June 25, 2020
REPUBLIC ACT NO. 11477
AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO GOLDEN BROADCAST PROFESSIONAL, INC. UNDER REPUBLIC ACT NO. 8025, ENTITLED "AN ACT GRANTING THE GOLDEN BROADCAST PROFESSIONAL, INC., A FRANCHISE TO CONSTRUCT, MAINTAIN AND OPERATE A STATION FOR FM RADIO AND TELEVISION BROADCASTING IN THE ISLAND OF MINDANAO," AND EXPANDING ITS COVERAGE TO THE ENTIRE PHILIPPINES
SECTION 1.Nature and Scope of Franchise. — Subject to the provisions of the Constitution and applicable laws, rules and regulations, the franchise granted to Golden Broadcast Professional, Inc., hereunder referred to as the grantee, its successors or assignees, under Republic Act No. 8025, to construct, install, establish, operate, and maintain for commercial purposes and in the public interest, radio and/or television broadcasting stations, including digital television system, through microwave, satellite or whatever means as well as the use of any new technology in television and radio systems, with the corresponding technological auxiliaries and facilities, special broadcast and other program and distribution...
Summary of Republic Act No. 11477
Nature and Scope of Franchise (Section 1):
- Renews the franchise granted to Golden Broadcast Professional, Inc. under Republic Act No. 8025 for another 25 years.
- Allows the grantee to construct, install, establish, operate, and maintain radio and/or television broadcasting stations, including digital television systems, through various means like microwave, satellite, or any new technology.
- Covers the entire Philippines.
Manner of Operation of Stations or Facilities (Section 2):
- The stations or facilities shall be constructed and operated in a manner that results in minimum interference on existing stations' wavelengths or frequencies.
- The grantee's privilege to use its assigned wavelengths or frequencies and the quality of transmission or reception shall not be diminished.
Prior Approval of the National Telecommunications Commission (NTC) (Section 3):
- The grantee shall secure appropriate permits and licenses from the NTC for the construction and operation of its stations or facilities.
- The grantee shall not use any frequency without authorization from the NTC.
- The NTC shall not unreasonably withhold or delay the grant of any such authority.
- The grantee shall not dispose or lease its facilities except to entities with radio or television broadcasting franchise, and shall inform and secure written authorization from the NTC.
- The NTC has the authority to revoke or suspend the permits or licenses issued, after due process, in case of any violation of the franchise provisions.
- The NTC may recommend to Congress the revocation of the franchise if there are any violations.
Responsibility to the Public (Section 4):
- The grantee shall provide free public service time, which is reasonable and sufficient, to enable the government to reach the public on important issues, announcements, and warnings.
- The public service time shall be equivalent to a maximum of 10% of paid commercials or advertisements, allocated to the Executive, Legislative, and Judiciary branches, Constitutional Commissions, and international humanitarian organizations.
- The NTC shall increase the public service time in case of extreme emergency or calamity.
- The grantee shall allot a minimum of 15% of the daily total air time to child-friendly shows within its regular programming.
- The grantee shall provide sound and balanced programming, promote public participation, assist in public information and education, conform to ethics, promote audience sensibility and empowerment, and not broadcast obscene or indecent content or disseminate false information.
Right of the Government (Section 5):
- The radio spectrum is part of the national patrimony, and its use is a privilege conferred by the State that may be withdrawn after due process.
- The President has the right to temporarily take over and operate the stations or facilities, suspend their operation, or authorize temporary use by any government agency during times of war, 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 shall be in effect for 25 years from the effectivity of this Act, unless sooner revoked or cancelled.
- The franchise shall be deemed ipso facto revoked if the grantee fails to operate continuously for 2 years.
Self-Regulation by and Undertaking of the Grantee (Section 7):
- The grantee shall not require previous censorship, but shall cut off the airing of any speech, play, act, or scene that proposes or incites treason, rebellion, or sedition, or uses indecent or immoral language.
- Willful failure to do so shall constitute a valid cause for the cancellation of the franchise.
Warranty in Favor of the National and Local Governments (Section 8):
- The grantee shall hold the national, provincial, city, and municipal governments free from all claims, liabilities, demands, or actions arising out of accidents causing injury to persons or damage to properties during the construction or operation of the stations.
Commitment to Provide and Promote the Creation of Employment Opportunities (Section 9):
- The grantee shall create employment opportunities and allow on-the-job trainings, prioritizing residents of the place where their principal office is located.
- The grantee shall follow applicable labor standards and allowance entitlement under existing labor laws, rules, and regulations.
