ARCHIVED - Broadcasting Decision CRTC 2013-745
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Route reference: 2013-315
Ottawa, 20 December 2013
Larche Communications Inc.
Sudbury, Ontario
Application 2013-0047-5, received 16 January 2013
CICS-FM Sudbury – Licence renewal
The Commission renews the broadcasting licence for the commercial radio station CICS-FM Sudbury, Ontario, from 1 January 2014 to 31 August 2018.
Introduction
1. The Commission received an application by Larche Communications Inc. (Larche) to renew the broadcasting licence for the commercial radio station CICS-FM Sudbury, Ontario, which expires 31 December 2013.[1] The Commission did not receive any interventions in connection with this application.
Non-compliance
2. In Broadcasting Notice of Consultation 2013-315, the Commission noted that the licensee was in apparent non-compliance with its condition of licence relating to its over and above Canadian content development (CCD) contributions for each of the 2008-2009 to 2011-2012 broadcast years.
3. The licensee explained that it was unaware that its talent show and concert expenditures for the 2008-2009 to 2011-2012 broadcast years were ineligible as CCD contributions since it has been claiming these expenditures for years. The licensee indicated that while the audience consisted primarily of station listeners, tickets were available to members of the general public, as well as many community dignitaries and leaders. The licensee added that all funds went directly to the artists and the production of the events. The licensee noted that it would redirect the funds to an eligible initiative within 60 days of the date of the Commission’s decision should the Commission deem that its expenditures are not eligible. The licensee also stated that it would seek Commission approval for any future initiative to ensure compliance.
4. The Commission notes that only 10% of the tickets were available to the general public. The Commission further notes that although this type of initiative (“win to get in”) may have qualified as a direct expenditure for CCD contributions under the previous commercial radio policy in 1998 (set out in Public Notice 1998-41), it does not qualify under the 2006 commercial radio policy (set out in Broadcasting Public Notice 2006-158). The Commission considers that these types of initiatives are ineligible for CCD contributions given their self-serving nature. The Commission is of the view that the payments would be more appropriately considered as station promotion.
5. In light of the above, the Commission finds the licensee in non-compliance with its condition of licence relating to CCD contributions for the 2008-2009 to 2011-2012 broadcast years.
Regulatory measures
6. In Broadcasting Information Bulletin 2011-347, the Commission announced a revised approach to non-compliance by radio stations. Specifically, the Commission indicated that each instance of non-compliance would be evaluated in its context and in light of factors such as the quantity, recurrence and seriousness of the non-compliance. The Commission also indicated that it would consider the circumstances of the non-compliance, the arguments provided by the licensee and the measures taken to rectify the situation.
7. The Commission considers that initiatives relating to the development of Canadian content and talent not only help to develop and advance the careers of emerging Canadian artists but to increase the supply of high-quality Canadian music in a variety of genres and the demand for Canadian music by listeners. Accordingly, it is important that radio licensees make their required contributions to the development of Canadian content and talent. The Commission notes that licensees are responsible for ensuring that their CCD contributions are made to eligible initiatives, as described in paragraph 108 of Broadcasting Public Notice 2006-158.
8. The Commission considers, however, that the licensee made the contributions in good faith, and notes the licensee’s willingness to redirect the sums to an eligible initiative. In this regard, the Commission is imposing a condition of licence requiring Larche to expend $37,700 to FACTOR and to provide proof of payment[2] by no later than 22 April 2014. A condition of licence to this effect is set out in the appendix to this decision.
9. The Commission is satisfied with the measures that the licensee has put in place to address the non-compliance. However, given the nature and extent of the non-compliance, the Commission considers that a short-term renewal for CICS-FM is appropriate.
Conclusion
10. In light of all of the above, the Commission renews the broadcasting licence for the commercial radio programming undertaking CICS-FM Sudbury, Ontario, from 1 January 2014 to 31 August 2018. The terms and conditions of licence are set out in the appendix to this decision.
Reminders
11. Pursuant to section 22 of the Broadcasting Act, the Commission reminds the licensee that the broadcasting licence will cease to have any force or effect if the broadcasting certificate issued by the Department of Industry lapses.
12. The Commission further reminds the licensee that it must fulfill its original commitment to CCD set out in Broadcasting Decision 2007-229. A condition of licence to this effect is set out in the appendix to this decision.
Secretary General
Related documents
- Various radio programming undertakings – Administrative renewals, Broadcasting Decision CRTC 2013-418, 19 August 2013
- Notice of applications received, Broadcasting Notice of Consultation CRTC 2013-315, 2 July 2013
- Filing annual returns for radio programming undertakings, Broadcasting Information Bulletin CRTC 2011-795, 20 December 2011
- Revised approach to non-compliance by radio stations, Broadcasting Information Bulletin CRTC 2011-347, 26 May 2011
- Licensing of new radio station to serve Sudbury, Ontario, Broadcasting Decision CRTC 2007-229, 12 July 2007
- Commercial Radio Policy 2006, Broadcasting Public Notice CRTC 2006-158, 15 December 2006
- Commercial Radio Policy 1998, Public Notice CRTC 1998-41, 30 April 1998
*This decision must be appended to the licence.
Appendix to Broadcasting Decision CRTC 2013-745
Term, conditions of licence and encouragement for the commercial radio programming undertaking CICS-FM Sudbury, Ontario
Term
The licence will expire 31 August 2018.
Conditions of licence
1. The licensee shall adhere to the conditions set out in Conditions of licence for commercial AM and FM radio stations, Broadcasting Regulatory Policy CRTC 2009-62, 11 February 2009, as amended from time to time.
2. The licensee shall, as an exception to the percentage of Canadian musical selections set out in sections 2.2(8) and 2.2(9) of the Radio Regulations, 1986, (the Regulations), in any broadcast week:
a) devote a minimum of 40% of its musical selections from content category 2 (Popular music) to Canadian selections broadcast in their entirety; and
b) devote, between 6 a.m. and 6 p.m., in the period beginning on Monday of that week and ending on Friday of the same broadcast week, a minimum of 40% of its musical selections from content category 2 to Canadian selections broadcast in their entirety.
For the purposes of this condition, the terms “broadcast week,” “Canadian selection,” “content category” and “musical selection” shall have the same meaning as set out in the Regulations.
3. In order to address its Canadian content development contribution shortfall, the licensee shall make a payment totaling $37,700 to FACTOR and provide the Commission with proof of this payment by 22 April 2014.
4. In addition to the contributions to Canadian content development required under section 15(2) of the Radio Regulations, 1986, as amended from time to time, the licensee shall contribute $50,000 for the 2013-2014 broadcast year and $45,833 for the 2014-2015 broadcast year to the promotion and development of Canadian content. Of these amounts, $20,000 shall be devoted to FACTOR for 2013-2014 and $18,333 for 2014-2015. The remaining amounts, $30,000 for 2013-2014 and $27,500 for 2014-2015, shall be allocated to parties and initiatives fulfilling the definition of eligible initiatives set out in paragraph 108 of Commercial Radio Policy 2006, Broadcasting Public Notice CRTC 2006-158, 15 December 2006.
Encouragement
In accordance with Implementation of an employment equity policy, Public Notice CRTC 1992-59, 1 September 1992, 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.
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