Law Summary
Operation and Interference
- Broadcasting stations must operate to minimize interference with other stations' frequencies.
- The grantee retains the right to their selected frequencies and quality of transmission to maximize service availability.
Permits and Licensing
- Grantee must secure permits and licenses from the National Telecommunications Commission (NTC).
- Use of frequency is prohibited without NTC authorization.
- NTC must not unreasonably withhold or delay required approvals.
Public Service Obligations
- Provide reasonable public service airtime for government to communicate important issues.
- Ensure sound, balanced programming promoting public participation and education.
- Adhere to ethical broadcasting; prohibit obscene, indecent content, false information, or content inciting subversion or treason.
Government's Emergency Rights
- President may temporarily take over or suspend operations of the stations in emergencies, rebellions, calamities, or public safety concerns.
- Temporary operation by government agencies is allowed with due compensation to the grantee.
Franchise Duration
- Franchise lasts 25 years from effectivity unless revoked or canceled.
- Franchise automatically revoked if the grantee fails to operate continuously for two years.
Acceptance and Exercise of Franchise
- Grantee must accept the franchise in writing within 60 days of approval.
- Nonacceptance renders the franchise void.
Tax Obligations
- Grantee liable for real estate, building, and personal property taxes like other taxpayers.
- Must pay a 3% franchise tax on gross receipts from the radio business under the franchise, which replaces other franchise or earnings taxes.
- Income tax liability remains unless amended.
- Tax returns filed with and subject to audit by the Bureau of Internal Revenue.
Public Ownership Requirement
- Must offer at least 30% of common stocks to the public via stock exchange within 3 years.
- No single person/entity may own more than 5% of the stock offerings.
Indemnification of Government
- Grantee holds national and local governments harmless from claims or damages arising from construction or operation of stations.
Restrictions on Transfer and Ownership
- Franchise and related rights may not be leased, sold, transferred, or assigned without prior Congressional approval.
- Transfer of controlling interest is likewise restricted.
- Successors or assignees subject to all original franchise conditions.
Separability Clause
- Invalidity of any provision does not affect the rest of the law.
Amendments and Non-exclusivity
- Congress may amend, alter, or repeal the franchise as public interest requires.
- The franchise grant is not exclusive.
Compliance with Future Broadcast Policy
- Grantee must comply with any future general broadcast policy laws enacted.
Reporting Requirements
- Grantee must submit an annual report to Congress within 60 days after year-end regarding compliance and operations.
Effectivity
- The Act takes effect 15 days after publication in two newspapers of general circulation.