Vol. 151, No. 17 — August 23, 2017

Registration

SOR/2017-159 August 4, 2017

BROADCASTING ACT

Discretionary Services Regulations

Whereas, pursuant to subsection 10(3) of the Broadcasting Act (see footnote a), a copy of the proposed Discretionary Services Regulations, substantially in the annexed form, was published in the Canada Gazette, Part I, on October 8, 2016 and a reasonable opportunity was afforded to 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 Discretionary Services Regulations.

Gatineau, August 3, 2017

Danielle May-Cuconato
Secretary General, Canadian Radio-television and Telecommunications Commission

Discretionary Services Regulations

Interpretation

Definitions

1 The following definitions apply in these Regulations.

Act means the Broadcasting Act. (Loi)

advertising material means any commercial message or programming that promotes a station, network or program but it does not include

broadcast year means the period that begins on September 1 of one year and ends on August 31 of the following year. (année de radiodiffusion)

Canadian program means a program

commercial message means an advertisement that is intended to sell or promote goods, services, natural resources or activities, including by mentioning or displaying in a list of prizes the name of a person that is selling or promoting the goods, services, natural resources or activities. (message publicitaire)

exempt distribution undertaking means a distribution undertaking whose operator is exempt from one or more of the requirements of Part II of the Act by an order of the Commission made under subsection 9(4) of the Act. (entreprise de distribution exemptée)

key figure means a figure formed by a combination of alphanumeric characters set out in column 2 of Schedule 1 that corresponds to the description of the program set out in column 1. (chiffre clé)

licensed means licensed by the Commission. (autorisé)

licensee means a person that is licensed to carry on a discretionary programming undertaking or a discretionary services network. (titulaire)

new programming service means a programming service that has not been previously distributed in Canada and includes a high definition version or a new multiplex of an existing programming service. (nouveau service de programmation)

program means a program that falls into a category set out in item 6, column 1, of Schedule 1. (émission)

programming means anything that is broadcast, but does not include visual images, whether or not combined with sounds, that consist predominantly of alphanumeric characters. (programmation)

Canadian Programs

Obligation to broadcast Canadian programs

2 (1) Subject to subsection (2) and except as otherwise provided under a condition of its licence, a licensee shall devote at least 35% of the time that it devotes to broadcasting in a broadcast year to the broadcast of Canadian programs.

Licensee that provides third language programming

(2) Except as otherwise provided under a condition of its licence, a licensee that provides a third language service shall devote at least 15% of the time that it devotes to broadcasting in a broadcast year to the broadcast of Canadian programs.

Period of time devoted to broadcasting

(3) For the purposes of subsections (1) and (2), the time devoted to the broadcasting of a program includes any time devoted to advertising material.

Definition of third language service

(4) In subsection (2), third language service means a programming service that provides at least 90% of its programming each broadcast week, the first day of which falls on a Sunday, in a language other than English or French exclusive of secondary audio programming and subtitles.

Programming Content

Prohibition — broadcasting of programming

3 A licensee shall not broadcast programming that contains

Commercial Messages

Obligation to comply with technical requirements

4 Except as otherwise provided under a condition of its licence, a licensee shall ensure that every commercial message that it broadcasts in a break within a program or between programs complies with the technical requirements set out in ATSC Recommended Practice A/85: Techniques for Establishing and Maintaining Audio Loudness for Digital Television, published by the Advanced Television Systems Committee Inc., as amended from time to time.

Alcoholic beverages

5 (1) A licensee may broadcast a commercial message directly or indirectly advertising an alcoholic beverage if

Non-application

(2) For greater certainty, paragraph (1)(b) does not apply in order to prohibit industry, public service or brand preference advertising.

Political Broadcasts

Obligation — allocation of broadcasting time

6 (1) If, during an election period, a licensee provides time on its programming service for the broadcast of programs, advertisements or announcements of a partisan political character, the licensee shall allocate the time on an equitable basis to all accredited political parties and rival candidates represented in the election or referendum.

