March 29, 2022
REPUBLIC ACT NO. 11666
AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO SOUNDSTREAM BROADCASTING CORPORATION UNDER REPUBLIC ACT NO. 8209, ENTITLED "AN ACT GRANTING SOUNDSTREAM BROADCASTING CORPORATION, A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS IN THE PROVINCE OF ISABELA, AND IN OTHER PLACES IN 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 Soundstream Broadcasting Corporation, hereunder referred to as the Grantee, its successors or assignees, under Republic Act No. 8209, to construct, install, establish, operate, and maintain for commercial purposes and in the public interest, radio and/or television broadcasting stations in the Province of Isabela and other areas in the Philippines, 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 radio...
- Renews the franchise granted to Soundstream Broadcasting Corporation under Republic Act No. 8209 for another 25 years to construct, install, establish, operate and maintain radio and/or television broadcasting stations in the Province of Isabela and other areas in the Philippines, including digital television system, through various means and technologies. (Section 1)
Manner of Operation of Stations or Facilities
- The stations or facilities shall be constructed and operated in a manner that results in minimum interference on existing stations' wavelengths or frequencies. (Section 2)
Prior Approval of the National Telecommunications Commission (NTC)
- The Grantee shall secure appropriate permits and licenses from the NTC for the construction and operation of its stations or facilities and shall not use any frequency without NTC authorization. (Section 3)
- The NTC has the authority to revoke or suspend permits or licenses after due process for any violation of the franchise provisions.
- The NTC may recommend to Congress the revocation of the franchise for any violation. (Section 3)
Responsibility to the Public
- The Grantee shall provide free public service time equivalent to a maximum of 10% of paid commercials or advertisements, allocated to the government branches, Constitutional Commissions, and international humanitarian organizations. (Section 4)
- The Grantee shall allot a minimum of 15% of the daily total air time to child-friendly shows within its regular programming. (Section 4)
- The Grantee shall not broadcast obscene or indecent content, disseminate false information, or incite subversive or treasonable acts. (Section 4)
Right of the Government
- The President has the right to temporarily take over, suspend operations, or authorize temporary use of the Grantee's stations or facilities in times of war, public peril, calamity, emergency, or disturbance of peace and order, with due compensation. (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)
Self-regulation by and Undertaking of Grantee
- The Grantee shall not require previous censorship but shall cut off the airing of content that incites treason, rebellion, sedition, or is indecent or immoral. (Section 7)
- Willful failure to do so shall constitute a valid cause for the cancellation of the franchise. (Section 7)
Warranty in Favor of the National and Local Governments
- 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 or damage during the construction or operation of the stations. (Section 8)
Commitment to Provide and Promote the Creation of Employment Opportunities
- The Grantee shall create employment opportunities and accept on-the-job trainees, prioritizing residents of the place where the principal office is located. (Section 9)
- The Grantee shall comply with applicable labor standards and allowance entitlement under existing labor laws, rules and regulations. (Section 9)
- The employment opportunities created shall be reflected in the General Information Sheet (GIS) submitted to the Securities and Exchange Commission (SEC) annually. (Section 9)
Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise
- The Grantee shall not sell, lease, transfer, grant the usufruct of, nor assign the franchise or rights and privileges acquired thereunder without the prior approval of Congress. (Section 10)
- The Grantee shall inform Congress of any such transaction within 60 days after completion. (Section 10)
- Failure to report such change of ownership shall render the franchise ipso facto revoked. (Section 10)
- 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 this Act. (Section 10)
Dispersal of Ownership
- The Grantee shall offer at least 30% of its outstanding capital stocks, or a higher percentage provided by law, to Filipino citizens in any securities exchange in the Philippines within 5 years from the effectivity of this Act. (Section 11)
- Noncompliance shall render the franchise ipso facto revoked. (Section 11)
Reportorial Requirement
- The Grantee shall submit an annual report on its compliance with the franchise terms and conditions and on its operations to Congress on or before April 30 of every year during the term of its franchise. (Section 12)
- The annual report shall include updates on activities, development, operation, or expansion of business; audited financial statements; latest GIS submitted to the SEC; certification of the NTC on the status of its permits and operations; and an update on the dispersal of ownership undertaking. (Section 12)
- The reportorial compliance certificate issued by Congress shall be required before any application for permit or certificate is accepted by the NTC. (Section 12)
Fine
- 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 to the NTC, remitted to the Bureau of the Treasury. (Section 13)
Equality Clause
- Any advantage, favor, privilege, exemption, or immunity granted under existing franchises, or which may hereafter be granted for radio broadcasting, upon prior review and approval of Congress, shall become part of this franchise and shall be accorded immediately and unconditionally to the Grantee. (Section 14)
Repealability and Nonexclusivity 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 herein provided for. (Section 15)
Separability Clause
- If any of the sections or provisions of this Act is held invalid, all other provisions not affected thereby shall remain valid. (Section 16)
Repealing Clause
- 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. (Section 17)
Effectivity
- This Act shall take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation. (Section 18)