ARCHIVED - Letter

Email : bell.regulatory@bell.ca  

Ottawa, 9 June 2011

Mirko Bibic
Senior Vice-President
Regulatory & Government Affairs
BCE
160 Elgin Street, Floor 19
Ottawa, Ontario  K2P 2C4

Dear Mr. Bibic,

Re: Proposals for the Canadian Broadcasting Participation Fund and the Broadcasting Accessibility Fund pursuant to Broadcasting Decision CRTC 2011-163 - Preliminary determination

In its decision Change in effective control of CTVglobemedia Inc.’s licensed broadcasting subsidiaries, Broadcasting Decision CRTC 2011-163, 7 March 2011 (the Decision), the Commission approved, subject to the fulfillment of certain conditions of approval set out in the Decision, the applications by  BCE Inc. (BCE), on behalf of CTVglobemedia Inc. (CTVgm). 

As part of the conditions of approval, the Commission identified the following: 

The Canadian Broadcasting Participation Fund – New benefits

Par. 48. The Commission directs BCE to file a proposal for the Canadian Broadcasting Participation Fund (CBPF) within 60 days of the date of this decision. BCE should include in its proposal detailed information on the mandate of the fund, its funding and its governance structures, as well as a clear reporting mechanism. Other parties to the present proceeding will be given the opportunity to comment on the proposal in a follow-up process to be established.

According to Appendix 1 of the Decision, the CBPF money in the amount of $3 million shall be directed as follows:

• Independently administered fund that will focus its activities on the representation of the interests of non-commercial consumers of broadcasting services regulated by the Commission across Canada and in both official languages
• The fund will provide assistance with the representation, research and advocacy of those interests

The Broadcasting Accessibility Fund – Unfulfilled benefits

Par. 54. The Commission accepts BCE’s proposal to allocate $5.7 million to create a permanent Broadcasting Accessibility Fund (BAF) and directs it to file a proposal in this regard within 60 days of the date of this decision. BCE should include in its proposal detailed information on the mandate of the fund, its funding and its governance structures, as well as a clear reporting mechanism. Other parties to the present proceeding will be given the opportunity to comment on the proposal in a follow-up process to be established.

Furthermore, the Commission specified in the Decision that both funds should be established pursuant to the information set out in Appendix 2 of the Decision.  (Copy of Appendix 2 attached for ease of reference.)

BCE filed, on 6 May 2011, its two proposals for new funds as required in the Decision.  On 20 May 2011, Commission staff sent requests for further information regarding the proposals.  Among other things, BCE was asked to provide, by 3 June 2011, executed constating documents and related documents for the funds or a draft if the executed documents are not yet available.

In BCE’s letter dated 27 May 2011, it requested that the Commission provide confirmation that BCE will be able to recover its reasonable external costs related to the preparation of the requested draft constating and related documents.  BCE also requested an extension for the filing of these documents.

Upon review of BCE’s request, given that these funds were part of the approval of the change in effective control of CTVglobemedia Inc.’s licensed broadcasting subsidiaries and given that the funds do not have set annual contributions, the Commission considers that it is not appropriate that the costs related to the preparation of the requested documents be recovered from the funds. 

However, in order to provide BCE with sufficient time to prepare the necessary documentation, the Commission grants an extension to BCE for the filing date of the draft documents.  These documents should be filed with the Commission no later than 24 June 2011.

Please note that all letters issued by the Commission are made available for public examination at the Commission’s Headquarters.

Yours sincerely,

ORIGINAL SIGNED BY /

Robert A. Morin
Secretary General

Encl.

Appendix 2 to Broadcasting Decision CRTC 2011-163

Guidelines for the establishment of independent funds resulting from benefits

While the Broadcasting Accessibility Fund and Canadian Broadcasting Participation Fund are not production funds, the Commission considers that the established governance and accountability criteria for the creation of independent production funds (Public Notices 1997-98 and 1999-29 and Broadcasting Regulatory Policy 2010-833) represent an appropriate model for the two funds to be established as part of BCE’s tangible benefits package. The establishment of clear rules with respect to governance, accountability and funding decisions will ensure that these funds are eligible for contributions from other sources, including annual contributions by broadcasting distribution undertakings (BDUs) to the broadcasting system and future tangible benefits from transfers of ownership or control.

The proposals to be filed by BCE should include clear provisions detailing the means of selecting the boards of directors (including their initial composition) and a provision for the distribution of the fund in the unlikely event of their dissolution to ensure that monies are directed to other qualifying funds. The proposals should also provide details on the mandate, structure and administration of these funds, including information on the process by which projects or initiatives are chosen to receive funds.

Consistent with the criteria articulated in Public Notice 1999-29, the composition of the boards of directors of the funds is to adhere to the following criteria: 1) all members must be Canadian; 2) no more than one third of the members may be members representing BDUs or broadcasters, casting no more than one third of the votes in a meeting; and 3) all decisions must be made by majority vote.

The Commission considers that the remaining directors should be representative of the relevant stakeholder groups. With respect to the Broadcasting Accessibility Fund, these directors must be persons with disabilities, representatives of disability organizations and/or other parties with relevant expertise in developing or implementing accessibility solutions. For the Canadian Broadcasting Participation Fund, the remaining directors should represent consumer and public interest organizations with non-commercial mandates. The parties representing stakeholder groups must cast at least two thirds of the votes in a meeting.  

For certified independent production funds, the Commission typically establishes that no more than 5% of the fund contributions should be spent on fund administration. In the case of the Broadcasting Accessibility Fund, considering that there may be additional administrative expenses related to accommodation to ensure effective participation by persons with disabilities on the board, the Commission may be flexible in this regard. In its proposal, BCE should specify and provide justification for any proposed departure from the usual maximum level of administrative expenses.

Date modified:

2011-06-09