This Act is stipulated in accordance with Paragraph 8 of Article 10 of Radio and Television Act (hereinafter shortened as the Act).

The regulatory agency referred to in the Regulations is National Communications Commission.

The terms used in the Regulations shall be defined as follows:
1. Radio station: refers to radio stations established in accordance with the Act and is shortened as the “station.”
2. Radio broadcasting enterprise: refers to an enterprise that operates a radio station.
3. Nationwide radio broadcasting enterprise: refers to an enterprise that establishes a radio station under the laws and provides radio services in Taiwan, Penghu, Kinmen and Matsu.
4. Regional radio broadcasting enterprise: refers to a radio broadcasting enterprise that establishes Type B FM or Type B AM radio station and provides legal services in regions designated by the regulatory agency.
5. Community radio broadcasting enterprise: refers to a radio broadcasting enterprise that establishes Type A FM or Type A AM radio station and provides legal services in regions designated by the regulatory agency.
6. Existing radio broadcasting enterprise: refers to an enterprise that has received a station operating license prior to the promulgation of these Regulations.
7. Operator: refers to an enterprise that has acquired a radio license to run the radio station operations after the promulgation of the Regulations.
Type A and Type B radio stations referred to in Subparagraph 4 and 5 in the preceding paragraph shall be determined in accordance with Article 26 of Administrative Regulations on the Establishment of Radio and TV Broadcast Station stipulated based on the authorization of Paragraph 3, Article 46 of Telecommunications Act.

For operation, a radio broadcasting enterprise shall file an application for approval; if approved, a station operating license shall be issued by the regulatory agency.
The application form, operations plan, and other qualifications of an applicant for a radio broadcasting enterprise establishment permit shall first be examined. Those deemed qualified shall be issued with an establishment permit according to the following procedures:
1. Nationwide radio broadcasting enterprise and regional radio broadcasting enterprise shall join the bidding as regulated. The nominated bidder shall render the winning bid and performance bond in accordance with Article 34 and 38 respectively and the establishment permit will be issued by the regulatory agency accordingly.
2. Community radio broadcasting enterprise shall cast lots as regulated and the regulatory agency will issue establishment permit to the nominated bidder within thirty days after the list of bidders is announced.
The nominated bidder as described in the preceding paragraph refers to a nationwide radio broadcasting enterprise or regional radio broadcasting enterprise that temporarily wins the bid, or community radio broadcasting enterprise that temporarily wins the bid through lots casting. However, the nominated bidder shall have its qualifications declared by the regulatory agency.
Rules governing the methods, service area and limitations on the establishment of station, number of licenses, application period and other regulatory matters concerning the approval of radio broadcasting enterprise shall be prescribed and announced by the regulatory agency.
Procedures governing public or public welfare radio broadcasting enterprises of a government agency, public body, or government-financed foundation according to other laws shall be undertaken according to regulations of Chapter IV-I; Article 2 to 4 shall not be applicable in such case.

Applicant for operating a radio broadcasting enterprise shall hold one of the following qualifications:
1. A company limited that is established or is establishing under the laws.
2. A foundation that is established or is establishing under the laws.

The minimum paid-in capital or total endowment assets of the applicant for operating a radio broadcasting enterprise shall meet the following requirements:
1. Nationwide radio broadcasting enterprise: NT$200,000,000.
2. Regional radio broadcasting enterprise: NT$30,000,000.
3. Community radio broadcasting enterprise: NT$3,000,000 for FM radio broadcasting enterprise; NT$9,000,000 for AM radio broadcasting enterprise.

The founder, shareholders, directors and supervisors of a radio broadcasting enterprise shall be a national of the Republic of China.
Where the shareholder or founder of the applicant for operating a radio broadcasting enterprise is a natural person, he or she shall not be in any of the following circumstances:
1. Without a household registration or residence in the Republic of China.
2. Shareholder or founder whose spouse, lineal relatives by blood and marriage, and relatives within the second degree of consanguinity that holds or subscribes more than fifty percent of the shares of the enterprise.
3. Shareholder, founder or subscriber of a newspaper, terrestrial television or terrestrial radio broadcasting enterprise that holds or subscribes more than ten percent of the shares of the enterprise.
Where the shareholder or founder of the applicant for operating a radio broadcasting enterprise is a foundation, he or she shall not be in any of the following circumstances:
1. Not established or registered in accordance with laws of the Republic of China.
2. Without a household registration or residence in the Republic of China.
3. Shareholder, founder or subscriber of newspaper, terrestrial television or terrestrial radio broadcasting enterprise that holds or subscribes solely or jointly with its affiliate more than fifty percent of the shares of the enterprise.
The affiliate as described in Subparagraph 3 of the preceding paragraph refers to a company where the shareholder or founder of a radio or television enterprise serves as a director or supervisor or invests more than twenty percent of its total shares.
Where provisions as described in Paragraph 2 are violated due to the succession of shares during the application period, a transfer to the third party shall be made prior to radio license being issued.
Upon obtaining the radio license, the applicant shall ensure that its transfer of shares is in compliance with the enforcement rules of the Act.

