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PHILIPPINE LAWS, STATUTES & CODES
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REPUBLIC ACTS
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REPUBLIC ACT NO. 7966 - AN ACT
GRANTING THE ABS-CBN BROADCASTING CORPORATION A FRANCHISE TO CONSTRUCT,
INSTALL, OPERATE AND MAINTAIN TELEVISION AND RADIO BROADCASTING
STATIONS IN THE PHILIPPINES, AND FOR OTHER PURPOSES |
Section 1. Nature and Scope of Franchise. — Subject to the
provisions of the Constitution and applicable laws, rules and
regulations, the ABS-CBN Broadcasting Corporation, hereunder referred
to as the grantee, its successors or assigns, is hereby granted a
franchise to construct, operate and maintain, for commercial purposes
and in the public interest, television and radio broadcasting stations
in and throughout the Philippines, through microwave, satellite or
whatever means including the use of any new technologies in television
and radio systems, with the corresponding technological auxiliaries or
facilities, special broadcast and other broadcast distribution services
and relay stations.
Sec. 2. Manner of Operation of Stations or Facilities. — The existing and future stations or facilities of the grantee shall be constructed in a manner as will at most result only in the minimum interference on the wavelengths or frequencies of the other existing station or 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 the availability thereof. 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 station and shall not use any frequency in the television or radio spectrum without having been authorized by the Commission. The Commission, however, shall not unreasonably withhold or delay the grant of any such authority. Sec. 4. Responsibility to the Public. — The grantee shall provide adequate 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 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. Sec. 5. Right of Government. — A special right is hereby reserved to the President of the Philippines, in times of rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, to temporarily take over and operate the stations of the grantee, to 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 agency of the government, upon due compensation to the grantee, for the use of the 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 effectivity of this Act. Sec. 7. Acceptance and Compliance. — Acceptance of this franchise shall be given in writing to Congress within sixty (60) days from the effectivity 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, and the said percentage shall be in lieu of all taxes on this
franchise or earnings thereof: provided, that 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 or 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 from the air the speech, play,
act or 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: March 30, 1995 |
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