Local Content & Local Presence

Localism Obligations

The localism obligations are administered by the Australian Communications and Media Authority (ACMA). There are two key parts to the local content legislation:

• material of local significance - applicable to all regional commercial radio stations; and
• local presence rules - only applicable to stations that have experienced a 'trigger event'.

1. Material Of Local Significance - Applicable To All Regional Commercial Radio Licensees

Regional commercial radio licensees must broadcast prescribed amounts of local content, known as material of local significance. Racing, remote and section 40 licences are exempt from this obligation.

How Much Material Of Local Significance Must Be Broadcast

Licensees must broadcast the following amount of material of local significance:

• 30 minutes for small licences (licences that service licence areas with a population of less than 30,000 people); and
• three hours with for all other licences (except racing, remote and s40 licensees, which are exempt).

When Must The Material Of Local Significance Be Broadcast

The material of local significance must be broadcast between 5.00am and 8.00pm on all business days. The only exception is during the five week exemption period (see below).

What Is Material Of Local Significance

Material of local significance includes material which is hosted in, produced in or otherwise relates to the licence area of the licensee. Advertising content cannot comprise more than 25% of the material of local significance.

Five Week Exemption

Regional commercial radio licensees have a five week period each year in which they are exempt from the local content obligations. This period commences on the second Monday in December each year. Licensees may request to vary this period by submitting a request to the ACMA.

Reporting

Currently, licensees must:

• make available local content statements setting out programs that include material of local significance;
• provide the ACMA with an annual report in writing about their compliance with the local content licence; and
• keep audio records of material of local significance for 6 weeks from the date of the broadcast.

2. Trigger Event Obligations

Additional obligations for regional commercial radio licensees come into effect following a 'trigger event'.
Regional commercial radio broadcasting licensees affected by a trigger event must meet minimum service standards for local news and information and also maintain local presence obligations. Racing, remote and section 40 licences are exempt from this obligation.

What Is A Trigger Event?

The BSA specifies that a trigger event is any of the following:

• a transfer of a regional commercial radio broadcasting licence prior to 15 October 2012;
• a change in control of a regional commercial radio broadcasting licence where a person either starts to be or ceases to be in a position to exercise control of a regional commercial radio broadcasting licence;
• the formation of a new registrable media group which includes a regional commercial radio broadcasting licence; and
• a change of controller of a registrable media group which includes a regional commercial radio broadcasting licence.

• the transfer of shares to a near relative for no consideration; and
• changes of control attributable to circumstances beyond the control of the controllers.

On 9 August 2013 the Broadcasting Services (Regional Commercial Radio) Regulation 2013 came into force. The Regulation provides exemptions covering a variety of scenarios which relate to corporate group restructures where there is a substantial continuity of control of the relevant licence or registrable media group from higher up the corporate chain.

What Are The Minimum Service Standards?

The BSA sets out the following minimum service standards for trigger event affected regional commercial radio licences:

• news (12.5 mins): no less than five bulletins on at least five days a week during prime time hours or (if greater) the average weekly number broadcast in the year before the trigger event by the former licensee;
• weather: at least five bulletins on at least five days a week during prime time hours;
• community service announcements: at least one a week; and
• emergency warnings: must broadcast as and when required.

What Are The Local Presence Requirements?

The local presence requirements relate to local staffing levels and facilities. Licensees must maintain the level of local staffing and facilities in place immediately prior to the trigger event.

The requirement to maintain the existing level of local presence applies for:

• in the case of trigger events which occurred before 16 April 2012  24 months starting from 16 April 2012; and
• in the case of trigger events which occur on or after 16 April 2012 - 24 months starting from the date of the trigger event.

Reporting

Licensees must report:

• compliance with the minimum service standards as part of their annual reporting by 30 September of each year; and
• compliance with the local presence staffing and facility levels at the end of the relevant 24 month period.

As at June 2014, the ACMA is exploring whether to reduce or remove the local presence record keeping obligations. CRA will inform members of legislative changes as soon as they occur.

For more information, please contact Sarah Kruger (Head of Legal & Regulatory Affairs) at sarah.kruger@commercialradio.com.au or 02 9281 6577.