Vol. 146, No. 19 — September 12, 2012

Registration

SOR/2012-165 August 29, 2012

BROADCASTING ACT

Regulations Amending the Broadcasting Distribution Regulations

Whereas, pursuant to subsection 10(3) of the Broadcasting Act (see footnote a), a copy of the proposed Regulations Amending the Broadcasting Distribution Regulations, substantially in the annexed form, was published in the Canada Gazette, Part Ⅰ, on July 28, 2012, and a reasonable opportunity was given to licensees and other interested persons to make representations to the Canadian Radio-television and Telecommunications Commission with respect to the proposed Regulations;

Therefore, the Canadian Radio-television and Telecommunications Commission, pursuant to subsection 10(1) of the Broadcasting Act (see footnote b), makes the annexed Regulations Amending the Broadcasting Distribution Regulations.

Gatineau, Quebec, August 28, 2012

JOHN TRAVERSY
Secretary General
Canadian Radio-television and
Telecommunications Commission

REGULATIONS AMENDING THE BROADCASTING DISTRIBUTION REGULATIONS

AMENDMENTS

1. Section 35 of the Broadcasting Distribution Regulations (see footnote 1) is replaced by the following:

35. (1) Except as otherwise provided under a condition of its licence, a licensee shall make a contribution to Canadian programming — specifically, to the Local Programming Improvement Fund — based on a percentage of its gross revenues derived from broadcasting activities in the broadcast year, as follows:

  • (a) 1.0% for the broadcast year beginning on September 1, 2012; and

  • (b) 0.5% for the broadcast year beginning on September 1, 2013.

(2) No contributions are required under subsection (1) for any broadcast year after August 31, 2014.

2. Section 37 of the Regulations is renumbered as subsection 37(1) and is amended by adding the following:

(2) Despite subsection (1), if, as a result of the calculations performed under subsection 36(1), the contribution made by a licensee under paragraph 35(1)(b) is greater than the amount required to be contributed under that provision, the licensee is entitled to a refund of the excess.

3. (1) Paragraph 52(c) of the Regulations is replaced by the following:

  • (c) to the Local Programming Improvement Fund,
    • (i) a contribution of 1.0% of gross revenues for the broadcast year beginning on September 1, 2012, and

    • (ii) a contribution of 0.5% of gross revenues for the broadcast year beginning on September 1, 2013.

(2) Section 52 of the Regulations is renumbered as subsection 52(1) and is amended by adding the following:

(2) No contributions are required under paragraph (1)(c) for any broadcast year after August 31, 2014.

4. Section 54 of the Regulations is renumbered as subsection 54(1) and is amended by adding the following:

(2) Despite subsection (1), if, as a result of the calculations performed under subsection 53(1), the contribution made by a licensee under subparagraph 52(c)(ii) is greater than the amount required to be contributed under that provision, the licensee is entitled to a refund of the excess.

COMING INTO FORCE

5. These Regulations come into force on September 1, 2012.

EXPLANATORY NOTE

(This note is not part of the Regulations.)

The purpose of these amendments is to reduce the percentage of gross revenues derived from broadcasting activities in the broadcast year that licensed terrestrial and direct-to-home broadcasting distribution undertakings are required to contribute to the Local Programming Improvement Fund. The contribution rate is being reduced incrementally over the next two broadcast years with no new contributions required beyond August 31, 2014. The licensees will nonetheless remain obligated to contribute any balance owing from previous broadcast years by December 31, 2014.

Footnote a
S.C. 1991, c. 11

Footnote b
S.C. 1991, c. 11

Footnote 1
SOR/97-555