August 14, 2020
REPUBLIC ACT NO. 11491
AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO CRUSADERS BROADCASTING SYSTEM, INC., UNDER REPUBLIC ACT NO. 8091, ENTITLED "AN ACT GRANTING THE CRUSADERS BROADCASTING SYSTEM, INC., A FRANCHISE TO CONSTRUCT, ESTABLISH, OPERATE, AND MAINTAIN COMMERCIAL RADIO AND TELEVISION BROADCASTING STATIONS WITHIN THE 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 Crusaders Broadcasting System, Inc., hereunder referred to as the grantee, its successors or assignees, under Republic Act No. 8091, to construct, install, establish, operate, and maintain for commercial purposes and in the public interest, radio and/or television broadcasting stations, where frequencies and/or channels are still available for radio and/or television broadcasting, including digital television system, through microwave, satellite or whatever means, including the use of any new technologies in television and radio systems, with the corresponding technological auxiliaries and facilities, special broadcast and other program and distribution services...
Summary of Republic Act No. 11491
Nature and Scope of Franchise (Section 1):
- Renews the franchise granted to Crusaders Broadcasting System, Inc. under Republic Act No. 8091 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 and technologies.
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 with existing stations.
- The grantee shall not diminish its own privilege to use its assigned wavelengths or frequencies and the quality of transmission or reception.
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 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 permits or licenses issued to the grantee after due process for any violation of the franchise provisions.
- The NTC may recommend to Congress the revocation of the franchise for any violation of the franchise provisions.
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, allocated to the Executive, Legislative, and Judiciary branches, Constitutional Commissions, and international humanitarian organizations.
- 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 not broadcast obscene or indecent language, speech, act or scene, or disseminate deliberately false information or willful misrepresentation.
Right of the Government (Section 5):
- The President of the Philippines has the right to temporarily take over and operate the stations or facilities of the grantee in 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 or facility in the interest of public safety, security and public welfare.
- The government can 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 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 of any speech, play, act or scene, or other matter to be broadcast.
- The grantee shall cut off the airing of any speech, play, act or scene, or other matter that proposes and/or incites treason, rebellion or sedition, or if the language used or the 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 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 in their franchise operation.
- Priority shall be accorded to the 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 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 to Congress 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 to Filipino citizens at least 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 5 years from the commencement of its operations.
- In cases where public offer of shares is not applicable, the grantee shall apply other methods of encouraging public participation by citizens and corporations operating public utilities as allowed by law.
- Noncompliance shall render the franchise ipso facto revoked.
Reportorial Requirement (Section 12):
- The grantee shall submit an annual report to the Congress of the Philippines 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 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 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 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 herein grantee.
- This shall not 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 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 herein 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 Crusaders Broadcasting System, Inc. under Republic Act No. 8091 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 and technologies.
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 with existing stations.
- The grantee shall not diminish its own privilege to use its assigned wavelengths or frequencies and the quality of transmission or reception.
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 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 permits or licenses issued to the grantee after due process for any violation of the franchise provisions.
- The NTC may recommend to Congress the revocation of the franchise for any violation of the franchise provisions.
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, allocated to the Executive, Legislative, and Judiciary branches, Constitutional Commissions, and international humanitarian organizations.
- 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 not broadcast obscene or indecent language, speech, act or scene, or disseminate deliberately false information or willful misrepresentation.
Right of the Government (Section 5):
- The President of the Philippines has the right to temporarily take over and operate the stations or facilities of the grantee in 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 or facility in the interest of public safety, security and public welfare.
- The government can 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 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 of any speech, play, act or scene, or other matter to be broadcast.
- The grantee shall cut off the airing of any speech, play, act or scene, or other matter that proposes and/or incites treason, rebellion or sedition, or if the language used or the 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 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 in their franchise operation.
- Priority shall be accorded to the 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 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 to Congress 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 to Filipino citizens at least 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 5 years from the commencement of its operations.
- In cases where public offer of shares is not applicable, the grantee shall apply other methods of encouraging public participation by citizens and corporations operating public utilities as allowed by law.
- Noncompliance shall render the franchise ipso facto revoked.
Reportorial Requirement (Section 12):
- The grantee shall submit an annual report to the Congress of the Philippines 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 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 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 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 herein grantee.
- This shall not 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 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 herein 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.