REPUBLIC ACT No. 3130

An Act Granting Pacifico Araullo of the City of Cabanatuan a Franchise to Construct, Maintain and Operate Radio Broadcasting Stations in the Said City

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Subject to the provisions of the Constitution, as well as Act Numbered Thirty-eight hundred forty-six, entitled, "An Act providing for the regulation of radio stations and radio communications in the Philippine Islands, and for other purposes;" Act Numbered Thirty-nine hundred ninety-seven, known as the Radio Broadcasting Law; Commonwealth Act Numbered One hundred forty-six, known as the Public Service Act, and their amendments, and other applicable laws not inconsistent with this Act, Pacifico Araullo of the City of Cabanatuan is hereby granted a franchise to construct, maintain and operate for religious, commercial, educational, and cultural purposes and in the public interest, radio broadcasting stations in the said city for a period of twenty-five years: Provided, That this franchise shall be void unless the construction of at least one radio broadcasting station be begun within two years from the date of approval of this Act, and be completed within four years from said date: Provided, further, That the grantee shall provide adequate public service time to enable the Government, through the said radio broadcasting stations, to reach the population on important public issues; shall assist in the functions of public information and education; shall conform to the ethics of honest enterprise; and shall not use its stations for the broadcasting of obscene or indecent language, speech, act or scene, or for the dissemination of deliberately false information or willful misrepresentation, or to the detriment of the public health, or to incite, encourage, or assist in subversive or treasonable acts.

Section 2. Acceptance of this franchise shall be given in writing within six months after the approval of this Act. When so accepted, the grantee shall be empowered to exercise the privileges granted thereby.

Section 3. As a condition of the granting of this franchise, the grantee shall execute a bond in favor of the Government of the Philippines, in the sum of fifty thousand pesos, in form and with sureties satisfactory to the Secretary of Public Works and Communications, conditioned upon the faithful performance of the grantee’s obligations hereunder during the first three years of the life of this franchise.1avvphi1 If after four years from the date of acceptance of this franchise, the grantee shall have fulfilled said obligations, or as soon thereafter as the grantee shall have fulfilled the same, the bond aforesaid shall be cancelled by the Secretary of Public Works and Communications.

Section 4. The grantee’s radio broadcasting stations shall not be put in actual operation until the Secretary of Public Works and Communications shall have allotted to the grantee the frequencies and wave lengths to be used under this franchise and issued to the grantee a license for such use.

Section 5. The stations of the grantee shall be so constructed and operated in accordance with established engineering standards and practice and subject to existing radio laws and regulations, and the frequencies or wave lengths shall be selected with a view to avoiding interference with the operation of other radio stations in the Philippines.

Section 6. In the event of any competing person, natural or judicial, receiving from the Congress of the Philippines a similar franchise in which there shall be any term or terms more favorable than those herein granted or tending to place the herein grantee at any disadvantage, then such term or terms shall ipso facto become a part of the terms hereof and shall operate equally in favor of the grantee as in the case of such competing person.

Section 7. (a) The grantee shall be liable to pay the same taxes on his real estate, buildings and personal property, exclusive of the franchise, as other persons, natural or juridical, are now or hereafter may be required by law to pay.

(b) The grantee shall further be liable to pay all other taxes that may be imposed by the National Internal Revenue Code by reason of this franchise.

Section 8. 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.

Section 9. The franchise hereby granted shall be subject to amendment, alteration, or repeal by the Congress of the Philippines when the public interest so requires.

Section 10. No private property shall be taken for any purpose by the grantee without proper condemnation proceedings and just compensation paid or tendered therefor, and any authority to take and occupy land contained herein shall not apply to the taking, use or occupation of any land except such as is required for the actual necessary purpose for which this franchise is granted.

Section 11. In the event the Government should desire to maintain and operate for itself any or all of the stations herein authorized, the grantee shall turn over such station or stations to the Government with all the serviceable equipment therein, at cost, less reasonable depreciation.

Section 12. The right is hereby reserved to the Government of the Philippines, through the Public Service Commission, to fix the maximum rates or charges to be charged by the grantee.

Section 13. A special right is reserved to the President of the Philippines in time of war, rebellion, public peril, emergency, calamity, disaster or disturbance of peace and order, to cause the closing of said stations 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.

Section 14. The grantee shall keep an account of the gross receipts of the business transacted by him and shall furnish the Auditor General and the National Treasurer of the Philippines a copy of such account not later than the thirty-first day of January of each year for the preceding year. For the purpose of auditing the accounts rendered to the Auditor General and the National Treasurer all the books and accounts of the grantee, or duplicates thereof shall be subject to the official inspection of the Auditor General or his authorized representatives, and the audit and approval of such accounts by said officers shall be final and conclusive evidence as to the amount of said gross receipts, except that the grantee shall have the right to appeal to the courts of the Philippines under terms and conditions provided in the laws of the Philippines.

Section 15. The grantee shall not require any previous censorship of any speech, play, act or scene or other matter to be broadcast from his stations; but if any such speech, play, act or scene or other matter should constitute a violation of the law or infringement of a private right, the grantee shall be free from any liability, civil or criminal, for such speech, play, act or scene or other matter: Provided, That the grantee, during any broadcast, shall cut off from the air the speech, play, act or scene or other matters being broadcast, if the tendency thereof is to promote 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 shall constitute a valid cause for the cancellation of this franchise.

Section 16. The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise or the rights and privileges acquired thereunder to any person, natural or juridical, nor merge with any other person without the previous approval of the Congress of the Philippines. Any person, natural or juridical, to which this franchise is sold, transferred or assigned, shall be subject to all the conditions, terms, restrictions, and limitations of this franchise as fully and completely and to the same extent as if the franchise had been originally granted to such person.

Section 17. This franchise shall not be interpreted as an exclusive grant of the privileges herein provided for.1âшphi1

Section 18. This Act shall take effect upon its approval.

Approved: June 17, 1961.


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