 20 January 1995 (Decision 95-22), the Commission described the service as offering a variety of complementary, contextual public affairs programming since 1996. The licensee added that the proposed new programming categories, with the exception of documentaries and informal education programming, better reflect the types of programming CPAC was authorized to provide in Decision 95-22. According to CPAC, it will continue to be guided by the programming principles contained in Decision 95-22, including the principle that its programming should "complement public affairs programming provided by other Canadian programming services." It also confirmed the following:

We are not trying to expand the mandate, and we are not trying to compete with [other] services. We are just trying to experiment with things within that mandate and try to make that kind of programming attractive to people.

16.

CPAC emphasized that the "raison d'être and programming cornerstone" of its service would continue to be "the distribution to Canadians of live 'gavel-to-gavel' coverage of the proceedings of the House of Commons, in both official languages." It affirmed that other, long-form, non-editorial programming would remain the principal component of its service and would not be reduced "in any way, shape or form", notwithstanding the addition of program categories that would explicitly permit CPAC to broadcast documentaries and other in-depth public affairs programming. It also stated that this long-form programming would remain non-editorial in nature and that CPAC would not air any "point-of-view" documentaries.

17.

In response to Commission questioning at the hearing, CPAC proposed three mechanisms that would help to ensure that its programming does not become directly competitive with other services, that it continues to contribute to diversity, and that it continues to complement the public affairs programming of other Canadian broadcasting services. First, CPAC proposed the following nature of service definition as a condition of licence:

The licensee shall provide a national service that will provide coverage of Canada's Parliament, including coverage of the proceedings of the House of Commons, coverage of the proceedings of Committees of the House of Commons and of the Senate of Canada, and coverage of other Parliamentary events, as well as other public affairs programming consisting exclusively of "long-form" programming or programming focusing on local, regional, national and international civic affairs, including the process and debates that underpin the operations of democratic government and the development of public policy.

18.

Second, CPAC proposed the following definition of long-form programming:

Long-form programming shall consist of programming that provides extended coverage of public speeches, political conventions, conferences, commissions of inquiry, public hearings, proceedings of the Supreme Court of Canada and of the Federal Court of Canada, proceedings of legislatures other than those of the Parliament of Canada, press conferences, public ceremonies, federal and provincial general elections, and other similar public events of regional or national importance.

19.

Third, CPAC proposed the addition of a condition of licence specifying that:

No less than 70% of CPAC's programming each broadcast week shall consist of long-form programming, coverage of the proceedings of the House of Commons or coverage of Committees of the House of Commons or the Senate of Canada.

20.

As mentioned, CPAC also stated that it would restrict, to a maximum of 5% per semester, the amount of programming to come from each of the categories of Long-form documentaries and Informal education/Recreation and leisure. With respect to this latter programming category, the licensee further confirmed at the hearing that it would not offer recreation and leisure programming despite the fact that such programming forms part of category 5b.

Commission's analysis and determination

21.

The Commission has considered the CBC's comments regarding CPAC's compliance with its nature of service definition. The Commission has also considered the licensee's reply, including its comments about CPAC's mandate, as set out by the Commission in previous decisions and particularly in Decision 95-22. The Commission notes that in that decision, in addition to imposing the condition of licence with respect to programming categories, the Commission acknowledged the licensee's intention to introduce new types of programming, such as phone-in programs and factual interstitial programming. Under the circumstances, the Commission is not prepared to conclude that CPAC has been operating in non-compliance with its conditions of licence.

22.

The Commission is further satisfied that the programming categories proposed by CPAC are appropriate for this type of service, and does not consider that the addition of this programming should trigger a competitive licensing process. At the same time, given the concerns of the CBC and of other interveners, the Commission believes that there is a need, going forward, for greater clarity in defining the nature and mandate of the service that CPAC is to provide. The Commission considers that the proposed amendments, the nature of service definition, and the other restrictions proposed by CPAC and discussed further below, provide this clarity. It also believes that they represent an appropriate and effective response to the concerns of interveners by setting clear, but reasonable limits on the amount and nature of in-depth public affairs programming, including long-form documentaries, that may be included in CPAC's schedule. Further, the Commission is confident that these factors, taken together, will ensure that CPAC's programming continues to contribute to diversity.

23.

CPAC's proposed nature of service definition includes reference to coverage of the House of Commons and the Senate. CPAC's coverage of the House of Commons and its committees is provided by its exempt service pursuant to the Exemption Order. As noted above, the amended Exemption Order includes Senate coverage in the exempt service. Accordingly, the Commission modifies CPAC's proposed text in order to limit the nature of service to those elements that are part of the licensed service, thereby arriving at the following, amended nature of service condition of licence that will apply to CPAC.

24.

The Commission is therefore imposing a condition of licence that the licensee provide a national public affairs programming service complementary to the exempt service it operates in accordance with the Parliamentary and Provincial or Territorial Legislature Proceedings Exemption Order appended to Public Notice CRTC 2002-73, 19 November 2002 (the amended Exemption Order), as may be amended from time to time,consisting exclusively of long-form programming or programming focusing on local, regional, national and international civic affairs, including the process and debates that underpin the operations of democratic government and the development of public policy. The condition of licence requires that all such programming be drawn exclusively from the categories: 2a (Analysis and interpretation); 2b (Long-form documentary); 3 (Reporting and actualities); 5b (Informal education/Recreation and Leisure, but excluding recreation and leisure); and 12 (Interstitials).

25.

Similarly, CPAC's proposal for a condition of licence requiring that a minimum of 70% of its programming consist of long-form programming and Parliamentary coverage encompasses a programming element, namely the Parliamentary coverage, that is not part of the licensed service. CPAC has committed to broadcast long-form programming in lieu of exempt Parliamentary coverage at times when Parliament is not in session. However, because the length of Parliamentary sessions and the amount of Parliamentary coverage may vary widely, CPAC was unable to provide a breakdown of the amount of long-form programming it would broadcast, as distinct from the amount of Parliamentary coverage that would be provided as part of its exempt service.

26.

