Article 1  The National Communications Commission (hereinafter referred to as the “NCC”) is hereby established specifically in order to realize the constitutional guarantee of freedom of speech, to abide by the spirit of media independence from political party, government or military interference, to promote healthy development of communications, to maintain the professional independence of the media, to safeguard the effectiveness of communications management, to ensure fair and effective competition in the communications market, to protect consumers, to respect the rights of the disadvantaged, to stimulate balanced development of diverse cultures, and to raise overall national competitiveness.

Article 2  From the date of the establishment of the NCC, the NCC is the new competent government agency in charge of communications-related laws and regulations originally under the purview of the MOTC, the GIO (Executive Yuan) and the Directorate General of Telecommunications (MOTC), including the Telecommunications Act, the Radio and Television Act, the Cable Radio and Television Act, and the Satellite Radio and Television Act. The same applies to all other laws and regulations that concern the competence of the NCC.

Article 3  The following areas fall under the purview of the NCC:

1) Formulating communications supervisory policy and formulating, drafting, revision, abolishment, and enforcement of communications laws and regulations.

2) Supervisory management and license issuance for communications business operation.

3) Testing communications systems and equipment.

4) Formulating communications engineering technology standards.

5) A classificatory system for transmitted communications content and standardization for other legal provisions.

6) Communications resource management.

7) Maintenance of the competitive order in communications.

8) Standardization and management for data transmission security technology.

9) Handling of major disputes between communications businesses and in consumer protection matters.

10) Handling of external affairs for local communications and international exchanges and cooperation.

11) Management of communications-related funds.

12) Supervision, investigation, and ruling concerning communications matters.

13) Cracking down on and disciplining transgressions of communications-related laws and regulations.

14) Overseeing other communications-related matters.

Article 4  The NCC shall have thirteen members, all full-time. One shall be chairperson with special appointment, who shall represent the NCC in public forums. There shall be two vice chairpersons, who shall be political appointees at the equivalent of GS14.  Other members shall have the equivalent of GS 13. Each term lasts three years, renewable for another term.

      The various political parties (groups) shall accept recommendations from all circles of society for NCC members on the basis of specialized expertise or practical experience in telecommunications, information, communications, law, or finance and economics. The parties (groups) shall nominate candidates proportionate to the number of seats they hold in the Legislative Yuan, for a total of 15 candidates.  The Premier shall nominate three candidates. The candidates shall be turned over to the Nomination Review Committee (hereinafter referred to as the “NRC”) for review. The parties (groups) shall complete the nomination of their candidates within fifteen days after this Act comes into effect.

      Within ten days after this Act comes into effect, the NRC shall be formed of eleven scholars and experts whose names are submitted by parties (groups) proportionate to the number of seats they hold in the Legislative Yuan. The NRC shall complete the review process within twenty days of receiving the nomination of candidates. Review shall be conducted in public according to public hearing procedure; voting on candidates for the NCC shall be by signed ballot.  Consent shall be signified initially by an affirmative vote of three fifths of all NRC members.  In the event of a failure to reach 13 candidates for the NCC, then an affirmative vote of one half of all NRC members will be sufficient for consent. The Premier shall present a list of candidates based on the consent list provided by the NRC within seven days of receiving it. After sending the new list to the Legislative Yuan for confirmation, the Premier shall officially appoint the NCC members.

With respect to nominations of candidates in the two preceding paragraphs, the failure of parties (groups) to submit names of candidates for NRC consideration before the deadline shall be considered forfeiture of nomination.

Within three days of appointment, the NCC members shall of their own accord convene the NCC, elect a chairperson and vice chairpersons, who must be appointed by the Premier within seven days of the election.  The chairperson and vice chairpersons shall belong to lists of candidates from different parties (groups); the nominations made by the Premier shall be deemed to be those of the ruling party.

Three months before the end of the term of office of NCC members, new candidates must be nominated according to the procedure in paragraphs 2 and 3. When more than half of the positions on the NCC become vacant, the vacancies should be filled according to the procedure in paragraphs 2 and 3, and the successors shall serve until the end of the original member’s term.

The personnel and budget needed for the first session of the NRC shall be supplied by the preparatory office for the NCC. The personnel and budget needed for the second session of the NRC shall be supplied by the NCC.

Article 5  In the event of vacancy or incapacitation of the chairperson, the vice chairperson shall act as chairperson. In the event of vacancy or incapacitation of both chairperson and vice chairpersons, the other members shall elect from among themselves an acting chairperson.

Article 6  NCC members must not within three years before the assumption of office at the NCC have held a full-time position at a political party, have participated in an election for public office, have held a paid position or consultancy at a government agency or state corporation, or have held a paid position or consultancy on appointment by a government agency or state corporation. However, members appointed under this Act shall not be under this restriction.

