Franchise for Kaissar Broadcasting Network, Inc.

Section 2 requires KBNI to construct and operate its stations or facilities to result in only the minimum interference on the wavelengths or frequencies of other existing legally established stations.
Section 2 provides that this interference standard must be achieved without diminishing KBNI’s own right to use its selected wavelengths or frequencies.
Section 2 requires operation in a manner that maximizes rendition of KBNI’s service and/or availability while maintaining the required quality of transmission or reception.

Section 3 requires KBNI to secure from the National Telecommunications Commission (NTC) the appropriate permits and licenses for its stations.
Section 3 prohibits KBNI from using any frequency in the radio/television spectrum without prior authorization from the NTC.
Section 3 directs the NTC not to unreasonably withhold or delay the grant of authority.

Section 4 requires KBNI to provide adequate public service time so the government can reach the population on important public issues.
Section 4 requires sound and balanced programming at all times.
Section 4 obligates KBNI to assist public information and education functions.
Section 4 requires KBNI to conform to the ethics of honest enterprise.
Section 4 prohibits KBNI from using its stations to broadcast or telecast obscene and indecent language, speech, act or scene, or for disseminating deliberately false information or willful misrepresentation to the detriment of the public interest.
Section 4 prohibits KBNI from using its stations to incite, encourage, or assist in subversive or treasonable acts.

Section 5 reserves to the President a special right, in times of rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, to temporarily take over and operate KBNI’s stations.
Section 5 authorizes the President to temporarily suspend operation of any KBNI station for public safety, security and public welfare.
Section 5 authorizes the President to authorize temporary use and operation of KBNI stations by any government agency during the relevant period.
Section 5 requires due compensation to KBNI for station use during take-over or temporary operation.

Section 6 establishes the franchise term at twenty-five (25) years from the date of approval of this Act, unless sooner revoked or cancelled.
Section 6 provides that if KBNI fails to operate continuously for two (2) years, the franchise is ipso facto revoked.

Section 7 requires KBNI to give written acceptance of the franchise within sixty (60) days after approval of the Act.
Section 7 provides that upon giving acceptance, KBNI must exercise the privileges granted under the franchise.
Section 7 states that non-acceptance renders the franchise void.

Section 8 makes KBNI liable to pay the same taxes on its real estate, buildings and personal property as other persons or corporations, exclusive of the franchise.
Section 8 imposes a franchise tax equivalent to three percent (3%) of all gross receipts of the radio and television business transacted under the franchise.
Section 8 provides that the 3% franchise tax is in lieu of all taxes on this franchise or earnings thereof.
Section 8 preserves liability for income taxes payable under Title II of the National Internal Revenue Code pursuant to Section 2 of Executive Order No. 72, unless that enactment is amended or repealed, in which case the change applies.
Section 8 requires KBNI to file the return with and pay the tax due to the Commissioner of Internal Revenue or authorized representatives in accordance with the National Internal Revenue Code.
Section 8 provides that the return is subject to audit by the Bureau of Internal Revenue.

Section 9 prohibits KBNI from requiring previous censorship of any speech, play, act or scene, or other matter to be broadcast and/or telecast from its stations.
Section 9 requires KBNI to cut off from the air any speech/play/act/scene or other matter being broadcast/telecast when:
- the tendency is to propose and/or incite treason, rebellion or sedition; or
- the language or the theme is indecent or immoral.
Section 9 states that a willful failure to cut off under the required conditions constitutes a valid cause for the cancellation of this franchise.

Section 10 requires KBNI to hold harmless the national, provincial, and municipal governments of the Philippines from all claims, accounts, demands or actions.
Section 10 covers claims arising from accidents or injuries, whether to property or persons, caused by the construction or operation of KBNI’s stations.

Section 11 prohibits KBNI from leasing, transferring, granting the usufruct of, selling, or assigning the franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation, or other commercial or legal entity.
Section 11 prohibits transferring the controlling interest in KBNI to any such private person, firm, company, corporation, or entity without prior approval of the Congress of the Philippines.
Section 11 requires that any person or entity that purchases, transfers, or is assigned the franchise must be subject to the same conditions, terms, restrictions, and limitations of the Act.

Section 12 establishes a separability clause: if any section or provision is held invalid, the other provisions not affected remain valid.
Section 13 provides that the franchise is subject to amendment, alteration, or repeal by the Congress of the Philippines when the public interest so requires.
Section 13 states the franchise must not be interpreted as an exclusive grant of the privileges provided.
Section 14 provides that the Act takes effect fifteen (15) days from publication in at least two (2) newspapers of general circulation in the Philippines.
The Act was approved May 25, 1995 and lapsed into law on May 25, 1995 without the President’s signature in accordance with Article VI, Section 27 (1) of the Constitution.