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Republic Act No. 9186

REPUBLIC ACT NO. 9186 - AN ACT GRANTING THE SUPREME BROADCASTING SYSTEM, INC., A FRANCHISE TO CONSTRUCT , INSTALL, ESTABLISH, OPERATE ADMINAIN RADIO AND TELEVISIONBROADCASTING STATIONS IN THE PHILIPPINES.

REPUBLIC ACTS




Republic of the Philippines
CONGRESS OF THE PHILIPPINES

Metro Manila

Twelfth Congress
Second Regular Session


Begun and held in Metro Manila, on Monday, the twenty-second day of July.

REPUBLIC ACT NO. 9186
January 16, 2003


AN ACT GRANTING THE SUPREME BROADCASTING SYSTEM, INC., A FRANCHISE TO CONSTRUCT , INSTALL, ESTABLISH, OPERATE ADMINAIN RADIO AND TELEVISIONBROADCASTING STATIONS IN THE PHILIPPINES.


Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled;


Section 1. Nature of Scope of Franchise. - Subject to the provisions of the Constitution and applicable laws, rules and regulations, there is hereby granted to Supreme Broadcasting System, Inc., hereunder referred to as the grantee, its successors ar 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 and/or television broadcasting, through microwave satellite or whatever means including the use of any new technologies in television and radio system, with the corresponding technologies auxiliaries and facilities, special broadcast and other program and distribution services and relay stations.chanrobles virtualaw library

Sec. 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 most result only in the minimum interference on the wavelengths or frequencies of existing stations or other stations which may be established by law, without in any way diminishing its own right to use its selected wavelengths or frequencies and the quality of transmission or reception thereon as should maximize rendition of the grantee's services and/or availability thereof.chanrobles virtualaw library

Sec. 3. Prior Approval of the National Telecommunications Commission. - The grantee shall secure from the National Telecommunications Commission (NTC) the appropriate permits and license for the construction and operation of its stations and facilities and shall not use any frequency in the radio/televsion spectrum without having been authorized by the Commission. The Commission however, shall not unreasonably withhold or delay the grant of any such authority.chanrobles virtualaw library

Sec. 4. Responsibility to the Public. - The grantee shall provide adequate public service time to enable

The government, through the said broadcasting stations or facilities, to reach the population on important public issues; provide at all times sound and balance programming; assist in the functions of public information and education; conform to the ethics of honest enterprises; and not use its stations and facilities for the broadcasting of obscene and indecent language, speech, act or scene, or for the dissemination of deliberately false information or willful misrepresentation, to the detriment of the public interest or to incite, encourage or assist in subversive or treasonable acts.chanrobles virtualaw library

Sec. 5. Rigth of Government. - A specil right is hereby reserve to the President of the Philippines, in times of war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, to temporarily take over and operate the stations or facilities of the grantee, to temporaily suspend the operation thereof by any agency of the government, upon due compensation to the grantee, for te use of said stations or facilities during the period when they shall be so operated,

The radio spectrum is a finite resource that is part of the national patrimony and the use thereof is a privilege conferred upon the grantee by the State and may be withdrawn anytime after due process.chanrobles virtualaw library

Sec. 6. Term of Franchise. - This franchise shall be for a term of twenty-five(25) years from the date of effectivity of this Act, unless sooner revoked or cancelled. This franchise shall be deemed ipso facto revoked in the event the grantee fails to comply with any of the following conditions:

(a) Commence operations within one (1) year from the approval of its operating permit provisional authority by the NTC;cralaw

(b) Operate continuously for two (2) years; and

(c) Commence operations within three (3) years from the effectivity of this Act.chanroblesvirtuallawlibrary

Sec. 7. Acceptance and Compliance. - Acceptance of this franchise shall be given in writing within sixty (60) days from the effectivity of this Act. Upon giving such acceptance, the grantee shall exercise the privileges granted under this Act. Non acceptance shall render the franchise void.chanrobles virtualaw library

Sec. 8. Bond. - The grantee shall file a bond issued in favor of the NTC, which shall determine the amount, to guarantee the compliance with and fulfillment of the conditions under which this franchise is granted. If after three (3) years from the date of the approval of its permit by the Commission, the grantee shall have fulfilled the same, the bond shall be cancelled by the Commission. Otherwise, the bond shall be forfeited in favor of the government and the franchise ipso facto revoked.chanrobles virtualaw library

Sec. 9. Tax Provisions. - The grantee, its successor or assigns, shall be subject to the payment of all taxes, duties, fees or charges and other impositions under the National Internal Revenue Code (NIRC) of 1997, as amended, and other applicable laws; Provided, That nothing herein shall be construed as epealing any specific tax exemptions, incentives, or privieleges granted under any relevant law; Provided further, That all rights privileges, benefits and exemptions accorded to existing and future broadcasting station franchises shall likewise be extended to the grantee.

