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Title: Regulations for the Establishment of Radio Broadcasting Enterprises CH
Category: National Communications Commission(國家通訊傳播委員會)
CHAPTER IV Establishment
Article 34
The nominated bidder of nationwide radio broadcasting enterprise and regional radio broadcasting enterprise may remit the winning bid in full amount or by installments to an account designated by the regulatory agency through TT. No change is allowed after the payment method is selected.
Upon selecting to remit the winning bid in full in one lump sum per the foresaid stipulation, the bidder shall clear the winning bid within thirty days after the regulatory agency announces the list of nominated bidders.
When selecting to remit by installments as described in Paragraph 1, the nominated bidder or operator shall remit the winning bid and interest accrued in accordance with the following stipulations:
1. The bidder shall remit the initial installment within thirty days after the regulatory agency announces the list of nominated bidders, with the amount being the bottom price of nominated bidding target.
2. Regional radio broadcasting enterprise or nationwide radio broadcasting enterprise whose establishment is made at once shall, prior to the issuance of station operating license, remit the payable winning bid and interest accrued.
3. Nationwide radio broadcasting enterprise who has adopted phased establishment shall, upon completing each phase and applying for the issuance or reissuance of station operating license, pay half of the payable winning bid and interest accrued.
The payable winning bid refers to the winning bid after the deduction of the initial installment.
When remitting the winning bid as described in Subparagraph 1 of Paragraph 3, the nominated bidder shall issue a local bank contract guarantee letter on the balance of the payable winning bid and accrued interest within a 90-day period after the list of nominated bidders is announced. The guarantee period for nationwide radio broadcasting enterprise is seven years and three months from the date the contract guarantee letter is submitted; the guarantee period for regional radio broadcasting enterprise is four years and three months from the date the contract guarantee letter is submitted. When failing to complete remitting the winning bid, the bidder shall be revoked of its nomination qualification, and previous remittances of the winning bid and accrued interest shall not be reimbursed.
The interest of the payable winning bid as described in Paragraph 3 shall be calculated based on the maximum baseline interest rate adopted by the Bank of Taiwan thirty days after the regulatory agency announced the list of nominated bidders, plus 2.14 percent as the annual interest rate. Besides, starting from the thirtieth day after the list of nominated bidders is announced, the said interest shall accrue on a daily basis until the payment is cleared.
Article 35
Following the nominated bidder or the operator posting the balance of the winning bid and interest accrued according to Subparagraph 2 or 3 of Paragraph 3 of the preceding Article, the regulatory agency shall notify the guarantee bank to cancel the portion of the guarantee liability on the remitted amount.
Article 36
In the event where the nominated bidder fails to return all the station operating licenses and frequency in use according to Paragraph 2 of Article 10, to remit winning bid according to Paragraph 2 of Article 34 or the installment of the winning bid according to Subparagraph 1 of Paragraph 3 of Article 34, or to pay the performance bond according to Paragraph 1 of Article 38, the bid award granted to the bidder shall be invalidated.
In the event where the nominated bidder or operator fails to pay the payable winning bid and interest accrued according to Subparagraph 2 of Paragraph 3 of Article 34 or the half of the payable winning bid and interest accrued according to Subparagraph 3 of Paragraph 3 of Article 34, the regulatory agency shall notify the guarantee bank to honor its payout guarantee liability; in the event where the payment remains pending, the regulatory agency shall abolish the nominated bidder’s nomination qualification, establishment permit, station installation permit, station license, station operating license and allotted frequency. The previous remittances of the winning bid and interest accrued shall not be reimbursed.
In the event where the nominated bidder or operator fails to return all the station operating licenses and frequency in use according to Paragraph 2 of Article 10 or to pay the performance bond according to Paragraph 1 of Article 38, or the nominated bidder’s establishment permit is expired and becomes invalid, the regulatory agency shall abolish the nominated bidder’s nomination qualification, establishment permit, station installation permit, station license, station operating license and allotted frequency. The previous remittances of the winning bid and the interest shall not be reimbursed.
