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PHILIPPINE LAWS, STATUTES & CODES
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REPUBLIC ACT NO. 7831 - AN
ACT GRANTING ABC DEVELOPMENT CORPORATION, UNDER BUSINESS NAME
'ASSOCIATED BROADCASTING COMPANY,' A FRANCHISE TO CONSTRUCT, INSTALL,
OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS IN THE
PHILIPPINES 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 the Associated Broadcasting Company, its successors or assigns and hereunder referred to as the grantee, a franchise to construct, install, operate and maintain for commercial purposes and in the public interest radio and television broadcasting stations in the Philippines with the corresponding technological auxiliary or facilities, special broadcast and other broadcast distribution services and relay stations. 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 avoid interference on the wavelengths or frequencies of authorized users, whether for broadcasting or telecommunications purposes without in any way diminishing its own right to use its selected wavelengths or frequencies and the quality of transmission or reception of signals. Sec. 3. Prior Approval of the National Telecommunications Commission. — The grantee shall secure from the National Telecommunications Commission the appropriate permits and licenses for its stations and shall not use any frequency in the radio/television spectrum without having been authorized by the Commission. The Commission, however, shall not unreasonably without or delay the grant of any such authority. Sec. 4. Responsibility of the Public. — The grantee shall provide reasonable public service time to enable the government, through the said broadcasting stations, to reach the population on important public issues; provide at all times sound and balanced programming; promote public participation such as in community programming; assist in the functions of public information and education; conform to the ethics of honest enterprise; and not use its stations for the broadcasting of obscene and indecent language, speech, act, 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. Sec. 5. Right of Government. — The President of the Philippines, in times of rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, may temporarily take over and operate the stations of the grantee, temporarily suspend the operation of any station in the interest of public safety, security and public welfare, or to authorize the temporary use and operation thereof by any department of the government, upon due compensation to the grantee, for the use of said stations during the period when they shall be so operated. Sec. 6. Term of Franchise. — This franchise shall be for a term of twenty-five (25) years from the date of the effectivity of this Act, unless sooner revoked or cancelled. In the event the grantee fails to operate continuously for two (2) years or within two (2) years from the approval of its permit by the National Telecommunications Commission, this franchise shall be deemed ipso facto revoked. Sec. 7. Acceptance and Compliance. — Acceptance of this franchise shall be given in writing to the Secretary of Transportation and Communications with a copy furnished to the Chairman of the National Telecommunications Commission, within sixty (60) days after the approval of this Act. Upon giving such acceptance, the grantee shall exercise the privileges granted under this Act. Sec. 8. Tax Provisions. — The grantee, its
successors or assigns shall be liable to pay the same taxes on their
real estate, buildings and personal property, exclusive of this
franchise, as other persons or corporations are now or hereafter may be
required by law to pay. In addition thereto, the grantee, its
successors or assigns shall pay a franchise tax equivalent to three
percent (3%) of all gross receipts of the radio/television business
transacted under this franchise by the grantee, its successors or
assigns shall continue to be liable for income taxes payable under
Title II of the National Internal Revenue Code pursuant to Sec. 2 of
Executive Order No. 72 unless the latter enactment is amended or
repealed, in which case the amendment or repeal shall be applicable
thereto. Sec. 9. Self-regulation by and Undertaking of
Grantee. — The grantee shall not require any previous censorship of any
speech, play, act, scene, or other matter to be broadcast and/or
telecast from its stations: provided, that the grantee, during any
broadcast and/or telecast, shall cut off the air such speech, play,
act, scene, or other matter being broadcast and/or telecast if the
tendency thereof is to propose and/or incite treason, 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. Approved: December 8, 1994 |
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