Law Summary
Presidential Authority During Emergencies
- President may take over or authorize government use of the radio stations during war, rebellion, public peril, calamity, or emergency.
- Just compensation must be provided to the grantee during the period of government operation.
Use of Public Domain Land
- President authorized to permit construction of radio stations on public domain lands under terms and conditions he may prescribe.
Franchise Duration and Construction Conditions
- Franchise valid for 25 years from commencement of operations.
- Construction of at least one or two stations must begin within two years from approval or franchise voids.
Non-interference with Other Radio Operations
- Grantee must operate stations to avoid interference with other radio stations in the Philippines.
Property Rights and Land Use
- No private property to be taken without proper condemnation proceedings and just compensation.
- Land or rights used by grantee revert to government upon franchise termination or revocation.
Regulatory Rate Control
- Government, through the Public Service Commission, may fix maximum rates or charges imposed by the grantee.
Accounting and Auditing Requirements
- Grantee must keep separate accounts of gross receipts and submit annual reports to the Auditor General and Treasurer.
- Books must be kept within the Philippines and are subject to official inspection and audit.
- Audit results are final, except for appeals to Philippine courts.
Bond Requirement
- Grantee must post a bond of 5,000 pesos to ensure faithful performance of obligations during the first three years.
- Bond canceled if obligations fulfilled after three years.
Acceptance and Empowerment
- Franchise must be accepted in writing within one year of approval.
- Grant of franchise privileges effective upon acceptance and bond approval.
Restrictions on Transfer, Sale, and Lease
- Franchise cannot be transferred, leased, sold, assigned, or merged without Congressional approval.
- Transferee subject to original franchise conditions and Philippine corporation laws.
Equal Treatment of Competing Franchisees
- If other franchises granted with more favorable terms, such terms automatically apply to this grantee.
Legislative Control and Non-exclusivity
- Congress may amend, alter, or repeal the franchise as public interest requires.
- Franchise is non-exclusive.
Effectivity
- Law takes effect upon approval without executive approval.