BROADCASTING ACTBroadcasting Fees RegulationsWhereas, under subsection 11(5)a of the Broadcasting Actb, a copy of the proposed Broadcasting Fees Regulations, substantially in the annexed form, was published in the Canada Gazette, Part I, on September 2, 2023, and a reasonable opportunity was given to persons carrying on broadcasting undertakings and other interested persons to make representations to the Canadian Radio-television and Telecommunications Commission with respect to the proposed Regulations;S.C. 2023, c. 8, s. 12(10)S.C. 1991, c. 11Therefore, the Canadian Radio-television and Telecommunications Commission, with the approval of the Treasury Board, makes the annexed Broadcasting Fees Regulations under subsection 11(1)c of the Broadcasting Actb.S.C. 2023, c. 8, par. 12(1) to (3)Gatineau, March 19, 2024
Le secrétaire général du Conseil de la radiodiffusion et des télécommunications canadiennes,Marc MorinSecretary General, Canadian Radio-television and Telecommunications Commission
InterpretationDefinitionsThe following definitions apply in these Regulations.Act means the Broadcasting Act. (Loi) audiobook service means the transmission or retransmission of audiobooks over the Internet for reception by the public by means of broadcasting receiving apparatus. (service de livres audio) broadcasting ownership group means a group of all operators that are affiliates of one another or, in the case of an operator that is not an affiliate of any other operator, that operator. (groupe de propriété de radiodiffusion) excluded revenue means revenue derived from providing audiobook services, podcast services or video game services, as well as revenue derived from broadcasting activities that are carried out by broadcasting undertakings that are, by order, exempted from licensing requirements or exempted from all regulations made under Part II of the Act, unless, in either case, otherwise specified in an exemption order. (recettes exclues) exemption level meansfor a broadcasting ownership group that includes more than one broadcasting undertaking, the aggregate offor each broadcasting undertaking whose fee revenue is $2 million or less, the lesser of$2 million, andthe fee revenue of the broadcasting undertaking, and$25 million; andfor a broadcasting ownership group that includes only one broadcasting undertaking, $25 million. (franchise)fee revenue means the gross revenue minus excluded revenue derived during a return year from the broadcasting activity in Canada of all of the broadcasting undertakings that form part of a broadcasting ownership group, includingrevenue received in respect of all transmitters forming part of a broadcasting undertaking if the undertaking consists of more than one transmitter;the estimated annual revenue, based on the trends of the market in which a broadcasting undertaking operates, the previous financial performance of the undertaking, and, when applicable, the business plan of the undertaking for its first 12 months of operation, if that undertaking has not filed a fee return covering the most recent return year;revenue that is derived from the sale of air time of a broadcasting undertaking by the Corporation and paid by the Corporation to the undertaking; andin the case of an online undertaking that has not filed a fee return covering the most recent return year,the gross annual revenue, as reported by the online undertaking and validated by the Commission, orif the information referred to in subparagraph (i) is not available, the estimated gross annual revenue of the online undertaking, based on the trends of the market in which it operates, its business plan and any previous financial performance that the Commission considers to be related to its broadcasting activity.This definition does not include any amount received by a broadcasting undertaking from another broadcasting undertaking to which these Regulations apply, 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. (exercice)operator means a person that carries on a broadcasting undertaking to which the Act applies. (exploitant)podcast service means the transmission or retransmission of podcasts over the Internet for reception by the public by means of broadcasting receiving apparatus. (service de balado)return year means a one-year period beginning September 1. (année de rapport)video game service means the transmission or retransmission of video games over the Internet for reception by the public by means of broadcasting receiving apparatus. (service de jeux vidéo)ApplicationExclusionsThese Regulations apply to all broadcasting undertakings other thancampus, community, Indigenous or student broadcasting undertakings;broadcasting undertakings carried on by the Corporation; andbroadcasting undertakings carried on by an independent corporation, as defined in section 2 of the Direction to the CRTC (Ineligibility to Hold Broadcasting Licences), that derive none of their revenues from the sale of air time.Designated Broadcasting UndertakingHighest fee revenueThe operator or affiliate that controls a broadcasting ownership group must designate the broadcasting undertaking that has the highest fee revenue among the undertakings in the group.ObligationsThe designated broadcasting undertaking must ensure that the broadcasting ownership group