QuestionsQuestions (Republic Act No. 8087)
RA 8087 grants Gold Label Broadcasting System, Inc. (and its successors/assigns) the franchise to construct, install, operate, and maintain radio and/or television broadcasting stations for commercial purposes and in the public interest in Dumaguete City and other areas in the Visayas and Mindanao where frequencies/channels are still available, including technological auxiliaries/facilities, special broadcast/program and distribution services, relay stations, and radio communication facilities for private use in its broadcast services.
They must be constructed and operated in a manner that results in only the minimum interference on wavelengths/frequencies of other existing stations (or stations that may be established by law), without diminishing the grantee’s own right to use selected frequencies/channels and the quality of its transmission/reception.
The grantee must secure from the NTC the appropriate permits and licenses, and must not use any frequency without authorization from the NTC. The NTC must not unreasonably withhold or delay authority.
The grantee must provide adequate public service time to enable government access to the population on important public issues; provide sound and balanced programming; assist public information and education; conform to ethics of honest enterprise; not broadcast obscene/indecent language or deliberately false information or willful misrepresentation to the detriment of the public interest; and not use broadcasts to incite, encourage, or assist subversive or 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/public welfare, or authorize temporary government use/operation upon due compensation to the grantee.
The franchise term is 25 years from the date of approval of the Act unless sooner revoked/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 may exercise the privileges. If there is nonacceptance, the franchise is void.
It pays the same taxes on its real estate, buildings, and personal property (exclusive of the franchise) as other persons/corporations. It must also pay a franchise tax equivalent to 3% of all gross receipts of the radio/television business transacted under the franchise, and continues to be liable for income taxes under Title II of the National Internal Revenue Code pursuant to EO No. 72 unless amended or repealed.
The grantee must file the return and pay the tax due to the Commissioner of Internal Revenue or a duly authorized representative in accordance with the NIRC, and the return is subject to audit by the Bureau of Internal Revenue.
The grantee shall not require any previous censorship of any speech, play, act, scene, or other matter to be broadcast/telecast. However, it must cut off from the air during broadcast if the content tends to incite treason, rebellion, or sedition, or if the language/theme is indecent or immoral; willful failure to do so is a valid cause for cancellation of the franchise.
It constitutes a valid cause for cancellation of the franchise.
The grantee must hold the national, provincial, and municipal governments free from claims/accounts/demands/actions arising from accidents or injuries (to property or persons) caused by the construction or operation of the stations.
The grantee cannot lease, transfer, grant usufruct, sell, or assign the franchise or rights/privileges thereunder to any entity, and cannot transfer the controlling interest of the grantee to any private person/entity without prior Congress approval. Any entity to which the franchise is sold/assigned must be subject to the same conditions, terms, restrictions, and limitations of the Act.
The grantee must comply with any general broadcast policy law which Congress may enact in the future.
If any section/provision is held invalid, the other provisions not affected 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 herein.
The Act was approved by Congress and took effect upon approval, but it lapsed into law on July 6, 1995 without the President’s signature pursuant to Section 27(1), Article VI of the Constitution.