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Broadcasting Decision CRTC 2023-234

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Reference: Part 1 licence renewal application posted on 28 November 2022

Ottawa, 31 July 2023

Les médias acadiens universitaires inc.
Moncton, New Brunswick

Public record: 2022-0691-1

CKUM-FM Moncton – Licence renewal

Summary

The Commission renews the broadcasting licence for the French-language campus radio station CKUM-FM Moncton, New Brunswick, from 1 September 2023 to 31 August 2026. This short-term renewal will allow for an earlier review of the licensee’s compliance with its regulatory requirements.

Application

  1. The Commission has the authority, pursuant to subsections 9(1) and 9.1(1) of the Broadcasting Act, to issue and renew licences and to make orders imposing conditions on the carrying on of a broadcasting undertaking that it considers appropriate for the implementation of the broadcasting policy set out in subsection (1) of the Broadcasting Act.
  2. On 10 June 2022, the Commission issued Broadcasting Notice of Consultation 2022-152,Footnote 1 which listed radio stations for which the broadcasting licences would expire 31 August 2023 and therefore needed to be renewed to continue their operations. In that notice of consultation, the Commission requested that the licensees of those stations submit renewal applications for their broadcasting licences.
  3. In response, Les médias acadiens universitaires inc. filed an application to renew the broadcasting licence for the French-language campus radio station CKUM-FM Moncton, New Brunswick, which expires 31 August 2023.Footnote 2 The Commission did not receive any interventions in regard to this application.

Background

  1. In Broadcasting Decision 2015-241, the Commission found the licensee in non-compliance with subsection 9(2) of the Radio Regulations, 1986 (the Regulations) relating to the filing of complete annual returns for the 2011-2012 and 2012-2013 broadcast years.

Non-compliance

Annual returns

  1. Paragraph 10(1)(i) of the old Broadcasting Act, which was in effect while the licensee’s application was being considered, granted the Commission the authority, in furtherance of its objects, to make regulations requiring licensees to submit to the Commission such information regarding their programs and financial affairs or otherwise relating to the conduct and management of their affairs as the regulations may specify.
  2. Pursuant to this authority, the Commission made subsection 9(2) of the Regulations, which requires licensees to file an annual return, including financial statements, by no later than 30 November of a given year for the broadcast year ending the previous 31 August. The specific filing requirements, including the requirement to file financial statements, are set out in Broadcasting Information Bulletin 2011-795 and in Circular No. 404.
  3. Subsection 49(2) of the Online Streaming Act, which made a certain number of amendments to the Broadcasting Act when it came into force on 27 April 2023, stipulates that any regulation made pursuant to paragraph 10(1)(i) of the old Broadcasting Act is deemed to be an order made under section 9.1 of the new Broadcasting Act. Accordingly, subsection 9(2) of the Regulations is considered to be a condition of service pursuant to paragraph 9.1(1)(o) of the new Broadcasting Act, and licensees continue to be subject to this requirement.
  4. According to Commission records, the annual returns provided to the Commission for the 2017-2018 to 2019-2020 broadcast years did not include financial statements.
  5. The licensee indicated that these were periods during which there were changes to the station’s leadership. As financial statements were not produced for the 2017-2018 to 2019-2020 broadcast years, management had no financial documents to provide.
  6. In 2021, the station hired a chartered accountant, which allowed for better monitoring of the station’s finances and easier access to financial records. To ensure the station’s compliance in future, the licensee plans to prepare a strategic administration and management transition plan. All missing financial statements were filed on 9 October 2022.
  7. In light of the above, the Commission finds the licensee in non-compliance with subsection 9(2) of the Regulations for the 2017-2018 to 2019-2020 broadcast years.