Article 7  The NCC shall exercise its functions in an independent manner in accordance with law.

The NCC members shall transcend partisan politics, exercise their functions independently, and strictly observe the principle of conflict of interest during office.  NCC members shall not be allowed to participate in party activities, to hold any office or consultancy in a government agency or state corporation, or to hold any position in a full-time or part-time capacity at communications businesses or groups.

Within 3 years after leaving office, NCC members shall not serve as director, controller, manager, managing partner or consultant at any for-profit enterprise directly related to any position they held within 5 years prior to leaving the NCC.

Within 3 years after leaving office, NCC members shall not, for their own benefit, nor for the benefit of others, directly or indirectly consult or handle business with their original agency or its subsidiaries on matters in a directly beneficial relationship with any business under their responsibility within 5 years prior to leaving office.

Article 8  All matters under the purview of the NCC shall be decided by resolution at Commission meetings, with the exception of those delegated to lower levels of the NCC by Commission resolution.

       The following matters shall be decided by Commission resolution and shall not be delegated as in the preceding paragraph:

1) The formulation and review of supervisory policies and systems for communications.

2) The review and evaluation of major plans and schemes for communications.

3) The review of communications resource distribution.

4) The review of formulation, drafting, abolishing of laws & regulations related to communications.

5) The review of cases regarding public notification, permission, and disposal for matters related to communications.

6) The review of the organizational chart, rules of order, and rules of internal procedures.

7) The review of the detailed chart of responsibilities delegated to internal units at different levels.

8) The review of decisions with regard to appointment and dismissal of officers recommended by the heads of all internal units, excepting the personnel office, accounting office and government ethics office.

9) The review of the budget and final accounts.

10) Other matters that shall be decided by Commission meeting resolution in accordance with law.

Article 9  Commission meetings shall be held once a week. Extraordinary meetings may be called when necessary.

Commission meetings shall be presided over by the chairperson or by the vice-chairperson in an acting capacity in case the chairperson cannot be present for any reason. When neither the chairperson nor vice chairpersons can be present, a presiding officer shall be chosen by the NCC members from among their number.

Any resolution of a Commission meeting shall be adopted by consent of a majority of all members.  Other members may present concurring opinions or dissenting opinions, which shall be released along with the resolution.

The NCC, by Commission meeting resolution, may call committee meetings.

NCC members shall, in pursuance of Commission meeting resolutions, supervise related businesses of the NCC according to their respective expertise and their functions at the NCC in a division of professional labor.

Scholars and experts may be invited to attend meetings. Representatives of related government agencies, state corporations, or organizations, for the purposes of clarification and presentation of facts or opinions.

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When the Commission meeting reviews administrative orders, administrative planning, or administrative disposals, involving important matters of public interests contained in Article 3 or Article 8, a public hearing shall be held in accordance with provisions on hearing procedure in Chapter 1, Section 10, of the Administrative Procedure Act.

Article 10  The NCC shall have a chief secretary, at GS 12.

Article 11  Related personnel of the NCC shall in principle be existing personnel of

the Department of Posts and Telecommunications (MOTC), Directorate General of Telecommunications (MOTC), and the Department of Radio and Television Affairs (GIO), who shall be transferred along with their official functions.

The GS rankings, titles, and numbers of all officers of the NCC shall be promulgated in an organizational chart.

Article 12  The NCC may consult and request the competent government agency for

police administration to establish a police force with exclusive responsibility in order to aid in the crackdown on violations of communications-related laws and regulations.

Article 13  The personnel expenditures required by the NCC shall be budgeted in

accordance with budgetary procedure prescribed by law.

    According to the provisions of Article 4 of the Basic Communications Act, the NCC shall establish a communications oversight and management fund.

The sources of this fund are as follows:

1) Appropriations by the government through budgetary procedure.

2) Five to fifteen percent of the fees for licenses, permits, frequency usage, telecommunications number usage, review, authentication, examination, certification, registration and other fees charged according to law by the NCC to the businesses under the purview of the NCC in the exercise of its functions related to communications supervision.  However, revenue resulting from the allocation of quotas, frequencies and other licenses of accrued or fixed number through public auction or tender by the government shall not be included.

3) Interest accrued to the fund.

4) Other forms of revenue.

The uses of communications oversight and management fund are as follows:

1) Expenditure required for monitoring communications businesses.

2) Research and development of systems related to the communications industry.

3) Expenditure required for commissioned projects.

4) Training of communications monitoring personnel.

5) The promotion of international exchanges and cooperation.

6) Other expenditures.

