Broadcasting Distribution Regulations

34 (1) If a licensee is required under this section to make a contribution to Canadian programming, it shall contribute

• (a) to the Canadian production fund at least 80% of its total required contribution; and

• (b) to one or more independent production funds, the remainder of its total required contribution.

(2) Except as otherwise provided under a condition of its licence, if a licensee does not distribute its own community programming on the community channel and if a community programming undertaking is licensed in the licensed area, the licensee shall make, for each broadcast year, a contribution of 3% of its gross revenues derived from broadcasting activities in the broadcast year to Canadian programming and a contribution of 2% of its gross revenues derived from broadcasting activities in the broadcast year to the community programming undertaking.

(3) Except as otherwise provided under a condition of its licence, if a licensee does not distribute its own community programming on the community channel and if no community programming undertaking is licensed in the licensed area, the licensee shall make, for each broadcast year, a contribution of 5% of its gross revenues derived from broadcasting activities in the broadcast year to Canadian programming.

(4) The following definitions apply in this subsection and in subsections (5) to (7).

adjusted 2010 contribution

adjusted 2010 contribution means the lesser of the following amounts adjusted yearly for inflation based on the Consumer Price Index, as reported for the period ending December 31 of the previous calendar year:

• (a) 2% of the licensee’s gross revenues derived from broadcasting activities in the 2010 broadcast year, and

• (b) the licensee’s actual contribution to local expression in the 2010 broadcast year. (contribution de 2010 rajustée)

Consumer Price Index

Consumer Price Index means the annual average all-items Consumer Price Index for Canada (not seasonally adjusted) that is published by Statistics Canada. (indice des prix à la consommation)

threshold year

threshold year means the first broadcast year after August 31, 2012 in which 1.5% of a licensee’s gross revenues derived from broadcasting activities is equal to or greater than the licensee’s adjusted 2010 contribution. (année de seuil)

2010 broadcast year

2010 broadcast year means the broadcast year ending August 31, 2010. (année de radiodiffusion 2010)

2010 licensee

2010 licensee means a licensee that held a licence in respect of a licensed area for the entire 2010 broadcast year. (titulaire de 2010)

(5) Except as otherwise provided under a condition of its licence, if a licensee distributes its own community programming on the community channel in the licensed area, the licensee shall make, for each broadcast year, a contribution to Canadian programming that is equal to 5% of its gross revenues derived from broadcasting activities in the broadcast year less any allowable contribution to local expression made by the licensee in that broadcast year.

(6) In subsection (5), allowable contribution to local expression means

• (a) in respect of a 2010 licensee,

  • (i) for each broadcast year before the threshold year, a maximum contribution to local expression that is equal to the lesser of

    • (A) 2% of the licensee’s gross revenues derived from broadcasting activities in the broadcast year, and

    • (B) the licensee’s adjusted 2010 contribution, and

  • (ii) for the threshold year and for each subsequent broadcast year, a maximum contribution to local expression that is equal to 1.5% of the licensee’s gross revenues derived from broadcasting activities in the broadcast year; and

• (b) in respect of a licensee other than a 2010 licensee, for each broadcast year, a maximum contribution to local expression that is equal to 1.5% of the licensee’s gross revenues derived from broadcasting activities in the broadcast year.

(7) For each broadcast year in the remainder of the term of any licence that is in effect on September 1, 2012, the allowable contribution to local expression referred to in subsection (5) may include an additional contribution if it is directed to closed captioning for local expression and

• (a) in the case of a 2010 licensee, that additional contribution does not exceed the lesser of

  • (i) 2% of the licensee’s gross revenues derived from broadcasting activities in the broadcast year less the licensee’s adjusted 2010 contribution, and

  • (ii) 0.5% of the licensee’s gross revenues derived from broadcasting activities in the broadcast year; and

• (b) in the case of a licensee other than a 2010 licensee, that additional contribution does not exceed 0.5% of the licensee’s gross revenues derived from broadcasting activities in the broadcast year.