CONSOLIDATION

Broadcasting Licence Fee Regulations, 1997

SOR/97-144

Current to June 20, 2022 Last amended on June 23, 2010



OFFICIAL STATUS OF CONSOLIDATIONS Subsections 31(1) and (3) of the Legislation Revision and Consolidation Act, in force on June 1, 2009, provide as follows: Published consolidation is evidence

31 (1) Every copy of a consolidated statute or consolidated regulation published by the Minister under this Act in either print or electronic form is evidence of that statute or regulation and of its contents and every copy purporting to be published by the Minister is deemed to be so published, unless the contrary is shown. ... Inconsistencies in regulations

(3) In the event of an inconsistency between a consolidated regulation published by the Minister under this Act and the original regulation or a subsequent amendment as registered by the Clerk of the Privy Council under the Statutory Instruments Act, the original regulation or amendment prevails to the extent of the inconsistency.

LAYOUT The notes that appeared in the left or right margins are now in boldface text directly above the provisions to which they relate. They form no part of the enactment, but are inserted for convenience of reference only.

NOTE This consolidation is current to June 20, 2022. The last amendments came into force on June 23, 2010. Any amendments that were not in force as of June 20, 2022 are set out at the end of this document under the heading “Amendments Not in Force”.

Current to June 20, 2022 Last amended on June 23, 2010

TABLE OF PROVISIONS Broadcasting Licence Fee Regulations, 1997

Interpretation

Application

Fees

Licence Fee Returns

PART I

Part I Licence Fee 11

PART II

Part II Licence Fee 12

Repeal

Coming into Force

Current to June 20, 2022 Last amended on June 23, 2010

ii

Registration SOR/97-144 March 17, 1997

BROADCASTING ACT Broadcasting Licence Fee Regulations, 1997

Whereas, pursuant to subsections 10(3) and 11(5) of the Broadcasting Acta, a copy of the proposed Broadcasting Licence Fee Regulations, 1997, substantially in the form annexed hereto, was published in the Canada Gazette, Part I, on November 30, 1996, and a reasonable opportunity was thereby given to licensees and other interested persons to make representations to the Canadian Radio-television and Telecommunications Commission with respect thereto; Therefore, the Canadian Radio-television and Telecommunications Commission, pursuant to subsections 10(1) and 11(1) of the Broadcasting Acta, with the approval of Treasury Board, hereby makes the annexed Broadcasting Licence Fee Regulations, 1997. Hull, Quebec, March 14, 1997

a

S.C. 1991, c. 11

Current to June 20, 2022 Last amended on June 23, 2010

Broadcasting Licence Fee Regulations, 1997

Interpretation 1 The definitions in this section apply in these Regulations. associated corporation has the meaning assigned to that expression in section 256 of the Income Tax Act. (société associée) exemption level means (a) for a distribution undertaking, $175,000; (b) for a television undertaking, $1.5 million; and (c) for a radio undertaking, (i) subject to subparagraph (ii), (A) where the fee revenue of the undertaking is $2 million or less, $2 million, and (B) where the fee revenue of the undertaking is greater than $2 million, $500,000, and (ii) in the case of a joint radio undertaking, (A) where the combined fee revenue of the radio undertakings is $4 million or less, $4 million, and (B) where the combined fee revenue of the radio undertakings is greater than $4 million, $500,000. (franchise)

fee revenue, in respect of a licensee of a broadcasting undertaking, means the gross revenue derived during a return year from the licensed activity of the licensee, whether received by the licensee or by an associated corporation, and, without limiting the generality of the foregoing, includes (a) any revenue received in respect of all transmitters forming part of the undertaking, where the broadcasting undertaking consists of more than one transmitter; (b) the estimated annual revenue, based on the trends

of the market in which the undertaking is licensed to operate, the previous financial performance of the

Current to June 20, 2022 Last amended on June 23, 2010

Broadcasting Licence Fee Regulations, 1997 Interpretation Sections 1-2

undertaking, and, where applicable, the licensee’s business plan for the first 12 months of operations, where the licensee has not filed a licence fee return covering 12 months of the most recently completed return year; and (c) revenue that is derived from the sale of air time of the broadcasting undertaking by the Corporation and paid by the Corporation to the licensee.

This definition does not include any amount received by the licensee from another licensee, other than the amounts received from the Corporation for the sale of air time. (recettes désignées) fiscal year means the one-year period beginning April 1 in any year. (exercice) joint radio undertaking means an AM radio undertaking and an FM radio undertaking operated by the same licensee, or by a licensee and an associated corporation, where any part of the FM 3 mV/m contour overlaps any part of the AM daytime 15 mV/m contour. (entreprise de radio conjointe) licensee means a person licensed to carry on a broadcasting undertaking. (titulaire) Part I licence fee means the licence fee set out in Part I. (droits de licence de la partie I) Part II licence fee means the licence fee set out in Part II. (droits de licence de la partie II) radio undertaking includes a broadcasting undertaking licensed by the Commission as a (Radio) Programming Undertaking, a (Pay-Audio) Programming Undertaking or a (Radio) Network. (entreprise de radio) return year means the one-year period beginning September 1 in any year. (année de rapport) television undertaking includes a broadcasting undertaking licensed by the Commission as a (Television) Programming Undertaking, a (Pay-TV) Programming Undertaking, a (Satellite-to-Cable) Programming Undertaking, a (Specialty) Programming Undertaking, a (Direct-to-home pay-per-view) Programming Undertaking, a (Video-on-demand) Programming Undertaking or a (Television) Network. (entreprise de télévision)

Application 2 These Regulations apply to all licensees other than

Current to June 20, 2022 Last amended on June 23, 2010

Broadcasting Licence Fee Regulations, 1997 Application Sections 2-7

(a) a radio undertaking or a television undertaking licensed by the Commission as a student broadcasting undertaking, a native broadcasting undertaking, a community broadcasting undertaking or a campus/ community broadcasting undertaking; (b) broadcasting undertakings carried on by the Corporation; and (c) an independent corporation, as defined in the Direction to the CRTC (Ineligibility to Hold Broadcasting Licences), which derives none of its revenues from the sale of air time.

