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ARCHIVED - Broadcasting Decision CRTC 2010-642

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Route reference: 2010-334

Ottawa, 31 August 2010

Bayshore Broadcasting Corporation
 Owen Sound, Ontario

Application 2010-0249-3, received 12 February 2010

CIXK-FM Owen Sound - Licence renewal

The Commission renews the broadcasting licence for the English-language commercial radio station CIXK-FM Owen Sound from 1 September 2010 to 31 August 2014. This short-term licence renewal will enable the Commission to review, at an earlier date, the licensee’s compliance with the Radio Regulations, 1986 and its conditions of licence.

The Commission directs the licensee to fulfill the shortfall of its basic Canadian content development contributions for the 2009 broadcast year by no later than 60 days from the date of this decision.

Introduction

1.      The Commission received an application by Bayshore Broadcasting Corporation (Bayshore) to renew the broadcasting licence for the English-language commercial radio programming undertaking CIXK-FM Owen Sound, which expires 31 August 2010. The Commission did not receive any interventions in connection with this application.

2.      In Broadcasting Notice of Consultation 2010-334, the Commission stated that the licensee may have failed to comply with section 9(2) of the Radio Regulations, 1986 (the Regulations), which relates to the provision of annual returns, for the 2005 broadcast year, as well as with the Regulations as they relate to Canadian content development (CCD), for the 2009 broadcast year. The Commission also stated that the licensee may have failed to comply with its condition of licence relating to contributions to Canadian talent development (CTD)[1], for the 2008 broadcast year.

Commission’s analysis and determinations

3.      After examining the application in light of applicable regulations and policies, the Commission considers that the issues to be addressed in its determinations relate to the following:

Provision of annual returns

4.      As set out in section 9(2) of the Regulations, licensees are required to file, before 30 November of each year, their annual return for the broadcast year ending the previous 31 August. According to the Commission’s records, for the 2005 broadcast year, the licensee’s annual return was filed on 20 December 2005, after the 30 November deadline.

5.      When asked to comment on the matter, the licensee indicated that it could not account for the late filing of its 2005 annual return as it was delivered by its accountant’s office. The licensee also provided the Commission with a letter from its chartered accounting firm stating that, to the best of its knowledge, the annual return was completed and couriered to the Commission on 29 November 2005. As noted, the Commission’s records nevertheless indicate otherwise.

6.      The licensee further indicated that its General Manager will continue to have final signing authority on annual financial returns to the Commission. It added, however, that it will now submit these annual returns personally to the Commission rather than relying upon the company’s chartered accountants.

Contributions to Canadian talent development and Canadian content development

7.      Under the Canadian Association of Broadcasters’ (CAB) former CTD plan, Bayshore was required, by condition of licence, to contribute in each broadcast year a minimum of $400 to third parties involved in CTD. The Commission notes that the licensee had a shortfall in its CTD contribution of $200 for the 2008 broadcast year.

8.      The Commission also notes that, for the 2009 broadcast year, the licensee had a shortfall in its basic CCD contributions as prescribed by section 15 of the Regulations.

9.      In a letter dated 12 March 2010, the licensee stated that it was not aware of its apparent non-compliance with its CTD/CCD requirement until it received a letter from Commission staff dated 5 March 2010. Bayshore determined that the shortfalls may have been a result of confusion over internal accounting methods used to calculate CTD/CCD contributions under the new regime. It further stated that it has contacted the Commission staff to determine an immediate course of action and rectify any shortfalls, and that such shortfalls would not happen again in the future.

10.  Bayshore indicated that it has requested that its Regulatory Affairs Officer conduct audits of all stations to ensure future compliance. It stated that the Officer will report directly to Bayshore’s General Manager, who will also review and confirm such audits.

11.  The licensee also stated that it is now in the process of reviewing its group-wide CCD payment schedules and that it will ensure that all CCD expenditures continue to be made within the parameters as set out both in the Regulations and in Broadcasting Public Notice 2006-158.

12.  Section 15 of the Regulations set out the amounts that licensees are required to contribute annually to eligible CCD initiatives. The Commission notes the measures put in place to rectify the licensee's non-compliance in this regard, and directs the licensee to fulfill the shortfall for the 2009 broadcast year by no later than 60 days from the date of this decision.

Conclusion

13.  In light of all of the above, in accordance with its practice regarding radio non-compliance set out in Circular No. 444, the Commission considers that a short-term renewal period for CIXK-FM would be appropriate. Accordingly, the Commission renews the broadcasting licence for the English-language commercial radio programming undertaking CIXK-FM Owen Sound from 1 September 2010 to 31 August 2014. This short-term renewal will enable the Commission to assess, at an earlier date, the licensee’s compliance with the Regulations and its conditions of licence. The licence will be subject to the conditions set out in Broadcasting Regulatory Policy 2009-62.

Employment equity

14.  In accordance with Public Notice 1992-59, 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.

Secretary General

Related documents

* This decision is to be appended to the licence.

Footnote:

[1] As set out in Broadcasting Public Notice 2006-158, the Commission replaced the expression "Canadian talent development (CTD) with "Canadian content development" (CCD).

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