In the absence of this information, it is not possible to formulate a minimum percentage requirement for CPAC's licensed long-form programming that would be equivalent to CPAC's proposed minimum 70% requirement for the exempt Parliamentary coverage and CPAC's licensed long-form programming, combined. The desired effect, that being to ensure long-form, non-editorial programming remains the principal component of CPAC's licensed service, may nevertheless be achieved by placing a maximum limit of 30% on the amount of programming in a broadcast week that may consist of other than long-form programming. The Commission notes that 30% of CPAC's 126-hour broadcast week equates to approximately 38 hours. Accordingly, the Commission has decided to impose a condition of licence limiting to not more than 38 hours in any broadcast week the amount of CPAC's licensed programming that may consist of other than long-form programming.

27.

As proposed by the applicant, for the purpose of the licence conditions set forth in this decision, "long-form programming" is defined as: "programming that provides extended coverage of public speeches, political conventions, conferences, commissions of inquiry, public hearings, proceedings of the Supreme Court of Canada and of the Federal Court of Canada, proceedings of legislatures other than those of the Parliament of Canada, press conferences, public ceremonies, federal and provincial general elections, and other similar public events of regional or national importance."

28.

Consistent with the licensee's commitments, the Commission is attaching a condition of licence that not more than 5% of the licensed programming broadcast in each semester consist of programming drawn from category 2b (Long-form documentary). Similarly, it is a condition of licence that no more than 5% of the licensed programming broadcast in each semester consist of programming drawn from category 5b (Informal education/Recreation and Leisure, but excluding recreation and leisure).

29.

The Commission reminds the licensee that all programming drawn from these and other categories must be consistent with the nature of CPAC's service, and must consist "exclusively of long-form programming or programming focusing on local, regional, national and international civic affairs, including the process and debates that underpin the operations of democratic government and the development of public policy."

30.

The Commission notes that the definition of long-form programming set out above is fairly broad in scope and, on the face of it, would appear to allow room for overlap between the programming broadcast by CPAC and that aired by other broadcasting licensees. Indeed, the CBC and certain other interveners were concerned about the competitive impact that might result from the inclusion of long-form documentaries in CPAC's service. As mentioned, however, the Commission is satisfied that the constraints applied by the Commission in this decision concerning the amount and the nature of such programming broadcast by CPAC serve as an effective response to these concerns. For example, under the amendments, CPAC would continue to be prohibited from airing any news programming that might bring the service into direct competition with Newsworld or RDI. As for i channel, that service may not broadcast reporting and actuality programming, and is explicitly prohibited from providing coverage of live events, programming that forms the mainstay of CPAC's service.

31.

Given the licensee's commitments and the Commission's requirements, the Commission is further satisfied that CPAC will contribute to diversity by providing a programming service that continues to be specialized and focused, with an emphasis on the provision of complementary category 3 programming, including the gavel-to-gavel coverage of events that, in the past, few other broadcasters have demonstrated any consistent interest in providing.

Coverage of the Senate of Canada

Intervener's concerns

32.

The intervention submitted by the Standing Committee on Internal Economy, Budgets and Administration of the Senate of Canada called upon the Commission to require CPAC to provide "reasonable amounts of Senate programming on a regularly scheduled basis, during reasonable viewing periods." The intervention quoted the provision contained in the Constitution Act, 1867 that "there shall be One Parliament for Canada, consisting of the Queen, an Upper House styled the Senate, and the House of Commons." The intervention called for specific conditions of licence to ensure that CPAC airs all programming produced by the Senate, including a specific number of hours in weekly fixed prime-time periods, as well as programming profiling the work of the Senate.

Applicant's reply

33.

In response to this intervention, CPAC stated that it was committed to providing coverage of every Senate committee meeting provided to CPAC and, at a minimum, to broadcasting eight hours per week of such programming during periods when the Senate is sitting. With respect to scheduling, CPAC stated that it would schedule Senate committee proceedings equitably in relation to its scheduling of committees of the House of Commons, and that it would work with the Senate to find a mutually satisfactory solution to the scheduling of such programming. Further, CPAC stated that it would discuss with the Senate specific proposals that the Senate may wish to put forward regarding the presentation of programs that would profile the work of the Senate.

34.

Ultimately, CPAC proposed the following condition of licence intended to reflect its commitment to Senate proceedings:

CPAC shall broadcast all televised proceedings of Committees of the Senate of Canada that are provided to CPAC by the Senate and, subject to availability, shall broadcast a minimum of eight (8) hours of such televised proceedings for each broadcast week in which the Senate is in session. Televised proceedings of Committees of the Senate shall be scheduled for broadcast equitably in relation to CPAC's televised coverage of proceedings of the Committees of the House of Commons.

Commission's analysis and determination

35.

The Commission considers it important that the exempt service provided by CPAC reflect the bicameral nature of Canada's Parliament by providing coverage of both the upper and the lower houses. Accordingly, the Commission has amended the Exemption Order to describe the programming provided by the exempt service as including coverage of the Senate and its various committees, as provided by the Speaker or appropriate committee responsible for broadcasting matters (see the amended Exemption Order).

36.

As in the case of the broadcast of the proceedings of the House of Commons and its Committees, the Speaker of the Senate or the appropriate Senate Committee responsible for broadcasting matters retains control over the programming. Coverage of the proceedings of the House of Commons shall at all times have priority of access. The Commission notes that both the intervener and the licensee acknowledged that such priority is appropriate. The Commission expects the licensee to enter into an agreement with the Senate with respect to the broadcast of its proceedings.

37.

The Commission does not consider it appropriate to impose the specific programming and scheduling requirements proposed by the intervener, as these are areas in which the Commission does not normally intervene. CPAC's coverage of the proceedings of the House of Commons and its Committees is governed by the Exemption Order and CPAC's agreement with the Speaker of the House of Commons. The Commission has not imposed requirements with respect to the nature, extent or scheduling of CPAC's House of Commons programming. Similarly, the Commission expects CPAC's coverage of the Senate to be governed by the amended Exemption Order and by CPAC's agreement with the Senate with respect to the broadcast of its proceedings.

38.

