Title
UP System Broadcast Franchise Renewal Act
Law
Republic Act No. 11540
Decision Date
May 18, 2021
A law renews the franchise of the University of the Philippines System, allowing them to operate radio and television broadcasting stations for educational purposes, with requirements including compliance with regulations, balanced programming, public participation, tax exemption, child-friendly shows, and annual reports to Congress, while violations can result in fines or cancellation of the franchise.

Law Summary

Technical Operation Standards

  • Facilities must minimize interference with other radio and TV stations.
  • Does not diminish UP System’s right to use assigned wavelengths or frequency quality.
  • Emphasizes maximizing broadcast service availability and quality.

Regulatory Compliance

  • Requires obtaining permits and licenses from the National Telecommunications Commission (NTC).
  • Unauthorized use of frequencies strictly prohibited.
  • NTC empowered to revoke or suspend permits after due process if franchise provisions are violated.
  • NTC may recommend franchise revocation to Congress.

Public Service Obligations

  • Mandates free provision of adequate public service airtime for government announcements and emergencies.
  • Ensures sound, balanced programming and promotion of public participation, education, and information.
  • Prohibits broadcasting obscene, indecent content, false information, or incitement to unlawful acts.
  • Requires minimum 15% of daily air time allocated to child-friendly programming as per Children's Television Act.

Government Rights and Emergency Powers

  • Radio spectrum designated a national patrimony and usage is a State-conferred privilege.
  • Presidential authority during war, emergencies, or public peril to:
    • Temporarily take over or suspend station operations.
    • Authorize government use of facilities with due compensation.

Franchise Term and Continuity

  • Franchise valid for 25 years from August 9, 2021.
  • Automatic revocation if operations stop for 2 continuous years.

Renewal Procedure

  • Grantee must apply for renewal or extension 3 years before expiration.
  • Application timeline counts from 15 days after publication in Official Gazette or official newspaper.

Tax Exemption

  • Grantee exempt from all taxes and fees under the University of the Philippines Charter of 2008.

Self-Regulation and Content Control

  • No prior censorship required for broadcasts.
  • Exemption from liability for broadcast content unless it violates law or private rights.
  • Must cut off broadcasting content inciting treason, rebellion, or that is indecent.
  • Failure to do so may lead to franchise cancellation.

Liability Waiver for Government

  • UP System holds Philippine national and local governments harmless from liabilities related to accidents during construction or operation of stations.

Employment Commitments

  • Must create local employment and accept on-the-job trainees.
  • Priority for residents near principal office.
  • At least 60% workforce must be regular employees; max 40% can be contractual or casual.
  • Compliance with labor standards and civil service regulations required.

Prohibition on Transfer of Franchise

  • Franchise cannot be sold, leased, transferred, assigned, or granted to other individuals or entities.

Reporting Requirements

  • Annual report to Congress detailing compliance, operations, financials, and NTC certifications.
  • Report due by April 30 each year.
  • Reportorial compliance required before permit applications are processed by NTC.

Penalties for Non-Compliance

  • Failure to submit annual report penalized with Php 500 per working day.
  • NTC responsible for fine collection remitted to Bureau of the Treasury.

Equality Clause

  • Any privileges granted under other franchises for broadcasting become part of this franchise.
  • Clause excludes differences in territorial coverage, term, or authorized service type applicable to telecommunications franchises.

Legislative Control

  • Franchise subject to amendments, alterations, or repeal by Congress.
  • Not an exclusive grant of privileges.

Legal Provisions

  • Other sections remain valid if one is declared invalid (separability).
  • Repeal of inconsistent laws, orders, and regulations.

Effectivity

  • Act takes effect 15 days after official publication.

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