QuestionsQuestions (Republic Act No. 7163)
RA 7163 grants Progressive Broadcasting Corporation (and its successors/assigns) a franchise, subject to the Constitution and applicable laws, to construct, install, operate, and maintain for commercial purposes radio broadcasting stations and television stations in Metro Manila and in Regions I, VI, and VII, including technological auxiliaries/facilities for special broadcast and other program/distribution services and relay stations, and to install radio communication facilities for the grantee’s private use in its broadcast services.
The stations/facilities must be constructed and operated so that they cause at most minimum interference on the wavelengths/frequencies of other existing (and legally established) stations, without diminishing the grantee’s right to use its selected frequencies and without impairing the quality of transmission/reception needed to maximize the grantee’s services/availability.
The grantee must secure from the NTC the appropriate permits and licenses for the technical aspects of its operations, particularly frequency assignment in the radio/TV spectrum and equipment for its stations. The NTC must not unreasonably withhold or delay authority, nor impose unnecessary requirements that would impede immediate start of the contemplated service.
The grantee must provide reasonable public service time for government access to the population on important public issues; ensure sound and balanced programming; promote public participation (e.g., community programming); assist public information and education; conform to ethics of honest enterprise; and refrain from broadcasting obscene/indecent language or deliberately false information/willful misrepresentation, or acts detrimental to public interest, or inciting/encouraging/assisting 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. Compensation to the grantee is required for use of the stations during such period.
The franchise lasts 25 years from the effectivity of the Act unless sooner revoked or cancelled. It is deemed ipso facto revoked if the grantee fails to operate within two (2) years from effectivity or within one (1) year from the grant of the NTC certificate of public convenience, whichever is later. It also expires if the grantee suspends operation or fails to operate continuously for two (2) years, except for reasons outside its control (e.g., force majeure or acts of government), but only suspends thereafter.
Acceptance must be given in writing within 60 days after approval of the Act. Refusal or failure to accept or to operate within the prescribed period renders the franchise void.
The grantee must pay the same taxes on real estate, buildings, and personal property as other persons/corporations, exclusive of the franchise. Additionally, it must pay a franchise tax equivalent to 3% of all gross receipts of the radio/TV business transacted under the franchise, in lieu of all taxes on the franchise or earnings thereof. However, the grantee remains liable for income taxes under Title II of the NIRC per EO No. 72 unless amended/repealed.
The grantee must hold national, provincial, and municipal governments harmless from claims, accounts, demands, or actions arising from accidents or injuries (property or persons) caused by construction or operation of its stations, attributable solely to the grantee’s act or omission.
The grantee cannot lease, transfer, grant usufruct of, sell, or assign the franchise or the rights/privileges acquired thereunder to any entity, nor can it transfer controlling interest in the grantee to any private person/entity without prior approval of Congress. Any transferee must be subject to the same conditions, terms, restrictions, and limitations of the Act.
The grantee must comply with the enabling law implementing the democratization of ownership of all public interest.
If any section/provision is held invalid, the remaining provisions not affected by the invalidity remain valid.
It is subject to amendment, alteration, or repeal by Congress when the public interest so requires, and it 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.
It states that the Act “lapsed into law on November 17, 1991 without the President’s signature in accordance with Article VI, Section 27(1) of the Constitution,” indicating it became law through the constitutional rule on presidential inaction.