The Commission notes CPAC's commitments to schedule Senate Committee proceedings equitably in relation to its televised proceedings of the House of Commons, and to work with the Senate to find a mutually satisfactory solution to the scheduling of such programming. The Commission expects CPAC to do so. The Commission also notes CPAC's commitment to discuss with the Senate specific proposals the Senate may wish to put forward regarding the presentation of programs that would profile the work of the Senate. The Commission encourages CPAC to give implementation of these commitments its highest priority.

Other programming matters

Programming principles

39.

From the time CPAC was originally licensed, the Commission has expected the licensee to adhere to six programming principles. The Commission reiterates this expectation, but with two minor amendments. The principles currently state that CPAC's programming will not contain any commercial content. As proposed by CPAC, however, the Commission has decided to allow CPAC, by condition of licence, to broadcast certain sponsorship messages.

40.

Specifically, by condition of licence, CPAC will be prohibited from broadcasting commercial messages other than sponsorship messages for closed captioning or described video. Such sponsorship messages will be limited to identification of the name of the sponsor.

41.

The principles have been amended to reflect this change. They have also been amended to include reference to the Senate. This latter change takes into account the Commission's expectation that CPAC will enter into an agreement with the Senate concerning the broadcast of the proceedings of the Senate and its committees.

42.

Accordingly, the Commission expects CPAC to adhere to the following principles:

• CPAC must respect its agreements with the House of Commons and the Senate;

• CPAC will not present its own editorial position in any of the programming which it distributes;

• CPAC will present a balance of diverse points of view and, in particular, represent the various views held by Canadians in the different regions of the country;

• CPAC's programming must reflect Canada's dual linguistic nature;

• CPAC's programming will complement public affairs programming provided by other Canadian programming services; and

• CPAC's programming will not contain any commercial content, with the exception of sponsorship messages for closed captioning or described video.

Canadian content

43.

With respect to Canadian content, and consistent with existing requirements, the Commission is imposing a condition of licence that not less than 90% of licensed programming broadcast by the licensee in each semester of the licence term be Canadian. Similarly, it is a condition of licence that not less than 90% of the licensed programming broadcast by the licensee during the evening broadcast period be Canadian.

French-language programming

44.

In its applications, CPAC indicated that foremost among its objectives is to increase its presence and its capabilities as a bilingual public service, providing relevant information to Canadians across the country in both official languages. The licensee stated that its commitments to increase the amount of original French-language programming aired on the service, over the new licence term, include plans to transform its current Revue Politique from a weekly into a daily, hour-long program dealing with issues of particular relevance to Francophones. At the hearing, CPAC indicated that 25% of its original, in-depth programming will be in the French language. With respect to its long-form programming originating in the French language, the licensee indicated that it broadcasts what is available. It added that its goal is to increase the amount of long-form programming originating in the French language to a minimum of 20% of all of its long-form programming, in proportion with the percentage of Francophones in Canada's population. CPAC further proposed to provide simultaneous translation of all of its programming by the end of the licence term.

45.

The licensee also indicated that in implementing its commitments to enhance the French-language programming offered by its service, CPAC would ensure that 25% of all licence fees spent on new documentary programming are in respect of documentaries produced in the French language.

46.

Taking into account the broad public interest served by CPAC's programming, and consistent with CPAC's new status as a service that will be paid for in large measure by subscribers, and that has rights to mandatory distribution by BDUs in most English- and French-language markets across the country, the Commission considers as vital CPAC's commitments and objectives regarding the provision of service to Francophones. For this reason, the Commission considers it appropriate to require CPAC to adhere to these commitments and to achieve its objectives, not over the new licence term, but in accordance with earlier, more specific deadlines.

47.

Accordingly, it is a condition of licence that CPAC broadcast as many events as possible that originate in the French language. At a minimum, 20% of all events broadcast in each broadcast year must originate in the French language, beginning in the broadcast year commencing 1 September 2003.

48.

The Commission is also imposing a condition of licence that CPAC provide simultaneous translation for 100% of its licensed programming, beginning on 1 September 2003.

49.

As a further condition of licence, not less than 25% of the in-depth public affairs programming the licensee originates in each broadcast year must be produced in the French language, beginning in the broadcast year commencing 1 September 2003.

50.

The Commission further expects the licensee to adhere to its commitment to ensure that a minimum of 25% of the amount it spends on licence fees for documentary programming is spent on licence fees for documentaries that are produced in the French language.

Regional reflection

51.

In its applications, CPAC made a commitment to enhance its coverage of regional events. In the Commission's view, it is essential that CPAC's programming reflect all of Canada's regions. In this regard, the Commission reminds the licensee that programs originating in Canada's National Capital Region should continue to reflect people and communities across Canada. The Commission further expects CPAC, consistent with the licensee's past practice, to broadcast events from each of Canada's provinces and territories in each broadcast year.

Closed captioning

52.

CPAC indicated that, under the arrangements it has with Parliamentary authorities, the House of Commons and the Senate are responsible for furnishing any closed captioning or sign language that accompanies the programming they provide. With respect to its licensed programming, CPAC made a commitment that, by the end of the licence term, it would increase the levels of closed captioning it offers to a minimum of 90% of all English-language programming, and 50% of all French-language programming.

53.

CPAC stated that, although it was willing to accept a condition of licence requiring adherence to the commitment in respect of its English-language programming, it would be unwilling to do so for French-language programming, due in large part to the limited availability of persons with training in providing real-time captions for French-language programs.

54.

The Commission acknowledges the difficulties associated with providing real-time captioning in French. At the same time, given the importance it places on the delivery of adequate service to viewers who are deaf or hard of hearing, the Commission considers it essential that licensees make a special effort to overcome these difficulties. Further, given CPAC's mandate and its new distribution status, the Commission concludes that it would be appropriate to require CPAC to achieve its proposed captioning levels by way of condition of licence.

55.

Accordingly, the Commission is imposing a condition of licence that, beginning in the broadcast year commencing 1 September 2007, the licensee achieve minimum captioning levels of 90% of all English-language programming, and 50% of all French-language programming, that is broadcast during the broadcast day.

56.

The Commission is satisfied that the licence condition pertaining to the provision of captioning for French-language programming provides CPAC with a realistic amount of time to find solutions to the challenges it has identified.

