A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library.
Republic Acts :
|REPUBLIC ACT NO. 8218 - AN ACT
GRANTING CAPRICOM PRODUCTION AND MANAGEMENT, A FRANCHISE TO CONSTRUCT,
INSTALL, ESTABLISH, OPERATE, AND MAINTAIN RADIO 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 Capricom Production and
Management, hereunder referred to as the grantee, its successors or
assigns, a franchise to construct, install, establish, operate and
maintain for commercial purposes and in the public interest, radio
broadcasting stations in the Philippines, where frequencies are still
available for radio broadcasting, with the corresponding technological
auxiliaries or facilities, special broadcast and other program and
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, 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 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 the construction and operation of its stations and facilities and shall not use any frequency in the 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 or facilities, to reach the population on important public issues; provide at all times sound and balanced programming; assist in the functions of public information and education; conform to the ethics of honest enterprise; and not use its stations or 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.
Sec. 5. Right of Government. — A special right is
hereby reserved 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 temporarily suspend the operation of
any station or facility 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 said stations or facilities 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, unless sooner revoked or cancelled. This franchise shall be
deemed ipso facto revoked in the event that the grantee fails to comply
with any of the following conditions:
Sec. 7. Acceptance and Compliance. — Acceptance of this franchise shall be given in writing within sixty (60) days after 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.
Sec. 8. Bond. — The grantee shall file a bond issued in favor of the National Telecommunications Commission, 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, 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.
Sec. 9. 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 the value-added tax under Republic Act No. 7716 or a franchise tax
of five percent (5%) per annum at such percentage as may be prescribed
by law on all gross receipts of the radio business transacted under
this franchise by the grantee, its successors or assigns whichever is
higher: 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. 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 be 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 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.
Sec. 11. Warranty in Favor of National and Local Governments. — 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 or operation of the stations of the grantee.
Sec. 12. 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, except in pursuance of the dispersal of ownership requirements under Section s 13 and 14 of this Act. 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.
Sec. 13. Dispersal of Ownership. — In accordance with constitutional provisions to encourage public participation in public utilities, the grantee shall offer at least thirty per centum (30%) of its outstanding capital stock or a higher percentage that may hereafter be provided by law in any securities exchange in the Philippines within 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 or more radio and/or television stations. Noncompliance therewith shall render the franchise ipso facto revoked.
Sec. 14. Conversion into a Corporation. — In pursuance of the provisions of Section 13 of this Act, the grantee shall convert the ownership of the franchise to a corporation: provided, that, the grantee shall retain majority ownership thereof. Noncompliance therewith shall render the franchise ipso facto revoked.
Sec. 15. General Broadcast Policy Law. — The grantee shall comply with and be subject to the provisions of a general broadcast policy which Congress may hereafter enact.
Sec. 16. Separability Clause. — If any of the sections or provisions of this Act is held invalid, all other provisions not affected thereby shall remain valid.
Sec. 17. Repealability and Non-exclusivity 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.
Sec. 18. Reportorial Requirement. — The grantee shall submit an annual report to the Congress of the Philippines on its compliance with the terms and conditions of the franchise and on its operations within sixty (60) days from the end of every year.
Sec. 19. Effectivity. — This Act shall take effect
fifteen (15) days from the date of its publication in at least two (2)
newspapers of general circulations in the Philippines.