Definition of election period

(2) In subsection (1), election period means

Non-Disclosure

Non-disclosure obligation — distribution of programming services

7 (1) A licensee whose programming services are distributed by a licensed distribution undertaking or that is negotiating terms of carriage with such an undertaking for its programming services, including new programming services, shall sign and provide to the licensee of the distribution undertaking an agreement that

Non-disclosure obligation — broadcasting of programs

(2) A licensee whose programs are broadcast by a licensed video-on-demand undertaking or that is negotiating terms of carriage with such an undertaking for its programs shall sign and provide to the licensee of the video-on-demand undertaking an agreement that

Definition of CRTC non-disclosure provisions

(3) In this section, CRTC non-disclosure provisions means the non-disclosure provisions set out in the appendix to Broadcasting Regulatory Policy CRTC 2013-578, dated October 31, 2013 and entitled Standard clauses for non-disclosure agreements.

Logs and Records

Obligations — log or record

8 (1) Except as otherwise provided under a condition of its licence, a licensee shall

If more than one subitem applies

(2) For the purposes of clauses (1)(c)(iv)(B) and (1)(c)(v)(D), if more than one subitem of Schedule 1 applies to the program, a licensee may, in respect of that program, cause to be entered in its program log or record the key figures indicating the subitems that apply to each segment of the program, in the order in which the segments are distributed, and the starting time and duration of each segment of the program.

Obligation to provide recording to Commission

(4) If the Commission requests a clear and intelligible audio-visual recording of a licensee’s programming from the licensee before the end of the applicable period referred to in paragraph (3)(a) or (b), the licensee shall, without delay, provide the recording to the Commission.

Requests for Information

Obligation to file statement of accounts

9 (1) On or before November 30 of each year, a licensee shall file with the Commission, on the annual return form issued by the Commission, a statement of accounts for the previous broadcast year.

Obligation to respond to complaint or request

(2) At the Commission’s request, a licensee shall respond to

Transfer of Ownership or Control

Definitions

10 (1) The following definitions apply in this section.

associate, when used to indicate a relationship with a person, includes

common-law partner means an individual who is cohabiting with a person in a conjugal relationship having done so for a period of at least one year. (conjoint de fait)

common shares means the shares that represent the residual equity in the earnings of a corporation, and includes securities that are convertible into such shares at any time at the option of the holder and the preferred shares to which are attached rights to participate in the earnings of the corporation with no upper limit. (actions ordinaires)

person includes an individual, partnership, joint venture, association, corporation, trust, estate, trustee, executor or administrator, or a legal representative of any of them. (personne)

voting interest, in respect of

voting share means a share in the capital of a corporation to which one or more votes are attached that are exercisable at meetings of shareholders of the corporation, either under all circumstances or under a circumstance that has occurred and is continuing, and includes a security that is convertible into such a share at any time at the option of the holder. (action avec droit de vote)

Control of voting interest

(2) For the purposes of this section, control of a voting interest by a person includes situations in which

Effective control of licensee

(3) For the purposes of this section, effective control of a licensee or its undertaking includes situations in which

Obligation to obtain Commission’s prior approval

(4) Except as otherwise provided under a condition of its licence, a licensee shall obtain the Commission’s prior approval of any act, transaction or agreement that, directly or indirectly, would result in

Obligation to notify Commission

(5) A licensee shall notify the Commission, within 30 days after the day on which the act or transaction occurs or the agreement is entered into, of the occurrence of any act or transaction or the entry into any agreement that, directly or indirectly, results in

Content of notification

(6) The notification is to contain the following information:

Undue Preference or Disadvantage

Prohibition — undue preference or disadvantage

11 (1) A licensee shall not give an undue preference to any person, including itself, or subject any person to an undue disadvantage.

Burden of proof

(2) In a proceeding before the Commission, the burden of establishing that any preference or disadvantage is not undue is on the licensee that gives the preference or subjects the person to the disadvantage.

Tied Selling

Prohibition

12 Except as otherwise provided under a condition of its licence, a licensee shall not offer its programming service for distribution as part of a package with other programming services unless it also makes its programming service available on a stand-alone basis.

Availability of New Programming Services for Distribution

Obligation — distribution of new programming service

13 Except as otherwise provided under a condition of its licence, a licensee that is ready to launch a new programming service shall make that programming service available for distribution by all licensed broadcasting distribution undertakings or operators of exempt distribution undertakings, despite the absence of a commercial agreement.

Dispute Resolution

Referral of dispute to Commission

14 (1) If there is a dispute between a licensee and the operator of a licensed distribution undertaking or an exempt distribution undertaking concerning the carriage or terms of carriage of programming that originates from the licensee, including the wholesale rate and the terms of any audit referred to in section 15.1 of the Broadcasting Distribution Regulations, one or both of the parties to the dispute may refer the matter to the Commission for dispute resolution.

