Broadcasting Procedural Letter Addressed to Grant Buchko (N L Broadcasting Ltd.)

BY EMAIL: gbuchko@radionl.com

Ottawa, 8 June 2017

Grant Buchko
N L Broadcasting Ltd.
611 Lansdowne Street
Kamloops, BC
V2C 1Y6

Subject: Procedural letter - Application 2016-0976-0 – Licence renewals for CHNL Kamloops, and its transmitters

Mr. Buchko, 

On 6 September 2016, the Commission received an application by N L Broadcasting Ltd. (N L Broadcasting) in which the company requested the renewal of its broadcasting licence for CHNL Kamloops, British Columbia (application 2016-0976-0).

On 7 April 2017, the Commission received another application from N L Broadcasting in which the company requested the Commission’s authority to effect a change in ownership and effective control to Newcap Inc. (application 2017-0304-1). In the context of that application, N L Broadcasting provided answers to Commission staff’s questions pertaining to, among other things, apparent shortfalls associated with basic annual Canadian Content Development (CCD) contributions. On 5 June 2017, the Commission approved the company’s ownership application and indicated that CHNL’s apparent non-compliance will be dealt with as part of its renewal application.

In order to complete the record of the broadcasting licence renewal application for CHNL and allow Commission staff to pursue its analysis, questions regarding the basic annual CCD contribution shortfalls (refer to attachment) must also be answered in relation to application 2016-0976-0.

Timeline Change (Intervention / Comments Deadline)

Considering the new information to be added to the public record, Commission staff will re-open the intervention period for this proceeding for additional comments from all parties.

As such, the timetable for the proceeding is changed as follows:

  1. N L Broadcasting is requested to provide further information by filing with the Commission responses to the attached questions no later than 14 June 2017, failing which the company’s application may be returned;
  2. Interested parties will have until 24 June 2017 to file interventions on
    N L Broadcasting’s application and its responses to Commission staff’s request for information; and
  3. N L Broadcasting will have until 29 June 2017 to file its reply to any interventions received.

Compliance Analysis

In evaluating apparent non-compliances, the Commission considers factors such as the quantity, recurrence and seriousness of these non-compliances. The Commission will impose measures according to the nature of the non-compliances, and also consider the circumstances, the arguments provided by the licensee, as well as the actions taken to rectify the situation.Footnote1

Upon receipt of your responses to Commission staff’s questions on apparent non-compliances, no additional letter requesting additional information on the information provided will be sent to you, unless exceptional circumstances justify to do so. At this point, your file will be considered complete and a public proceeding will follow based on the information received.Footnote2 Consequently, it is the licensee’s responsibility to provide a response letter that includes complete and accurate information, including any necessary supporting evidence, as this is its opportunity to comment in writing on the preliminary findings concerning instances of apparent non-compliances described below. 

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

N L Broadcasting is also requested to repeat each question in its reply.

The Commission requires that documents be submitted electronically by using the secured service “My CRTC Account” (Partner Log In or GCKey) and filling the “Broadcasting and Telecom Cover page” or the “Broadcasting Online Form and Cover Page” located on this web page. Also on this web page you will find 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 this application, please do not hesitate to contact me by telephone at 819-639-3173 or by E-mail at angie.blakeney@crtc.gc.ca.

Yours sincerely,

Angie Blakeney
Radio Analyst
CRTC - Radio Policy and Applications


Attachment

Request for Information

Basic Canadian Content Development (CCD) contributions & Revenue Discrepancy:

  1. Pursuant to subsection 15(2) of the Radio Regulations, 1986, (the Regulations), commercial licensees with total revenues of more than $1,250,000 are required to make annual contributions to eligible CCD initiatives (known as basic annual CCD contributions). Subsection 15(5)(a) further requires that these licensees devote at least 15% of their basic annual CCD contributions to the Community Radio Fund of Canada (CRFC). Subsection 15(5)(b) further requires these licensees to devote 45% of the basic annual CCD contributions to FACTOR or MUSICATION.

    According to Commission records, CHNL incurred a total shortfall of $2,640.08 over the period of the 2010-2011, 2011-2012, and 2012-2013 broadcast years, of which $2,206.71 was owed to FACTOR and $433.37 was owed to the CRFC. Specifically, CNHL incurred shortfalls as follows:

    • Broadcast year 2010-2011: $906.58 to FACTOR;
    • Broadcast year 2011-2012: $725.75 to FACTOR and $241.91 to the CRFC; and
    • Broadcast year 2012-2013: $574.39 to FACTOR and $191.46 to the CRFC.

    Commission staff notes that the total shortfall for the above-noted years was rectified by N L Broadcasting on 2 May 2017 as part of the proceeding to address the company’s application to effect a change in ownership and effective control to Newcap Inc. (application 2017-0304-1). However, as noted in Broadcasting Information Bulletin CRTC 2009-251, CCD payments are due in each broadcast year. Therefore, these payments are considered to be late, as follows: 5 years and 10 months for the 2010-2011 broadcast year, 4 years and 10 months for the 2011-2012 broadcast year and 3 years and 10 months for the 2012-2013 broadcast year.

    In light of the information above please:

    1. Explain the circumstances of this apparent non‐compliance.
    2. Specify what measures have been or will be put in place to ensure future compliance with subsection 15(5)(a) and subsection 15(5)(b) of the Regulations.
    3. Comment on the possible imposition of a condition of licence related to the shortfalls.
    4. Comment on the possibility of a short-term renewal for CHNL, in accordance with Broadcasting Information Bulletin CRTC 2014-608Footnote3 (information bulletin), should you be found in non-compliance with subsection 15(5)(b) of the Regulations. Please also comment on the possible imposition of measures such as: imposition of conditions of licence, mandatory orders, non-renewal, suspension, or revocation of the licence, requiring licensees to broadcast an announcement regarding their non-compliance, as set out in the appendix to this information bulletin.
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