Implementation of a National Public Alerting System

  1. Subsection 10(1) of the Broadcasting Act authorizes the Commission, in furtherance of its objects, to make regulations regarding, among other things, the broadcasting of programs. In Broadcasting Regulatory Policy 2014-444, the Commission stated that the broadcasting system has a vital role to play in the provision of emergency alert messages to Canadians and that the duty to inform the public of imminent perils is at the core of the public service obligations of all broadcasters. The provision of emergency alert messages is achieved through the National Public Alerting System (NPAS).
  2. Pursuant to this authority, the Commission made section 16 of the Regulations. It specifies, among other things, that except as otherwise provided under a condition of its licence, a licensee of a community radio station shall implement, by no later than 31 March 2016, a public alerting system that broadcasts without delay any audio alert that it receives from the National Alert Aggregation and Dissemination (NAAD) System that

    (a) announces an imminent or unfolding danger to life; and

    (b) is designated by the applicable issuing authority for immediate broadcast in all or part of the area within the station’s A.M. 5 mV/m contour, F.M. 0.5 mV/m contour or digital service area, as the case may be.

  3. According to Commission records, the licensee did not implement the NPAS by the 31 March 2016 deadline.
  4. The licensee stated that the public alerting system was properly installed and has been operating since March 2022. It explained that, prior to March 2022, the station did not have a functioning NPAS, and had not since 2016, as previous managers believed the system was working, and high staff turnover did not allow for the transmission of information. Further, no documentation or tutorials had been provided to explain how the system worked. Since February 2022, a technician has been available to the station and a guide has been provided to the team.
  5. In light of the above, the Commission finds the licensee in non-compliance with subsection 16(3) of the Regulations.

Regulatory measures

  1. The Commission’s approach to non-compliance by radio stations is set out in Broadcasting Information Bulletin 2014-608. Under that approach, each instance of non-compliance is evaluated in its context and in light of factors such as the number, recurrence and seriousness of the instances of non-compliance. The circumstances leading to the non-compliance, the arguments provided by the licensee and the actions taken to rectify the situation are also considered.
  2. In regard to CKUM-FM and the licensee’s non-compliance with subsection 9(2) of the Regulations, the Commission notes that the licensee’s financial statements for the 2017-2018 to 2019-2020 broadcast years were filed on 9 October 2022, which is more than 12 months late. Although campus radio stations must frequently deal with high staff turnover, this is the second consecutive licence term with non-compliance relating to the filing of complete annual returns by required deadlines. However, the licensee has put measures in place to ensure the station’s compliance in future and has rectified the situation with the Commission.
  3. In regard to CKUM-FM and the licensee’s non-compliance with subsection 16(3) of the Regulations, the Commission notes that the licensee has confirmed that the system has been operational since March 2022 and that it has put measures in place to ensure the station’s compliance in future. However, the Commission considers this non-compliance to be very serious, as six years have passed since the 31 March 2016 deadline for campus stations to implement the system. Even if the radio station must frequently deal with high staff turnover and system information was neither provided nor transmitted by staff members, the licensee was responsible for the implementation of the NPAS, as required by the Regulations. However, since the system is now operational, the imposition of a condition of service requiring the licensee to implement the NPAS by a given date is not necessary.
  4. The Commission has examined the public record for this application and emphasizes the licensee’s willingness to ensure the station’s compliance with regulatory requirements. However, given the seriousness of the non-compliance relating to the implementation of the NPAS as well as the seriousness and the recurrent nature of the non-compliance relating to filing complete annual returns on time, the Commission finds that it would be appropriate to renew the broadcasting licence for CKUM-FM for a short-term period, which will allow for an earlier review of the licensee’s compliance with its regulatory requirements.

Conclusion

  1. In light of all of the above, the Commission renews the broadcasting licence for the French-language campus radio programming undertaking CKUM-FM Moncton, New Brunswick, from 1 September 2023 to 31 August 2026.
  2. Pursuant to subsection 49(1) of the Online Streaming Act, the conditions of licence that existed prior to the date of royal assent of that Act are deemed to be conditions imposed under an order made pursuant to section 9.1 of the new Broadcasting Act. As such, the conditions of licence for this licensee became conditions of service and continue to apply to the licensee. For ease of reference, the conditions of service for this licensee are set out in the appendix to this decision. Further, the formal broadcasting licence document issued to a licensee may set out additional requirements for the undertaking, relating to, for example, technical parameters or prohibitions on transfer. The licensee shall also adhere to any such requirements set out in the broadcasting licence for the undertaking.

