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Republic Acts

AN ACT GRANTING THE NEWSOUNDS BROADCASTING NETWORK

Republic Act No. 9214

Republic of the Philippines
CONGRESS OF THE PHILIPPINES
Metro Manila

Twelfth Congress
Second Regular Session


Begun held in Metro Manila on Monday, the twenty-second day of July, two thousand two

REPUBLIC ACT NO. 9214 July 23, 2003

AN ACT GRANTING THE NEWSOUNDS BROADCASTING NETWORK, INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION 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 Newsounds Broadcasting Network, Inc., hereunder referred to as the grantee, its successors or assigns, a franchise to construct, install, establish, operate and maintain for commercial purposes and in the public interest, radio and/or television broadcasting stations in the Philippines, where frequencies and/or channels are still available for radio and/or television broadcasting, through microwave, satellite or whatever means, including the use of any new technologies in television and radio systems, with the...

Summary of Republic Act No. 9214

Nature and Scope of Franchise (Section 1):
- Grants Newsounds Broadcasting Network, Inc. (the grantee) a franchise to construct, install, operate and maintain radio and television broadcasting stations in the Philippines for commercial purposes.
- Allows the use of any available frequencies/channels and new technologies for broadcasting.

Operation of Stations (Section 2):
- Stations must be operated in a way that results in minimum interference with existing stations.
- The grantee has the right to use its selected frequencies without diminishing transmission quality.

Approval from NTC (Section 3):
- The grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for construction and operation.
- NTC cannot unreasonably withhold or delay granting such authority.

Responsibility to the Public (Section 4):
- The grantee must provide adequate public service time for government broadcasts.
- Programming must be sound, balanced, and assist in public information and education.
- The grantee must conform to ethics of honest enterprise.
- Stations cannot broadcast obscene, indecent, false or misrepresented content detrimental to public interest.

Right of Government (Section 5):
- The President can temporarily take over stations during war, rebellion, calamity, or disturbance of peace and order.
- The President can temporarily suspend operations in the interest of public safety and welfare.
- The government can temporarily use the stations, with due compensation to the grantee.
- The radio spectrum is part of national patrimony and its use is a privilege that can be withdrawn.

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

Acceptance and Compliance (Section 7):
- The grantee must accept the franchise in writing within 60 days from the law's effectivity.
- Non-acceptance will render the franchise void.

Bond (Section 8):
- The grantee must file a bond determined by NTC to guarantee compliance with conditions.
- If conditions are met after 3 years, the bond will be cancelled, otherwise forfeited.

Self-regulation and Undertaking (Section 9):
- The grantee does not require prior censorship of broadcasts.
- The grantee must cut off broadcasts that incite treason, rebellion, sedition, or are indecent or immoral.
- Willful failure to do so is a valid cause for franchise cancellation.

Warranty to Government (Section 10):
- The grantee must hold the national and local governments free from claims arising from accidents or injuries caused by station construction or operation.

Sale, Transfer, etc. (Section 11):
- The grantee cannot lease, transfer, sell, or assign the franchise without prior approval from Congress, except for:
- Share transfers due to capital stock increase.
- Share transfers to investors.
- Share transfers to a holding company with identical stockholders.
- Combinations to raise capital or financing.

Dispersal of Ownership (Section 12):
- The grantee must make a public offering of at least 30% of its common stocks within 5 years of achieving national broadcasting network status.
- A national broadcasting network is defined as operating 3 or more media/TV stations.
- No single person/entity can own more than 5% of the stock offering.
- Non-compliance will render the franchise revoked.

No Tax Exemption (Section 13):
- The grantee is not exempt from any tax obligations to the government.

General Broadcast Policy Law (Section 14):
- The grantee must comply with any general broadcast policy law that Congress may enact.

Reportorial Requirement (Section 15):
- The grantee must submit an annual report to Congress on its compliance with the franchise terms and operations within 60 days from the end of each year.

Separability Clause (Section 16):
- If any section is held invalid, other provisions remain valid.

Repealing and Non-exclusivity Clause (Section 17):
- The franchise is subject to amendment, alteration or repeal by Congress when public interest requires.
- The franchise is not an exclusive grant of privileges.

Effectivity Clause (Section 18):
- The law takes effect 15 days after publication in at least 2 newspapers of general circulation, upon the grantee's initiative.

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