- The employment opportunities or jobs created shall be reflected in the General Information Sheet (GIS) submitted to the Securities and Exchange Commission (SEC) annually.
Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise (Section 10):
- The grantee shall not sell, lease, transfer, grant the usufruct of, nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation, or other commercial or legal entity, nor merge with any other corporation or entity, nor transfer the controlling interest of the grantee, without the prior approval of the Congress of the Philippines.
- Congress shall be informed of any such transaction within 60 days after its completion.
- Failure to report such change of ownership shall render the franchise ipso facto revoked.
- Any person or entity to which this franchise is sold, transferred, or assigned shall be subject to the same conditions, terms, restrictions, and limitations of this Act.
Dispersal of Ownership (Section 11):
- The grantee shall offer at least 30% or a higher percentage of its outstanding capital stock in any securities exchange in the Philippines within 5 years from the commencement of its operations, to encourage public participation in public utilities.
- In cases where public offer of shares is not applicable, the grantee shall apply other methods of encouraging public participation as allowed by law.
- Non-compliance shall render the franchise ipso facto revoked.
Reportorial Requirement (Section 12):
- The grantee shall submit an annual report to the Congress of the Philippines, through the Committee on Legislative Franchises of the House of Representatives and the Committee on Public Services of the Senate, on its compliance with the terms and conditions of the franchise and on its operations on or before April 30 of every year during the term of its franchise.
- The annual report shall include updates on the roll-out, development, operation and/or expansion of business; audited financial statements; latest GIS officially submitted to the SEC, if applicable; certification of the NTC on the status of its permits and operations; and an update on the dispersal of ownership undertaking, if applicable.
- The reportorial compliance certificate issued by Congress shall be required before any application for permit or certificate is accepted by the NTC.
Fine (Section 13):
- Failure of the grantee to submit the requisite annual report to Congress shall be penalized by a fine of Five hundred pesos (P500.00) per working-day of non-compliance, collected by the NTC and remitted to the Bureau of the Treasury.
Equality Clause (Section 14):
- Any advantage, favor, privilege, exemption, or immunity granted under existing franchises, or which may hereafter be granted for radio and/or television broadcasting, upon prior review and approval of Congress, shall become part of this franchise and shall be accorded immediately and unconditionally to the grantee, except for provisions concerning territorial coverage, the term, or the type of service authorized by the franchise.
Repealability and Non-exclusivity Clause (Section 15):
- This franchise shall be subject to amendment, alteration, or repeal by the Congress of the Philippines when the public interest so requires.
- This franchise shall not be interpreted as an exclusive grant of the privileges provided for.
Separability Clause (Section 16):
- If any of the sections or provisions of this Act is held invalid, all other provisions not affected thereby shall remain valid.
Repealing Clause (Section 17):
- All laws, decrees, orders, resolutions, instructions, rules and regulations, and other issuances or parts thereof which are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.
Effectivity (Section 18):
- This Act shall take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation.
Nature and Scope of Franchise (Section 1):
- Renews the franchise granted to Golden Broadcast Professional, Inc. under Republic Act No. 8025 for another 25 years.
- Allows the grantee to construct, install, establish, operate, and maintain radio and/or television broadcasting stations, including digital television systems, through various means like microwave, satellite, or any new technology.
- Covers the entire Philippines.
Manner of Operation of Stations or Facilities (Section 2):
- The stations or facilities shall be constructed and operated in a manner that results in minimum interference on existing stations' wavelengths or frequencies.
- The grantee's privilege to use its assigned wavelengths or frequencies and the quality of transmission or reception shall not be diminished.
Prior Approval of the National Telecommunications Commission (NTC) (Section 3):
- The grantee shall secure appropriate permits and licenses from the NTC for the construction and operation of its stations or facilities.
- The grantee shall not use any frequency without authorization from the NTC.
- The NTC shall not unreasonably withhold or delay the grant of any such authority.
- The grantee shall not dispose or lease its facilities except to entities with radio or television broadcasting franchise, and shall inform and secure written authorization from the NTC.
- The NTC has the authority to revoke or suspend the permits or licenses issued, after due process, in case of any violation of the franchise provisions.
- The NTC may recommend to Congress the revocation of the franchise if there are any violations.
Responsibility to the Public (Section 4):
- The grantee shall provide free public service time, which is reasonable and sufficient, to enable the government to reach the public on important issues, announcements, and warnings.
- The public service time shall be equivalent to a maximum of 10% of paid commercials or advertisements, allocated to the Executive, Legislative, and Judiciary branches, Constitutional Commissions, and international humanitarian organizations.
- The NTC shall increase the public service time in case of extreme emergency or calamity.
