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Republic Acts

AN ACT GRANTING JORGE D. BAYONA A FRANCHISE TO CONSTRUCT

Republic Act No. 2938

REPUBLIC ACT No. 2938

AN ACT GRANTING JORGE D. BAYONA A FRANCHISE TO CONSTRUCT, MAINTAIN AND OPERATE IN THE PROVINCE OF ALBAY AN AUDIOPHONIC SYSTEM FOR THE BROADCASTING OF MUSICAL AND LITERARY PROGRAMS, INCLUDING NEWS AND ADVERTISEMENTS, TO ANY PART OF SAID PROVINCE THROUGH WIRES.

Section 1. Subject to the provisions of the Constitution and this Act, there is hereby granted to Jorge D. Bayona a franchise to construct, maintain and operate in the Province of Albay an audiophonic system for the broadcasting of musical and literary programs, including news and advertisements, to any part of said province, through wires, for a period of twenty-five years from the approval of this Act. The broadcasting station of the grantee shall be located in the City of Legazpi, same province.

Section 2. The subscribers to the said station shall be provided by the grantee, free of charge, with a loudspeaker each, upon deposit of a reasonable amount to answer for the cost thereof in case of loss or destruction imputable to the subscriber, the deposit...

Summary of Republic Act No. 2938

Granting of Franchise
- Jorge D. Bayona is granted a franchise to construct, maintain and operate an audiophonic system for broadcasting in the Province of Albay for 25 years. (Section 1)
- The broadcasting station shall be located in Legazpi City, Albay. (Section 1)

Subscriber Equipment and Installation
- Subscribers shall be provided with a loudspeaker free of charge, upon deposit of a reasonable amount refundable upon termination of subscription. (Section 2)
- Installation and repair expenses shall be shouldered by the grantee, except for willful damage by the subscriber. (Section 2)

Rates and Charges
- The government reserves the right to fix the maximum rates or charges collectable by the grantee. (Section 3)

Infrastructure and Rights of Way
- The grantee is authorized to erect poles and lay necessary wires on public thoroughfares, subject to rules and regulations. (Section 4)

Construction Timeline
- Construction must begin within 2 years and be completed within 3 years from the approval of the Act, or the franchise becomes void. (Section 5)

Government Control during Emergencies
- The President can cause the closing or authorize government use of the station during war, insurrection, public peril or national emergency without compensating the grantee. (Section 6)

Non-Discrimination Clause
- If any other entity receives a more favorable franchise term, the same shall apply to the grantee. (Section 7)

Liability and Indemnification
- The grantee shall hold the government harmless from claims arising out of accidents or injuries caused by construction or operation. (Section 8)

Financial Reporting and Auditing
- The grantee shall keep accounts of gross receipts and furnish copies to the Auditor General and National Treasurer annually by January 31st. (Section 9)
- The grantee's books shall be subject to official inspection and audit by the Auditor General. (Section 9)

Taxation
- The grantee shall pay taxes on real property, buildings, machinery and personal property. (Section 10)
- The grantee shall pay all other taxes imposable under the National Internal Revenue Code. (Section 10)

Censorship and Liability
- The grantee shall not require previous censorship, but can cut off broadcasts that violate laws, private rights, or promote treason, rebellion, sedition, indecency or immorality. (Section 11)
- The grantee shall not be liable for such broadcasts unless willfully done. (Section 11)

Public Service and Content Obligations
- The grantee shall provide public service time for the government to reach the population on important issues. (Section 12)
- The grantee shall assist in public information and education functions. (Section 12)
- The grantee shall conform to ethics of honest enterprise. (Section 12)
- The grantee shall not broadcast obscene, indecent, false or misrepresented content, or content detrimental to public health or inciting subversion or treason. (Section 12)

Transfer of Franchise
- The grantee cannot lease, transfer, sell or assign the franchise without prior approval of Congress. (Section 13)
- Any entity the franchise is transferred to shall be subject to all the same conditions and limitations. (Section 13)

Definition of "Grantee"
- The term "grantee" refers to Jorge D. Bayona, his representatives, successors or assigns. (Section 14)

Amendment and Non-Exclusivity
- The franchise is subject to amendment, alteration or repeal by Congress when public interest requires. (Section 15)
- The franchise shall not be interpreted as an exclusive grant of privileges. (Section 15)

Effectivity
- The Act shall take effect upon approval. (Section 16)

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