The Small-scale Radio Multiplex and Community Digital Radio Order 2019

18.  Part 2 has effect as if after section 61 there were inserted—

“Advertising restrictions for community digital sound programme services

61A.— (1) Subject to subsections (2) and (3), every licence to provide a community digital sound programme service must contain such conditions as appear to OFCOM to be appropriate for—

(a) permitting the relevant income for that licence attributable to any arrangements for—

(i) the inclusion in the service provided under that licence of any remunerated advertisement, or

(ii) the sponsorship of any programmes included in that service,

to include the sum of £15,000 per financial year of the licence holder (“the fixed revenue allowance”), and

(b) ensuring that where the relevant income attributable to the arrangements set out in paragraph (a) exceeds the fixed revenue allowance in any financial year of the licence holder, any such relevant income in excess of the fixed revenue allowance does not exceed 50 per cent of the total relevant income (disregarding the fixed revenue allowance) for that licence in that year.

(2) Where—

(a) a community digital sound programme service corresponds to a community radio service, and

(b) the licence to provide that community radio service includes conditions pursuant to section 105(4)(b) of the 1990 Act (as modified by the 2004 Order),

the licence to provide that community digital sound programme service must contain such conditions as appear to OFCOM to be appropriate for ensuring that the relevant income for that licence attributable to arrangements set out in subsection (1)(a) is zero.

(3) Where—

(a) a community digital sound programme service corresponds to a community radio service, and

(b) the licence to provide that community radio service includes conditions pursuant to section 105(4)(c) of the 1990 Act (as modified by the 2004 Order),

the licence to provide that community digital sound programme service must contain such conditions as appear to OFCOM to be appropriate for ensuring that the relevant income for that licence attributable to arrangements set out in subsection (1)(a) in any financial year of the licence holder does not exceed 50 per cent of the total relevant income for that licence in that year.

(4) The Secretary of State may, from time to time, request OFCOM to review whether the £15,000 figure in subsection (1) remains appropriate.

(5) In this section—

“relevant income”, in relation to a community digital sound programme licence, means any payment or other financial benefit (whether direct or indirect) attributable to the provision of the service under that licence which any relevant person has received, will receive or is or will be entitled to receive in the financial year in question;

“relevant person”, in relation to a community digital sound programme licence, means the holder of that licence and every person connected with the licence holder;

“remunerated advertisement”, in relation to a service provided under a community digital sound programme licence, means any advertisement included in that service for which any relevant person has received, will receive or is or will be entitled to receive, any payment or other financial benefit (whether direct or indirect) in consideration for so including it.

(6) Any reference in this section to sponsorship does not include a reference to any payment made, or other financial benefit (whether direct or indirect) conferred, by a person for purposes that are wholly or mainly philanthropic in nature.

(7) For the purposes of this section, a community digital sound programme service corresponds to a community radio service if, and only if, in every calendar month—

(a) at least 80 per cent of so much of the community radio service as consists of programmes, consist of programmes which are also included in the community digital sound programme service in that month, and

(b) at least 50 per cent of so much of the community radio service as consists of such programmes is broadcast at the same time on both services.

(8) In this section, one person is to be treated as being connected with another person if the person would be so treated for the purposes of Schedule 2 to the 1990 Act.

Requirements as to the characteristics of community digital sound programme services

61B.— (1) A community digital sound programme licence must include such conditions as appear to OFCOM to be appropriate for securing that the characteristics of the licensed service, as proposed by the licence holder when making the application, are maintained during the period for which the licenced service is broadcast.

(2) Conditions included in a licence for the purposes of subsection (1) may provide that OFCOM must, in determining whether to consent to a departure from the characteristics of the licensed service, have regard to extent to which—

(a) the provision of the service would continue to result in the delivery of social gain to the public or the relevant community;

(b) members of the relevant community would continue to be given opportunities to participate in the operation and management of the service;

(c) the applicant would continue to be accountable to the relevant community in respect of the provision of the service.

(3) Without prejudice to the generality of subsection (1), a community digital sound programme licence must include such conditions as appear to OFCOM to be appropriate for securing that the holder of the licence does not enter into, or remain subject to, any arrangement if an effect of that arrangement is to allow another holder of a Broadcasting Act licence or the BBC or the Welsh Authority to exercise an undue influence over the nature and content of the programmes included in the service provided under that licence.

(4) In subsection (3), “arrangement” includes any agreement or arrangement with one or more other persons, whether or not it is, or is intended to be, legally enforceable.”.