Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Nineteenth Congress
First Regular Session

House Bill No. _1319

Introduced by Representative JOEY SARTE SALCEDA

AN ACT
GRANTING KAISSAR BROADCASTING NETWORK, INC. (KBNI)
A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE, AND MAINTAIN
RADIO AND TELEVISION BROADCASTING STATIONS
THROUGHOUT THE PHILIPPINES

EXPLANATORY NOTE

Since it started operations. KAISSAR BROADCASTING NETWORK has
consistently provided its audience with a variety of programs in the eleven (11) AM and FM
stations around the country providing various entertainment. information, and instructional
programs for the public.

KAISSAR can only continue its contribution to the nation if its franchise is renewed.
Hence the network earnestly seeks the grant of the renewal of its congressional franchise so
that it can continue the operation and maintenance of its radio broadcast stations in the country.
KAISSAR will continue to uphold its role in providing critical communication and useful
information in support of nation building. providing high-quality entertainment that is free of
charge and readily available to the public and fulfilling to the listeners. Its franchise renewal
also means employment to those who are part of the radio broadcast industry.

This bill seeks the renewal of the Legislative Franchise granted to KAISSAR
BROADCASTING NETWORK, INC. (KBNI) under Republic Act (RA) 8027 on the 27th of
March in the year 1998.

In view of the foregoing. the passage of this bill is earnestly sought

JOEYSARTE SALCEDA

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Nineteenth Congress
First Regular Session

House Bill No,_2319

Introduced by Representative JOEY SARTE SALCEDA

AN ACT
GRANTING KAISSAR BROADCASTING NETWORK, INC. (KBNI)
A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE, AND MAINTAIN
RADIO AND TELEVISION BROADCASTING STATIONS
THROUGHOUT THE PHILIPPINES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Nature and Scope of Franchise. ~ Subject to the provisions of the
Constitution and applicable laws, rules and regulations. there is hereby granted to Kaissar
Broadcasting Network. Inc.. hereunder referred to as the grantee. successor or assignees. a
franchise to construct. install. operate, and maintain for commercial purposes and in the public
interest, radio and/or television broadcasting stations where frequencies and/or channels are
still available for radio and/or television broadcasting. including digital television system.
through microwave, satellite or whatever means. as well as the use of any new technology in
television and radio systems. with the corresponding technological auxiliaries and facilities,
special broadcast and other program and distribution services and relay stations in the
Philippines.

SEC. 2. Manner of Operation of Stations or Facilities. ~ The stations or facilities of
the grantee shall be constructed and operated in a manner as will, at most, result only in the
minimum interference on the wavelengths or frequencies of existing stations or other stations
which may be established by law. without in any way diminishing its own privilege to use its
assigned wavelengths or frequencies and the quality of transmission or reception thereon as
should maximize rendition of the grantee's services and/or availability thereof.

SEC. 3. Prior Approval of the National Telecommunications Commission. — The
grantee shall secure from the National Telecommunications Commission (NTC) the
appropriate permits and licenses for the construction and operation of its stations or facilities
and shall not use any frequency in the radio/television spectrum without authorization from the
NTC. The NTC. however, shall not unreasonably withhold or delay the grant of any such
authority.

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The grantee shall not dispose or lease its facilities except to entities with radio or
television broadcasting franchise: Provided, That the grantee shall inform and secure written
authorization to proceed from the NTC, and report the transaction to the NTC within sixty (60)
days afier its completion: Provided, further, That the NTC shall determine the corresponding
nnction for any violation of this provision.

In case of any violation of the provisions of this franchise. the NTC shall have the
authority to revoke or suspend, after due process, the permits or licenses it issued pursuant to
the franchise. The NTC may recommend to Congress the revocation of the franchise for any
violation of the provisions of this franchise.

SEC. 4. Responsibility 10 the Public. ~ The grantee shall provide, free of charge,
adequate public service time which is reasonable and sufficient to enable the government,
through the broadcasting stations or facilities of the grantee, to reach the pertinent populations
or portions thereof, on important public issues and relay important public announcements and
warnings concemning public emergencies and calamities, as necessity, urgency or law may
require: provide, at all times sound and balanced programming: promote public participation:
assist in the functions of public information and education; conform to the ethics of honest
enterprise; promote audience sensibility and empowerment including closed captioning: and
not use its stations or facilities for the broadcasting of obscene or indecent language. speech,
act or scene, the dissemination of deliberately false information or willful misrepresentation,
to the detriment of public interest, or to incite, encourage. or assist in subversive or treasonable
acts.

Public service time referred herein shall be equivalent to a maximum aggregate of ten
percent (10%) of paid commercials or advertisements which shall be allocated based on need
to the Executive and Legislative branches. the Judiciary. Constitutional Commissions. and
international humanitarian organizations duly recognized by statutes: Provided. That the NTC
shall increase the public service time in case of extreme emergency or calamity. The NTC shall
issue rules and regulations for this purpose, the effectivity of which shall commence upon
applicability with other similarly situated broadcast network franchise holders.

Pursuant to Republic Act No. 8370, otherwise known as the "Children's Television Act
of 1997". the grantee shall allot a minimum of fifieen percent (15%) of the daily total air time
of each broadcasting network to child-friendly shows within its regular programming.

SEC. 5. Right of the Government. ~ The radio spectrum is a finite resource that is part
of the national patrimony. and the use thereof is a privilege conferred upon the grantee by the
State that may be withdrawn any time after due process.