Promotion of SAP technology

57.

CPAC made a commitment to allocate funds to provide financial assistance to the licensees of Class 3 BDUs for the purchase of technical equipment that would enable them to distribute CPAC's secondary audio programming (SAP) signals to subscribers. The licensee indicated that this initiative would be carried out and completed in the first year of its new licence term. CPAC also committed to develop and fund a marketing campaign to increase the awareness of its SAP programming among BDUs and their subscribers.

58.

The Commission expects CPAC to fulfil its commitment to provide direct financial support to smaller cable operators for the purchase of SAP modulators. It expects the licensee to file a report, by not later than 31 December 2003, containing details of its financial expenditures on this initiative, including a list of the small cable systems who have benefited from the financial support. The Commission also expects the licensee to fulfil its commitment to promote the availability of its SAP signals by conducting a public awareness campaign.

Cultural diversity

59.

All broadcasting licensees have a responsibility under the Act to contribute to the reflection and portrayal of Canada's cultural diversity. Specifically, broadcasters have a responsibility to ensure a broadcasting system that accurately reflects the presence in Canada of cultural, ethnic and racial minorities and of Aboriginal peoples. Not only does this mean that television broadcasters such as CPAC must ensure that their on-screen portrayal of such groups is accurate, fair and free of stereotypes, they must also ensure that a full diversity of viewpoints is represented in their programming. Given its mandate, CPAC's role in this respect is of particular importance. Indeed, there is a wide range of public policy issues that are affected by Canada's evolving cultural diversity.

60.

CPAC provided the Commission with a list of events it has covered, and of guests it has interviewed on air for the purpose of disseminating information and viewpoints of specific relevance and interest to minorities and Aboriginal peoples. CPAC also advised that it monitors its own performance in this area on a continuous basis:

In particular, producers provide monthly reports to senior management on the topics presented and guests appearing on-air to ensure that CPAC's programming maintains an overall balance of points of view on issues of public concern and is reflective of Canada's cultural mosaic.

61.

The Commission notes the intervention filed by the Communications and Diversity Network supporting the "valuable and useful service [that CPAC provides] to all Canadians", and encouraging CPAC "to increase its coverage of conferences of interest to minority communities."

62.

CPAC stated that it would be willing to file with the Commission a corporate plan on cultural diversity, and to provide annual reports on its progress in achieving the plan's objectives.

63.

The Commission expects CPAC to assist in attaining the objectives of the Act by ensuring that its programming continues to reflect Canada's cultural diversity. The Commission also expects the licensee to adhere to its commitment to file a corporate plan on cultural diversity, and expects it to do so within three months of the date of this decision.

64.

CPAC's corporate plan should include specific initiatives relating to corporate accountability, the reflection of diversity in programming, and community involvement and feedback, as outlined below.

Corporate accountability

65.

CPAC's plan should describe how CPAC will foster a corporate culture that supports the reflection of cultural diversity in its programming. Specifically the plan should:

• set goals toward creating a corporate culture that supports a programming service reflective of Canada's cultural diversity, including its Aboriginal reality;

• identify a senior executive who will be accountable for diversity practices and ensuring that management becomes more reflective of Canada's multicultural reality;

• ensure that all managers receive appropriate training;

• ensure that regular opportunities are provided for staff assessment of progress made toward the reflection of diversity, as well as for identification of future challenges, and;

• set out the licensee's plans for hiring and retention of visible minorities, as well as training in this area that it will provide to staf

Reflection of diversity in programming

66.

The plan should address how CPAC will ensure the presence of people from diverse backgrounds in the programming that it produces and that it acquires. As well, the plan should address the way that Canada's cultural diversity is portrayed in programming. More specifically, the licensee should identify mechanisms to assess progress in the following areas:

• ensuring that on-air personalities reflect Canada's diversity;

• ensuring the use of people from minority groups as sources regardless of whether the issue being discussed is particularly related to a minority community, and;

• ensuring that programming from independent producers reflects the presence and provides an accurate portrayal of visible minorities.

Community involvement

Employment equity and on-air presence

69.

CPAC filed a copy of its Employment Equity Policy with its applications. At the hearing, the licensee confirmed that 50% of its employees are female. It further advised that 10% of its staff is composed of people who are visible minorities.

70.

The Commission considers that CPAC's Employment Equity Policy is in line with the Commission's policies on that subject and with respect to on-air presence. However, it encourages the licensee to take concrete steps to address the current absence of members of Aboriginal communities from its list of employees.

Service to persons who are blind or visually impaired

71.

In other recent licence renewal decisions, the Commission has encouraged television broadcasters to expand the amount of video description or described video³ programming they include within their schedules. In the case of CPAC, SAP channels that might be used for this purpose are already being used to provide service in the official language of the minority. CPAC also stated that the nature of its programming does not lend itself well to described video, and suggested that its resources would be more effectively put to use if allocated to improving its voice-overs and other audio elements of its programming (i.e. audio description⁴).

72.

CPAC noted in this regard that much of the information it now presents as text in any particular program, for example the identification of an event, the names of on-air guests or the telephone number for a call-in show, is also communicated orally. CPAC nevertheless made a commitment to improve the quality of its voice-overs of announcements presented as text. It also indicated that it will explore with the appropriate authorities responsible for providing the House of Commons and the Senate feeds the addition of voice-over announcements to advise its audience of the end of a parliamentary or committee session and of the resumption of CPAC's own programming.

73.

The Commission expects CPAC to fulfil its commitments by continuing to provide audio description wherever appropriate. It further expects the licensee to take steps to ensure that its customer service responds to the needs of persons who are blind or visually impaired. With respect to its proposed documentary programming, the Commission expects CPAC to ensure that, through the use of creative narration, such programming is produced with the needs and interests in mind of those in its audience who are visually impaired.

New funding model and mandated distribution status for CPAC

Background

74.