Fees 3 Every licensee shall pay annually to the Commission (a) a Part I licence fee, payable 30 days after the date of the invoice from the Commission; and (b) a Part II licence fee, payable on or before December 1 in each year. SOR/2010-157, s. 1.

4 Where a fee referred to in section 3 has become due but remains unpaid, the licensee shall pay interest and administrative charges in accordance with the Interest and Administrative Charges Regulations.

Licence Fee Returns 5 On or before November 30 in each year, every licensee

whose fee revenue for the most recently completed return year exceeds the exemption level shall file with the Commission a licence fee return, on the form provided by the Commission, with respect to each broadcasting undertaking that is carried on by the licensee. 6 A licence fee return filed pursuant to section 5 shall contain the information required in the form referred to in that section for the one-year period beginning September 1 of the year preceding the calendar year in which the return is required to be filed.

PART I

Part I Licence Fee 7 The components of a Part I licence fee shall consist of (a) an initial amount calculated in accordance with

subsection 8(1); and

Current to June 20, 2022 Last amended on June 23, 2010

Broadcasting Licence Fee Regulations, 1997 PART I Part I Licence Fee Sections 7-9

(b) an annual adjustment amount calculated in accordance with subsection 8(2). 8 (1) The initial amount shall be calculated by the Commission using the formula (A / B) × C

where A

is the licensee’s fee revenues for the most recently completed return year, less that licensee’s exemption level for that return year;

B

is the aggregate fee revenues for the most recently completed return year of all licensees whose fee revenues exceed the applicable exemption levels, less the aggregate exemption level for all those licensees for that return year; and

C

is the estimated total regulatory costs of the Commission for the current fiscal year as calculated in accordance with section 9.

(2) The annual adjustment amount shall be calculated by

the Commission using the following formula (A / B) × D

where A

is the licensee’s fee revenues for the most recently completed return year, less that licensee’s exemption level for that return year;

B

is the aggregate fee revenues for the most recently completed return year of all licensees whose fee revenues exceed the applicable exemption levels, less the aggregate exemption level for all those licensees for that year; and

D

is the difference between the estimated total regulatory costs and the actual total regulatory costs of the Commission for the fiscal year as calculated in accordance with section 9.

(3) The annual adjustment amount referred to in subsection (2) shall be charged or credited to the licensee in the following year’s invoice and shall not, in any case, result in a disbursement of monies on the part of the Commission. 9 (1) The estimated total regulatory costs of the Commission for the current fiscal year is the sum of the following amounts as set out in the Commission’s Expenditure Plan published in Part III of The Estimates of the Government of Canada: (a) the costs of the Commission’s Broadcasting Activity; and

Current to June 20, 2022 Last amended on June 23, 2010

Broadcasting Licence Fee Regulations, 1997 PART I Part I Licence Fee Sections 9-11

(b) the share that is attributable to the Commission’s

Broadcasting Activity of (i) the costs of the Commission’s administrative activities, and (ii) the other costs that are taken into account to

arrive at the net cost of the Commission’s program, excluding the costs of regulating the broadcasting spectrum. (2) The actual total regulatory costs of the Commission shall be calculated in accordance with subsection (1) using actual amounts. 10 The Commission shall publish, each year, the estimated total regulatory costs referred to in subsection 9(1) in a public notice in the Canada Gazette, Part I.

PART II

Part II Licence Fee 11 (1) A Part II licence fee is equal to the amount determined by the formula X/Y x Z

where X

is the licensee’s fee revenues for the return year terminating during the previous calendar year, less that licensee’s exemption level for that return year;

Y

is the aggregate fee revenues for the return year terminating during the previous calendar year of all licensees whose fee revenues exceed the applicable exemption levels, less the aggregate exemption level for all those licensees for that return year; and

Z

is the lesser of (a) $100,000,000, and (b) 1.365% multiplied by the amount determined

for Y. (2) Commencing in 2011, the amount set out in paragraph (a) of the description of Z in subsection (1) shall be adjusted annually on a compound basis in accordance with the percentage increase or decrease, as the case may be, to the Consumer Price Index for the calendar year prior to the year of the adjustment. The Consumer Price Index is the annual average all-items Consumer Price Index for Canada (not seasonally adjusted) that is published by Statistics Canada.

Current to June 20, 2022 Last amended on June 23, 2010

Broadcasting Licence Fee Regulations, 1997 PART II Part II Licence Fee Sections 11-13

(3) The Commission shall publish the amount determined for Z each year in a public notice in the Canada Gazette, Part I. (4) The Commission shall invoice a licensee for the Part II licence fee no later than November 1 of the year in which the fee is due. (5) For the purposes of this section, the reference to

“most recently completed return year” in paragraph (b) of the definition fee revenue in section 1 shall be read as a reference to the “return year terminating during the previous calendar year”. SOR/2010-157, s. 2.

Repeal 12 [Repeal]

Coming into Force 13 These Regulations come into force on April 1,

1997. Current to June 20, 2022 Last amended on June 23, 2010

