Law Summary

1. Nature and Scope of Franchise

• Legal Principle: Renewed franchise for Golden Broadcast Professional, Inc. for 25 years.
• Key Definitions:
  • "Grantee" refers to Golden Broadcast Professional, Inc.
• Requirements:
  • The grantee is authorized to construct, operate, and maintain radio/television broadcasting stations using various technologies.
• Timeframes:
  • Effective for 25 years from enactment.

2. Manner of Operation of Stations or Facilities

• Legal Principle: Operations must minimize interference with existing stations.
• Requirements:
  • Operate within assigned frequencies without diminishing service quality.

3. Prior Approval of the National Telecommunications Commission (NTC)

• Legal Principle: NTC approval required for construction and operation.
• Requirements:
  • Obtain permits and licenses from NTC.
  • Notify NTC of any lease or disposal of facilities within 60 days.
• Consequences:
  • NTC can revoke or suspend licenses for violations.

4. Responsibility to the Public

• Legal Principle: Duty to serve public interest.
• Requirements:
  • Provide public service time for government announcements (10% of paid advertisements).
  • Promote balanced programming and public participation.
• Penalties:
  • Non-compliance may lead to sanctions from NTC.

5. Right of the Government

• Legal Principle: Government retains the right to control broadcasting in emergencies.
• Requirements:
  • President can take over or suspend operations during emergencies.
• Consequences:
  • Compensation to the grantee for government use.

6. Term of Franchise

• Legal Principle: Franchise valid for 25 years.
• Requirements:
  • Automatically revoked if operations cease for 2 years.

7. Self-regulation by and Undertaking of the Grantee

• Legal Principle: No prior censorship required.
• Requirements:
  • Must terminate broadcasts that incite treason or contain indecent content.
• Consequences:
  • Willful failure to cut off inappropriate content may lead to franchise cancellation.

8. Warranty in Favor of the National and Local Governments

• Legal Principle: Grantee liable for accidents during operations.
• Requirements:
  • Hold governments free from claims related to construction or operations.

9. Commitment to Provide and Promote the Creation of Employment Opportunities

• Legal Principle: Obligation to create jobs.
• Requirements:
  • Prioritize local hiring and comply with labor laws.
  • Report job creation in annual General Information Sheet (GIS).

10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise

• Legal Principle: Restrictions on transfer of franchise.
• Requirements:
  • Must obtain Congressional approval for any transfer or merger.
  • Notify Congress of transactions within 60 days.
• Consequences:
  • Non-compliance results in automatic revocation of franchise.

11. Dispersal of Ownership

• Legal Principle: Encourage public participation in ownership.
• Requirements:
  • Offer at least 30% of capital stock to Filipinos within 5 years.
• Consequences:
  • Non-compliance results in automatic revocation of franchise.

12. Reportorial Requirement

• Legal Principle: Annual reporting to Congress is mandatory.
• Requirements:
  • Submit reports by April 30 each year detailing operations and compliance.
• Penalties:
  • Failure results in a fine of P500 per day.

13. Fine

• Legal Principle: Penalties for report non-compliance.
• Requirements:
  • Fine to be collected by NTC and remitted to the Bureau of the Treasury.

14. Equality Clause

• Legal Principle: Franchise benefits extend to newly granted privileges.
• Requirements:
  • Grantee receives benefits from existing franchises after Congressional approval.

15. Repealability and Nonexclusivity Clause

• Legal Principle: Franchise subject to amendments.
• Requirements:
  • Not an exclusive grant; can be amended by Congress.

16. Separability Clause

• Legal Principle: Validity of provisions.
• Requirements:
  • If any section is invalid, the remaining provisions remain effective.

17. Repealing Clause

• Legal Principle: Conflicting laws are repealed.
• Requirements:
  • All inconsistent laws, decrees, orders are amended accordingly.

18. Effectivity

• Legal Principle: When the Act takes effect.
• Requirements:
  • Effective 15 days post-publication in the Official Gazette or major newspaper.

Key Takeaways

• The franchise for Golden Broadcast Professional, Inc. is renewed for 25 years with specific operational, reporting, and ownership conditions.
• Public service obligations and government rights during emergencies are emphasized.
• Strict penalties are established for non-compliance with reporting and operational requirements.
• The grantee must encourage public ownership and provide employment opportunities, with oversight from Congress and NTC.