AN ACT RENEWING THE FRANCHISE GRANTED TO QUEST BROADCASTING
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AN ACT RENEWING THE FRANCHISE GRANTED TO QUEST BROADCASTING
Republic Act No. 10342
December 4, 2012
Case Overview and Summary
Summary of Republic Act No. 10342Nature and Scope of Franchise (Section 1):
- Grants Quest Broadcasting, Inc. (formerly SBS Radio Network, Inc.) a franchise to construct, install, establish, operate and maintain radio and/or television broadcasting stations in the Philippines for commercial purposes and public interest.
- Allows the use of any new technologies in radio systems, including microwave, satellite, and other auxiliaries and facilities.
Manner of Operation (Section 2):
- Stations shall be operated in a manner that results in minimum interference with existing stations.
- The grantee has the right to use its selected wavelengths or frequencies and maintain quality transmission.
Prior Approval of NTC (Section 3):
- The grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for construction and operation of stations.
- The NTC shall not unreasonably withhold or delay the grant of authority.
Responsibility to the Public (Section 4):
- The grantee shall provide adequate public service time for the government to reach the population on important public issues.
- The grantee shall provide sound and balanced programming, assist in public information and education, conform to ethics of honest enterprise.
- The grantee shall not broadcast obscene, indecent language, speech, act or scene, or disseminate false information or incite subversive or treasonable acts.
Right of Government (Section 5):
- The President has the right to temporarily take over and operate the stations during times of war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order.
- The President can temporarily suspend the operation of any station in the interest of public safety, security and welfare.
- The government can temporarily use and operate the stations, upon due compensation to the grantee.
- The radio spectrum is part of the national patrimony, and its use is a privilege that may be withdrawn after due process.
Term of Franchise (Section 6):
- The franchise is valid for twenty-five (25) years, unless sooner revoked or cancelled.
- The franchise shall be deemed revoked if the grantee fails to:
- Commence operations within one (1) year from the approval of its operating permit by the NTC.
- Operate continuously for two (2) years.
- Commence operations within three (3) years from the effectivity of this Act.
Acceptance and Compliance (Section 7):
- The grantee must accept the franchise in writing within sixty (60) days from the effectivity of this Act.
- Non-acceptance shall render the franchise void.
Bond (Section 8):
- The grantee shall file a bond with the NTC in an amount determined by the NTC to guarantee compliance with the conditions of the franchise.
- If the grantee fulfills the conditions after three (3) years from the date of approval of its permit, the bond shall be cancelled.
- Otherwise, the bond shall be forfeited in favor of the government, and the franchise shall be revoked.
Self-regulation by the Grantee (Section 9):
- The grantee shall not require previous censorship of any speech, play, act or scene to be broadcast.
- The grantee shall cut off from the air any broadcast that tends to propose and/or incite treason, rebellion or sedition, or if the language used or theme is indecent or immoral.
- Willful failure to do so shall constitute a valid cause for the cancellation of the franchise.
Warranty in Favor of National and Local Governments (Section 10):
- The grantee shall hold the national, provincial, city 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.
Nontransferability of Franchise (Section 11):
- The grantee shall not lease, transfer, grant the usufruct of, sell or assign this 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.
- The grantee shall not merge with any other corporation or entity without the prior approval of the Congress of the Philippines.
- The controlling interest of the grantee shall not be transferred, whether as a whole or in parts, and whether simultaneously or contemporaneously, to any such person, firm, company, corporation or entity without the prior approval of the Congress of the Philippines.
- The conditions, terms, restrictions and limitations set by this Act shall be imposed on any person or entity to which this franchise is sold, transferred or assigned.
Dispersal of Ownership (Section 12):
- The grantee shall offer at least thirty per centum (30%) or a higher percentage that may hereafter be provided by law of its outstanding capital stock in any securities exchange in the Philippines within five (5) years from the time it has achieved the status of a national broadcasting network.
- A "national broadcasting network" is defined as one that operates three (3) or more radio and/or television stations.
- Noncompliance shall render the franchise ipso facto revoked.
Equality Clause (Section 13):
- Any advantage, favor, privilege, exemption or immunity granted under existing franchise, or which may hereafter be granted for radio and/or television broadcasting, shall ipso facto become part of this franchise and shall be accorded immediately and unconditionally to the grantee.
- However, this shall not apply to provisions concerning territory covered by the franchise, the life span of the franchise or the type of service authorized by the franchise.
General Broadcast Policy Law (Section 14):
- The grantee shall comply with and be subject to the provisions of a general broadcast policy law, which Congress may hereafter enact.
Reportorial Requirement (Section 15):
- The grantee shall submit an annual report to the Congress of the Philippines on its compliance with the terms and conditions of the franchise and on its operations within sixty (60) days from the end of every year.
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.
Repeatability and Nonexclusivity Clause (Section 17):
- 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 herein provided for.
Effectivity Clause (Section 18):
- This Act shall take effect fifteen (15) days after its publication, upon the initiative of the grantee, in at least two (2) newspapers of general circulation in the Philippines.
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Law
AN ACT RENEWING THE FRANCHISE GRANTED TO QUEST BROADCASTING
Republic Act No. 10342
•December 4, 2012
Republic of the PhilippinesCONGRESS OF THE PHILIPPINESMetro Manila
Fifteenth CongressThird Regular Session
Begun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand twelve.
REPUBLIC ACT NO. 10342
AN ACT RENEWING THE FRANCHISE GRANTED TO QUEST BROADCASTING, INC. (FORMERLY SBS RADIO NETWORK, INC.) 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 Quest Broadcasting. Inc. (formerly SBS Radio 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 broadcasting, through microwave, satellite or whatever means, including the use of any new technologies in radio systems, with the...
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