AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO PROGRESSIVE BROADCASTING CORPORATION UNDER REPUBLIC ACT NO. 7163
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AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO PROGRESSIVE BROADCASTING CORPORATION UNDER REPUBLIC ACT NO. 7163
Republic Act No. 10820
May 18, 2016
Case Overview and Summary
Summary of Republic Act No. 10820Renewal of Franchise for Progressive Broadcasting Corporation
- Renews the franchise granted to Progressive Broadcasting Corporation under Republic Act No. 7163 and amended by Republic Act No. 8162 for another 25 years from the effectivity of this Act. (Section 1)
- Allows the grantee to construct, install, operate and maintain radio and/or television broadcasting stations, including digital television systems, through various means, with corresponding facilities and services in the Philippines. (Section 1)
Manner of Operation
- The stations or facilities shall be constructed and operated in a manner that results in minimum interference with existing or future stations, without diminishing the grantee's privilege to use its assigned frequencies. (Section 2)
Regulatory Compliance
- The grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for construction and operation of stations and facilities, and shall not use any frequency without NTC authorization. (Section 3)
- The NTC shall not unreasonably withhold or delay the grant of such authority. (Section 3)
Responsibilities 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, indecent, false or misleading content, or incite subversive or treasonable acts. (Section 4)
Government Rights
- The President has the right to temporarily take over, suspend operations, or authorize temporary use of the grantee's stations or facilities 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- The radio spectrum is part of the national patrimony, and the use is a privilege conferred by the State, which may be withdrawn after due process. (Section 5)
Term of Franchise
- The franchise shall be in effect for 25 years from the effectivity of this Act, unless sooner revoked or cancelled. (Section 6)
- The franchise shall be deemed ipso facto revoked if the grantee fails to operate continuously for 2 years. (Section 6)
Acceptance and Compliance
- The grantee must accept the franchise in writing to Congress within 60 days from the effectivity of this Act. (Section 7)
- Non-acceptance shall render the franchise void. (Section 7)
Self-Regulation and Undertaking
- The grantee shall not require previous censorship but shall cut off from the air any speech, play, act or scene that tends to propose or incite treason, rebellion, sedition, or is indecent or immoral. (Section 8)
- Willful failure to do so shall constitute a valid cause for cancellation of the franchise. (Section 8)
Warranty to Government
- The grantee shall hold the national, provincial, city, and municipal governments free from all claims, accounts, demands, or actions arising out of accidents or injuries caused by the construction or operation of the stations. (Section 9)
Transfer or Assignment of Franchise
- The grantee shall not lease, transfer, grant usufruct, sell, assign, or merge the franchise or controlling interest without prior approval of Congress. (Section 10)
- Congress shall be informed within 60 days after completion of any such transaction. (Section 10)
- Failure to report such change of ownership shall render the franchise ipso facto revoked. (Section 10)
- Any entity to which the franchise is transferred shall be subject to the same conditions, terms, restrictions, and limitations of this Act. (Section 10)
Dispersal of Ownership
- The grantee shall offer at least 30% or a higher percentage provided by law of its outstanding capital stock in any securities exchange in the Philippines within 5 years from commencement of operations. (Section 11)
- In cases where public offer of shares is not applicable, other methods of encouraging public participation must be implemented. (Section 11)
- Non-compliance shall render the franchise ipso facto revoked. (Section 11)
General Broadcast Policy Law
- The grantee shall comply with and be subject to the provisions of a general broadcast policy law which Congress may hereafter enact. (Section 12)
Reportorial Requirement
- The grantee shall submit an annual report to Congress 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. (Section 13)
- The reportorial compliance certificate issued by Congress shall be required before any application for permit or certificate is accepted by the NTC. (Section 13)
Penalty Clause
- Failure to submit the requisite annual report to Congress shall be penalized with a fine of 500 pesos per working day of non-compliance, collected by the NTC from the grantee, separate from NTC penalties. (Section 14)
Equality Clause
- Any advantage, favor, privilege, exemption, or immunity granted under existing or future broadcasting franchises, 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 territory covered, life span of the franchise, or type of service authorized. (Section 15)
Separability Clause
- If any section or provision of this Act is held invalid, all other provisions not affected shall remain valid. (Section 16)
Repeatability and Non-exclusivity Clause
- This franchise shall be subject to amendment, alteration, or repeal by Congress when the public interest so requires and shall not be interpreted as an exclusive grant of the privileges provided. (Section 17)
Effectivity
- This Act shall take effect 15 days after its publication in at least two newspapers of general circulation. (Section 18)
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AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO PROGRESSIVE BROADCASTING CORPORATION UNDER REPUBLIC ACT NO. 7163
Republic Act No. 10820
•May 18, 2016
Republic of the PhilippinesCONGRESS OF THE PHILIPPINESMetro Manila
Sixteenth CongressThird Regular Session
Begun and held in Metro Manila, on Monday, the twenty-seventh day of July, two thousand fifteen.
REPUBLIC ACT No. 10820
AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO PROGRESSIVE BROADCASTING CORPORATION UNDER REPUBLIC ACT NO. 7163, AS AMENDED BY REPUBLIC ACT NO. 8162
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 1987 Philippine Constitution and applicable laws, rules and regulations, the franchise granted to Progressive Broadcasting Corporation, hereunder referred to as the grantee, its successors or assignees, under Republic Act No. 7163, as amended by Republic Act No. 8162 entitled: “An Act Amending Section One of Republic Act Numbered Seventy-One Hundred Sixty Three, entitled: ‘An Act Granting Progressive Broadcasting Corporation a Franchise to Construct, Install, Operate and Maintain, for Commercial Purposes, Radio Broadcasting Stations and Television Stations in Metro Manila and in Regions I, VI and VII,...
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