Franchise for Progressive Broadcasting Corp.

Section 2 requires the grantee to construct and operate its stations and facilities in a manner that results in only the minimum interference on the wavelengths or frequencies of other stations.
Section 2 prohibits operation from diminishing the grantee’s own right to use its selected wavelengths or frequencies.
Section 2 requires operation to maximize rendition of the grantee’s services and/or the availability of those services.
Section 2 requires maintaining the quality of transmission or reception on the grantee’s selected frequencies/wavelengths.

Section 3 requires the grantee to secure from the National Telecommunications Commission (NTC) the appropriate permits and licenses for the technical aspects of operations.
Section 3 requires permits/licenses particularly for frequency assignment in the radio and television spectrum and for equipment used in the stations.
Section 3 prohibits the NTC from unreasonably withholding or delaying grant of such authority.
Section 3 prohibits the NTC from imposing unnecessary requirements that would impede the immediate start of the contemplated service.

Section 4 requires the grantee to provide reasonable public service time to enable the Government, through the grantee’s television systems, to reach the population on important public issues.
Section 4 requires sound and balanced programming at all times.
Section 4 requires promotion of public participation such as in community programming.
Section 4 requires assistance in the functions of public information and education.
Section 4 requires conformance with the ethics of honest enterprise.
Section 4 prohibits use of stations for:
- broadcasting obscene and indecent language, speech, act or scene; and
- dissemination of deliberately false information or willful misrepresentation;
- conduct to the detriment of the public interest; and
- inciting, encouraging, or assisting in subversive or treasonable acts.

Section 5 authorizes the President to temporarily take over and operate the grantee’s stations in times of rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order.
Section 5 authorizes the President to temporarily suspend operation of any station in the interest of public safety, security, and public welfare.
Section 5 authorizes the President to authorize temporary use and operation of the grantee’s stations by any Government agency.
Section 5 requires the President’s action to be accompanied by compensation to the grantee for the use of stations during the period of takeover/suspension/temporary operation by a Government agency.

Section 6 provides a franchise term of twenty-five (25) years from the date of effectivity of the Act, unless sooner revoked or cancelled.
Section 6 deems the franchise ipso facto revoked if the grantee fails to operate within two (2) years from the Act’s effectivity.
Section 6 further provides that the revocation timing is also triggered one (1) year from the grant of certificate of public convenience by the NTC, whichever is later.
Section 6 provides that the term expires if the grantee suspends operation or fails to operate continuously for two (2) years, except for reasons outside its control such as force majeure or acts of government, after which it must suspend operation thereafter.
Section 6 establishes that continuous-operation failure and suspension rules affect the franchise’s term and viability.

Section 7 requires acceptance of the franchise to be given in writing within sixty (60) days after approval of the Act.
Section 7 provides that refusal or failure to accept the franchise or to operate within the prescribed period renders the franchise void.

Section 8 makes the grantee, its successors or assigns liable to pay the same taxes on real estate, buildings, and personal property as other persons or corporations.
Section 8 states that this real and property tax liability is exclusive of this franchise taxes.
Section 8 imposes a franchise tax equivalent to three percent (3%) of all gross receipts of the radio/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 requires continued 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 amendment or repeal applies.

Section 9 requires the grantee to hold the national, provincial, and municipal governments harmless from all claims, accounts, demands, or actions.
Section 9 covers claims arising out of accidents or injuries to property or persons.
Section 9 limits the covered liability to those caused by the construction or operation of the grantee’s stations attributable solely to the grantee’s act or omission.

Section 10 prohibits the grantee from leasing, transferring, granting the usufruct of, selling, or assigning the franchise or any rights and privileges acquired thereunder to any person, firm, company, corporation, or other commercial or legal entity.
Section 10 prohibits transferring the controlling interest in the grantee to any such private person, firm, company, corporation, or entity.
Section 10 requires prior approval of the Congress of the Philippines before any transfer, sale, assignment, or controlling-interest transfer permitted under this section.
Section 10 provides that any person or entity to which the franchise is sold, transferred, or assigned must be subject to all the same conditions, terms, restrictions, and limitations of the Act.

Section 11 requires the grantee to comply with the enabling law implementing democratization of ownership of all public interest in line with the constitutional mandate.

Section 12 includes a separability clause: if any section or provision is held invalid, all 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 that 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 the date of its publication in at least two (2) newspapers of general circulation.
The Act is Republic Act No. 7163, approved on November 17, 1991.
The Act was approved by lapse into law on November 17, 1991 without the President’s signature in accordance with Article VI, Section 27(1) of the Constitution.
Republic Act No. 7163 originated in the House of Representatives and was finally passed by the House and the Senate on August 7, 1991 and August 6, 1991, respectively.