.Be it enacted by the National Assembly of the Philippines:

SECTION 1. Sections four, five, six and seven of Act Numbered Thirty-nine hundred and ninety-seven are amended to read as follows:

"SEC. 4. Annual fees to be paid.—Except as otherwise-provided in section six hereof, there shall be paid and collected a registration fee of one peso per annum, for every crystal receiving set, and for every receiving set that uses a vacuum tube or tubes for amplification or for detection, there shall be paid and collected, in accordance with the following zones, registration fees as follows:

"(a) First zone.—Manila, Bataan, Batangas, Bulacan,  Cavite, Laguna, Marinduque, Mindoro, Nueva Ecija, Pam-panga, Pangasinan, Rizal, Romblon, Tarlac, Tayabas and Zambales; one peso a year for sets using not more than five tubes; and five pesos a year for sets using more than five tubes.

"(b) Second zone.—Abra, Albay, Antique, Cagayan, Camarines Norte, Camarines Sur, Capiz, Cebu, Ilocos Norte, llocos Sur, Iloilo, Isabela, La Union, Masbate, Mountain province, Nueva Vizcaya, Occidental Negros, Samar and oorsogon; one peso a year for sets using not more than seven tubes; and five pesos for sets using more than seven tubes.

”(c) Third zone.—Agusan, Batanes, Bohol, Bukidnon, Cotabato, Davao, Lanao, Leyte, Occidental Misamis, Oriental Misamis, Oriental Negros, Palawan, Sulu, Surigao and Zamboanga; one peso a year for sets using not more than nine tubes; five pesos a year for sets using more than nine tubes.

"The annual fees' above specified shall be understood to be for a period of twelve months counting from the date of acquisition of a radio receiver, and, wherever semi­annual or annual fees are specified in this Act, the same shall be understood to be for a period of six months and twelve months, respectively, counting from the date of acquisition of/the radio set.

"SEC. 5. 'When to pay fees; surcharge to be paid for late payment.—Upon the initial registration of a radio receiving set, as provided in section three hereof, the fee for at least six months shall be paid in advance. Thereafter, fees shall be payable in not less than semi-annual installments, each of which shall be paid in advance during the first thirty days of the semester in which such fees are due. Any fee not paid within the time fixed shall be increased by a surcharge of twenty per centum thereof. The Collector of Internal Revenue, subject to the approval of the Secretary of Finance may prescribe rules and regulations changing the time of payment of fees from semi-annually to annually. He may also prescribe such rules and regulations as may be advisable to assure the prompt or immediate registration and advance payment or collection of fees on receiving sets sold by dealers and on sets entering the country through the mails or the customhouse and those brought by persons coming from abroad, notwithstanding the provisions of section three of this Act regarding thirty days time allowed for registration.

"SEC. 6 Receiving sets for specified uses to be registered but exempt from payment of fees.—Subject to such rules and regulations as may be prescribed by the Secretary of Public Works and Communications, owners of receiving sets covered by this section shall comply with the requirements of section three of this Act as regards registration but shall be exempt from payment of the fees as required by section four:

"(a)  Sets in storage or out of service;

"(b) Sets kept for sale or used for demonstration by those engaged in the manufacture or sale of radio apparatus ;

"(c) Sets owned or operated by the Philippine Government and used for purposes other than communications;

" (d) Sets installed on airplanes and ships licensed under Act Numbered Thirty-eight hundred and forty-six;

"(e) Sets operated by owners of broadcasting stations if such sets are used for the purpose of monitoring or checking the quality or efficiency of the broadcasting stations ;

"(g) Sets owned and operated by lighthouse-keepers at their official stations;

"(g) In cases where an amateur radio operator, who is licensed under Act Numbered Thirty-eight hundred and forty-six or the owner of a licensed amateur radio station has more than one receiver in his immediate household,, all such receivers shall be registered but the -fee need be paid on one receiver only.

"(h) Sets of not more than two tubes and used exclusively for scientific experimentation.

"No refund, credit for, or reimbursement of registration fees already paid or parts thereof shall be made on account of a radio set becoming exempted under the provisions of this section subsequent to the payment of such fees.

"SEC. 7. National Radio Broadcasting Fund and purposes -for which it may be used.—All collections made under this Act, as well as those which may be collected under section -. nine hereof, shall constitute a special fund to be known as ' the 'National Radio Broadcasting Fund' to be expended, with the concurrence of the Auditor General, exclusively for the following purposes by authority of the Secretary of Public Works and Communications, who shall determine what portion of this fund shall be expended for each item subject to the limitations herein below stated:

" (a) Receiving sets for municipalities, barrios, etc.— -Purchase, installation and/or operation of radio recording ' sets for general public benefit in fourth and fifth class municipalities, municipal districts, barrios and selected Government institutions, including the purchase of such sets as in the opinion of the Secretary of Public Works and Communications are necessary and indispensable for the use by the committee or committees created under section one hereof, or by other persons in carrying out the purpose of this Act under such rules and conditions as may be prescribed by him.

"(b) Payment to broadcasting stations for broadcasting matters of interest to people.—Payment to the owners of any duly authorized radio broadcasting station or stations of sufficient power and with satisfactory facilities and apparatus to render reasonably satisfactory service, under normal conditions, throughout the Philippines, for the radio broadcasting of a minimum of three hours daily of governmental news, information and education, and/or any other information or programs of interest or entertainment to the people if the type and general character of the programs broadcast are deemed to be of general interest or entertainment to the public by a committee created for the purpose by the Secretary of Public Works and Communications: Provided, That the sum authorized for any station shall not exceed the actual value of the services rendered in accordance with this subsection: Provided, further, That if, for any fortuitous cause or force majure or other unavoidable reason, a minimum of three hours broadcasting shall not be made in any one day, such failure shall not be considered as a violation of this section.

"(c) Administrative expenses.—Employment of such personnel and payment of such expenses as may be necessary in carrying out the provisions of this Act and the rules and regulations prescribed thereunder. The provisions of existing laws to the contrary notwithstanding, the Secretary of Public Works and Communications may authorize the payment to each member and secretary of any committee or committees created by him under section one of this Act a per diem of not to exceed ten pesos for each meeting attended; and subject to the approval of the President of the Philippines, such government officers as may be appointed or assigned to said committee or committees as members or secretaries thereof may receive such per diems: Provided, That no committee member or secretary shall be entitled to receive more than twenty pesos in any one month for meetings attended during the month.

"(d) Promotion and development of or assistance to radio broadcasting.—Any unexpended balance of the 'National Radio Broadcasting Fund,' in any year shall be available for the purposes stated in this section for any succeeding year, for the promotion and development of radio broad­casting in the Philippines and, if necessary or advisable for general public interest, for the establishment of Government radio broadcasting stations in the Philippines.

"(e) Collection expenses.—Salaries of employees appointed by the Collector of Internal Revenue for the collection of radio registration fees and necessary expenses incident to the registration of radio receiving sets and the collection of fees due thereon."

SEC. 2. This Act shall take effect on January first, nineteen hundred and thirty-nine.

Approved, June 22, 1938.