An applicant shall just submit one application.
Where the applicant is a limited company and any of the following circumstances occurs between the applicant and other applicant(s), they will be deemed as the same applicant:
1. The voting shares or capital contributions held by the applicant reach ten percent or over of another applicant’s total issued voting shares or total capital stock.
2. More than half of the applicant’s directors are directors of another applicant.
3. More than ten percent of the applicant and other applicant’s issued voting shares or capital stocks come from the same shareholder or investor.
4. The applicants are both the subsidiaries of a third Party.
5. The applicants’ holding companies are in relation of control or a subsidiary.
The relation of control or subsidiary prescribed in Paragraph 4 and 5 of the preceding paragraph refers to those as described in Paragraph 1, 2 or 3 of the preceding paragraph.
The shares or stock capital as described in Paragraph 2 shall be calculated in accordance with Article 369-11 of the Company Act.
Where the applicant is a foundation and any of the following circumstances occurs between it and other applicant(s), they will be deemed as the same applicant:
1. More than half of the applicant’s directors are directors of other applicant.
2. The applicant and other applicant have the same donator and its endowment charter has regulated that its directors shall be solely or jointly appointed by the donator.
Where the applicant is a limited company and other applicant is a foundation, they shall be considered as the same applicant if half of the applicant’s directors are directors of other applicant or half of other applicant’s directors are directors of the applicant.
Paragraph 2, 5 and 6 are also applicable before the applicant obtains station operating license.
The provisions of this Article also apply, mutatis mutandis, to an applicant that is an establishing limited company or foundation.

Existing radio broadcasting enterprise shall not make another application of operating a radio broadcasting enterprise, unless otherwise provided by the Regulations.
Where provisions from Paragraph 2 to 8 of Article 8 apply to existing radio broadcasting enterprise and anyone who applies for operating a radio broadcasting enterprise under the Regulations mutatis mutandis shall be considered as a same concerned party.

When an existing radio broadcasting enterprise, except for those with designated use, commits to return all of the station operating licenses and frequency in use, it may apply for operating a radio broadcasting enterprise.
A resolution shall be adopted by the shareholders' meeting or board of directors of the foundation in regard to commitment as described in the preceding paragraph and evidentiary documents shall be submitted accordingly. The said enterprise shall also submit applications of returning station operating license and frequency in use upon receiving the station operating license.
Where more than two existing radio broadcasting enterprises are involved, an agreement shall be made so that one of the existing radios broadcasting enterprises or the co-establishing enterprise may apply for operating a radio broadcasting enterprise in accordance with the preceding two paragraphs.
Those that have designated use as described in Paragraph 1 refer to indigenous or Hakka radio stations that submitted the application according to the opening announcement issued on January 15 of 1996, May 17 of 1999, and September 30 of 2000; and that were established upon receiving an approval.

(deleted)

Existing radio broadcasting enterprise shall participate in only one application of operating a radio broadcasting enterprise. The provisions of Paragraph 2 of Article 10 apply, mutatis mutandis, to evidentiary documents that shall be submitted for its commitment of returning the station operating licenses and frequency in use.
Where the applicant and other applicant have returned the same station operating license and frequency in use for applying for operating a radio broadcasting enterprise, they shall be deemed as the same applicant.

