Extension of Radio and Television Stations Franchise Granted to Catholic Bishop's Conference of the Philippines, Inc.

May 22, 1992

REPUBLIC ACT NO. 7530

AN ACT EXTENDING THE FRANCHISE GRANTED TO THE CATHOLIC BISHOP'S CONFERENCE OF THE PHILIPPINES, INC., (FORMERLY THE CATHOLIC WELFARE ORGANIZATION) TO CONSTRUCT, OPERATE AND MAINTAIN RADIO BROADCASTING AND TELEVISION STATIONS IN THE PHILIPPINES UNDER REPUBLIC ACT NUMBERED FIFTY-ONE HUNDRED AND SEVENTY-TWO TO ANOTHER TWENTY-FIVE (25) YEARS FROM AUGUST 4, 1992, AND FOR OTHER PURPOSES

SECTION 1. Extension of the Franchise. — The life of the franchise of the Catholic Bishop's Conference of the Philippines, Inc., (formerly the Catholic Welfare Organization) to construct, operate and maintain radio broadcasting and television stations in the Philippines under Republic Act No. 5172 is hereby extended to another twenty-five (25) years from August 4, 1992.

SECTION 2. Incorporation of Other Provisions of Republic Act No. 5172. — All other provisions, terms and conditions contained in Republic Act No. 5172 which are still in force and are not affected by this Act are hereby made integral parts of this Act. cdt

SECTION 3. Parity Clause. — In the event any competing individual, partnership or corporation has received or shall receive from the Congress of the Philippines a similar franchise containing any term or terms more favorable than those herein granted or tending to place the herein grantee at any disadvantage, then such term or terms shall ipso facto become a part of the terms hereof and shall operate equally in favor of the grantee as in the case of said competing individual, partnership or corporation. cd

SECTION 4. Manner of Operation of Stations or Facilities. — The stations or facilities of the grantee shall be constructed and operated in a manner as will at most result only in the minimum interference on the wavelengths or frequencies of the other existing stations or stations which may be established by law without in any way diminishing its own right to use its selected wavelengths or frequencies and the quality of transmission or reception thereon as should maximize rendition of the grantee's services and/or the availability thereof. cd

SECTION 5. Prior Approval of the National Telecommunications Commission. — The grantee shall secure from the National Telecommunications Commission the appropriate permits and licenses for its stations and shall not use any frequency in the radio spectrum without having been authorized by the Commission. The Commission, however, shall not unreasonably withhold or delay the grant of any such authority.

SECTION 6. Responsibility of the Public. — The grantee shall provide reasonable public service time to enable the Government, through the said broadcasting stations, to reach the population on important public issues; provide at all times sound and balanced programming; promote public participation such as in community programming; assist in the functions of public information and education; conform to the ethics of honest enterprise; and not use its stations for the broadcasting of obscene and indecent language, or speech, or for the dissemination of deliberately false information or willful misrepresentation to the detriment of the public interest, or to incite, encourage, or assist in subversive or treasonable acts. cdt

SECTION 7. Right of Government. — A special right is hereby reserved to the President of the Philippines, in times of rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, to temporarily take over and operate the stations of the grantee, to temporarily suspend the operation of any station in the interest of public safety, security and public welfare, or to authorize the temporary use and operation thereof by any agency of the Government, upon due compensation to the grantee, for the use of said stations during the period when they shall be so operated.

SECTION 8. Tax Provisions. — The grantee, its successors or assigns shall be liable to pay the same taxes on their real estate, buildings and personal property, exclusive of this franchise, as other persons or corporations which are now or hereafter may be required by law to pay. In addition thereto, the grantee, its successors or assigns shall pay a franchise tax equivalent to three percent (3%) of all gross receipts of the radio business transacted under this franchise by the grantee, its successors or assigns and the said percentage shall be in lieu of all taxes on this franchise or earnings thereof: Provided, That the grantee, its successors or assigns shall continue to be liable for income taxes payable under Title II of the National Internal Revenue Code pursuant to Section 2 of Executive Order No. 72 unless the latter enactment is amended or repealed, in which case the amendment or repeal shall be applicable thereto.

The grantee shall file the return with and pay the tax due thereto to the Commissioner of Internal Revenue or his duly authorized representative in accordance with the National Internal Revenue Code and the return shall be subject to audit by the Bureau of Internal Revenue.

SECTION 9. Democratization of Ownership. — In compliance with the constitutional mandate to democratize ownership of public utilities, the herein grantee shall make public offering through the stock exchanges of at least thirty percent (30%) of its common stocks within a period of three (3) years from the date of effectivity of this Act: Provided, That no single person or entity shall be allowed to own more than five percent (5%) of the stock offerings.

SECTION 10. Warranty in Favor of National and Local Governments. — The grantee shall hold the national, provincial and municipal governments of the Philippines harmless from all claims, accounts, demands or actions arising out of accidents or injuries, whether to property or to persons, caused by the construction or operation of the stations of the grantee. casia

SECTION 11. Sale, Lease, Transfer, Usufruct of Franchise. — The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, nor shall the controlling interest in the grantee be transferred, whether as a whole or in parts and whether simultaneously or contemporaneously, to any such private person, firm, company, corporation or entity without the prior approval of the Congress of the Philippines. Any person or entity to which this franchise is sold, transferred or assigned shall be subject to all the same conditions, terms, restrictions and limitations of this Act.

SECTION 12. General Broadcast Policy Law. — The grantee shall comply with and be subject to the provisions of a general broadcast policy law that may hereafter be enacted.

SECTION 13. Separability Clause. — If any of the sections or provisions of this Act is held invalid, all the other provisions not affected thereby shall remain valid. cd

SECTION 14. Repealing Clause. — This franchise shall be subject to amendment, alteration or repeal by the Congress of the Philippines when the public interest so requires and shall not be interpreted as an exclusive grant of the privileges herein provided for.

SECTION 15. Reportorial Requirement. — The grantee shall submit an annual report to the Congress of the Philippines on its compliance with the terms and conditions of the franchise and on its operations within sixty (60) days from the end of every year.

SECTION 16. Effectivity Clause. — This Act shall take effect fifteen (15) days after its publication in at least two (2) national newspapers of general circulation.

Approved: May 22, 1992 aisa dc

Published in Malaya and the Philippine Times Journal on May 29, 1992. Published in the Official Gazette, Vol. 88 No. 28 page 4515 on July 13, 1992.