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Communications Bill


Communications Bill
Part 3 — Television and Radio Services
Chapter 4 — Regulatory provisions

    279

 

Government requirements for licensed services

 324   Government requirements for licensed services

     (1)    If it appears to the Secretary of State or any other Minister of the Crown to be

appropriate to do so in connection with any of his functions, the Secretary of

State or that Minister may at any time by notice require OFCOM to give a

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direction under subsection (2).

     (2)    A direction under this subsection is a direction to the holders of the

Broadcasting Act licences specified in the notice under subsection (1) to include

an announcement so specified in their licensed services.

     (3)    The direction may specify the times at which the announcement is to be

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broadcast or otherwise transmitted.

     (4)    Where the holder of a Broadcasting Act licence includes an announcement in

his licensed service in pursuance of a direction under this section, he may

announce that he is doing so in pursuance of such a direction.

     (5)    The Secretary of State may, at any time, by notice require OFCOM to direct the

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holders of the Broadcasting Act licences specified in the notice to refrain from

including in their licensed services any matter, or description of matter,

specified in the notice.

     (6)    Where—

           (a)           OFCOM have given the holder of a Broadcasting Act licence a direction

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in accordance with a notice under subsection (5),

           (b)           in consequence of the revocation by the Secretary of State of such a

notice, OFCOM have revoked such a direction, or

           (c)           such a notice has expired,

            the holder of the licence in question may include in the licensed service an

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announcement of the giving or revocation of the direction or of the expiration

of the notice, as the case may be.

     (7)    OFCOM must comply with every requirement contained in a notice under this

section.

     (8)    The powers conferred by this section are in addition to any powers specifically

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conferred on the Secretary of State by or under this Act or any other enactment.

     (9)    In this section “Minister of the Crown” includes the Treasury.

Equal opportunities and training

 325   Promotion of equal opportunities and training

     (1)    The regulatory regime for every service to which this section applies includes

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the conditions that OFCOM consider appropriate for requiring the licence

holder to make arrangements for promoting, in relation to employment with

the licence holder, equality of opportunity—

           (a)           between men and women; and

           (b)           between persons of different racial groups.

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Communications Bill
Part 3 — Television and Radio Services
Chapter 4 — Regulatory provisions

    280

 

     (2)    That regime includes conditions requiring the licence holder to make

arrangements for promoting, in relation to employment with the licence

holder, the fair treatment of disabled persons.

     (3)    The regulatory regime for every service to which this section applies includes

the conditions that OFCOM consider appropriate for requiring the licence

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holder to make arrangements for the training and retraining of persons whom

he employs, in or in connection with—

           (a)           the provision of the licensed service; or

           (b)           the making of programmes to be included in that service.

     (4)    The conditions imposed by virtue of subsection (1) to (3) must contain

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provision, in relation to the arrangements made in pursuance of those

conditions, requiring the person providing the service in question—

           (a)           to take appropriate steps to make those affected by the arrangements

aware of them (including such publication of the arrangements as may

be required in accordance with the conditions);

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           (b)           from time to time, to review the arrangements; and

           (c)           from time to time (and at least annually) to publish, in such manner as

he considers appropriate, his observations on the current operation and

effectiveness of the arrangements.

     (5)    This section applies to a service if—

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           (a)           it is a service the provision of which is authorised by a Broadcasting Act

licence; and

           (b)           both of the conditions set out in subsection (6) are satisfied in the case

of that service.

     (6)    The conditions are—

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           (a)           that the person licensed to provide the service employs, or is likely to

employ, more than the threshold number of persons in connection with

the provision of the service; and

           (b)           that the licence authorising the provision of the service authorises its

provision on a number of days in any year which exceeds the threshold

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number of days (whether or not the service is in fact provided on those

days).

     (7)    In this section—

                    “disabled” has the same meaning as in the Disability Discrimination Act

1995 (c. 50);

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                    “racial group” has the same meaning as in the Race Relations Act 1976

(c. 74) or, in Northern Ireland, the Race Relations (Northern Ireland)

Order 1997 (S.I. 1997/869 (N.I. 6));

                    “the threshold number” means—

                  (a)                 in relation to persons, twenty; and

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                  (b)                 in relation to days, thirty-one.