To apply for the establishment permit, applicants for operating a radio broadcasting enterprise shall submit the following documents to the regulatory agency by a prescribed deadline:
1. Application form.
2. Operations plan, with the following items and details specified:
(1) The overall planning, including the objective of establishing the station and target audience.
(2) Personnel structure and administrative organization, including the administrative organization, personnel structure and personnel arrangement.
(3) Operations plan and schedule planning, including operations plan, schedule planning, and the audience interaction mechanism.
(4) Program planning, internal process control, and advertising fees and charges.
(5) Financial structure, including capital and financial plan, and budget control.
(6) Plan for personnel education and training.
(7) Profile of equipment and plan for construction, including a summary and details of system equipments, and construction plan.
(8) Other items designated by the regulatory agency.
3. Item 1, 3, 4, 6, 7 and 8 of the operations plan as described in the preceding subparagraph may be provided to the regulatory agency for quote and announcement.
4. Photocopy of the review fee remittance slip.
5. Photocopy of the tender bond remittance slip provided by the applicant for operating a nationwide radio broadcasting enterprise and regional radio broadcasting enterprise.
6. Other documents designated by the regulatory agency.
The regulatory agency shall, after the application deadline, make documents regulated in Subparagraph 3 of the preceding paragraph public.

The applicant shall render the review fee when submitting the application. The amount and payment of review fee shall refer to Fee Charge Standards for the Operations of Radio and TV Stations.
Radio broadcasting enterprises whose permit is granted through bidding shall pay for the tender bond when submitting the application. The tender bond for those who apply for operating a nationwide radio broadcasting enterprise is NT$33,000,000, and NT$5,000,000 for those who apply for operating a regional radio broadcasting enterprise.
The applicant shall not request for reimbursement of the review fee, unless otherwise provided by the Regulations.
The applicant shall not request for reimbursement of the tender bond before the bidding results have been announced, unless otherwise provided by the Regulations.
The review fees and tender bond shall be remitted to an account designated by the regulatory agency through TT. The name, address and telephone number of the applicant company or foundation shall be stated in the cash remittance note.

An application that falls under one of the following circumstances shall be prohibited from submitting retroactive correction, and shall be declined. The applicant’s review fee and tender bond shall be reimbursed without interest within a seven-day period from the following day the application acceptance decline ruling is delivered:
1. The submission is made after the application acceptance deadline.
2. No application form or operations plan is submitted.
3. The review fee and tender bond are not paid, or the paid amount is insufficient.
4. The applicant is not qualified as described in Article 5.

An application that falls under one of the following circumstances shall be prohibited from submitting retroactive correction, and shall be declined. The applicant’s review fee, tender bond and interest accrued shall be withheld, or be retroactively recuperated if the reimbursement is already made:
1. Violation of Paragraph 1, 2, 3 and 6 of Article 7, Paragraph 1 of Article 8, and Paragraph 1 or 12 of Article 9.
2. Violation of Paragraph 1 of Article 10.
3. The content of applicant’s documents as mandated under Article 6, 7, 8, 9 or 10 is found fraudulent or false.
4. The application is made with false or modified documents.
5. Bid rigging or any conduct that suffices to impair the fairness and unbiased competitive bidding.
Where an applicant who already received the establishment permit, station installation permit, station license and station operating license violates provisions of the preceding paragraph, the regulatory agency shall abolish its establishment permit, station installation permit, station license and station operating license.

Where an applicant is under one of the following circumstances, the regulatory agency shall notify the applicant to adopt retroactive correction within a prescribed deadline, and when failing to adopt retroactive correction or the matter remains pending despite retroactive correction, the application is to be declined; the applicant’s tender bond is to be reimbursed without interest within a seven-day period from the following day the application acceptance decline ruling is received, while the review fee and interest accrued shall not be reimbursed:
1. Violation of Paragraph 5 of Article 7 or Paragraph 2 of Article 10.
2. The applicant’s anticipated paid-in capital or total contributions as stated in its operations plan fails to reach the operation’s minimum paid-in capital or total endowment assets.
3. The applicant’s documents as mandated under Article 13 are found incomplete, or the content of entry is deemed incomplete, or entries in its operations plan contain error or miscalculation.
4. Adopted engineering equipment is deemed to deviate from the engineering technical standards of Administrative Regulations on the Establishment of Radio and TV Broadcast Station.
5. Other retroactive corrections to be made under regulatory agency’s request.

When an applicant withdraws its application, the paid review fee and tender bond shall be processed as stipulated below:
1. When the applicant withdraws its application prior to the application acceptance deadline announced by the regulatory agency, the review fee and tender bond shall be reimbursed without interest within a seven-day period from the following day the withdrawal application is received.
2. When the applicant withdraws its application before the list of qualified bidders is announced, the tender bond shall be reimbursed without interest within a seven-day period from the following day the withdrawal application is received, while the review fee and interest accrued shall not be reimbursed.
3. When the qualified applicant withdraws its application after the list of qualified bidders is announced, the tender bond, review fee and interest accrued will not be reimbursed, and of any that has been previously reimbursed, shall be subject to retroactive recuperation.

