QuestionsQuestions (Republic Act No. 2028)
RA 2028 grants Plywood Industries, Inc. a franchise to construct, maintain, and operate point-to-point radio stations in the Philippines—specifically point-to-point radio stations from Quezon City to Butuan City and Gingoog (Oriental Misamis), and for car-to-car, sea-to-shore, and shore-to-sea communication—both for commercial purposes and in the public interest.
The franchise is void unless construction of at least one point-to-point radio station is begun within two (2) years from the date of approval of the Act, and completed within four (4) years from the same date.
The franchise continues in force only during the time that the Government has not established similar service at the places selected by the grantee.
The grantee must provide adequate public service time so the Government can reach the population on important public issues through the grantee’s point-to-point radio stations.
The grantee must assist in the functions of public information and education.
The grantee must conform to the ethics of honest enterprise and must not broadcast obscene or indecent language/speech, disseminate deliberately false information or willful misrepresentation, act to the detriment of public health, or incite/encourage/assist subversive or treasonable acts.
Section 2 applies, as far as practicable, the provisions of Act No. 3846 (television/radio regulation), Act No. 3997 (Radio Broadcasting Law), Commonwealth Act No. 146 (Public Service Act), and their amendments to the radio broadcasting stations under Section 1.
The grantee must file a bond of fifty thousand pesos (₱50,000) to guarantee full compliance and fulfillment of the conditions under which the franchise is granted.
If a competing individual/partnership/corporation receives a similar congressional franchise with terms more favorable (or tending to place the grantee at a disadvantage), those more favorable terms become part of RA 2028’s terms ipso facto and operate equally in favor of the grantee.
The grantee is liable to pay the same taxes on its real estate, buildings, and personal property, exclusive of the franchise, as other persons/corporations are required by law to pay.
The grantee must also pay all other taxes that may be imposed by the National Internal Revenue Code because of the franchise.
The grantee must turn over any or all stations the Government chooses to maintain and operate, together with all serviceable equipment therein, at cost less reasonable depreciation.
The grantee may not lease, transfer, grant the usufruct of, sell, or assign the franchise (or the rights and privileges acquired thereunder), nor merge with another company organized for the same purpose, without prior approval of Congress.
Any corporation to which the franchise is sold/transferred/assigned is subject to all the conditions, terms, restrictions, and limitations of the franchise as fully and completely as if the franchise had originally been granted to that corporation.
RA 2028 takes effect upon its approval.