The grantee shall file the return with the city or province where its facility is located and pay the taxes due thereon to the Commission of Internal Revenue or his duly authorized representatives in accordance with the NIRC and the return shall be subject to audit by the Bureau of Internal Revenue.chanrobles virtualaw library

Sec. 10. Self-regulation.by and Undertaking of Grantee - The grantee shall not require any previous censorship of any speech, play, act or scene, or other matter to the broadcast from its stations: Provided, That the grantee, during any broadcast shall cut off from the air the speech, play, act or scene, or other matter being broadcast if the tendency thereof is to propose and/or incite reason, rebellion or sedition; or the language used therein or the theme thereof is indecent or immoral; and willful failure to do so shall constitute a valid cause for the cancellation of this franchise.chanrobles virtualaw library

Sec. 11. Obligation of the Grantee. - Any person aggrieved by any remark, report, statement, commentary or the like by broadcasters using the same facilities of the grantee shall have the right to reply in the same program or any other program the aggrieved party may choose.chanrobles virtualaw library

Sec. 12. Warranty in Favor of National and Local Government. - The grantee shall hold the national, provincial and municipal governments of the Philippines harmless from all claims, accounts demands or actions arising out of accidents or injuries, whether to property or to persons, caused by the construction ir operation of the stationsof the grantee.chanrobles virtualaw library

Sec. 13. Sale, Lease, Transfer, Usufruct, Etc. - The grantee shall not lease, transfer, grant the usufruct of, sell nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company corporation or other commercial or legal entity, nor merge with any other corporation or entity, nor shall the controlling interest of the grantee 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. 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.chanrobles virtualaw library

Sec. 14. Dispersal of Ownership. - In accordance wit the constitutional provision to encourage public participation in public utilities, the grantee shall offer at least thirty percentum (30%) of its outstanding capital stock or a higher percentage that may hereafter be provided by law in any securities exchange in the Philippines with five (5) years from the time it has achieved the status of a national broadcasting network. A "national broadcasting network" is hereby defined as one that operates three (3) or more radio and/or television stations. The public offering shall comply with the rules and regulations of the Securities and Exchange Commission (SEC), Noncompliance therewith shall render the franchise ipso facto revoked.chanrobles virtualaw library

Sec. 15. General Broadcast Policy Law . - The grantee shall comply with and be subject to the provisions of a general broadcast policy law, which Congress may hereafter enact.chanrobles virtualaw library

Sec. 16. Equality Clause. - Any Advantage, favor, privilege, exemption or immunity granted under existing franchises, or may hereafter be granted, shall ipso facto become part of this franchise and shall be accorded immediately shall ipso facto become part of this franchise and shall be accorded immediately and unconditionally to the herein grantee; Provided, however, That the foregoing shall neither apply to nor affect provisions of telecommunications franchise s concerning territory covered by the franchise, the life span of the franchise, or the type of service authorized by the franchise.chanrobles virtualaw library

Sec. 17. Separability Clause. - If any of the sections or provisions of this Act is held invalid all other provisions no taffected thereby shall remain valid.chanrobles virtualaw library

Sec. 18. Repealibilityand Nonexclusively Clause. - This franchise shall be subject to amendment, alteration or repeal by the Congress of the Philippines when the public interest so requires and shall not be interpreted as an exclusive grant of the privileges herein provided for.chanrobles virtualaw library

Sec. 19. Reportorial Requirement. - The grantee shall submit an annual report to the Congress of the Philippines on its compliance wit the terms and conditions of the franchise and on its operations within sixty (60) days from the end of every year

Sec. 20. Effectivity Clause. - This Act shall take effect fifteen (15) days from the date of its publication, upon the initiative of the grantee, in at least two(2) newspapers of general circulation in the Philippines.

Approved:

FRANKLIN DRILON
President of the Senate

JOSE DE VENECIA JR.
Speaker of the House of Representatives

This Act which originated in the House of Representatives and the Senate on October 23, 2002 and October 8, 2002, respectively

OSCAR G. YABES
Secretary of Senate

ROBERTO P. NAZARENO
Secretary General
House of Represenatives

Approved:

GLORIA MACAPAGAL-ARROYO
President of the Philippines


Lapsed into law on January 16, 2003
Without the signature of the President,
In accordance with Article VI,
Sec. 27 (1) of the Constitution




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