     (8)    The Secretary of State may, by order—

           (a)           amend subsection (1) by adding any other form of equality of

opportunity that he considers appropriate;

           (b)           amend the definition of “the threshold number” in subsection (7).

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     (9)    No order is to be made containing provision authorised by subsection (8)

unless a draft of the order has been laid before Parliament and approved by a

resolution of each House.

 

 

Communications Bill
Part 3 — Television and Radio Services
Chapter 4 — Regulatory provisions

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Corresponding rules for the BBC and Welsh Authority

 326   Corresponding rules for the BBC and the Welsh Authority

Schedule 12 (which provides for the imposition on the BBC and the Welsh

Authority of obligations corresponding to obligations included in the

regulatory regime for licensed providers) shall have effect.

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Enforcement against the Welsh Authority

 327   Review of fulfilment by Welsh Authority of public service remits

     (1)    The Secretary of State may carry out a review of the performance by the Welsh

Authority of their duty to secure that each of the following public service

remits—

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           (a)           that for S4C;

           (b)           that for S4C Digital; and

           (c)           that for each of the television programme services provided by them

with the approval of the Secretary of State under section 200,

            is fulfilled in relation the services to which it applies.

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     (2)    The first review carried out under this section—

           (a)           shall be a review relating to the period since the passing of this Act; and

           (b)           must not be carried out before the end of the period of five years

beginning with the day of the passing of this Act.

     (3)    A subsequent review—

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           (a)           shall be a review relating to the period since the end of the period to

which the previous review related; and

           (b)           must not be carried out less than five years after the day of the

publication of the report of the previous review.

     (4)    On a review under this section the Secretary of State—

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           (a)           shall consult the National Assembly for Wales and the Welsh Authority

on the matters under review; and

           (b)           shall have regard to their opinions when reaching his conclusions.

     (5)    The Secretary of State shall also consult such other persons as he considers are

likely to be affected by whether, and in what manner, the Welsh Authority

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perform the duty mentioned in subsection (1).

     (6)    As soon as practicable after the conclusion of a review under this section the

Secretary of State must publish a report of his conclusions.

 328   Directions to Welsh Authority to take remedial action

     (1)    This section applies if the Secretary of State’s conclusions on a review under

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section 327 include a finding—

           (a)           that the Welsh Authority has failed in any respect to perform their duty

to secure that the public service remit for a service mentioned in that

section is fulfilled; and

           (b)           that there is no reasonable excuse for the failure.

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Communications Bill
Part 3 — Television and Radio Services
Chapter 4 — Regulatory provisions

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     (2)    The Secretary of State may give the Welsh Authority general or specific

directions requiring them to take the steps that he considers will ensure that the

Authority perform their duty properly in future.

     (3)    The Secretary of State is not to give a direction under this section unless a draft

of the proposed direction has been laid before Parliament and approved by a

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resolution of each House.

     (4)    Before laying a proposed direction before Parliament, the Secretary of State

must consult the Welsh Authority.

     (5)    It shall be the duty of the Welsh Authority to comply with every direction

under this section.

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 329   Imposition of penalties on the Welsh Authority

     (1)    This section applies to the following requirements so far as they are imposed

on the Welsh Authority in relation to services provided by them—

           (a)           the requirements imposed by or under paragraphs 7 and 8 of Schedule

12 (programme quotas);

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           (b)           the requirements imposed by paragraph 9(1) and (3) of that Schedule

(news and current affairs);

           (c)           the requirement imposed by virtue of paragraph 11 of that Schedule to

comply with standards set under section 307, so far as that requirement

relates to standards set otherwise than for the purpose of securing the

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objectives set out in subsection (2)(c) or (d) of that section;

           (d)           the requirements imposed by paragraphs 13 and 15 of that Schedule

(advertising or sponsorship) to comply with a direction under those

paragraphs;

           (e)           the requirement imposed by paragraph 16 of that Schedule (observance

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of the fairness code);

           (f)           the requirement imposed by paragraph 18 of that Schedule (publicising

complaints procedure);

           (g)           the requirement imposed by paragraph 19 of that Schedule

(international obligations) to comply with a direction under that

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paragraph;

           (h)           the requirement under paragraph 20 of that Schedule (assistance for

disabled people) to comply with the code for the time being in force

under section 293;

           (i)           the requirement to comply with a direction under section 119(1) of the

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1996 Act (directions in respect of fairness matters).

