AN ACT GRANTING THE CENTRAL MINDANAO UNIVERSITY A FRANCHISE TO CONSTRUCT

Case Overview and Summary

Summary of Republic Act No. 9044

Nature and Scope of Franchise
- Grants Central Mindanao University (the grantee) a franchise to construct, install, establish, operate and maintain radio and television broadcasting stations for educational and non-commercial purposes in Central Mindanao University, Municipality of Maramag, Province of Bukidnon. (Section 1)
- Allows the use of any available frequencies, channels, and new technologies for radio and television broadcasting. (Section 1)

Operation of Stations
- Stations must be operated in a manner that results in minimum interference with existing stations. (Section 2)

Approval from National Telecommunications Commission (NTC)
- The grantee must secure appropriate permits and licenses from NTC for construction and operation of stations. (Section 3)
- NTC shall not unreasonably withhold or delay the grant of authority. (Section 3)

Responsibility to the Public
- The grantee shall provide adequate public service time for the government to reach the population on important public issues. (Section 4)
- The grantee shall provide sound and balanced programming, assist in public information and education, conform to ethics of honest enterprise, and not broadcast obscene or indecent content or false information. (Section 4)

Right of Government
- The President has the right to temporarily take over, suspend operations, or authorize temporary use of the stations during times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation to the grantee. (Section 5)
- The radio spectrum is part of the national patrimony, and the use is a privilege that may be withdrawn after due process. (Section 5)

Term of Franchise
- The franchise is valid for 25 years from the date of effectivity of the Act, unless revoked or cancelled earlier. (Section 6)
- The franchise shall be deemed revoked if the grantee fails to: (Section 6)
- Commence operations within 1 year from NTC's approval of operating permit
- Operate continuously for 2 years
- Commence operations within 3 years from the effectivity of the Act

Acceptance and Compliance
- The grantee must accept the franchise in writing within 60 days from the effectivity of the Act. (Section 7)
- Non-acceptance shall render the franchise void. (Section 7)

Bond
- The grantee shall file a bond, determined by NTC, to guarantee compliance with the conditions of the franchise. (Section 8)
- If the grantee fulfills the conditions within 3 years from NTC's approval, the bond shall be cancelled. Otherwise, the bond shall be forfeited, and the franchise revoked. (Section 8)

Self-regulation and Undertaking of Grantee
- The grantee shall not require previous censorship but shall cut off any broadcast that incites treason, rebellion, sedition, or contains indecent or immoral language. Willful failure to do so shall be a valid cause for cancellation of the franchise. (Section 9)

Obligation of Grantee
- Any aggrieved party shall have the right to reply in the same program or any other program of their choice. (Section 10)

Warranty in Favor of National and Local Governments
- The grantee shall hold the national, provincial, and municipal governments harmless from claims arising out of accidents or injuries caused by the construction or operation of the stations. (Section 11)

Sale, Lease, Transfer, Usufruct, etc.
- The grantee shall not lease, transfer, grant usufruct, sell, assign the franchise or rights, or merge with any other entity without prior approval of the Congress of the Philippines. (Section 12)
- Any entity to which the franchise is sold or transferred shall be subject to the same conditions, terms, restrictions, and limitations of the Act. (Section 12)

General Broadcast Policy Law
- The grantee shall comply with any general broadcast policy law that Congress may enact in the future. (Section 13)

Equality Clause
- Any advantage, favor, privilege, exemption, or immunity granted under existing or future franchises shall automatically become part of previously granted telecommunications franchises. (Section 14)
- However, this shall not apply to provisions concerning territory covered, life-span of the franchise, or type of service authorized. (Section 14)

Separability Clause
- If any section or provision of the Act is held invalid, all other valid provisions shall remain in effect. (Section 15)

Repealability and Non-exclusivity Clause
- The franchise is subject to amendment, alteration, or repeal by Congress when the public interest requires it. (Section 16)
- The franchise shall not be interpreted as an exclusive grant of the privileges provided. (Section 16)

Reportorial Requirement
- The grantee shall submit an annual report to Congress on its compliance with the terms and conditions of the franchise and its operations within 60 days from the end of every year. (Section 17)

Effectivity
- The Act shall take effect 15 days from the date of its publication in at least two newspapers of general circulation in the Philippines, upon the initiative of the grantee. (Section 18)