In Public Notice 2001-115, the Commission emphasized the importance it places on ensuring access by Canadians to the proceedings of the House of Commons and its various committees. It deemed the televised coverage of these proceedings "vital to the public interest" and essential to the attainment of the objective stated in section 3(1)(d)(i) of theAct whichstates that the Canadian broadcasting system should"safeguard, enrich and strengthen the cultural, political, social and economic fabric of Canada." The Commission further concluded that it is CPAC's coverage of the proceedings of the House of Commons and its committees that makes CPAC a unique and valuable service, and that continued access to such coverage by a majority of Canadians, in both official languages, must be ensured. Accordingly, the Commission announced its decision to ensure that coverage of these proceedings is made available, in both official languages, to most cable and satellite subscribers across the country. At the same time, the Commission emphasized that it regards CPAC's licensed, wrap-around public affairs programming as a significant and valuable service that complements its coverage of the proceedings of the House of Commons.

75.

The distribution of the proceedings of the House of Commons and its committees and, pursuant to the amended Exemption Order, the proceedings of Parliament is now mandatory for most BDUs. However, they have not been required to carry, hitherto, the licensed programming service offered by CPAC. Nevertheless, this wrap-around programming is currently distributed, as a service to the public and without charge to subscribers, by most BDUs across Canada. Indeed, the cable and DTH distribution industries have both demonstrated a strong and consistent commitment to CPAC, over the years, through their voluntary financial support and distribution of the service.

76.

In its applications, however, CPAC requested that it be permitted to implement a new funding model for its licensed programming service and proposed that the Commission accord its service a distribution status that would ensure that the service continues to be broadly available across Canada.

Funding

Applicant's request

77.

In its written applications, CPAC expressed the view that its shareholders and other BDUs who distribute the service are "committed to continuing their support of the delivery of the proceedings of the House of Commons and Parliamentary committees as a public service, and at no charge to subscribers". It also confirmed that the Board of Directors of the Canadian Cable Television Association "has approved in principle the continued distribution of the service to cable subscribers at no charge." CPAC argued, however, that the current method of funding its licensed service is no longer sustainable, and must now be replaced by a regulated fee.

78.

Specifically, the licensee requested that the Commission authorize CPAC to charge BDUs distributing the service a new monthly per subscriber fee. The proposed maximum fee of $0.10 per month per subscriber, increasing to $0.11 in the third year of the licence term, would be charged in return for delivery to BDUs of CPAC's licensed and exempt services, together. CPAC proposed that BDUs use their general revenues to absorb $0.03 of this maximum fee to ensure that Canadians continue to receive, at no charge, the exempt Parliamentary coverage provided by CPAC. BDUs could pass through the remainder of the maximum fee to their subscribers. CPAC would apportion the revenues from the pass-through portion, in roughly equal measure, between the expenses associated with its existing licensed wrap-around public affairs programming and the projected costs of its proposed new programming plans and initiatives.

Interveners' concerns

79.

In its opposing intervention, the CBC argued that, while CPAC estimated expenditures in excess of $40 million to provide its service since 1993, it did not file an accounting of these expenditures. According to the intervener, such an accounting is necessary if interested parties are to be able to properly assess the costs of operating the service. The CBC also argued that it is impossible to reconcile CPAC's funding proposal "with the fact that the cable industry willingly accepted the terms of the Speaker of the House that it would provide a free service." The NFB expressed similar views in its opposing intervention, and added that the proposed pass-through fee would fund programming that would be "injurious to existing specialty services."

80.

The CAB and Stornoway opposed the licensee's proposal for a pass-through fee because of CPAC's plans to use the proceeds to increase the amount and the scope of its programming. According to the CAB, this would take the service "well beyond CPAC's historical mandate" and make it "a potential competitor to other broadcasters." Stornoway claimed that CPAC's proposal, in conjunction with its request for dual status, would "provide an unprecedented level of financial security for a channel which, unlike newly licensed specialty channels, has had a decade to build an audience and which enjoys the tremendous reach provided by its analogue carriage."

81.

In its comments, CCSA submitted that, due to competitive pressures from other distributors, many of its members would have no room for movement in retail price "without a proportional loss of subscribers to their competition." It added that these members would thus be under intense pressure to absorb the pass-through entitlement. Bell ExpressVu, however, noted that it currently pays CPAC a fixed fee per subscriber that exceeds the amount contemplated by CPAC in its funding proposal, and thus had "no objection to the establishment of a fixed regulated affiliation payment."

82.

Mr. Walter Naherny of Winnipeg opposed CPAC's proposal to implement a monthly fee that would be passed on to subscribers. Mr. Naherny based his opposition on his opinion that CPAC's service is without value and is one of more than half of the cable-delivered programming services he receives that "are never watched."

Applicant's reply

83.

At the hearing, CPAC reiterated its position that the existing funding model is no longer sustainable, since distributors are not prepared to continue to bear all of the operating costs, even at current levels. CPAC noted that competition facing distributors has increased markedly in recent years, that there is a need to cut costs, and that, for the cable sector at least, there is little potential for future financial growth in the basic service.

Commission's analysis and determination

84.

Based on the evidence gathered by the Commission in this proceeding, the Commission concludes that rising costs and an increasingly competitive environment have rendered CPAC's existing funding model no longer supportable. It is the Commission's view that, if CPAC's service is to survive, subscribers will now have to assume a portion of its operating costs.

85.

The Commission is satisfied that the licensee's proposal to introduce a fee to fund its Parliamentary coverage, as well as the existing and proposed components of its licensed, not-for-profit programming services, is both reasonable and appropriate. In reaching this determination, the Commission has considered the views of opposing interveners, including Stornoway, the CBC, the CAB, the NFB and Mr. Walter Naherny of Winnipeg. The Commission has also considered the comments filed by CCSA.

86.

Accordingly, by condition of licence, commencing 1 March 2003 and ending 31 August 2004, the Commission is authorizing the licensee to charge broadcasting distribution undertakings distributing CPAC a maximum fee of $0.10 per subscriber per month, of which amount, $0.07 per subscriber per month will be used by CPAC to fund its licensed public affairs programming service. Commencing 1 September 2004 and for the remainder of the licence term, the licensee is authorized to charge broadcasting distribution undertakings distributing CPAC a maximum fee of $0.11 per subscriber per month, of which amount, $0.08 per subscriber per month will be used by CPAC to fund its licensed public affairs programming service.