A special right is hereby reserved to the President of the Philippines. in times of war.
rebellion, public peril, calamity, emergency. disaster. or disturbance of peace and order, to
temporarily take over and operate the stations or facilities of the grantee: to temporarily
suspend the operation of any station or facility in the interest of public safety, security and
public welfare; or to authorize the temporary use and operation thereof by any agency of the
government, upon due compensation to the grantee. for the use of said stations or fai
during the period when these shall be so operated.

SEC. 6. Term of Franchise. — This franchise shall be in effect for a period of twenty-
five (25) years from the effectivity of this Act, unless sooner revoked or cancelled. This

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franchise shall be deemed ipso facto revoked in the event the grantee fails to operate
continuously for two (2) years.

SEC. 7. Self-regulation by and Undertaking of Grantee. — The grantee shall not require
any previous censorship of any speech, play. act or scene. or other matter to be broadcast from
its stations, but if any such speech, play. act or scene, or other matter should constitute a
violation of the law or infringement of a private right, the grantee shall be free from any
liability, civil or criminal, for such speech, play. act or scene, or other matter: Provided, That
the grantee, during any broadcast, shall cut off the airing of speech, play. act or scene, or other
matter being broadcast if the tendency thereof is to propose and/or incite treason, rebellion or
sedition; or the language used therein or the theme thereof is indecent or immoral: Provided.
farther, That willful failure to do so shall constitute a valid cause for the cancellation of this
franchise.

SEC. 8. Warranty in Favor of the National and Local Governments. — The grantee shall
hold the national, provincial. city, and municipal governments of the Philippines free from all
claims, liabilities, demands, or actions arising out of accidents causing injury to persons or
damage to properties. during the construction or operation of the stations of the grantee.

SEC. 9. Commitment to Provide and Promote the Creation of Employment
Opportunities. ~ The grantee shall create employment opportunities as well as accept on-the-
job trainees in the franchise operations: Provided. That priority shall be accorded to the
residents of the place where the principal office of the grantee is located: Provided further, That
the grantee shall comply with the applicable labor standards and allowance entitlement under
existing labor laws, rules and regulations and similar issuances: Provided, finally, That the
employment opportunities or jobs created shall be reflected in the General Information Sheet
(GIS) to be submitted to Securities and Exchange Commission (SEC) annually.

SEC. 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. — The
grantee shall not sell. lease, transfer, grant the usufruct of, nor assign this franchise or the rights
and privileges acquired thereunder to any person. firm, company. corporation or other
commercial or legal entity, nor merge with any other corporation or entity, nor the controlling
interest of the grantee be transferred. simultaneously or contemporaneously. to any person,
firm. company, corporation, or entity without the prior approval of the Congress of the
Philippines.

Congress shall be informed of any sale, lease, transfer. grant of usufruct. or assignment
of franchise or the rights and privileges acquired thereunder, or of the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after the completion of the said
transaction. Failure to report to Congress such change of ownership shall render the franchise
ipso facto revoked. Any person or entity to which this franchise is sold, transferred. or assigned
shall be subject to the same conditions. terms, restrictions, and limitations of this Act.

SEC. 11. Dispersal of Ownership. — In accordance with the constitutional provision to
encourage public participation in public utilities, the grantee shall offer to Filipino citizens at
least thirty percent (30%) of its common stocks. or a higher percentage that may hereafier be
provided by Jaw, in any securities exchange in the Philippines within five (5) years from the
effectivity of this Act: Provided. That in cases where public offer of shares is not applicable.
other methods of encouraging public participation by citizens and corporations operating public
utilities must be implemented. Noncompliance therewith shall render the franchise ipso facto
revoked.

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SEC. 12. Reportorial Requirement. ~ The grantee shall submit an annual report on its
compliance with the terms and conditions of the franchise and on its operations to the Congress
of the Philippines, through the Committee on Legislative Franchises of the House of
Representatives and the Committee on Public Services of the Senate, on or before April 30 of
every year during the term of its franchise.

The annual report shall include an update on the roll-out, development, operation and/or
expansion of business; audited financial statements; latest GIS officially submitted to the SEC,
if applicable: certification of the NTC on the status of its permits and operations; and an update
on the dispersal of ownership undertaking. if applicable. The reportorial compliance certificate
issued by Congress shall be required before any application for permit or certificate is accepted
by the NT

SEC. 13. Fine. — Failure of the grantee to submit the requisite annual report to Congress
shall be penalized by a fine of five hundred pesos (P500.00) per working day of noncompliance.
The fine shall be collected by the NTC from the delinquent franchise grantee separate from the
reportorial penalties imposed by the NTC and the same shall be remitted to the Bureau of the
Treasury.

SEC. 14. Equality Clause. ~ Any advantage. favor. privilege. exemption, or immunity
granted under existing franchises, or which may hereafter be granted for radio and/or television
broadcasting. upon prior review and approval of Congress, shall become part of this franchise
and shall be accorded immediately and unconditionally to the herein grantee: Provided. That
the foregoing shall neither apply to nor affect the provisions of broadcasting franchises
concerning territorial coverage, the term. or the type of service authorized by the franchise

SEC. 15. Repealability and Non-exclusivity Clause. ~ This franchise shall be subject to
amendment, alteration, or repeal by the Congress of the Philippines when the public interest so
requires and shall not be interpreted as an exclusive grant of the privileges herein provided for.

SEC. 16. Separability Clause. ~ If any of the sections or provisions of this Act is held
invalid. all other provisions not affected thereby shall remain valid.

SEC. 17. Repealing Clause. ~ All laws, decrees, orders, resolutions, instructions, rules
and regulations. and other issuances or parts thereof which are inconsistent with the provisions
of this Act are hereby repealed. amended. or modified accordingly.

SEC. 18. Effectivity. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved.

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