Franchise renewal for Catholic Bishops~ Conference radio-TV

Covered Broadcasting Franchise and Purpose

The grantee is the Catholic Bishops' Conference of the Philippines, Inc., including its successors or assignees.
The franchise covers the establishment and operation of radio and/or television broadcasting stations for religious, educational, cultural, and commercial purposes and in the public interest.
The franchise applies to broadcasting where frequencies and/or channels are still available or are assigned for radio and/or television broadcasting.
The franchise covers digital television and/or radio systems, including transmission through microwave, satellite, or the use of any new technology in television and/or radio systems.
The franchise covers corresponding technological auxiliaries and/or facilities, special broadcast, other program and distribution services, and relay stations.
The operation of stations and facilities is subject to the Constitution and applicable laws, rules and regulations.

Manner of Operation and Service Standards

The grantee must construct and operate stations or facilities to result in minimum interference on wavelengths or frequencies of existing stations or other stations that may be established by law.
The grantee must not diminish its own privilege to use its assigned wavelengths or frequencies.
The grantee must maintain and maximize the quality of transmission or reception as should maximize rendition of its services and/or availability.
The grantee must provide programming that is sound and balanced at all times.
The grantee must promote public participation and assist in public information and education.
The grantee must conform to the ethics of honest enterprise and promote audience sensibility and empowerment, including closed captioning.

Public Service Time and Prohibited Content

The grantee must provide free of charge adequate public service time to enable the government, through the broadcasting facilities, to reach relevant populations on important public issues.
The grantee must relay important public announcements and warnings concerning public emergencies and calamities as necessity, urgency, or law may require.
Public service time must be equivalent to a maximum aggregate of ten percent (10%) of paid commercials or advertisements.
Public service time must be allocated based on need to the executive, legislative, judiciary, constitutional commissions and international humanitarian organizations duly recognized by statutes.
The NTC must increase public service time in cases of extreme emergency or calamity and must issue rules and regulations for this purpose with effectivity beginning upon applicability with other similarly situated broadcast franchise holders.
The grantee must not use its stations or facilities to broadcast obscene or indecent language, speech, act, or scene, or to disseminate deliberately false information or willful misrepresentation to the detriment of the public interest.
The grantee must not use its stations or facilities to incite, encourage, or assist in subversive or treasonable acts.

Regulatory Permits and Government Rights

The grantee must secure from the National Telecommunications Commission (NTC) the appropriate permits and licenses for the construction and operation of its stations or facilities.
The grantee must not use any frequency in the radio/television spectrum without NTC authorization.
The NTC must not unreasonably withhold or delay the grant of such authority.
The radio spectrum is a finite resource part of national patrimony and its use is a privilege conferred by the State that may be withdrawn any time after due process.
A special right is reserved to the President of the Philippines during war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order to:
- temporarily take over and operate the stations or facilities of the grantee;
- temporarily suspend operation of any station or facility in the interest of public safety, security, and public welfare; or
- authorize temporary use and operation by any government agency upon due compensation to the grantee during the period of such use.

Term, Revocation, and Self-Regulation

The franchise term lasts for twenty-five (25) years from the date of effectivity of the Act, unless sooner revoked or cancelled.
If the grantee fails to operate continuously for two (2) years, the franchise is ipso facto revoked.
The grantee must not require previous censorship of any speech, play, act, or scene, or other matter to be broadcast.
During any broadcast, the grantee must cut off from the air any speech, play, act, or scene, or other matter if its tendency is to propose and/or incite treason, rebellion, or sedition.
The grantee must also cut off from the air content if the language used or the theme thereof is indecent or immoral.
Willful failure to cut off such content constitutes a valid cause for cancellation of the franchise.

Government Claims Immunity and Employment Commitment

The grantee must hold the national, provincial, city, and municipal governments free from all claims, liabilities, demands, or actions arising out of accidents causing injury to persons or damage to properties during construction or operation of the stations.
The grantee must create employment opportunities and allow on-the-job trainings in franchise operations.
Priority must be accorded to residents in areas where any of its offices is located.
The grantee must follow applicable labor standards and allowance entitlement under existing labor laws, rules and regulations, and similar issuances.
Employment opportunities or jobs created must be reflected in the General Information Sheet submitted to the Securities and Exchange Commission annually.

Ownership Transfer Limits and Reporting Duties

The grantee must not sell, lease, transfer, grant the usufruct of, or assign the franchise or rights and privileges under it to any person, firm, company, corporation, or other commercial or legal entity.
The grantee must not merge with any other corporation or entity without prior approval of Congress of the Philippines.
The grantee must not transfer the controlling interest of the grantee, whether simultaneously or contemporaneously, without prior approval of Congress.
Congress must be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise rights and privileges, or of any merger or transfer of controlling interest, within sixty (60) days after completion of the transaction.
Failure to report such change of ownership to Congress within the required time renders the franchise ipso facto revoked.
Any person or entity to which the franchise is validly sold, transferred, or assigned must be subject to the same conditions, terms, restrictions, and limitations of the Act.
The grantee must submit an annual report to Congress through the Committee on Legislative Franchises of the House of Representatives and the Committee on Public Services of the Philippine Senate.
The annual report must be submitted on or before April 30 of every year during the term of the franchise.
A reportorial compliance certificate issued by Congress is required before any application for permit or certificate is accepted by the NTC.

Penalties for Report Noncompliance

Failure to submit the required annual report to Congress is penalized by a fine of Five hundred pesos (P500.00) per working day of noncompliance.
The fine is collected by the NTC from the delinquent franchise grantee separate from reportorial penalties imposed by the NTC.
The collected fines must be remitted to the National Treasury.

Equality, Amendments, and Legal Effects

Except for taxes and customs duties, any advantage, favor, privilege, exemption, or immunity granted under existing franchises, or granted in the future for radio and/or television broadcasting, becomes part of this franchise and must be accorded immediately and unconditionally to the grantee upon prior review and approval of Congress.
The equality clause does not apply to or affect provisions concerning territorial coverage, the term, or the type of service authorized by broadcasting franchises.
The franchise is subject to amendment, alteration, or repeal by Congress when the public interest so requires and is not interpreted as an exclusive grant of the privileges provided.
If any section or provision is held invalid, the remaining provisions not affected remain valid (separability).
All laws, decrees, orders, resolutions, instructions, rules and regulations, and other issuances or parts thereof inconsistent with the Act are repealed, amended, or modified accordingly.

Effectivity

The Act takes effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.