Applicants that have found to be in violation shall not be granted with an opportunity to make statements if the regulatory agency has made one of the following punishments:
1. The application is declined without reimbursement of the review fee, tender bond and interest according to Article 16.
2. The application is declined without reimbursement of the review fee and interest according to Article 17.
3. The applicant’s qualification of joining the bidding or becoming the nominated bidder is revoked or abolished according to Article 29.
4. The applicant’s qualification of casting lots or becoming the nominated bidder is revoked or abolished according to Article 33.

To review the applications, the regulatory agency may establish a Review Advisory Committee.
To receive the qualification, the applicant for operating a nationwide radio broadcasting enterprise and regional radio broadcasting enterprise shall submit the application form; render the review fee and tender bond as regulated; and receive a score of at least eighty-five from the Review Advisory Committee in regard to its application form and business plan.
To receive the qualification, applicant for operating a community radio broadcasting enterprise shall receive a score of at least seventy-five from the Review Advisory Committee in regard to its application form and business plan.
After deliberating upon the qualification recommendations made by the Review Advisory Committee, the regulatory agency shall notify the qualified applicant and announce the list of qualified applicants.

(deleted)

Upon completing examination procedures as regulated in the preceding Section, the regulatory agency may carry out bidding operations as described in Article 4 in regard to the issuance of establishment permit for nationwide and regional radio broadcasting enterprises. Rules governing the bidding operation shall be handled by the regulatory agency.
The permits are the targets of bidding operations and the bidding for establishment permits of nationwide radio broadcasting enterprise and regional radio broadcasting enterprise shall be handled in sequence.
The date, location and operations relevant details of the said bidding shall be announced by the regulatory agency seven days prior to the bidding date.
The regulatory agency shall, before conducting the bidding as described in the preceding paragraph, stage a presentation of the bidding operations and procedures.

When the regulatory agency conducts bidding operations, the bidding targets shall be bid for in single rounds.
The bid as described in the preceding paragraph must not be withdrawn or amended.
The bids shall be submitted in units of NT$1,000,000 for nationwide radio broadcasting enterprises and NT$100,000 for regional radio broadcasting enterprises.
Where a submitted bid is above the bottom price and is the highest amount, it shall become the temporary nominated bidder of that bidding target and the bidding amount shall be the temporary nominated bid price.
Where more than two competing bidders have quoted the same highest amount above the bottom price, the temporary nominated bidder shall be determined by casting lots.
Where the submitted bids are below the bottom price of that bidding target, the regulatory agency shall reject all bids.

The regulatory agency shall conduct bidding operations in a bidding room prepared at the bidding location.
Each bidder shall designate no more than three authorized agents who shall bring the letter of attorney and relevant documents to register and enter the bidding room at the time appointed by the regulatory agency. Those who fail to do so shall be disqualified from bidding.
Authorized agents as described in the preceding paragraph shall not use any telecommunications device and shall turn off the power of devices. Where anyone disturbs the order of bidding room or impairs the fairness of biding, the regulatory agency shall order them to make corrections. Those who fail to do so will lose its bidding qualification.
Each bidder and authorized agent(s) shall not participate in any conduct that will affect the fairness of bidding procedures or violate regulations after the announcement of the list of qualified bidders and before the final bidding. Any offender shall be deemed disqualified from the bidding by the regulatory agency.
Where the bidder loses its qualification during the bidding procedure, its authorized agent shall immediately leave the bidding room and shall not be allowed to reenter.

Any of the following circumstances shall be considered as an ineffective quotation:
1. The bidding target is not the target it it has applied for.
2. The quoted value cannot be explicitly confirmed or identified.
3. The field of quotation is blank or more than two prices are quoted.
4. Fails to submit the quotation note within the timeframe designated by the regulatory agency.
5. Fails to quote the price in the quotation unit as described in Paragraph 5 of Article 23.
6. Other circumstances that the regulatory agency deems to have an ineffective quotation.

Where any of the following circumstances occurs during the bidding procedure, the regulatory agency shall suspend the bidding procedure and decide the following procedure:
1. Any force majeure.
2. Any major violation of rules by the bidder.
3. Any circumstance that is inappropriate to carry on the bidding procedure.