Article 37
In the event where the establishment permit or station operating license of the nominated bidder or operator is abolished due to breaching relevant legal and regulatory stipulations, the remitted winning bid and interest accrued will not be reimbursed, unless otherwise regulated by the Regulations.
Article 38
Before the establishment permit is issued by the regulatory agency, the nominated bidder shall pay the performance bond as regulated. That is, NT$3,000,000 for regional radio broadcasting enterprises and NT$20,000,000 for nationwide radio broadcasting enterprises.
The performance bond as described in the preceding paragraph shall be rendered with one of the following methods:
1. Deposit made directly to the account designated by the regulatory agency.
2. A letter of guarantee guaranteed by a domestic bank.
3. A negotiable certificate of deposit pledged with the regulatory agency as pledge.
In the case where the nominated bidder of regional radio broadcasting enterprise provided a letter of guarantee guaranteed by a domestic bank to render the performance bond, the guaranteed period shall be three years and three months; where the nominated bidder of nationwide radio broadcasting enterprise provided a letter of guarantee guaranteed by a domestic bank to render the performance bond, the guaranteed period shall be six years and three months.
In the case where an applicant applies to extend the validity of establishment permit, the extension of the performance bond as described in the preceding paragraph shall be made accordingly.
Article 39
A bidder that is nominated through the bidding procedure shall render the winning bid, initial installment, payable winning bid and interest accrued for payout guarantee and pay for the performance bond within thirty days after the list of bidders is announced. The regulatory agency will then issue the establishment permit.
Nominated bidder of radio broadcasting enterprise shall, upon receiving establishment permit, submit the following documents to the regulatory agency to apply for frequency allocation:
1. A copy of approved establishment permit.
2. Frequency allocation application form.
Article 40
The establishments permit for a community radio broadcasting enterprise shall be valid for two years and three years for a regional radio broadcasting enterprise.
Approved nationwide radio broadcasting enterprise may adopt phased establishment and the establishment permit for phased establishment is valid for six year.
Nationwide radio broadcasting enterprise may have its establishment completed in no more than two phases and its establishment progress shall comply with the following rules:
1. Where a phased establishment is not adopted, the radio wave coverage of nominated bidder’s station shall not be less than ninety percent of the nation’s entire population after the project is completed.
2. Where a phased establishment is adopted, the radio wave coverage of nominated bidder’s station shall not be less than fifty percent of the nation’s entire population during the first phase and it shall, upon receiving the station operating license, launch the broadcasting within three years. Upon completion of the second phase, the radio wave coverage of the enterprise’s station shall not be less than ninety percent of the nation’s entire population.
Article 41
Where nominated bidders of nationwide radio broadcasting enterprise and regional radio broadcasting enterprise fail to complete the establishment and acquire the station operating license by a prescribed deadline, they shall apply for an extension within a one-month period at three months prior to the expiry date with reasons specified. The extension, which initiates only upon receipt of regulatory agency’s approval, shall not exceed a year and is limited to one time only. Where the regulatory agency deems that the reason for extension is not related to the construction or is unnecessary, the application may be rejected.
Nominated bidder of community radio broadcasting enterprise is not eligible to apply for an extension of establishment permit.
In the case where the nominated bidder fails to complete the establishment as regulated, the regulatory agency may abolish its nomination qualification, establishment permit, station installation permit, station license, station operating license and allotted frequency.
Where a nominated bidder fails to complete the establishment before the permit expiration, the regulatory agency will not return the performance bond or it shall inform the guarantee bank to fulfill its payout guarantee liability. Where the performance bond is already reimbursed or the guarantee bank is notified to cancel the payout guarantee liability, the regulatory agency may request for retroactive recuperation
Article 42
Nominated bidders of regional radio broadcasting enterprise may, upon receiving all station licenses, apply for reimbursement of forty percent of the performance bond or a notification to the guarantee bank to rescind forty percent of the guarantee liability. Upon completing the establishment and receiving station operating license, the said bidders may apply for reimbursement of sixty percent of the performance bond or a notification to the guarantee bank to rescind sixty percent of the guarantee liability.