     (2)    If OFCOM are satisfied that there has been a contravention of a requirement to

which this section applies, they may serve on the Welsh Authority a notice

requiring the Authority, within the specified period, to pay OFCOM a

specified penalty.

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     (3)    The amount of the penalty must not exceed £250,000.

     (4)    OFCOM are not to serve a notice on the Welsh Authority under this section

unless they have given them a reasonable opportunity of making

representations to OFCOM about the matters appearing to OFCOM to provide

grounds for the service of the notice.

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Communications Bill
Part 3 — Television and Radio Services
Chapter 4 — Regulatory provisions

    283

 

     (5)    An exercise by OFCOM of their powers under this section does not preclude

any exercise by them of their powers under paragraph 14 of Schedule 12 in

respect of the same contravention.

     (6)    The Secretary of State may by order substitute a different sum for the sum for

the time being specified in subsection (3).

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     (7)    No order is to be made containing provision authorised by subsection (6)

unless a draft of the order has been laid before Parliament and approved by a

resolution of each House.

 330   Contraventions recorded in Welsh Authority’s annual report

In paragraph 13 of Schedule 6 to the 1990 Act (annual report of the Welsh

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Authority)—

           (a)           in sub-paragraph (2), the words from “and shall include” onwards shall

be omitted; and

           (b)           after that sub-paragraph there shall be inserted—

                                    “(3)                      The report shall also—

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                           (a)                          set out every contravention notification given by

OFCOM to the Authority during the year; and

                           (b)                          include such other information (including

information relating to the Authority’s financial

position) as the Secretary of State may from time to

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time direct.

                                    (4)                      In sub-paragraph (3), ‘contravention notification’ means a

notification of a determination by OFCOM of a contravention

by the Authority of any obligation imposed by or under this

Act, the 1996 Act or Part 3 of the Communications Act 2003.”

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 331   Provision of information by Welsh Authority

     (1)    It shall be the duty of the Welsh Authority to comply with every direction

given to them by OFCOM to provide OFCOM with information falling within

subsection (2).

     (2)    The information that the Welsh Authority may be directed to provide is any

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information which OFCOM may reasonably require for the purposes of

carrying out their functions in relation to the Welsh Authority under this Act,

the 1990 Act or the 1996 Act.

     (3)    Information that is required to be provided by a direction under this section

must be provided in such manner and at such times as may be required by the

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direction.

Enforcement of licence conditions

 332   Transmission of statement of findings

     (1)    Sections 40 and 109 of the 1990 Act (power to direct licensee to broadcast

correction or apology) shall be amended as follows.

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     (2)    For “apology”, wherever occurring, there shall be substituted “a statement of

findings”.

 

 

Communications Bill
Part 3 — Television and Radio Services
Chapter 4 — Regulatory provisions

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     (3)    After subsection (5), there shall be inserted—

           “(6)              For the purposes of this section a statement of findings, in relation to a

case in which OFCOM are satisfied that the holder of a licence has

contravened the conditions of his licence, is a statement of OFCOM’s

findings in relation to that contravention.”

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 333   Financial penalties imposable on licence holders

Schedule 13 (which modifies the maximum penalties that may be imposed on

the holders of Broadcasting Act licences) shall have effect.