87.

The above amounts of $0.07 and $0.08 represent the pass-through portion of the maximum fee, and broadcasting distribution undertakings will be authorized to pass through to subscribers this portion of the fee. The remaining portion of the maximum fee, namely $0.03 per subscriber per month, will be used by CPAC to fund its coverage of the Parliament of Canada pursuant to the Exemption Order, as amended today and as may further be amended from time to time. Broadcasting distribution undertakings distributing CPAC will pay this portion of the fee from their general revenues.

88.

In return for payment to CPAC of the maximum fee ($0.10 per subscriber per month, increasing to $0.11 on 1 September 2004), a broadcasting distribution undertaking will receive for distribution to each subscriber the English- and French-language versions of both CPAC's licensed service and the exempt service provided by CPAC pursuant to the amended Exemption Order.

89.

The Distribution Order set out in Appendix 2 to this decision authorizes BDUs to increase the basic monthly fee paid by their subscribers by no more than the pass-through portion of the maximum fee, as specified above.

Mandatory distribution status for CPAC

90.

CPAC's written application included a request that the Commission accord its licensed service dual status. CPAC argued that the broad distribution that this status would guarantee for its service across Canada, would be consistent with the licensee's public service mandate and with the Commission's policy for the distribution of the House of Commons and its committees.

Interveners' concerns

91.

Bell ExpressVu submitted, among other things, that granting CPAC mandatory distribution status "would preclude a BDU from accessing only the House of Commons feeds; or, another programming licensee from incorporating the House of Commons feeds inside its programming format." The CBC's position was that this and other aspects of CPAC's renewal applications should have been examined by the Commission in the context of a competitive licensing process. As mentioned above, the opposition of both Stornoway and the NFB to granting CPAC dual status was that this, in conjunction with the proposed monthly fee, would give CPAC a competitive advantage over existing and newly licensed specialty services.

92.

CCSA contended that the Distribution Regulations, as now amended to require Class 1 and Class 2 BDUs to distribute the proceedings of the House of Commons and its committees, will effectively require that these licensees also distribute CPAC's licensed service, since the latter is wrapped around the former. CCSA therefore concluded that "to accord CPAC dual status would accomplish nothing that the regulatory amendments. have not already achieved." Views similar to those of CCSA were also expressed in the opposing interventions of the CBC and CAB.

Applicant's reply

93.

At the hearing, it became clear that CPAC was seeking mandatory distribution on the basic service, and not simply dual status. In response to questions, CPAC identified three possible mechanisms for implementing its request: licensing CPAC as a specialty service having dual status, amending the provisions of the Distribution Regulations to accord CPAC mandatory distribution, and issuing a distribution order pursuant to section 9(1)(h) of the Act. CPAC took the view that the simplest option for the Commission would be to license CPAC as a specialty service with dual status.

Commission's analysis and determination

94.

As noted above, distribution of the proceedings of Parliament, in both official languages, is now mandatory for most BDUs. As stated in Public Notice 2001-115, the Commission regards CPAC's licensed public affairs programming as a significant and valuable component that complements the proceedings of the House of Commons and its committees. Further, as wrap-around programming to these proceedings, CPAC's public affairs programming service is broadly carried as an analog service on a majority of cable systems across Canada, and is also available to all DTH subscribers.

95.

Given these circumstances, the Commission is of the view that the benefits of according CPAC's public affairs programming service mandatory distribution status at this time outweigh the concerns of interveners discussed above. In particular, the Commission is satisfied that such status would be consistent with the nature of the programming that CPAC provides, and with the important role this programming serves in the Canadian broadcasting system as a window on Canadian political life. Because CPAC is generally offered as a wrap-around service to the coverage of the proceedings of Parliament and its committees, and given that it is now mandatory that BDUs distribute such Parliamentary coverage, the Commission is also confident that granting mandatory distribution status to CPAC's licensed programming service would create little or no disruption or inconvenience to either subscribers or BDUs. Moreover, the Commission is satisfied that restricting CPAC to the broadcast of limited sponsorship messages, coupled with the conditions of licence set out earlier in this decision which clearly define CPAC's nature of service, would ensure that CPAC's mandatory distribution has no undue impact on other services.

96.

The Commission is satisfied that the licence renewal process has afforded a full and appropriate opportunity to examine the issue of granting CPAC mandatory carriage status, and for the reasons set out in the previous two paragraphs, does not accept the CBC's argument that such carriage status should not be granted except as the result of a competitive licensing process.

97.

The Commission concludes that it is appropriate to grant CPAC mandatory distribution on the basic service of most BDUs. Given the Commission's view that CPAC's licensed public affairs programming is a significant and valuable component that complements the proceedings of Parliament and its committees, the Commission considers that the distribution status of CPAC's licensed service should mirror that of its exempt service.

98.

Although CPAC favoured a different mechanism for implementing its request, the applicant stated at the hearing that it would accept the use of section 9(1)(h) of the Act to effect mandatory carriage on the basic service. The Commission considers that this mechanism will achieve the objective of mandatory distribution of CPAC on the basic service in the most direct and effective manner.

99.

Section 9(1)(h) stipulates that the Commission may, in furtherance of its objects:

require any licensee who is authorized to carry on a distribution undertaking to carry, on such terms and conditions as the Commission deems appropriate, programming services specified by the Commission.

100.

In recent years, the Commission has applied this provision to ensure the national distribution of Voiceprint, APTN and the French-language TVA network. The Commission considers that granting CPAC mandatory carriage on the basic service will contribute to maintaining and enhancing Canada's national identity and cultural sovereignty, and will thus further the objectives set out in section 3 of the Act. Therefore, pursuant to section 9(1)(h) of the Act, the Commission issues Distribution Order 2002-1, attached to this decision, setting out the specific requirements for the distribution of CPAC's licensed service.

101.

As stated above, these requirements mirror the distribution requirements for CPAC's exempt service described in Public Notice 2001-115 and implemented through amendments to the Distribution Regulations. Specifically, Distribution Order 2002-1 requires all Class 1 and Class 2 BDUs, and all DTH BDUs, to distribute CPAC as part of the basic service.