- The grantee shall allot a minimum of 15% of the daily total air time to child-friendly shows within its regular programming.
- The grantee shall provide sound and balanced programming, promote public participation, assist in public information and education, conform to ethics, promote audience sensibility and empowerment, and not broadcast obscene or indecent content or disseminate false information.
Right of the Government (Section 5):
- The radio spectrum is part of the national patrimony, and its use is a privilege conferred by the State that may be withdrawn after due process.
- The President has the right to temporarily take over and operate the stations or facilities, suspend their operation, or authorize temporary use by any government agency during times of war, 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 shall be in effect for 25 years from the effectivity of this Act, unless sooner revoked or cancelled.
- The franchise shall be deemed ipso facto revoked if the grantee fails to operate continuously for 2 years.
Self-Regulation by and Undertaking of the Grantee (Section 7):
- The grantee shall not require previous censorship, but shall cut off the airing of any speech, play, act, or scene that proposes or incites treason, rebellion, or sedition, or uses indecent or immoral language.
- Willful failure to do so shall constitute a valid cause for the cancellation of the franchise.
Warranty in Favor of the National and Local Governments (Section 8):
- The grantee shall hold the national, provincial, city, and municipal governments free from all claims, liabilities, demands, or actions arising out of accidents causing injury to persons or damage to properties during the construction or operation of the stations.
Commitment to Provide and Promote the Creation of Employment Opportunities (Section 9):
- The grantee shall create employment opportunities and allow on-the-job trainings, prioritizing residents of the place where their principal office is located.
- The grantee shall follow applicable labor standards and allowance entitlement under existing labor laws, rules, and regulations.
- The employment opportunities or jobs created shall be reflected in the General Information Sheet (GIS) submitted to the Securities and Exchange Commission (SEC) annually.
Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise (Section 10):
- The grantee shall not sell, lease, transfer, grant the usufruct of, nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation, or other commercial or legal entity, nor merge with any other corporation or entity, nor transfer the controlling interest of the grantee, without the prior approval of the Congress of the Philippines.
- Congress shall be informed of any such transaction within 60 days after its completion.
- Failure to report such change of ownership shall render the franchise ipso facto revoked.
- Any person or entity to which this franchise is sold, transferred, or assigned shall be subject to the same conditions, terms, restrictions, and limitations of this Act.
Dispersal of Ownership (Section 11):
- The grantee shall offer at least 30% or a higher percentage of its outstanding capital stock in any securities exchange in the Philippines within 5 years from the commencement of its operations, to encourage public participation in public utilities.
- In cases where public offer of shares is not applicable, the grantee shall apply other methods of encouraging public participation as allowed by law.
- Non-compliance shall render the franchise ipso facto revoked.
Reportorial Requirement (Section 12):
- The grantee shall submit an annual report to the Congress of the Philippines, through the Committee on Legislative Franchises of the House of Representatives and the Committee on Public Services of the Senate, on its compliance with the terms and conditions of the franchise and on its operations on or before April 30 of every year during the term of its franchise.
- The annual report shall include updates on the roll-out, development, operation and/or expansion of business; audited financial statements; latest GIS officially submitted to the SEC, if applicable; certification of the NTC on the status of its permits and operations; and an update on the dispersal of ownership undertaking, if applicable.
- The reportorial compliance certificate issued by Congress shall be required before any application for permit or certificate is accepted by the NTC.
Fine (Section 13):
- Failure of the grantee to submit the requisite annual report to Congress shall be penalized by a fine of Five hundred pesos (P500.00) per working-day of non-compliance, collected by the NTC and remitted to the Bureau of the Treasury.
Equality Clause (Section 14):
- Any advantage, favor, privilege, exemption, or immunity granted under existing franchises, or which may hereafter be granted for radio and/or television broadcasting, upon prior review and approval of Congress, shall become part of this franchise and shall be accorded immediately and unconditionally to the grantee, except for provisions concerning territorial coverage, the term, or the type of service authorized by the franchise.
Repealability and Non-exclusivity Clause (Section 15):
- This franchise shall be subject to amendment, alteration, or repeal by the Congress of the Philippines when the public interest so requires.
- This franchise shall not be interpreted as an exclusive grant of the privileges provided for.
Separability Clause (Section 16):
- If any of the sections or provisions of this Act is held invalid, all other provisions not affected thereby shall remain valid.
Repealing Clause (Section 17):
- All laws, decrees, orders, resolutions, instructions, rules and regulations, and other issuances or parts thereof which are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.
Effectivity (Section 18):
- This Act shall take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation.