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Ottawa, 21 March 2013

By E-mail

Dear Mr. Singer:

Re: application number 2013-0199-4

This is in reference to your application to amend CHWK-FM’s Condition of Licence relating to your Canadian Content development (CCD) contributions.

Section 28(1)(a) of the Canadian Radio-television and Telecommunications Commission Rules of Practice and Procedure provides that the Commission may request parties to file information, particulars or documents where needed.

Please provide the following information:

Missing proof of payment

1. As noted in Broadcasting Decision CRTC 2008-116, the licensee is subject to the following condition of licence:

In addition to its basic annual Canadian content development contribution, the licensee shall, upon commencement of operations, contribute $954,055 over seven consecutive broadcast years to the promotion and development of Canadian content, broken down as follows: Year 1: $72,750; Year 2: $80,875; Year 3: $94,469; Year 4: $143,391; Year 5: $167,205; Year 6: $190,000; and Year 7: $204,465.

Commission staff notes that the licensee did not always provide proof of payment for many of its claimed contributions. Please refer to the following charts which detail the discrepancies:

The licensee claims the following contributions relating to its over and above CCD condition of licence (excludes basic CCD):

According to the Commission’s record, the following payments were made:

Broadcast Year Required Total Contribution Total Contribution Paid Amount
(pro-rated 7 months) $42,438 $11,500 -$30,938 shortfall
2009-2010 $80,875 $94,713 +$13,838
2010-2011 $94,469 $102,220 +$7,751
2011-2012 $143,391 $143,194 -$197 shortfall
Total $361,173 $351,627 - $9,546

2008-2009 broadcast year:

According to Commission records, it appears that the licensee contributed only $11,500 instead of the $42 438 (7 months pro-rated amount) that it was supposed to pay for year 1 upon commencement of operation, resulting in an apparent shortfall of $30,938 for the 2008-2009 broadcast year.

Furthermore, staff notes that no payment to FACTOR appears to have been made within the 2008-2009 broadcast year. Staff reminds that as indicated in paragraph 124 of Broadcasting Public Notice 2006-158, a minimum of 20% of the funding commitment that is over and above the basic annual CCD contribution must be allocated to FACTOR or MUSICACTION. Please provide proof of payment if any payments have been made to FACTOR for the 2008 2009 broadcast year.
Additionally, the following deficiencies have been found with the respect to the payment you have claimed from 2009-2010 to 2011-2012.

2009-2010 broadcast year:

Initiatives Claimed by licensee Action
Bull Fulton $100 Require proof of payment
Chilliwack Academy Music $2,564 Require proof of payment

2010-2011 broadcast year:

Initiatives Claimed by licensee Submitted proof for :
FACTOR $19,494 $17,480
Sto : lo Nation Human Ressources $5,400 $3,350
Chilliwack Academy Music $28,203 $25,640
Jeff Bonner – Music Business 101 $20,000 $18,600

2011-2012 broadcast year:

Initiatives Claimed by licensee Submitted proof for :
FACTOR $33,372 $31,636
Bling Pigeon $7,500 $5,000
Jeff bonner – Music Business 101 $21,999 $18,333
Chilliwack Metropolitain Symphony $3,500 $2,625
Sto : lo Nation Human Ressources $3,600 $2,700

In order that we may confirm that all claimed payments were in fact made, please provide proof of payment such as a letter from the third party that received the funds, a copy of the cancelled cheque or a receipt, for each of these initiatives.

Please note that if you are unable to provide proofs of payment, staff will therefore have to only consider the amounts that have been supported by proofs of payment, as stated in the staff chart provided on page 2 of this document.

You are reminded that, as stated in Broadcasting Information Bulletin CRTC 2009-251, if a payment is made after 31 August, the Commission will consider the licensee to have failed to comply with its obligation to make CCD contributions during the applicable broadcast year. Furthermore, annual contributions required by condition of licence cannot be deferred, in whole or in part, to any subsequent broadcast year unless prior authority is sought and obtained from the Commission.

Additionally, if you are unable to provide proofs of payment, please answer the following questions for the 2008-2009 and 2011-2012 broadcast year:

a) Please explain the circumstances of this apparent non‐compliance.
b) Please specify what measures have been or will be put in place to ensure future compliance with your conditions of licence relating to CCD.
c) Please specify the date by which the shortfall will be expended and supporting documents will be filed. You are reminded that you will need to provide the Commission with the proofs of payments once they have been made.
d) Please comment on the possible imposition of a condition of licence relating to the shortfall(s).
e) Please provide your plans so as to ensure full compliance with your conditions of licence and the Radio Regulations, 1986 during the new licence term.
f) Please comment on the possibility of a short-term renewal for CHWK-FM, in accordance with Broadcasting Information Bulletin CRTC 2011-347, should you be found in non-compliance with your condition of licence relating to CCD. Please note that the sanction could be stronger than a short-term renewal for major instances of non-compliance, such as: imposition of conditions of licence, mandatory orders, non-renewal, suspension, or revocation of the licence.

In the event that the Commission deems that the proofs you will file are insufficient, the licensee may then be found in apparent non-compliance with the above-mentioned condition of licence shortfalls for the 2008-2009 and 2011-2012 broadcast years.

You are required to provide the information noted above on the public record by 2 April 2013.

Considering the above request, the timetable for the proceeding is changed as follows:

Part 1 Subject Posted Date Deadlines
Part 1 Fabmar Communications Ltd.

Amendment of a condition of licence

Chilliwack, British Columbia



Open application for applicant contact information. 1 February 2013 21 March 2013
(original deadline)

2 April 2013
(New deadline)

A copy of this letter and all related correspondence will be added to the public record of the proceeding.

The Commission requires that you submit your documents electronically using the secured service “My CRTC Account” (Partner Log In or GCKey) and fill in the “Broadcasting and Telecom Cover page” located on this web page. On this web page, you will also find a link to information on the submission of applications to the Commission “Submitting applications and other documents to the CRTC using My CRTC Account.”

Should you need further information concerning your application, please do not hesitate to contact me by telephone at (819) 997-4924 or by fax at 819-994-0218.

Yours sincerely,

Original signed by Diane Massie
CRTC Radio Analyst
Broadcasting radio

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