Presidential Authority in Emergencies
- The President of the Philippines has the special right to take over and operate the broadcasting stations in times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order.
- The President may authorize government departments to temporarily use and operate the stations with due compensation to SBN for the duration of such use.
Use of Public Domain for Construction
- The President is empowered to permit the construction of broadcasting stations on public domain lands.
- Such approval is subject to terms and conditions prescribed by the President.
Franchise Duration and Conditions
- The franchise is valid for 25 years starting from the date the first station is placed in operation.
- Construction must begin within 2 years and be completed within 4 years from the date of the Act’s approval.
- Failure to meet these conditions voids the franchise.
Compliance Bond Requirement
- SBN must post a bond of PHP 200,000 to guarantee compliance with franchise conditions.
- The bond is cancelable once SBN fulfills the conditions within the prescribed period.
Broadcast Content and Censorship
- The franchise prohibits prior censorship of broadcasts by SBN.
- However, SBN may cut off broadcasts that incite treason, rebellion, or sedition, or that contain indecent or immoral language or themes.
Licensing and Frequency Allocation by NTC
- The franchise takes effect only after the NTC allotment of frequencies and issuance of a license to SBN.
- The NTC may, with reasonable notice, change, cancel, or modify frequency allotments if public interest requires.
Station Construction and Operation Standards
- Stations must be constructed and operated to avoid interference with existing stations.
- Frequency selection must also allow for future expansion of SBN’s services.
Indemnity to Government
- SBN must hold the national, provincial, and municipal governments harmless from claims arising from accidents or injuries caused by station construction or operation.
Property Rights and Condemnation
- Private property cannot be taken by SBN without proper condemnation proceedings and just compensation.
- Any land taken must be necessary for the franchise’s actual purposes.
Accounting and Audit Requirements
- SBN must keep accurate accounts of gross receipts and submit copies annually to the Commission on Audit and the Treasurer by January 31.
- The Commission on Audit may inspect and approve accounts; such approval is final and conclusive.
- SBN has the right to appeal judicially.
Compliance with Corporation Laws
- SBN and its successors or assigns must comply with all pertinent corporation laws of the Philippines.
Transfer, Assignment, and Merger Restrictions
- SBN cannot lease, transfer, sell, or assign the franchise or rights without prior Congressional approval.
- Any successor entity is subject to all franchise conditions and applicable corporation laws.
Taxation Requirements
- SBN shall pay taxes on real estate, buildings, and personal property like other taxpayers.
- Additionally, SBN must pay a 3% franchise tax on gross receipts annually after audit approval.
- This franchise tax replaces other taxes, fees, and administrative charges except the real estate and income taxes.
Non-Exclusivity of Franchise
- The franchise granted to SBN is not exclusive and does not prevent the government from granting similar privileges to others.
Effectivity
- The Act takes effect upon approval and lapsed into law on September 7, 1995, without the President’s signature as per constitutional provision.