Title
Golden Broadcast Franchise Renewal Act
Law
Republic Act No. 11477
Decision Date
Jun 25, 2020
Republic Act No. 11477 renews the franchise of Golden Broadcast Professional, Inc. for 25 years, allowing them to construct, operate, and maintain radio and/or television broadcasting stations in the Philippines, while also imposing various obligations and regulations to ensure compliance with the Constitution and applicable laws, promote public service, and protect public safety and welfare.

Operation Standards and Interference Minimization

  • GBPI's stations must operate to minimize interference with existing or future stations.
  • Ensures GBPI's rights to use assigned frequencies without quality degradation.

National Telecommunications Commission (NTC) Oversight

  • GBPI must secure NTC permits/licenses prior to construction/operation.
  • Frequencies cannot be used without NTC authorization.
  • NTC will not unreasonably delay or withhold permits.
  • Disposition or leasing of facilities to other broadcasters requires NTC written approval and timely reporting.
  • NTC empowered to suspend/revoke permits for franchise violations after due process.
  • May recommend franchise revocation to Congress for violations.

Public Service Obligations

  • GBPI required to provide free adequate public service time (max 10% of paid ads) for government announcements and public emergency information.
  • Programming must be sound, balanced, promote public participation, and public information/education.
  • Prohibits broadcasting obscene, indecent content, false information, or material inciting treason or subversion.
  • NTC may increase public service time during extreme emergencies.
  • Must allocate at least 15% of daily air time to child-friendly shows as per RA 8370.

Government Rights and Emergency Provisions

  • The radio spectrum is a national patrimony; franchise is a privilege subject to withdrawal.
  • President may temporarily take over, suspend, or authorize government use of GBPI stations during war, emergency, calamity.
  • Compensation to GBPI required for government use.

Term and Continuity of Franchise

  • Franchise valid for 25 years unless revoked earlier.
  • Automatically revoked if GBPI ceases operation for 2 continuous years.

Self-Regulation and Content Control

  • GBPI shall not practice prior censorship but must cease broadcasts that incite treason, rebellion, or contain indecent content.
  • Failure to cut off such broadcasts is ground for franchise cancellation.

Indemnity to Government

  • GBPI must hold national and local governments free from claims resulting from accidents during station construction or operation.

Employment and Labor Standards

  • Obligation to create employment and allow on-the-job training.
  • Priority for residents near principal office.
  • Compliance with labor laws and disclosure of employment data in annual Securities and Exchange Commission (SEC) reports.

Transfer and Assignment Restrictions

  • Sale, lease, transfer, grant of usufruct, assignment of franchise or controlling interest requires prior Congressional approval.
  • Must notify Congress within 60 days after the transaction.
  • Failure to report results in automatic franchise revocation.
  • Transferee bound by same franchise conditions.

Public Ownership Dispersal

  • Must offer at least 30% of outstanding capital stock to Filipino citizens within 5 years or apply alternative public participation methods if shares are not publicly offered.
  • Noncompliance leads to automatic franchise revocation.

Annual Reporting Requirements

  • Submit yearly compliance report to Congress on franchise terms, operations, financial status, ownership dispersal.
  • Report due April 30 annually.
  • Report required before NTC accepts permit applications.

Penalties for Reportorial Failure

  • Fine of P500 per working day for failure to submit annual reports.
  • Fines collected by NTC and remitted to Bureau of the Treasury.

Equality of Privileges

  • Any privileges granted in other franchises apply immediately and unconditionally to GBPI, except territorial coverage, term, or authorized services.

Amendment and Nonexclusivity

  • Congress may amend, alter, or repeal the franchise as public interest requires.
  • Franchise is not exclusive.

Severability Clause

  • Invalidity of any part does not affect the validity of remaining provisions.

Repealing Clause

  • Inconsistent laws, orders, rules, or parts thereof are repealed or modified accordingly.

Effectivity

  • Law takes effect 15 days after publication in the Official Gazette or newspaper of general circulation.

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