After the bidding procedure, the price of winning bid of each target shall be the quotation of nominated bidder.
After the bidding procedure, the regulatory agency shall announce the list of nominated bidders, winning targets, winning bid price and bottom price.

In any of the following circumstances, the bidder’s posted tender bond shall be reimbursed without interest:
1. When a bidder is not qualified for bidding after the examination as described in Paragraph 2 of Article 20, the tender bond will be reimbursed without interest within a fifteen-day period from the following day the regulatory agency announces the list of qualified applicants.
2. When a bidder participates in the bidding but has not been awarded with the bid, the tender bond shall be reimbursed without interest within a fifteen-day period from the following day the regulatory agency announces the list of nominated bidders.
3. When a bidder participated in bidding has secured a bid and has remitted the winning bid or the initial installment as regulated, the tender bond is to be reimbursed without interest. The nominated bidder may transform the paid bidding bond into a part of its initial installment without interest.
Should a bidder encounter one of the following circumstances, the bidder’s posted tender bond shall not be reimbursed, and when it has previously been reimbursed, it shall be subject to retroactive recuperation:
1. A bidder, upon being awarded with the bid, fails to remit the winning bid in one lump sum or remit the first installment of the winning bid and post the guarantee for the remainder of the winning bid and interest.
2. A bidder is revoked of or has lost competitive bidding qualification as described in Article 24.

Where the bidder is in any of the circumstances as described in Paragraph 1 of Article 16 during the bidding procedures, the regulatory agency may revoke or abolish its right to participate in the bidding; where the said circumstance is found after the bid has been awarded, the bid award shall be revoked or abolished, and the paid winning bid shall be returned without interest.
Under the foresaid circumstance, the posted review fee, tender bond and the interest accrued will not be reimbursed, and one that has been reimbursed shall be retroactively recuperated or have the sum deducted from the bidder’s winning bid.

Where the establishment permit of community radio broadcasting enterprise shall be conducted by casting lots after the examination as regulated in Article 4, the regulatory agency shall carry out this procedure upon completing the examination procedure according to provisions stated in Section 1 of the preceding paragraph.
The procedures, date and location concerning lots casting shall be announced and prescribed by the regulatory agency.

Bidders who are qualified to cast lots shall with its representative or authorized agent, with the letter of attorney and relevant documents, present in lots casting in a location and time designated by the regulatory agency.
Where a qualified bidder fails to do so or to designate an authorized agent to do so, it shall be deemed as renouncing its right of participating in casting of lots. The same rule shall apply to bidders who fail to join lots casting after being called in the event.
Only bidders who are qualified to join lots casting and/or their authorized agents are allowed to enter the venue of casting lots. Other people shall not enter the venue, unless with the consent of regulatory agency.
Bidders who are qualified to join lots casting and/or their authorized agents shall not conduct any action that affects the operations of casting. Where a bidder or its authorized agent violates the said rule, the regulatory agency shall order it to make corrections. If no correction is made upon receiving the notification, the bidder’s qualification shall be revoked.

Where only one bidder is qualified to participate in casting lots among all applicants or only one qualified bidder has registered to do so, said bidder shall automatically become the nominated bidder without the conduct of casting lots.
Where more than two applicants are qualified to participate in the casting of lots, their order of casting of lot shall depend on the number of strokes of the first character of their name increasing in number. In the case where their first characters have the same number of strokes, the number of strokes of the second character shall be used and so on. Bidders who are qualified for casting lots shall draw a number and, based on the drawn number from small to big, cast lots for the establishment permit.
The lots shall be prepared by the regulatory agency according to the number of participant bidders. During the casting, bidders shall be called according to procedures as described in the preceding paragraph and then the qualified bidder shall take their order to cast lots. The one who receives the lot of establishment permit will be the lot winner.
Lots casting will be concluded after the winner of the lot appears. However, if the said winner abandons its rights or its qualification is abolished and results in an absence of lot winner, the lots casting procedure shall come to the end and bidding target shall not go another round of casting lots.
Where the qualified bidders of casting of lots of a specific target fail to participate in the procedure, the lot casting shall conclude and the subject shall not be open for bidding, other than for conditions as stipulated in Paragraph 1.
After the casting is closed, the lot winner(s) is only the temporary nominated bidder as the list of the nominated bidders shall be announced by the regulatory agency.

