Title
Franchise for Amcara Broadcasting Network
Law
Republic Act No. 8135
Decision Date
Jul 16, 1995
Republic Act No. 8135 grants Amcara Broadcasting Network, Inc. the franchise to establish and operate various forms of radio and television broadcasting stations in the Philippines, subject to certain responsibilities and restrictions, for a term of 25 years.

Questions (Republic Act No. 8135)

RA 8135 grants Amcara a franchise, subject to the Constitution and applicable laws, to construct, install, operate and maintain for commercial purposes and in the public interest radio and television broadcasting stations and technological auxiliaries/facilities, including VHF-TV, UHF-TV, AM and FM radio, direct broadcast via satellite, MATV, CATV, digital audio broadcast, digital television, HDTV, MMDS and other forms of broadcasting, plus special broadcast/program and distribution services and relay stations, and to install radio communication facilities for its private use in its broadcast services.

It provides that all radio and television stations applied under Ermita Electronics, Inc. and pending and submitted for decision in the National Telecommunications Commission are transferred under the franchise of Amcara Broadcasting Network, Inc.

The grantee must construct and operate stations in a manner that results only in minimum interference on wavelengths/frequencies of other existing stations or those established by law, without diminishing its own right to use selected frequencies and without diminishing the quality of transmission/reception, so as to maximize rendition of its services and availability thereof.

The grantee must secure the appropriate permits and licenses from the NTC and must not use any frequency in the radio/television spectrum without authorization. The NTC shall not unreasonably withhold or delay the grant of such authority.

The grantee must provide adequate public service time for government reach on important public issues; provide at all times sound and balanced programming; assist public information and education; conform to the ethics of honest enterprise; and must not broadcast obscene/indecent language or material, deliberately false information or willful misrepresentation to the detriment of the public interest, or content that incites/encourages/assists subversive and treasonable acts.

In times of rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may temporarily take over and operate the stations, temporarily suspend operation of any station for public safety/security/welfare, or authorize temporary government use/operation. This is upon due compensation to the grantee.

The franchise is for 25 years from the date of approval of the Act unless sooner revoked or cancelled. If the grantee fails to operate continuously for two (2) years, the franchise is deemed ipso facto revoked.

It becomes effective upon acceptance in writing by the grantee. Upon acceptance, the grantee exercises the privileges granted. Nonacceptance renders the franchise void.

The grantee must pay a franchise tax equivalent to 3% of all gross receipts of the radio/television business transacted under the franchise. It also continues to be liable for income taxes payable under Title II of the NIRC pursuant to Section 2 of Executive Order No. 72, unless that EO is amended or repealed, in which case the change applies.

The grantee must file the return and pay the tax due to the Commissioner of Internal Revenue or duly authorized representatives, in accordance with the NIRC. The return is subject to audit by the Bureau of Internal Revenue.

The grantee shall not require any previous censorship of speech/play/act/scene or other matter for broadcast/telecast. However, it must cut off from the air any broadcast/telecast when the tendency is to propose/incite treason/rebellion/sedition or when the language/theme is indecent or immoral; willful failure constitutes a valid cause for cancellation of the franchise.

The grantee must hold national, provincial, and municipal governments harmless from all claims, accounts, demands, or actions arising out of accidents or injuries to property or persons caused by the construction or operation of the stations.

No. The grantee shall not lease, transfer, grant usufruct of, sell, or assign this franchise/rights/privileges, and shall not transfer controlling interest to any private person/firm/company/corporation/entity without prior approval of Congress. Any transferee must be subject to the same conditions, terms, restrictions, and limitations.

It requires compliance with a general broadcast policy law Congress may enact in the future, meaning the grantee must follow that future regulatory framework.

If any section/provision is held invalid, all other provisions not affected thereby remain valid.

The franchise is subject to amendment, alteration, or repeal by Congress when public interest so requires, and it is not to be interpreted as an exclusive grant of the privileges provided.

The Act takes effect 15 days from publication in at least two newspapers of general circulation. It lapsed into law on July 16, 1995 without the President’s signature pursuant to Section 27(1), Article VI of the Constitution.


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