• DTH BDUs are required to distribute CPAC in both official languages.

• All Class 1 and Class 2 BDUs are required to make available a second audio feed of CPAC, in the official language of the minority, using SAP technology.

• All Class 1 and Class 2 BDUs employing digital technology with a capacity of 750 MHz or more are also required to make available a separate video channel of CPAC, in the official language of the minority, on either a digital or an analog basis.

102.

The model for the distribution of CPAC on Class 3 BDUs is the same as that set out for the distribution of the House of Commons service:

• All Class 3 BDUs employing digital distribution (with 550 MHz or more capacity) are required to provide CPAC, in both official languages. These undertakings are granted flexibility with respect to the technical means by which they distribute CPAC in both official languages.

• Any Class 3 BDU whose system is fully interconnected must distribute CPAC with the same distribution status in both official languages as the system to which it is interconnected, unless the Class 3 system does not have the channel capacity to do so.

103.

These requirements are implemented through Distribution Order 2002-1.

104.

As in the case of the distribution of the proceedings of the House of Commons and its committees, the Commission strongly encourages Class 3 BDUs employing analog distribution technology to distribute CPAC on an analog channel.

105.

Similarly, the Commission considers that any Class 3 BDU currently distributing CPAC, and whose system is not fully interconnected, but that is owned by one of the four largest multiple system operators (affiliated Class 3 systems), should continue to distribute CPAC, and to make available a second audio feed of the service, in the official language of the minority, using SAP technology. The Commission strongly expects all affiliated Class 3 systems that are not currently distributing CPAC to distribute the service, including the use of SAP technology.

106.

The Commission has amended Exemption order for small cable undertakings, appended to Exemption order respecting cable systems having fewer than 2,000 subscribers, Public Notice CRTC 2001-121, 7 December 2001, to implement the digital distribution requirements for exempt smaller Class 3 BDUs (see Exemption order for small cable undertakings, appended to Public Notice CRTC 2002-74, 19 November 2002.

107.

The digital distribution requirements set out above shall come into effect on 2 December 2002.

Secretary General

This decision is to be appended to each licence. It is available in alternative format upon request, and may also be examined at the following Internet site: www.crtc.gc.ca

¹ Schedule I of the Television Broadcasting Regulations, 1987

² In Broadcasting Decision CRTC 2002-238, 22 August 2002 the Commission granted a three-month administrative renewal for the two broadcasting licences, from 1 September to 30 November 2002.

³ Described video, or video description as it is also known, consists of narrative descriptions of a program's key visual elements that enable those who are blind or visually impaired to form a better mental picture of what is occurring on the screen. Broadcasters generally deliver described video programming to viewers using a Secondary Audio Programming (SAP) channel.

⁴ Audio description involves the provision of basic voice-overs of textual or graphical information displayed on the screen. A broadcaster providing audio description will, for example, not simply display sports scores on the screen, but will also read them aloud so that people who are visually impaired can receive the information.

Appendix 1 to Broadcasting Decision CRTC 2002-377

Conditions of licence for the French- and English-language satellite-to-cable programming service provided by Cable Public Affairs Channel Inc.

Nature of service

1 (a) The licensee shall provide a national public affairs programming service complementary to the exempt service it operates in accordance with Parliamentary and Provincial or Territorial Legislature Proceedings Exemption Order, appended to Public Notice CRTC 2002-73, 19 November 2002, as may be amended from time to time,consisting exclusively of long-form programming or programming focusing on local, regional, national and international civic affairs, including the process and debates that underpin the operations of democratic government and the development of public policy. All such programming shall be drawn exclusively from the categories: 2a (Analysis and interpretation); 2b (Long-form documentary); 3 (Reporting and actualities); 5b (Informal education/Recreation and Leisure, but excluding recreation and leisure); and 12 (Interstitials).

(b) Not more than 38 hours in any broadcast week shall consist of programming other than long-form programming.

(c) Not more than 5% of the licensed programming broadcast in each semester shall consist of programming drawn from category 2b (Long-form documentary).

(d) Not more than 5% of the licensed programming broadcast in each semester shall consist of programming drawn from category 5b (Informal education/Recreation and leisure, but excluding recreation and leisure).

Canadian content

2 (a) Not less than 90% of the licensed programming broadcast by the licensee in each semester shall be Canadian.

(b) Not less than 90% of the licensed programming broadcast by the licensee during the evening broadcast period shall be Canadian.

French-language programming

3 (a) The licensee shall broadcast as many events as possible that originate in the French language. At a minimum, 20% of all events broadcast in each broadcast year shall originate in the French language, beginning in the broadcast year commencing 1 September 2003.

(b) The licensee shall provide simultaneous translation for 100% of its licensed programming, beginning on 1 September 2003.

(c) Not less than 25% of the in-depth public affairs programming the licensee originates in each broadcast year shall be produced in the French language, beginning in the broadcast year commencing 1 September 2003.

Funding

4 (a) Commencing 1 March 2003 and ending 31 August 2004, the licensee may charge broadcasting distribution undertakings distributing CPAC a maximum fee of $0.10 per subscriber per month, of which amount, $0.07 per subscriber per month shall be used by CPAC to fund its licensed public affairs programming service.

(b) Commencing 1 September 2004 and for the remainder of the licence term, the licensee may charge broadcasting distribution undertakings distributing CPAC a maximum fee of $0.11 per subscriber per month, of which amount, $0.08 per subscriber per month shall be used by CPAC to fund its licensed public affairs programming service.

(c) The licensee shall not broadcast commercial messages other than sponsorship messages for closed captioning or described video. Such sponsorship messages shall be limited to identification of the name of the sponsor.

Closed captioning

Adherence to industry codes

Logging and recording

Definitions

For the purpose of these conditions of licence:

"long-form programming" means programming that provides extended coverage of public speeches, political conventions, conferences, commissions of inquiry, public hearings, proceedings of the Supreme Court of Canada and of the Federal Court of Canada, proceedings of legislatures other than those of the Parliament of Canada, press conferences, public ceremonies, federal and provincial general elections, and other similar public events of regional or national importance;

"broadcast day" means the period from 8:00 a.m. to 2:00 a.m.;

"broadcast month" means the total number of hours devoted by the licensee to broadcasting during the aggregate of the broadcast days in a month.