 334   Broadcasting Act licence fees and penalties

     (1)    This section applies to the following amounts—

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           (a)           a cash bid amount payable to OFCOM under a Broadcasting Act licence

for the first year falling within the period for which the licence is in

force;

           (b)           an amount payable to OFCOM under such a licence for a subsequent

year as the amount equal to a cash bid amount increased by the

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appropriate percentage;

           (c)           an amount payable to OFCOM under such a licence as an amount

representing a percentage of relevant revenue for an accounting period;

           (d)           the amount of a penalty imposed by OFCOM under Part 1 or 3 of the

1990 Act, Part 1 or 2 of the 1996 Act or this Part of this Act.

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     (2)    Every amount to which this section applies shall be recoverable by OFCOM as

a debt due to them from the person obliged to pay it.

     (3)    The following liabilities—

           (a)           a person’s liability to have a penalty imposed on him under Part 1 or 3

of the 1990 Act, Part 1 or 2 of the 1996 Act or this Part in respect of acts

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or omissions of his occurring while he was the holder of a Broadcasting

Act licence, and

           (b)           a liability of a person as the holder of such a licence to pay an amount

to which this section applies,

            are not affected by that person’s Broadcasting Act licence having ceased (for

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any reason) to be in force before the imposition of the penalty or the payment

of that amount.

     (4)    In this section—

                    “the appropriate percentage” has the same meaning as in section 19 of the

1990 Act;

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                    “cash bid amount” means an amount specified in a cash bid for a

Broadcasting Act licence or the amount determined by OFCOM for the

purposes of any provision of the 1990 Act or this Part to be what would

have been the amount of a cash bid for a licence;

                    “relevant revenue” means any of the following—

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                  (a)                 the amount which for the purposes of section 19, 52(1), 102(1) or

118 (1) of the 1990 Act is the amount of qualifying revenue for

an accounting period;

                  (b)                 the amount which for the purposes of section 13(1) or 55(1) of

the 1996 Act is the amount of multiplex revenue for an

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accounting period; or

 

 

Communications Bill
Part 3 — Television and Radio Services
Chapter 5 — Media ownership and control

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                  (c)                 an amount which for the purposes of paragraph 7 of Schedule

10 to this Act is the amount of qualifying revenue for an

accounting period.

Chapter 5

Media ownership and control

5

Restrictions on licence holders

 335   Modification of disqualification provisions

     (1)    In Part 2 of Schedule 2 to the 1990 Act (disqualification from holding licences),

the following shall cease to have effect—

           (a)           paragraphs (a) and (b) of paragraph 1(1) (individuals and bodies from

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outside the member States); and

           (b)           paragraph 6 (disqualification for advertising agencies).

     (2)    In paragraph 2 of that Part (disqualification of religious bodies)—

           (a)           for “Subject to sub-paragraph (2)” there shall be substituted “Subject to

paragraph 2A”; and

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           (b)           sub-paragraphs (2) and (3) shall cease to have effect.

     (3)    After paragraph 2 of that Part there shall be inserted—

        “2A               (1)                Paragraph 2 does not apply to a person in relation to a licence if—

                    (a)                   OFCOM have made a determination under this paragraph in

the case of that person;

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                    (b)                   that determination is one made as respects licences of a

description applicable to that licence; and

                    (c)                   the determination remains in force.

                       (2)                OFCOM are to make a determination under this paragraph in a

person’s case and as respects a particular description of licence if,

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and only if, they are satisfied that it is appropriate (notwithstanding

paragraph 2) for that person to hold a licence of that description.

                       (3)                OFCOM are not to make a determination under this paragraph

except on an application made to them for the purpose.

                       (4)                A determination under this paragraph may be made as respects only

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one or more of the following descriptions of licence—

                    (a)                   a licence to provide a restricted service (within the meaning

of Part 1 of this Act);

                    (b)                   a digital programme licence (within the meaning given by

section 18 of the 1996 Act for the purposes of Part 1 of that

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Act);

                    (c)                   a digital additional services licence (within the meaning

given by section 25 of the 1996 Act for the purposes of Part 1

of that Act);

                    (d)                                         a licence to provide a television licensable content service

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(within the meaning of Part 3 of the Communications Act

2003);

                    (e)                   a licence under Part 3 of this Act which is not a national

licence;

 

 

 
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