Where the bidder fall under any of the circumstances as described in Paragraph 1 of Article 16 during the casting procedures, the regulatory agency may revoke or abolish its right to participate in the bidding; where the said circumstance is discovered after the bid has been awarded, the bid award shall be revoked or abolished.
Where the instance as described in the preceding paragraph occurs, the paid examination fee and interest accrued shall be withheld, or be retroactively recuperated if a reimbursement has been previously made.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

Public or public welfare radio broadcasting enterprises of a government agency, public body, or government-financed foundation shall be established according to laws and their establishment plan shall be approved or agreed by the Executive Yuan prior to launching operations.
Applications submitted by aforesaid applicant shall be processed according to regulations of this Chapter; Article 2 to 4 shall not be applicable in such case.

Where a government-financed foundation applies for operating a radio broadcasting enterprise, its establishment fund or minimum total endowment assets shall conform to the amount regulated by the law that its establishment was based on.

Applicants shall submit the following documents to the regulatory agency when applying for an establishment permit. Those who have obtained establishment approval shall receive the establishment permit from the regulatory agency:
1. Application form.
2. Operations plan, with the following items and details specified:
(1) The overall planning, including the objective of establishing the station and target audience.
(2) Personnel structure and administrative organization, including the administrative organization, personnel structure and personnel arrangement.
(3) Operations plan and schedule planning, including operations plan, schedule planning, and the audience interaction mechanism.
(4) Program planning, internal process control, and advertising fees and charges.
(5) Financial structure, including capital and financial plan, and budget control.
(6) Plan for personnel education and training.
(7) Profile of equipment and plan for construction, including a summary and details of system equipment, and construction plan.
(8) Other items designated by the regulatory agency.
3. Photocopy of the review fee remittance slip.
4. Other documents designated by the regulatory agency.
Documents stated in Subparagraph 2 of the preceding Paragraph shall be submitted after the review of applicant’s superior or supervisory agency. However, this restriction is not applicable to applicants that are second-level agencies.

The review fee shall be paid during the application.

The applicant shall, upon receiving the establishment permit, submit the following documents to the regulatory agency to apply for frequency allocation:
1. A copy of the approved establishment permit.
2. Frequency allocation application form.

The establishment permit for a community radio broadcasting enterprise shall be valid for two years and three years for a regional radio broadcasting enterprise.
The establishment permit of nationwide radio broadcasting enterprise approved by the regulatory agency shall be valid for six years and the entire establishment schedule shall not exceed nine years. Phased establishment permitted in the case.
A nationwide radio broadcasting enterprise or a regional radio broadcasting enterprise that fails to complete the establishment during the period specified in the preceding two paragraphs shall apply for an extension within one-month period three months prior to the expiry date specifying valid reasons. The extension shall become effective only after the enterprise receives approval from the regulatory agency.
The applied extension shall be approved by the applicant’s superior or supervisory agency. However, this restriction is not applicable to applicants that are second-level agencies.

Those that 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, a station license shall be applied for 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 that have received the establishment permit for a regional radio broadcasting enterprise and community radio broadcasting enterprise shall, within six months after receiving all station licenses, apply to the regulatory agency for the issuance of station operating license.
Those that have received the establishment permit for a nationwide radio broadcasting enterprise with a non-phased establishment shall, within six months after receiving all station licenses, submit the application of station operating license.
Those that have received the establishment permit for a nationwide radio broadcasting enterprise with a phased establishment shall, within six months after receiving all station licenses of the first phase, apply for the issuance of station licenses. Upon completing each of the following phases, it shall submit its application of 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.

Upon application for a station operating license, the enterprise shall submit the following documents:
1. Application.
2. Photocopy of station license.
3. Other documents designated by the regulatory agency that are related to the issuance of station operating license.
Where the applicant is an established foundation and its establishment objectives are irrelevant to the operations of radio broadcasting enterprise, the applicant shall be required to apply for amendments to its establishment objectives and donation charter prior to submitting the application for a station operating license.

License / permit fee, review fees, examination fees and certification fees shall be collected from the applicant for operating a radio broadcasting enterprise for license and/or permit, examination, inspection, issuance, reissuance and certificate replacement in accordance with Fee Charge Standards for the Establishment of Radio and TV Stations and Fee Charge Standards for the Operations of Radio and TV Stations.
Those that acquired the station operating license according to Charge Standard of Utilization Fee of Radio Frequency shall submit the radio frequency usage fee to the regulatory agency.

These Regulations shall be implemented starting from the date of promulgation.