Republic of the Philippines
Congress of the Philippines
Metro ManilaEighth Congress
Republic Act No. 7158 September 28, 1991
AN ACT GRANTING THE RINCONADA BROADCASTING CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN FOR COMMERCIAL PURPOSES RADIO BROADCASTING STATIONS AND TELEVISION STATIONS IN THE PHILIPPINES AND FOR OTHER PURPOSES
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 the Rinconada Broadcasting Corporation, hereunder referred to as the grantee, its successors or assigns a franchise to construct, install, operate and maintain for commercial purposes and in the public interest radio broadcasting stations and television stations in the Philippines with the corresponding technological auxiliaries or facilities, special broadcast and other program and distribution services and relay stations, and to install radio communication facilities for the grantees private use in its broadcast services.
Section 2. Manner of Operation of Stations or...
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Republic Acts
AN ACT GRANTING THE RINCONADA BROADCASTING CORPORATION A FRANCHISE TO CONSTRUCT
Republic Act No. 7158
Summary of Republic Act No. 7158
Nature and Scope of Franchise (Section 1):
- Grants Rinconada Broadcasting Corporation (the grantee) a franchise to construct, install, operate and maintain radio and television broadcasting stations in the Philippines for commercial purposes.
- Allows the grantee to use technological auxiliaries, special broadcast services, relay stations, and radio communication facilities for private use.
Operation of Stations (Section 2):
- Stations must be operated in a manner that results in minimum interference with other existing or future stations.
- The grantee has the right to use its selected wavelengths or frequencies without diminishing the quality of transmission or reception.
Approval from National Telecommunications Commission (Section 3):
- The grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for its stations.
- The grantee cannot use any frequency without authorization from the NTC, which shall not unreasonably withhold or delay such authorization.
Responsibility to the Public (Section 4):
- The grantee shall provide reasonable public service time to enable the government to reach the population on important public issues.
- The grantee shall provide sound and balanced programming, promote public participation, assist in public information and education, conform to ethics of honest enterprise, and not broadcast obscene or indecent content, false information, or anything detrimental to public interest.
Right of Government (Section 5):
- The President of the Philippines has the right to temporarily take over and operate the grantee's stations, suspend operations, or authorize temporary use by any government agency during times of rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, with due compensation to the grantee.
Term of Franchise (Section 6):
- The franchise is valid for twenty-five (25) years from the date of effectivity of the Act, unless revoked or cancelled earlier.
- If the grantee fails to operate continuously for two (2) years, the franchise shall be deemed revoked.
Acceptance and Compliance (Section 7):
- The grantee must accept the franchise in writing within sixty (60) days after the effectivity of the Act.
- The grantee must construct, complete and operate the television stations within four (4) years from the date of acceptance.
- Failure to accept or operate within the prescribed period shall render the franchise void.
Tax Provisions (Section 8):
- The grantee shall pay taxes on real estate, buildings and personal property, exclusive of the franchise.
- The grantee shall pay a franchise tax equivalent to five percent (5%) of all gross receipts from the radio/television business, in lieu of all taxes on the franchise or earnings.
- The grantee shall continue to be liable for income taxes payable under the National Internal Revenue Code.
Public Offering (Section 9):
- To democratize ownership, the grantee shall make a public offering through stock exchanges of at least thirty percent (30%) of its common stocks within three (3) years from the date of effectivity of the Act.
- No single person or entity shall be allowed to own more than five percent (5%) of the stock offerings.
Warranty in Favor of National and Local Governments (Section 10):
- The grantee shall hold the national, provincial and municipal governments harmless from all claims, accounts, demands or actions arising out of accidents or injuries caused by the construction or operation of the stations.
Sale, Lease, Transfer, Usufruct, etc. (Section 11):
- The grantee shall not lease, transfer, grant the usufruct of, sell or assign the franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity without the prior approval of the Congress of the Philippines.
- Any entity to which the franchise is sold, transferred or assigned shall be subject to all the same conditions, terms, restrictions and limitations of the Act.
Separability Clause (Section 12):
- If any section or provision of the Act is held invalid, all other provisions not affected shall remain valid.
Repealability Clause (Section 13):
- The 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 provided.
Effectivity Clause (Section 14):
- The Act shall take effect upon its publication in at least two (2) newspapers of general circulation.
Nature and Scope of Franchise (Section 1):
- Grants Rinconada Broadcasting Corporation (the grantee) a franchise to construct, install, operate and maintain radio and television broadcasting stations in the Philippines for commercial purposes.
- Allows the grantee to use technological auxiliaries, special broadcast services, relay stations, and radio communication facilities for private use.
Operation of Stations (Section 2):
- Stations must be operated in a manner that results in minimum interference with other existing or future stations.
- The grantee has the right to use its selected wavelengths or frequencies without diminishing the quality of transmission or reception.
Approval from National Telecommunications Commission (Section 3):
- The grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for its stations.
- The grantee cannot use any frequency without authorization from the NTC, which shall not unreasonably withhold or delay such authorization.
Responsibility to the Public (Section 4):
- The grantee shall provide reasonable public service time to enable the government to reach the population on important public issues.
- The grantee shall provide sound and balanced programming, promote public participation, assist in public information and education, conform to ethics of honest enterprise, and not broadcast obscene or indecent content, false information, or anything detrimental to public interest.
Right of Government (Section 5):
- The President of the Philippines has the right to temporarily take over and operate the grantee's stations, suspend operations, or authorize temporary use by any government agency during times of rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, with due compensation to the grantee.
Term of Franchise (Section 6):
- The franchise is valid for twenty-five (25) years from the date of effectivity of the Act, unless revoked or cancelled earlier.
- If the grantee fails to operate continuously for two (2) years, the franchise shall be deemed revoked.
Acceptance and Compliance (Section 7):
- The grantee must accept the franchise in writing within sixty (60) days after the effectivity of the Act.
- The grantee must construct, complete and operate the television stations within four (4) years from the date of acceptance.
- Failure to accept or operate within the prescribed period shall render the franchise void.
Tax Provisions (Section 8):
- The grantee shall pay taxes on real estate, buildings and personal property, exclusive of the franchise.
- The grantee shall pay a franchise tax equivalent to five percent (5%) of all gross receipts from the radio/television business, in lieu of all taxes on the franchise or earnings.
- The grantee shall continue to be liable for income taxes payable under the National Internal Revenue Code.
Public Offering (Section 9):
- To democratize ownership, the grantee shall make a public offering through stock exchanges of at least thirty percent (30%) of its common stocks within three (3) years from the date of effectivity of the Act.
- No single person or entity shall be allowed to own more than five percent (5%) of the stock offerings.
Warranty in Favor of National and Local Governments (Section 10):
- The grantee shall hold the national, provincial and municipal governments harmless from all claims, accounts, demands or actions arising out of accidents or injuries caused by the construction or operation of the stations.
Sale, Lease, Transfer, Usufruct, etc. (Section 11):
- The grantee shall not lease, transfer, grant the usufruct of, sell or assign the franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity without the prior approval of the Congress of the Philippines.
- Any entity to which the franchise is sold, transferred or assigned shall be subject to all the same conditions, terms, restrictions and limitations of the Act.
Separability Clause (Section 12):
- If any section or provision of the Act is held invalid, all other provisions not affected shall remain valid.
Repealability Clause (Section 13):
- The 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 provided.
Effectivity Clause (Section 14):
- The Act shall take effect upon its publication in at least two (2) newspapers of general circulation.