Mediation

(2) If the Commission accepts a referral of a matter for dispute resolution, the parties to the dispute shall participate in a mediation with a person who is appointed by the Commission.

Additional information

(3) During the dispute resolution process, the person who is appointed may require additional information from the parties.

Procedural requirements, rates, terms and conditions

(4) If a licensed distribution undertaking or an exempt distribution undertaking distributes the licensee’s programming service in the absence of a commercial agreement and the matter proceeds before the Commission for dispute resolution,

Rates, terms and conditions — new programming service

(5) If the dispute relates to the rates, terms or conditions that relate to a new programming service that is being distributed in the absence of a commercial agreement and the matter proceeds before the Commission for dispute resolution, the parties will be bound by the rates, terms and conditions established by the Commission for the duration of the contractual term established by the Commission.

Rates, terms and conditions — agreement

(6) Despite subsections (4) and (5), the parties may reach an agreement that sets out rates, terms or conditions that differ from those established by the Commission.

Obligations During Dispute

Obligation — rates, terms and conditions

15 (1) During a dispute between a licensee and a person that is licensed to carry on a distribution undertaking or the operator of an exempt distribution undertaking concerning the carriage or terms of carriage of programming that originates from the licensee or concerning any right or obligation under the Act, the licensee must continue to provide its programming services to the distribution undertaking at the same rates and on the same terms and conditions as it did before the dispute.

Period of dispute

(2) For the purposes of subsection (1), a dispute begins when written notice of the dispute is provided to the Commission and is served on the other undertaking that is a party to the dispute and ends when an agreement settling the dispute is reached by the concerned undertakings or, if no such agreement is reached, when the Commission renders a decision concerning any unresolved matter.

Transmission of Programming Service

Obligations — transmission of programming service

16 Except as otherwise provided under a condition of its licence, a licensee shall, in respect of each programming service that is required to be distributed under section 18 of the Broadcasting Distribution Regulations, by the Commission under paragraph 9(1)(h) of the Act or by order of the Commission made under subsection 9(4) of the Act,

Transitional Provisions

17 The holder of any licence for a pay television programming undertaking or a speciality services programming undertaking in effect on September 1, 2017 is considered to be a licensee for the purposes of these Regulations for the remainder of the term of the licence.

18 Until September 1, 2018, a reference to Schedule 1 or Schedule 2 in these Regulations is to be read as

Repeal

19 The Pay Television Regulations, 1990 (see footnote 1) are repealed.

20 The Specialty Services Regulations, 1990 (see footnote 2) are repealed.

Coming into Force

21 These Regulations come into force on September 1, 2017 but if they are registered after that day, they come into force on the day on which they are registered.

SCHEDULE 1

(Sections 1 and 8)

Key Figures

Item

Column 1

Column 2

Alphanumeric Characters

Program Description

1st

2nd

3rd

4th

5th

6th

7th

8th

1

Origin

               
   

Canada (other than Quebec)

1

             
   

United States

2

             
   

Other

7

             
   

Quebec

8

             

2

Time Credits

               
   

A program for which 150 % credit is given under a condition of licence

 

4

           
   

A program for which 150 % credit is not given under a condition of licence

 

5

           

3

Exhibition

               
   

Original exhibition of a program that has been broadcast or distributed by another licensed broadcasting undertaking

   

1

         
   

Original first-run program (original exhibition of a program that has not been broadcast or distributed by another licensed broadcasting undertaking)

   

2

         
   

Repeat exhibition of a program

   

3

         
   

Live broadcast

   

4

         

4

Production Source

               
   

Discretionary service (licensee)

     

1

       
   

Related production company

     

2

       
   

Other TV station or programming service (include call sign or name)

     

3

       
   

Television network (include network identifier)

     

4

       
   

Canadian independent producer
(include Commission “C” number or the number assigned by the Department of Canadian Heritage)

     

5

       
   

Co-venture (include Commission “S.R.” number)

     

6

       
   

Canadian programs from any government and productions of the National Film Board (include the source)

     

7

       
   

Programs from any source that are not accredited as Canadian programs (include the pertinent dubbing credit and Commission “D” or “C” number if applicable)

     

8

       
   

Treaty co-production

     

9

       

5

Target audience

               
   

Preschool children (0-5 years)

       

1

     
   

Children (6-12 years)

       

2

     
   

Teenagers (13-17 years)

       

3

     
   

Adults (18 years and over)

       

4

     

