AN ACT GRANTING THE MUSLIM DEVELOPMENT MULTIPURPOSE COOPERATIVE A FRANCHISE TO CONSTRUCT
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AN ACT GRANTING THE MUSLIM DEVELOPMENT MULTIPURPOSE COOPERATIVE A FRANCHISE TO CONSTRUCT
Republic Act No. 9171
September 26, 2002
Case Overview and Summary
Summary of Republic Act No. 9171Nature and Scope of Franchise (Section 1):
- Grants Muslim Development Multipurpose Cooperative ("grantee") a franchise to construct, install, establish, operate and maintain radio broadcasting stations in the Philippines for commercial purposes.
- Allows the use of microwave, satellite or any new technologies for radio broadcasting.
- Permits the operation of auxiliary facilities, special broadcast services, and relay stations.
Manner of Operation (Section 2):
- Stations must be operated in a manner that results in minimum interference with existing stations.
- Grantee has the right to use its selected wavelengths or frequencies without diminishing quality.
Prior Approval of NTC (Section 3):
- Grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for construction and operation.
- NTC shall not unreasonably withhold or delay the grant of authority.
Responsibility to the Public (Section 4):
- Grantee shall provide adequate public service time for government to reach the population.
- Provide sound and balanced programming.
- Assist in public information and education functions.
- Conform to ethics of honest enterprise.
- Not broadcast obscene, indecent, false or subversive content.
Right of Government (Section 5):
- President can temporarily take over or suspend operations during war, rebellion, calamity, or disturbance.
- Radio spectrum is part of national patrimony and use is a privilege that may be withdrawn.
Term of Franchise (Section 6):
- Franchise is for 25 years from effectivity of the Act, unless revoked or cancelled.
- Franchise is revoked if grantee fails to:
- Commence operations within 1 year of NTC permit.
- Operate continuously for 2 years.
- Commence operations within 3 years from effectivity.
Acceptance and Compliance (Section 7):
- Grantee must accept the franchise in writing within 60 days from effectivity.
- Non-acceptance renders the franchise void.
Bond (Section 8):
- Grantee must file a bond determined by NTC to guarantee compliance.
- Bond is cancelled after 3 years if grantee has fulfilled conditions, otherwise forfeited.
Tax Provisions (Section 9):
- Grantee is subject to payment of all taxes, duties, fees under NIRC of 1997 and other laws.
- Specific tax exemptions or privileges granted under relevant laws are not repealed.
- Grantee is entitled to rights, privileges, benefits and exemptions accorded to other telecoms franchises.
Self-regulation and Undertaking (Section 10):
- No prior censorship, but grantee must cut off indecent, immoral, treasonous or seditious broadcasts.
- Willful failure to do so is valid cause for cancellation of franchise.
Obligation to Aggrieved Parties (Section 11):
- Aggrieved parties have the right to reply in the same or another program of their choice.
Warranty to Government (Section 12):
- Grantee shall hold national and local governments harmless from claims arising from accidents or injuries caused by construction or operation.
Sale, Transfer, Assignment (Section 13):
- Grantee cannot lease, transfer, sell, assign or merge the franchise without prior Congressional approval.
- Any entity the franchise is transferred to is subject to the same conditions.
Dispersal of Ownership (Section 14):
- Grantee must offer at least 30% of outstanding capital stock in a securities exchange within 5 years of achieving national network status (defined as operating 3 or more stations).
- Non-compliance renders the franchise revoked.
General Broadcast Policy Law (Section 15):
- Grantee must comply with any general broadcast policy law enacted by Congress.
Equality Clause (Section 16):
- Any advantages granted to existing or future franchises shall immediately apply to this franchise, except for territory covered, lifespan, and type of service.
Separability Clause (Section 17):
- If any section is held invalid, other provisions remain valid.
Repealability and Non-Exclusivity (Section 18):
- Franchise is subject to amendment, alteration or repeal by Congress when public interest requires.
- Franchise shall not be interpreted as an exclusive grant.
Reportorial Requirement (Section 19):
- Grantee must submit an annual report to Congress on compliance and operations within 60 days from year-end.
Effectivity (Section 20):
- Act takes effect 15 days after publication in at least 2 newspapers of general circulation, upon grantee's initiative.
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Statutes
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radio broadcasting
franchise
Muslim Development Multipurpose Cooperative
Philippines
National Telecommunications Commission
tax provisions
self-regulation
obligations
warranties
sale or transfer
ownership dispersal
general broadcast policy law
equality clause
separability clause
repealability and non-exclusivity
reportorial requirement
Law
AN ACT GRANTING THE MUSLIM DEVELOPMENT MULTIPURPOSE COOPERATIVE A FRANCHISE TO CONSTRUCT
Republic Act No. 9171
•September 26, 2002
Republic of the Philippines
Congress of the Philippines
Metro Manila
Twelfth CongressSecond Regular Session
Begun and held in Metro Manila, on Monday, the twenty-second day of July, two thousand two.
Republic Act No. 9171             September 26, 2002
AN ACT GRANTING THE MUSLIM DEVELOPMENT MULTIPURPOSE COOPERATIVE A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO BROADCASTING STATIONS IN THE PHILIPPINES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Nature and Scope of Franchise. - Subject to the provisions of the Constitution and applicable laws, rules and regulations, there is hereby granted to Muslim Development Multipurpose Cooperative, hereunder referred to as the granted, its successors or assigns, a franchise to construct, install, establish, operate and maintain for commercial purposes and in the public interest, radio broadcasting stations in the Philippines, where frequencies are still available for radio broadcasting, through microwave, satellite or whatever means including the use of any new technologies in radio broadcasting systems, with the corresponding technological auxiliaries...
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