Granting Highland Broadcasting Network Corp. a Radio and Television Broadcasting Franchise in Mindanao
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Granting Highland Broadcasting Network Corp. a Radio and Television Broadcasting Franchise in Mindanao
Republic Act No. 11542
May 18, 2021
Case Overview and Summary
Summary of Republic Act No. 11542Nature and Scope of Franchise (Section 1):
- Grants Highland Broadcasting Network Corp. a franchise to construct, install, operate, and maintain radio and television broadcasting stations in Mindanao.
- Allows the use of any new technology in television and radio systems, including digital television systems.
Manner of Operation of Stations or Facilities (Section 2):
- Stations or facilities shall be operated in a manner that results in minimum interference with existing stations.
- The grantee shall not diminish its own privilege to use its assigned wavelengths or frequencies.
Prior Approval of the National Telecommunications Commission (NTC) (Section 3):
- The grantee shall secure appropriate permits and licenses from the NTC for construction and operation of stations or facilities.
- The NTC shall not unreasonably withhold or delay the grant of any such authority.
- The NTC has the authority to revoke or suspend permits or licenses after due process for any violation of the franchise.
- The NTC may recommend to Congress the revocation of the franchise for any violation.
Responsibility to the Public (Section 4):
- The grantee shall provide free public service time equivalent to a maximum of 10% of paid commercials or advertisements.
- The public service time shall be 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 daily total air time to child-friendly shows as per the Children's Television Act of 1997.
- The grantee shall not broadcast obscene or indecent content, disseminate false information, or incite subversive or treasonable acts.
Right of the Government (Section 5):
- The President of the Philippines has the right to temporarily take over and operate the stations or facilities in times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order.
- The President may temporarily suspend the operation of any station or facility in the interest of public safety, security, and welfare.
- The government may temporarily use and operate the stations or facilities upon due compensation to the grantee.
Term of Franchise (Section 6):
- The franchise shall be in effect for 25 years from the effectivity of the Act, unless sooner revoked or cancelled.
- The franchise shall be deemed ipso facto revoked if the grantee fails to:
- Commence operations within 3 years from the approval of its operating permit by the NTC.
- Commence operations within 5 years from the effectivity of the Act.
- Continuously operate for 2 years.
Renewal or Extension of Franchise (Section 7):
- The grantee shall apply for renewal or extension of the franchise 3 years before its expiration, which shall be reckoned from 15 days after the publication of the franchise.
Self-regulation by and Undertaking of Grantee (Section 8):
- The grantee shall not require previous censorship of any speech, play, act or scene, or other matter to be broadcast.
- The grantee shall cut off the airing of any content that incites treason, rebellion, or sedition, or is indecent or immoral.
- 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 9):
- 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 construction or operation of the stations.
Commitment to Provide and Promote the Creation of Employment Opportunities (Section 10):
- The grantee shall create employment opportunities and accept on-the-job trainees.
- Priority shall be accorded to residents of the place where the principal office of the grantee is located.
- At least 60% of the grantee's employees shall be regular employees.
- The percentage of contractual, job order, or casual employees, talents, and independent contractors combined shall not exceed 40% of the total workforce.
- The grantee shall comply with 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.
- The grantee shall include in its annual report to Congress the number of trainees and workers whose employment status are made regular, and append the appropriate certificate from the Department of Labor and Employment attesting compliance with the employment requirement.
Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise (Section 11):
- The grantee shall not sell, lease, transfer, grant the usufruct of, nor 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 Congress.
- The grantee shall inform Congress of any such transaction within 60 days after completion.
- Failure to report such change of ownership shall render the franchise ipso facto revoked.
- Any person or entity to which the franchise is sold, transferred, or assigned shall be subject to the same conditions, terms, restrictions, and limitations of the Act.
Dispersal of Ownership (Section 12):
- The grantee shall offer at least 30% of its outstanding capital stocks, or a higher percentage as may be provided by law, to Filipino citizens in any securities exchange in the Philippines within 5 years from the effectivity of the Act.
- In cases where public offer of shares is not applicable, other methods of encouraging public participation by citizens and corporations operating public utilities must be implemented.
- Noncompliance shall render the franchise ipso facto revoked.
Reportorial Requirement (Section 13):
- The grantee shall submit an annual report on its compliance with the terms and conditions of the franchise and on its operations to Congress on or before April 30 of every year during the term of its franchise.
- The annual report shall include an update on the roll-out, development, operation 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 14):
- 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 noncompliance.
- The fine shall be collected by the NTC from the delinquent franchise grantee separate from the reportorial penalties imposed by the NTC and shall be remitted to the Bureau of the Treasury.
Equality Clause (Section 15):
- Any advantage, favor, privilege, exemption, or immunity granted under existing franchises, or which may hereafter be granted for radio and television broadcasting, upon prior review and approval of Congress, shall become part of this franchise and shall be accorded immediately and unconditionally to the herein grantee.
- The foregoing shall neither apply to nor affect the provisions of broadcasting franchises concerning territorial coverage, the term, or the type of service authorized by the franchise.
Repealability and Nonexclusivity Clause (Section 16):
- This franchise shall be subject to amendment, alteration, or repeal by Congress when the public interest so requires.
- The franchise shall not be interpreted as an exclusive grant of the privileges provided for.
Separability Clause (Section 17):
- 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 18):
- 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 19):
- This Act shall take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation.
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Granting Highland Broadcasting Network Corp. a Radio and Television Broadcasting Franchise in Mindanao
Republic Act No. 11542
•May 18, 2021
May 18, 2021
REPUBLIC ACT NO. 11542
AN ACT GRANTING HIGHLAND BROADCASTING NETWORK CORP. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE, AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS IN MINDANAO
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 Highland Broadcasting Network Corp., hereunder referred to as the grantee, its successor or assignees, a franchise to construct, install, operate, and maintain for commercial purposes and in the public interest, radio and television broadcasting stations in Mindanao, where frequencies and channels are still available for radio and television broadcasting, 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 services and relay stations.
SECTION 2. Manner of Operation of Stations or Facilities. — The stations or facilities of the grantee shall be constructed and operated in a manner as will, at...
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