6

Categories

               
 

Information:

               
 

(1)

News

         

0

1

0

 

(2)

(a) Analysis and interpretation

         

0

2

A

 

(b) Long-form documentary

         

0

2

B

 

(3)

Reporting and actualities

         

0

3

0

 

(4)

Religion

         

0

4

0

 

(5)

(a) Formal education and preschool

         

0

5

A

 

(b) Informal education/Recreation and leisure

         

0

5

B

 

Sports:

               
 

(6)

(a) Professional sports

         

0

6

A

 

(b) Amateur sports

         

0

6

B

 

Music and Entertainment:

               
 

(7)

Drama and comedy (include the appropriate Commission drama credit if applicable)

               
   

(a) Ongoing dramatic series

         

0

7

A

   

(b) Ongoing comedy series (sitcoms)

         

0

7

B

   

(c) Specials, mini-series or made-for-TV feature films

         

0

7

C

   

(d) Theatrical feature films aired on TV

         

0

7

D

   

(e) Animated television programs and films

         

0

7

E

   

(f) Programs of comedy sketches, improvisation, unscripted works, stand-up comedy

         

0

7

F

   

(g) Other drama

         

0

7

G

 

(8)

(a) Music and dance other than music video programs or clips

         

0

8

A

 

(b) Music video clips

         

0

8

B

 

(c) Music video programs

         

0

8

C

 

(9)

Variety

         

0

9

0

 

(10)

Game shows

         

1

0

0

 

(11)

(a) General entertainment and human interest

         

1

1

A

   

(b) Reality television

         

1

1

B

 

Other:

               
 

(12)

Interstitials

         

1

2

0

 

(13)

Public service announcements

         

1

3

0

 

(14)

Infomercials, promotional and corporate videos

         

1

4

0

 

(15)

Filler programming

         

1

5

0

SCHEDULE 2

(Section 8)

Codes

PART A
Code Indicating Program Language

Item

Column 1

Code

Column 2

Description

1

([Abbreviated
name of language]

Language of the original production

2

[Abbreviated
name of language]

Language of the program (for all programs of an ethnic station or for programs of a station if the language of the programs differs from the official language for which the station is principally licensed)

PART B
Code Indicating Accessible Program

Item

Column 1

Code

Column 2

Description

1

CC [to be inserted following
key figure]

Program contains closed captioning for viewers who are deaf and hard of hearing, which has been exhibited during the complete length of the program

2

DV [to be inserted following
key figure]

Program contains described video for viewers who are blind or have visual impairments, which has been exhibited during the complete length of the program

3

AD [to be inserted following
key figure]

Program contains audio description for viewers who are blind or have visual impairments

4

CD [to be inserted following
key figure]

Program contains both closed captioning and described video, which has been exhibited during the complete length of the program

5

CA [to be inserted following
key figure]

Program contains both closed captioning which has been exhibited during the complete length of the program and audio description

PART C
Code Indicating Type

Item

Column 1

Code

Column 2

Description

1

Type A

A program in a language other than English, French or a language of the Indigenous peoples of Canada

2

Type B

A program in English or in French that is directed toward a distinct ethnic group whose mother tongue is English or French or in whose country of origin a common language is English or French

3

Type C

A program in English or in French that is directed toward a distinct ethnic group whose mother tongue is included in Type A

4

Type D

A bilingual program in English or in French as well as in a language other than English, French or in a language of the Indigenous peoples of Canada that is directed toward a distinct ethnic group

5

Type E

A program in English or in French that is directed toward ethnic groups or toward the general public and that depicts Canada’s cultural diversity through services that are multicultural, educational, informational or inter-cultural

6

Type X

Where the licensee is not required by a condition of licence to broadcast prescribed levels of Type A, B, C, D or E programming, an ethnic program, as defined in section 2 of the Television Broadcasting Regulations, 1987

PART D
Code Indicating Group

Item

Column 1

Code

Column 2

Description

1

[Abbreviated name of
ethnic group]

The distinct ethnic group toward which an ethnic program, as defined in section 2 of the Television Broadcasting Regulations, 1987, is directed

EXPLANATORY NOTE

(This note is not part of the Regulations.)

The Regulations give effect to the policy determination of the Canadian Radio-television and Telecommunications Commission to streamline the licensing of programming services by merging the Specialty Services Regulations, 1990 and the Pay Television Regulations, 1990 into a single set of regulations, to be known as the Discretionary Services Regulations.