QuestionsQuestions (Republic Act No. 8027)
RA 8027 grants KBNI, subject to the Constitution and applicable laws, the franchise to construct, install, establish, operate, manage and maintain for commercial purposes and in the public interest radio and/or television broadcasting stations anywhere in the Philippines, including technological auxiliaries/facilities, special broadcast and other program and distribution services, relay stations, and the installation of radio communication facilities for its private use in its broadcast services.
It must be constructed and operated in a manner that results in only minimum interference with the wavelengths/frequencies of other existing stations that may be established by law, without diminishing its own right to use its selected frequencies and without diminishing the quality of transmission or reception, and should maximize the grantee’s service and availability.
The grantee must secure appropriate permits and licenses from the NTC and must not use any frequency in the radio/television spectrum without NTC authorization. The NTC must not unreasonably withhold or delay the grant of such authority.
Provide adequate public service time for the government to reach the population on important public issues; ensure sound and balanced programming; assist public information and education functions; conform to ethics of honest enterprise; and not broadcast obscene/indecent language or content, disseminate deliberately false information or willful misrepresentation to the detriment of the public interest, or incite/encourage/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/welfare, or authorize temporary use and operation by any government agency upon due compensation to the grantee.
The franchise term is 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.
The grantee must give written acceptance within 60 days after approval of the Act; upon acceptance it may exercise the privileges granted. Non-acceptance renders the franchise void.
The grantee pays the same taxes on real estate, buildings, and personal property as other persons/corporations, exclusive of the franchise. In addition, it pays a franchise tax equivalent to 3% of all gross receipts of the radio and television business transacted under the franchise, in lieu of all taxes on the franchise or earnings thereof. However, it remains liable for income taxes payable under Title II of the NIRC pursuant to Section 2 of E.O. No. 72 unless later amended or repealed.
It must file the return with and pay the tax due to the Commissioner of Internal Revenue or duly authorized representatives in accordance with the NIRC, and the return is subject to audit by the Bureau of Internal Revenue.
The grantee shall not require previous censorship of any speech/play/act/scene or other matter for broadcast/telecast. However, during a broadcast, it must cut off from the air any speech/play/act/scene or other matter if its tendency is 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.
The grantee must hold the national, provincial, and municipal governments harmless from claims, accounts, demands, or actions arising from accidents or injuries (to property or persons) caused by construction or operation of the stations.
The grantee cannot lease, transfer, grant usufruct of, sell, or assign the franchise or the rights/privileges acquired thereunder to any person/entity, and cannot transfer controlling interest in the grantee to any such private person/entity without prior approval of Congress. Any transferee must be subject to the same conditions, terms, restrictions, and limitations of the Act.
If any section or provision is held invalid, the other sections/provisions not affected by the invalidity remain valid.
The franchise is subject to amendment, alteration, or repeal by Congress when public interest so requires and is not an exclusive grant of the privileges provided.
It takes effect 15 days from the date of its publication in at least two newspapers of general circulation in the Philippines.