Reminders

  1. The Commission reminds the licensee that it must comply at all times with the requirements set out in the Broadcasting Act, the Regulations, its licence and its conditions of service. Should the licensee continue to be in non-compliance with regulatory requirements, the Commission may consider recourse to additional measures, including the issuance of a mandatory order, or the revocation, non-renewal or suspension of the licence pursuant to sections 9 and 24 of the Broadcasting Act.
  2. As set out in Broadcasting Regulatory Policy 2010-499, the board of directors of campus radio stations must include a balanced representation from the student body and representation from the administration of the post-secondary institution, station volunteers and the community at large. The Commission reminds the licensees that they must maintain this balanced representation on their board of directors throughout the licence term. To ensure continuity of direction, the Commission encourages the licensees to establish positions on their board of directors with terms of more than one year.
  3. The Commission also reminds the licensees that they must comply at all times with the Direction to the CRTC (Ineligibility of non-Canadians).Footnote 3

Annual returns

  1. Licensees are responsible for filing complete annual returns on time, including financial statements. As set out in Broadcasting Information Bulletin 2011-795, it is the licensee’s responsibility to ensure that all appropriate forms and documentation are included with its annual returns, and to contact the Commission if further clarification is required.

National Public Alerting System

  1. The full participation of the broadcasting industry is important for ensuring that the NPAS is effective in safeguarding and warning Canadians. Accordingly, the Commission considers that compliance must be enforced. Stations that are in non-compliance with the requirements relating to the NPAS will be closely monitored to ensure that they come into compliance within the prescribed timeframe. The Commission could choose to apply other regulatory measures, such as those set out in Broadcasting Information Bulletin 2014-608, should the requirements relating to the NPAS not be fulfilled.

Force and effect of broadcasting licences

  1. Pursuant to section 22 of the Broadcasting Act, the broadcasting licence renewed in this decision will cease to have any force or effect should the broadcasting certificate issued by the Department of Industry (also known as Innovation, Science and Economic Development Canada) lapse.

Practical guide for radio licence renewals

  1. To learn more about the Commission’s review of compliance with requirements relating to radio licences, and about the radio renewal process, please consult the Commission’s Practical guide to radio licence renewals.

Secretary General

Related documents

This decision is to be appended to the licence.

Appendix to Broadcasting Decision CRTC 2023-234

Terms, conditions of service, expectations and encouragement for the French-language campus radio programming undertaking CKUM-FM Moncton, New Brunswick

Terms

The licence will expire 31 August 2026.

Conditions of service

  1. The licensee shall adhere to the conditions of service set out in Standard conditions of licence for campus and community radio stations, Broadcasting Regulatory Policy CRTC 2012-304, 22 May 2012. Further, the licensee shall adhere to the requirements set out in the broadcasting licence for the undertaking.
  2. The licensee shall adhere to all applicable requirements set out in the Radio Regulations, 1986, that were made under paragraph 10(1)(a) or under paragraph 10(1)(i) of the old Broadcasting Act.Footnote 4

Expectations

Cultural diversity

The Commission expects the licensee to reflect the cultural diversity of Canada in its programming and employment practices.

Updates on boards of directors of community and campus radio stations

The Commission expects all community and campus licensees to file yearly updates on the composition of their boards of directors. These annual updates can be submitted at the time of submission of annual returns, following annual board of directors’ elections or at any other time. Such information may be submitted through the Commission’s website.

Encouragement

The Commission considers that campus radio stations should pay particular attention to employment equity in order to reflect fully the communities they serve. It encourages the licensee to consider employment equity in its hiring practices and in all other aspects of its management of human resources.

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