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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 5200

Introduced by REP. ROSE MARIE J. ARENAS & REP. ANICETO D. BERTIZIII

EXPLANATORY NOTE

This bill seeks to renew the franchise granted to Bright Star Broadcasting Network
Corporation (BSBNC) to construct, install, establish, operate and maintain radio and
television broadcasting stations in the Philippines by another twenty-five (25) years

Bright Star Broadcasting Network Corporation was established in 1991 through
Republic Act 7925 dated March 26, 1992, to construct, install, operate and maintain
radio and television stations for commercial purposes. It was incorporated and
registered with the Securities and Exchange Commission (SEC) on August 22, 1986 for
the same purpose. It is an advertising agent, duly licensed to also carry on the
business of advertising for other radio and television broadcast station. It is authorized
to manufacture and produce musical records and tapes for broadcasting and private
use alike, and to carry a recording business for this purpose. The National
Telecommunications Commission (NTC) granted its FM DZW LA 105.9 frequency and
started its operations in 1992 in Pasig City.

The twenty-five year legislative franchise of BSBNC is expiring in 2017, hence there is
an urgent need to seek a legislative authorization for its continued operations.

In view of the foregoing, the approval of this bill is earnestly sought.

Ze

YY’ J. ARENAS. ANieeTO"JOHN™ D. BERTIZ Ill

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2 RECEIVED


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bit no._ 5200

Introduced by REP. ROSE MARIE J. ARENAS & REP. ANICETO D. BERTIZ Ill

AN ACT
RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE
GRANTED TO BRIGHT STAR BROADCASTING NETWORK CORPORATION
UNDER REPUBLIC ACT NO. 7295 ENTITLED “AN ACT GRANTING THE BRIGHT
STAR BROADCASTING NETWORK CORPORATION A FRANCHISE TO
CONSTRUCT, INSTALL, OPERATE AND MAINTAIN FOR COMMERCIAL
PURPOSES RADIO AND TELEVISION BROADCASTING STATIONS IN THE
PHILIPPINES AND FOR OTHER PURPOSES”

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
Philippine Constitution and applicable laws, rules and regulations, the franchise
granted to Bright Star Broadcasting Network Corporation, hereunder referred to as the
grantee, its successors or assignees, under Republic Act No.7295 entitled “An Act
Granting the Bright Star Broadcasting Network Corporation, a Franchise to Construct,
Operate and Maintain Radio Broadcasting Stations in the Philippines, and for Other
Purposes”, to construct, install, establish, operate, and maintain for commercial
purposes and in the public interest, radio and/or television broadcasting stations,
including digital television system, through microwave, satellite or whatever means,
including 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, is hereby
renewed for another twenty-five (25) years from the effectivity of this Act.

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


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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 and
facillties 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.

SEC. 4. Responsibility to the Public. - The grantee shall provide adequate
public service time to enable the government, through the said broadcasting stations
or facilities, to reach the population on important public issues; provide at all times
sound and balanced programming; assist in the functions of public information and
education; conform to the ethics of honest enterprise; and not use its stations and
facilities for the broadcasting of obscene and indecent language, speech, act or scene;
or for the dissemination of deliberately false information or willful misrepresentation, to
the detriment of the public interest; or to incite, encourage, or assist in subversive or
treasonable acts

SEC. 5. Right of Government. - 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 facilities during
the period when they shall be so operated.

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 and may be
withdrawn anytime after due process.

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

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

SEC. 7. Acceptance and Compliance. ~ Acceptance of this new franchise shall
be given in writing 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, within sixty (60) days from the effectivity of this Act, Upon
giving such acceptance, the grantee shall exercise the privileges granted under this
Act, Nonacceptance shall render the franchise void.

SEC. 8, 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: Provided, That the grantee, during any broadcast, shall
cut off from the air the 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, further,
That willful failure to do so shall constitute a valid cause for the cancellation of this
franchise.

SEC. 9. Warranty in Favor of National and Local Governments. - The grantee
shall hold the national, provincial, city, and municipal governments of the Philippines
free from all claims, accounts, demands, or actions arising out of accidents or injuries,
whether to property or to persons, caused by the construction or operation of the
stations of the grantee.

SEC. 10. Sale, Lease, Transfer, Usufruct, or Assignment of Franchise. - The
grantee shall not lease, transfer, grant the usufruct of, sell nor assign this franchise or
the rights and privileges acquired thereunder to any person, fim, 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, whether as a whole
or in parts, and whether simultaneously or contemporaneously, to any such person,
firm, company, corporation or entity without the prior approval of the Congress of the
Philippines: Provided, That Congress shall be informed of any sale, lease, transfer,
grant of usufruct of, or assignment of franchise or the rights or privileges acquired
thereunder, or of the merger or transfer of the controlling interest of the grantee, within
sixty (60) days after the completion of said transaction: Provided, further, That failure
to report to Congress such change of ownership shalll render the franchise jpso facto

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revoked: Provided, finally, That 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. 12. 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 per cent (30%) or a higher percentage that may hereafter
be provided by law of its outstanding capital stock in any securities exchange in the
Philippines within five (5) years from the commencement of its operations: Provided,
That in cases where public offer of shares is not applicable, establishment of
cooperatives and other methods of encouraging public participation by citizens and
corporations operating public utilities must be implemented. Noncompliance therewith
‘shall render the franchise jpso facto revoked.

SEC. 13. General Broadcast Policy Law. ~ The grantee shall comply with and
be subject to the provisions of a general broadcast policy law, which Congress may
hereafter enact.

SEC. 14. Reportorial Requirement. — The grantee shall submit an annual
report 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 its compliance with the terms and conditions of the franchise and on its
operations on or before April 30 of every year during the term of its franchise, The
reportorial compliance certificate issued by Congress shall be required before any
application for permit or certificate is accepted by the NTC.

SEC. 15, Penalty Clause ~ Failure of the grantee to submit the requisite
annual report to Congress will be penalized by a fine in the amount of five hundred
pesos (P500.00) per working day of noncompliance. The fine will be collected by the
NTC from the delinquent franchise grantee separate from the reportorial penalties
imposed by the NTC.

SEC. 16. 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

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provisions of broadcasting franchises conceming territory covered by the franchise, the
life span of the franchise, or the type of service authorized by the franchise,

SEC. 17. 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. 18. Repeatability and Nonexclusivity 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. 19, Effectivity- This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,