Republic Act No. 8116 Grant of Radio and Television Broadcasting Station Franchise to Vimcontu Broadcasting Corp.

July 9, 1995 *

REPUBLIC ACT NO. 8116

AN ACT GRANTING THE VIMCONTU BROADCASTING CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS WITHIN THE PHILIPPINES, AND FOR OTHER PURPOSES

SECTION 1. Nature and Scope of the Franchise. — Subject to the provisions of the Constitution and applicable laws, rules and regulations, there is hereby granted to the Vimcontu Broadcasting Corporation, hereunder referred to as the grantee, a franchise to construct, install, operate and maintain for commercial purposes and in the public interest radio and television broadcasting stations in the Philippines with the corresponding technological auxiliaries or facilities, special broadcast and other broadcast distribution services and relay stations, and to construct, install, operate and maintain communications facilities for the grantee's private use in its broadcast services.

SECTION 2. Manner of Operation of Stations or Facilities. — The existing and future 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 other existing station 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.

SECTION 3. 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 and television spectrum without having been authorized by the Commission. The Commission, however, shall not unreasonably withhold or delay the grant of any such authority.

SECTION 4. Responsibility to 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 community programming; assist in the functions of public information and education; conform to the ethics of honest enterprise, and not use its station for the broadcasting of obscene and indecent language, speech, act or scene, 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. cd i

SECTION 5. Right of Government. — A special right is hereby reserved to the President of the Republic of the Philippines in times of rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, 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 the said stations during the period when they shall be so operated.

SECTION 6. Term of Franchise. — This franchise shall be for a term of twenty-five (25) years from the date of approval of this Act, unless sooner revoked or cancelled. In the event the grantee fails to operate continuously for two (2) years, this franchise shall be deemed ipso facto revoked.

SECTION 7. Acceptance and Compliance.— Acceptance of this franchise shall be given in writing within sixty (60) days after approval of this Act. Upon giving such acceptance, the grantee shall exercise the privileges granted under this Act. Nonacceptance shall render the franchise void.

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 are now or hereafter may be required by law to pay. In addition thereto, the grantee, its successors or assigns, shall be levied, assessed and collected a franchise tax equivalent to three percent (3%) of all gross receipts of the radio/television 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.

The grantee shall file the return with and pay the tax due thereon 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. Public 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 stock 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. Self-Regulation by and Undertaking of Grantee. — The grantee shall not require any previous censorship of any speech, play, act or scene, or other matter to be broadcast and/or telecast from its stations: Provided, That the grantee, during any broadcast and telecast, shall cut off from the air the speech, play, act or scene, or other matter being broadcast and/or telecast if the tendency thereof is to propose and/or incite treason, rebellion, or sedition, or the language used therein of the theme thereof is indecent, immoral, and willful failure to do so shall constitute a valid cause for the cancellation of this franchise.

SECTION 11. 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.

SECTION 12. Sale, Lease, Transfer, Usufruct, etc. — 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 merge with any 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 13. Separability Clause. — If any of the sections or provisions of this Act held invalid, all the other provisions not affected thereby shall remain valid.

SECTION 14. 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 15. Repealability and Non-exclusivity 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 16. Previous Franchise. — Republic Act Numbered 4198 and 4545 are hereby repealed and/or amended accordingly.

SECTION 17. Effectivity Clause.— This Act shall take effect fifteen (15) days after its publication in at least two (2) newspaper of general circulation in the Philippines.

* Lapsed into law on July 9, 1995, without the signature of the President, in accordance with Article VI, Section 27(1) of the Constitution.

Published in Malaya and the Manila Times on July 21, 1995. Published in the Official Gazette, Vol. 91 No. 40 page 6474 on October 2, 1995.