Nominated bidders of nationwide radio broadcasting enterprise may apply for reimbursement of performance bond or a notification to the guarantee bank to rescind the guarantee liability according the following regulations:
1. Where a phased establishment is not adopted, the nominated bidder shall, upon completing the establishment and receiving nationwide station operating license, apply for reimbursement of the performance bond or a notification to the guarantee bank to rescind the guarantee liability.
2. Where a phased establishment is adopted, the nominated bidder shall, upon completing the first phase of establishment, apply for reimbursement of forty percent of the performance bond or a notification to the guarantee bank to rescind forty percent of the guarantee liability. It shall then, upon completing the entire establishment and having the station operating license replaced, apply for reimbursement of sixty percent of the performance bond or a notification to the guarantee bank to rescind sixty percent of the guarantee liability.
Article 43
Upon receiving the radio broadcasting enterprise establishment permit, the nominated bidder shall complete company registration or foundation registration according to the laws.
Established company or foundation shall, before applying for the station operating license, apply for alterations to the corporate business items or foundation’s establishment objectives and endowment charter.
When applying for corporate or foundation registration, or alterations to the said registration in accordance with Paragraph 1 or 2, the nominated bidder shall ensure that its paid-in capital or total contribution has reached estimated paid-in capital or total contribution as stated in operations plan.
Article 44
Those who have received the radio broadcasting enterprise establishment permit shall, according to Administrative Regulations on the Establishment of Radio and TV Broadcast Station, submit its application of station installation permit to the regulatory agency. Upon completion of the installation, station license shall be applied accordingly.
Upon receiving the station license, the enterprise may conduct trial broadcasting to test the operating conditions of the internal and external system connection, sound quality, image and the production, emission transmission, and reception systems. The regulatory agency may request the enterprise to submit a trial broadcasting plan if required. Provisions of Article 21 of the Act may apply, mutatis mutandis, to the trial broadcasting content.
Those who have received an establishment permit for regional radio broadcasting enterprise and community radio broadcasting enterprise shall, within six months after receiving the station license, apply for the issuance of station operating license to the regulatory agency.
Those who have received an establishment permit for nationwide radio broadcasting enterprise and adopted non-phased establishment as described in Subparagraph 1 of Paragraph 3 of Article 40 shall, within six months after receiving the station license, apply for the issuance of station operating license to the regulatory agency.
Those who have received establishment permit of nationwide radio broadcasting enterprise and adopted phased establishment according to Subparagraph 2 of Paragraph 3 of Article 40 shall, within six months after receiving all station licenses of the first phase, apply for the issuance of station licenses to the regulatory agency. Upon completing the second phase, it shall then apply for the replacement of station operating license to the regulatory agency.
The station operating license as described in the preceding paragraph shall be valid for nine years, starting from the date of issuing the station operating license upon the completion of first phase.
Article 45
To apply for station operating license, the enterprise shall submit the following documents:
1. Application.
2. Corporate or foundation registration certificate or alterations registration certificate.
3. Corporation charter or foundation endowment charter.
4. Shareholder roster and minutes of shareholders' meetings.
5. A list of the members of the board and supervisors, and minutes of board of directors' meetings.
6. Photocopy of station license.
7. Other documents designated by the regulatory agency.
Article 46
Where an existing radio broadcasting enterprise has applied for bidding according to Article 10 and 12 and is nominated, the regulatory shall, in regard to its commitment made during the application process, abolish its existing station operating licenses and, thirty days after the issuance of new station operating license, retrieve its allotted frequency.
Where the abolishment as prescribed in the preceding paragraph is made, the regulatory agency shall inform relevant agencies.
Article 47
A radio broadcasting enterprise that commits to return station operating license(s) and frequency in use shall continuously make a preliminary announcement on the termination of transmission thirty days prior to the issuance of station operating license until the previous day before terminating the said frequency.