Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
Third Regular Session

73
HOUSE BILL NO. Oy

Introduced by Representatives Karlo Alexei B. Nograles and
Jericho Jonas B. Nograles

EXPLANATORY NOTE

This bill seeks to renew and expand the franchise granted to R. T.
Broadcast Specialist Phil. Inc for another twenty-five years.

Section 24, Article II (Declaration of Principles and State Policies) of the
Constitution states:

“SEC. 24. The State recognizes the vital role of
communication and information in nation-building.”

Radio and television are effective tools in delivering information despite
the advancement of the internet. Broadcast media is important especially in areas
where internet connection is not readily available.

Republic Act No. 8126 entitled, “An Act Granting the R.T. Broadcast
Specialist Philippines a Franchise to Construct, Establish, Operate and Maintain
Radio and Television Broadcasting Stations in Mindanao” was approved in 1995.
Under this law, R.T. Broadcast Specialist Phil. Inc. is given a legislative franchise
for a period of twenty-five years. Thus, the franchise is set to expire in 2020.

R.T. Broadcast Specialist Phil. Inc. is a major facility which provides
frequency to several stations in Mindanao. Renewing its franchise for another
twenty-five years will provide continuous broadcast services to these stations.


Moreover, it will have an opportunity to expand its coverage throughout the
country which will enhance competition, create opportunities that would generate
additional jobs, and provide a steady tool for information amid the country’s
technological programs.

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

md B. NOGRALES i JONAS soni


Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

Seventeenth Congress
Third Regular Session

7380
HOUSE BILL NO.

Introduced by Representatives Karlo Alexei B. Nograles and Jericho Jonas B.
Nograles

AN ACT RENEWING FOR ANOTHER TWENTY FIVE (25) YEARS AND
EXPANDING THE FRANCHISE GRANTED TO RT BROADCAST SPECIALIST
PHIL. INC. UNDER REPUBLIC ACT NO. 8126

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 provision of the
Constitution and applicable laws, rules and regulations, the franchise granted to RT
Broadcast Specialist Phil. Inc. hereunder referred to as the grantee, its successors or
assigns, under Republic Act No. 8126 entitled “An Act Granting the RT Broadcast
Specialist Philippines a franchise to construct, establish, operate and maintain radio
and television broadcasting stations in Mindanao”, 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 technology in
television and radio system, with the corresponding technological auxiliaries and
facilities special broadcast and other programs and distribution services and relay
stations is hereby renewed for another twenty five (25) years from the effectivity of this
Act.


SECTION 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 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
service and/or availability thereof.

SECTION 3. Prior Approval of the National Telecommunications
Commission — The grantee shall secure from the National Telecommunication
Commission (NTC) the appropriate permits and licenses for the construction and
operation of its stations and 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.

SECTION 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 sound and
balanced programming; assist in the functions of public information dissemination 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.

SECTION 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 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 with due process.

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


SECTION 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; Provided, that the grantee, during any
broadcast, shall cut off from the air speech, play, act or scene, or other matter being
broadcast if the tendency thereof is to propose andyor 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.

SECTION 8. Warranty in favor of National and Local Government- The
grantee shall hold national, provincial, city and municipal government of the
Philippines free from all claims, accounts, demands, or action arising out of accident
or injuries, whether to property or to persons caused by the construction or operation
of the stations of the grantee.

SECTION 9. Sales, lease, transfer, usufruct, or assignment of franchise-
The grantee shall not lease, transfer, grant the usufruct or sell or assign this franchise
or rights and privileges acquired thereunder to any person, firm, company, corporation,
or other commercial or legal entity, nor the controlling interest of the grantee to be
transferred, whether as a whole or in part and whether simultaneously or
contemporaneously, to any such person, firm, company, corporation or entity without
prior approval of the Congress of the Philippines. Provided that any person or entity to
which this franchise is sold, transferred or assigned, shall be subject to the same
conditions, term restrictions, and limitations of this Act.

SECTION 10. 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 (30%) percent or a higher percentage that may hereafter
be provided by law of its outstanding capital stocks in any securities exchange in the
Philippines within five (5) years from the commencement of its operations: Provided,
that in case 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 ipso facto revoked.

SECTION 11. Reportorial Requirement- The grantee shall submit an annual
report to the Congress of the Philippines, through the Committee on Legislative
Franchise of the House of Representatives and the Committee on Public Service of
the Senate, on its compliance with the terms and conditions of the franchise and 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 certification is accepted by the NTC.

SECTION 12. 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.

SECTION 13. Equality Clause- Any advantage, favor, privilege, exemption, or
immunity granted under existing franchise, or which may hereafter be granted for radio
andior 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 territory covered by the franchise,
the life span of the franchise, or the type of service authorized by the franchise.

SECTION 14. Separability Clause- If any of the sections or provisions of this
Act is held invalid, all other provisions not affected thereby shall remain valid.

SECTION 15. Repealability and Nonexlusivity 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.

SECTION 16. Effectivity- This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.