The regulations governing the revenues and expenditures, safekeeping, and use of this communications oversight and management fund shall be stipulated by the Executive Yuan.

When the amounts in the communications oversight and management fund supplied by provisions in paragraph 2, sub-paragraphs 2 to 4, are insufficient, the government shall appropriate funds according to official budgetary procedure to cover the shortfall.

Article 14  As the NCC is established in the middle of the budget year, the various funds required as a direct result of the transferring of personnel and functions, under the overall manpower planning, may be re-adjusted by the transferring government agencies within the scope of their respective budgets, notwithstanding the restrictions under the provisions in Articles 62 and 63 of the Budget Act.

Article 15  Before the promulgation of this Act, for personnel transferred along with their official functions to the NCC from the Department of Posts and Telecommunications (MOTC), the Directorate General of Telecommunications (MOTC),  and the Department of Radio and Television Affairs (GIO), the following shall be protected: GS ranking, title, seniority, remuneration, retirement, severance package, bereavement compensation, other benefits as well as working conditions.

The personnel in the preceding paragraph shall not be under the restrictions of the provisions pertaining to employment and transfers of personnel recruited through special civil service examinations stipulated in the Civil Service Examination Act and Civil Service Appointment Act. However, when they are transferred again, they shall be limited to the government agency for which they took the original examination, to the government agency to which they formerly belonged, or to another post at the NCC.

The personnel under Paragraph 1 who were transferred in accordance with provisions of Article 8, paragraph 1, of the Appointment Regulations of the Employees Working in the Enterprises of the MOTC, shall still be governed by such provisions on transfers.  However, when the personnel are transferred to other posts with functions unrelated to transportation and communications administration, they shall be governed by provisions of Article 8, paragraph 2, of the Appointment Regulations of the Employees Working in the Enterprises of the MOTC.

For any personnel covered by Paragraph 1, if remuneration in the new position is inferior, the base (or boosted) salary shall be determined in pursuance with the provisions relating to authorized pay scales of Article 11 of the Civil Service Pay Act, according to which if personnel draw a smaller technical or professional subsidy in the new position, they shall be permitted to have the difference made up. For such personnel, the subsidy difference and remuneration readjustment shall be paid together. When executives are readjusted as non-executives, they shall not receive executive subsidies.

For personnel under Paragraph 1, if they 1) were retained personnel at the Directorate General of Telecommunications as of its restructuring on July 1, 1996, 2) were transferred from Chunghwa Telecom to the Directorate General of Telecommunications between July 1, 1996 and June 30, 1998 and deemed retained personnel, or 3) have opted to have a restructuring remuneration difference made up but are not yet receiving the difference with their regular pay, then they may still handle their cases in the manner of making up the difference in remuneration before and after restructuring.

Before this Act comes into effect, for retained personnel in the July 1, 1996 restructuring of the Directorate General of Telecommunications, if they did not voluntarily assume the responsibility for making up payment on the principal and interest of their contribution to the retirement pension fund for July 1, 1995 to June 30, 1996 according to their seniority of service, calculation may still be made based on their seniority of service before the promulgation of the revision of the Civil Service Retirement Act on July 1, 1995.

Concerning personnel under Paragraph 5, for those who were employees, teaching assistants (assistant interns) or laborers hired under related management regulations authorized by the MOTC prior to the restructuring of the Directorate General of Telecommunications, their seniority of service shall be compensated in accordance with regulations of the Executive Yuan.

Article 16  From the date of the promulgation of the Basic Communications Act up to the date of the establishment of the NCC, with respect to the decisions made by the original competent government agencies in charge of related laws and regulations on communications under the following sub-paragraphs, the incorporated entities and individuals whose rights have been infringed may, within three months of the establishment of the NCC, petition the NCC for review. However, those who have petitioned for administrative redress are not covered.

1) Communications supervisory policy

2) Supervision and management, license issuance and renewal for operation of communications businesses; suspension of broadcasting, license issuance, license renewal or license revocation for radio-TV businesses.

3) Examination and certification of the qualifications for radio-TV business organizations and those of the managing directors or managers of such organizations.

4) Testing of communications systems and equipment.

5) Permission to establish a radio-TV business and permit invalidation, change of broadcasting frequency, suspension or revocation of licenses, transfer of shares, and permission to allow changes in name or managing director. In the event that review finds for a reinstatement, the government shall allow reinstatement; if reinstatement is impossible, the government shall pay compensation.

Article 17  This Act shall come into effect from the date of promulgation.

             After the establishment of the NCC and until the completion of transfer and integration of personnel and property from related government agencies, the relevant functions of the NCC shall be performed by the respective government agencies under the overall coordination of the NCC.