"broadcast week" means seven consecutive broadcast days, beginning on Sunday;

"broadcast year" means the total number of hours devoted by the licensee to broadcasting during the aggregate of the broadcast months in a 12 month period, beginning on 1 September in any year;

"evening broadcast period" means the total number of hours devoted by the licensee to broadcasting between 6:00 p.m. and midnight during each semester; and

"semester" means the total number of hours devoted by the licensee to broadcasting in a six-month period, beginning on 1 March and 1 September in any year.

Appendix 2 to Broadcasting Decision CRTC 2002-377

Distribution Order 2002-1

Distribution of the public affairs programming service of Cable Public Affairs Channel Inc. known as CPAC by persons licensed to carry on certain types of broadcasting distribution undertakings.

The Commission hereby orders, pursuant to section 9(1)(h) of the Broadcasting Act, persons licensed to carry on broadcasting distribution undertakings of the types identified in paragraph (a) below to distribute CPAC's public affairs programming service in the manner specified in paragraph (b) below, effective 2 December 2002, on the following terms and conditions:

a) This Order applies to Class 1 and Class 2 distribution undertakings, including multipoint distribution system undertakings, licensees of DTH distribution undertaking, licensees of Class 3 distribution undertakings that have a nominal capacity of at least 550 MHz and that deliver any programming services on a digital basis, and licensees of Class 3 distribution undertakings whose distribution system is totally interconnected with another system. These licensees are collectively referred to in this Order as distribution licensees.

b) Distribution licensees shall distribute CPAC's public affairs programming service in the manner specified as follows:

i) Except as otherwise provided under a condition of its licence, any Class 1 or Class 2 licensee operating in a francophone market within the meaning of paragraph 18(4)(a) of the Broadcasting Distribution Regulations shall distribute CPAC's public affairs programming service as part of its basic service, including the main audio channel of that service in the French language and an auxiliary audio channel of the service in the English language.

ii) Except as otherwise provided under a condition of its licence, any Class 1 or Class 2 distribution licensee operating in an anglophone market within the meaning of paragraph 18(4)(b) of the Broadcasting Distribution Regulations shall distribute CPAC's public affairs programming service as part of its basic service, including the main audio channel of that service in the English language and an auxiliary audio channel of the service in the French language.

iii) Except as otherwise provided under a condition of its licence, any Class 1 or Class 2 distribution licensee that has a nominal capacity of at least 750 MHz and that makes use of digital technology for the delivery of any programming service shall distribute CPAC's public affairs programming service, including the main audio channel of that service in the English language, if the licensee is operating in a francophone market within the meaning of paragraph 18(4)(a) of the Broadcasting Distribution Regulations.

iv) Except as otherwise provided under a condition of its licence, any Class 1 or Class 2 distribution licensee that has a nominal capacity of at least 750 MHz and that makes use of digital technology for the delivery of any programming service shall distribute CPAC's public affairs programming service, including the main audio channel of that service in the French language, if the licensee is operating in an anglophone market within the meaning of paragraph 18(4)(b) of the Broadcasting Distribution Regulations.

v) Any Class 3 licensee whose distribution system has a nominal capacity of at least 550 MHz and that delivers any programming service on a digital basis shall distribute the English- and French-language versions of CPAC's public affairs programming service.

vi) Any Class 3 licensee whose distribution system is totally interconnected with another system shall distribute the English- and French-language versions of CPAC's public affairs programming service with the same distribution status as the system with which it is interconnected, unless the licensee does not have the technology to do so.

vii) Except as otherwise provided under a condition of its licence, a DTH distribution licensee shall distribute as part of its basic service the English- and French-language versions of CPAC's public affairs programming service.

c) Class 1 and Class 2 licensees shall not distribute CPAC's public affairs programming service on a restricted channel unless CPAC consents in writing to its distribution on such a channel.

d) Commencing 1 March 2003and ending 31 August 2004, distribution licensees distributing CPAC's public affairs programming service and the service CPAC provides pursuant to the Parliamentary and Provincial or Territorial Legislature Proceedings Exemption Order, as may be amended from time to time, shall pay to CPAC the fee it charges, up to the maximum fee of $0.10 per subscriber per month authorized under the terms of CPAC's licence. For this period, distribution licensees are authorized to increase the basic monthly fee to be paid by their subscribers by no more than the pass-through portion of $0.07 authorized under the terms of CPAC's licence.

e) Commencing 1 September 2004 and for the remainder of the licence term, distribution licensees distributing CPAC's public affairs programming service and the service CPAC provides pursuant to the Parliamentary and Provincial or Territorial Legislature Proceedings Exemption Order, as may be amended from time to time, shall pay to CPAC the fee it charges, up to the maximum fee of $0.11 per subscriber per month authorized under the terms of CPAC's licence. For this period, distribution licensees are authorized to increase the basic monthly fee to be paid by their subscribers by no more than the pass-through portion of $0.08 authorized under the terms of CPAC's licence.

f) Distribution licensees who remove a service in order to comply with this Order may only remove a service carried on an available channel.

g) Notwithstanding the foregoing, distribution licensees shall not be required to distribute CPAC's public affairs programming service pursuant to this Order unless CPAC or a third party pays for the satellite uplink and transponder costs with respect to the transmission of its programming service.

h) Notwithstanding the foregoing, distribution licensees shall not distribute CPAC's public affairs programming service pursuant to this Order if CPAC ceases to provide the House of Commons programming service pursuant to Parliamentary and Provincial or Territorial Legislature Proceedings Exemption Order, as may be amended from time to time.

i) This Distribution Order shall remain in effect until such time as the Commission amends or rescinds it.

For the purposes of this Distribution Order, available channel, basic service, Class 1 licensee, Class 2 licensee, Class 3 licensee, DTH distribution undertaking, licensed, programming service and restricted channel carry the meanings assigned to them in the Broadcasting Distribution Regulations, as may be amended from time to time.