meets its obligations under sections 4 to 7.Fee ReturnsReturnsOn or before November 30 in each year, every broadcasting ownership group whose fee revenue for the most recent return year exceeds the exemption level must file with the Commission a fee return on the form provided by the Commission.Period coveredThe fee return must be completed with respect to the return year beginning September 1st of the year preceding the calendar year in which the return is to be filed.FeesBroadcasting feesEvery broadcasting ownership group must pay broadcasting fees to the Commission annually, no later than 30 days after the date recorded on the invoice issued by the Commission.Unpaid feesIf the broadcasting fees become overdue, the broadcasting ownership group must pay interest and administrative charges in accordance with the Interest and Administrative Charges Regulations.Calculation of FeesCalculation by CommissionThe annual broadcasting fees payable are to be calculated by the Commission.Amount of FeesThe annual broadcasting fees payable are the sum of the initial amount calculated in accordance with subsection 10(1) and the annual adjustment amount calculated in accordance with subsection 10(2).Change charged or creditedAny change in the amount of the annual broadcasting fees payable that results from the calculation of the annual adjustment amount referred to in subsection 10(2) is to be charged or credited to the broadcasting ownership group in the following year’s invoice and must not, in any case, result in a reimbursement on the part of the Commission.Initial amountThe initial amount of the annual broadcasting fees payable is determined by the formula(A ÷ B) × CwhereAis the broadcasting ownership group’s fee revenue for the most recent return year, less that broadcasting ownership group’s exemption level for that return year;Bis the aggregate fee revenues of all broadcasting ownership groups whose fee revenue for the most recent return year exceeds the applicable exemption level, less the aggregate exemption level for all those broadcasting ownership groups for that return year; andCis the estimated total regulatory costs of the Commission for the current fiscal year as calculated in accordance with subsection 11(1).Adjustment amountThe annual adjustment amount of the annual broadcasting fees payable is determined by the formula(A ÷ B) × DwhereAis the broadcasting ownership group’s fee revenues for the most recent return year, less that broadcasting ownership group’s exemption level for that return year;Bis the aggregate fee revenues of all broadcasting ownership groups whose fee revenue for the most recent return year exceeds the applicable exemption level, less the aggregate exemption level for all those broadcasting ownership groups for that return year; andDis the difference between the estimated total regulatory costs of the Commission and the actual total regulatory costs of the Commission for the fiscal year as calculated in accordance with section 11.Estimated total regulatory costsThe estimated total regulatory costs of the Commission for a 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:the costs of the Commission’s broadcasting activity, andthe share, attributable to the Commission’s broadcasting activity,of the costs of the Commission’s administrative activities, andof any other costs used to calculate the net cost of the operation of the Commission’s program, excluding the costs of regulating the broadcasting spectrum.Actual total costsThe actual total regulatory costs of the Commission are to be calculated in accordance with subsection (1) using actual amounts.NoticeNoticeThe Commission must publish, each year, the estimated total regulatory costs referred to in subsection 11(1) in a notice in the Canada Gazette, Part I.Transitional ProvisionsDefinition of former RegulationsIn sections 14 and 15, former Regulations means the Broadcasting Licence Fee Regulations, 1997, as they read immediately before the day on which these Regulations come into force.Fiscal year 2024–2025For the fiscal year 2024–2025, the fee return information provided by broadcasting undertakings under section 5 of the former Regulations is to be consolidated into fee revenue information for their broadcasting ownership group, in accordance with sections 1 and 4.Fee revenues for online undertakingsFor the fiscal year 2024–2025, the fee revenues for an online undertaking are to be calculated by the Commission, based on the fee return filed by the online undertaking and verified by the Commission, in accordance with the condition of service with respect to fee returns set out in Paragraph 4 of Broadcasting Order CRTC 2023–332, entitled Conditions of service for carrying on certain online undertakings, dated September 29, 2023.Fiscal years 2024–2025 and 2025–2026For the fiscal years 2024–2025 and 2025–2026, the annual adjustment amount that is referred to in subsection 10(2) and the estimated and actual total regulatory costs of the Commission that are referred to in section 11 of these Regulations are to be calculated in accordance with subsection 8(2) and section 9 of the former Regulations.RepealThe Broadcasting Licence Fee Regulations, 19971are repealed.SOR 97-144Coming into ForceApril 1, 2024These Regulations come into force on April 1, 2024.