Renewing for Another 25 Years the Radio and Television Franchise Granted to Baycomms Broadcasting Corp. under R.A. No. 8718
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Renewing for Another 25 Years the Radio and Television Franchise Granted to Baycomms Broadcasting Corp. under R.A. No. 8718
Republic Act No. 11555
June 24, 2021
Case Overview and Summary
Summary of Republic Act No. 11555Nature and Scope of Franchise (Section 1):
- Renews the franchise granted to Baycomms Broadcasting Corporation under Republic Act No. 8718 for another 25 years.
- Allows the grantee to construct, install, establish, operate, and maintain radio and television broadcasting stations, including digital and pay 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 or future stations.
Prior Approval of the National Telecommunications Commission (Section 3):
- The grantee must 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 authority.
- The NTC has the authority to revoke or suspend permits or licenses after due process 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 government branches, constitutional commissions, and international humanitarian organizations.
- The NTC may increase public service time in case of emergencies or calamities.
- The grantee shall allot a minimum of 15% of daily total airtime to child-friendly shows as per the Children's Television Act of 1997.
- The grantee shall not broadcast obscene, indecent, false, or subversive content.
Right of the Government (Section 5):
- The President has the right to temporarily take over, suspend, or authorize the 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.
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 Grantee (Section 7):
- The grantee shall not require previous censorship but shall cut off the airing of content that proposes or incites treason, rebellion, sedition, or indecent or immoral language.
- 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 or damage during construction or operation of stations.
Commitment to Provide and Promote the Creation of Employment Opportunities (Section 9):
- The grantee shall create employment opportunities and accept on-the-job trainees, prioritizing residents of the place where the principal office is located.
- The grantee shall comply with applicable labor standards and allowance entitlement under existing labor laws, rules, and regulations.
- The employment opportunities created shall be reflected in the General Information Sheet submitted to the 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, or assign the franchise or rights and privileges acquired thereunder 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 entity to which the 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 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 this Act.
- Noncompliance shall render the franchise ipso facto revoked.
Reportorial Requirement (Section 12):
- The grantee shall submit an annual report on its compliance with the franchise terms and conditions and its operations to Congress on or before April 30 of every year.
- The annual report shall include updates on business roll-out, development, operation or expansion, audited financial statements, latest GIS submitted to the SEC, NTC certification on permits and operations, and an update on the dispersal of ownership undertaking.
- 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 to submit the requisite annual report to Congress shall be penalized by a fine of 500 pesos per working day of noncompliance, collected by the NTC and remitted to the Bureau of the Treasury.
Equality Clause (Section 14):
- Any advantage, favor, privilege, exemption, or immunity granted under existing or future franchises 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 grantee.
Repealability and Nonexclusivity Clause (Section 15):
- 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.
Separability Clause (Section 16):
- If any section or provision 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.
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Renewing for Another 25 Years the Radio and Television Franchise Granted to Baycomms Broadcasting Corp. under R.A. No. 8718
Republic Act No. 11555
•June 24, 2021
June 24, 2021
REPUBLIC ACT NO. 11555
AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO BAYCOMMS BROADCASTING CORPORATION UNDER REPUBLIC ACT NO. 8718, ENTITLED "AN ACT GRANTING THE BAYCOMMS BROADCASTING CORPORATION, A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION STATIONS 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 Baycomms Broadcasting Corporation, hereunder referred to as the grantee, its successors or assignees, under Republic Act No. 8718, to construct, install, establish, operate, and maintain for commercial purposes and in the public interest, radio and television broadcasting stations, including digital and pay 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 in the Philippines is hereby renewed for another twenty-five (25) years.
SECTION 2. Manner of Operation of...
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