Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

16" CONGRESS
First Regular Session

House Brit no,__3462_

Introduced by Representative REGINA ONGSIAKO REYES
Lone District, Marinduque

EXPLANATORY NOTE

This bill seeks to renew the franchise granted to Radio Veritas-Global
Broadcasting System, Incorporated, under Republic Act No. 7579 entitled:
“AN ACT GRANTING THE RADIO VERITAS-GLOBAL BROADCASTING SYSTEM,
INCORPORATED, A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND.
MAINTAIN FOR RELIGIOUS, EDUCATIONAL, CULTURAL AND COMMERCIAL
PURPOSES RADIO AND TELEVISION BROADCASTING STATIONS IN THE
PHILIPPINES, AND FOR OTHER PURPOSES,” enacted into law on June 27,
1992.

RADIO VERITAS-GLOBAL BROADCASTING SYSTEM, INCORPORATED
has been a broadcast institution in the annals of Philippine History.
Tt has witnessed great events from the first EDSA Revolution and
has informed our people of the most recent disaster known as Typhoon
Yolanda. No less than Blessed John Paul the Great, the most-travelled
Roman Pontiff in history, blessed the transmitter and offices of Radio Veritas
in Quezon City during his first visit to the Philippines in February 1981.

Now, as we grant the renewal of this broadcast franchise, we would
like to remind the respective Committee on Legislative Franchise of
the meaning of the Latin term "VERITAS" -- TRUTH. As a radio
broadcasting network devoted to the Truth about man and God, the truth
about the Gospel, we would like to reiterate the historic event we just
concluded this month -- the Year of Faith proclaimed by Pope
Emeritus Benedict XVI and concluded by his successor, Pope Francis.


Pope Francis wants all of us Christians, and even non-Christians,
throughout the world, to continue to work for world peace and harmony
among the brotherhood of men. It is a peace which can only be achieved if
we live our lives full of faith, hope, and trust in God Almighty. This is the
TRUTH, the VERITAS that Radio Veritas wants to proclaim.

The term of the franchise of Radio Veritas-Global Broadcasting System,
Incorporated, which is twenty five (25) years, will expire in June 2017. The
filing of this bill is very timely considering that it will undergo public hearings
and consultations in the committee level and be processed thru the legislative
mill. The renewal of its franchise is needed for long-term planning and capital
investment due to the emerging technologies that make the broadcasting
industry capital intensive.

Communications and media play a vital role in the development and
growth of our country. The state policy is laid down in the 1987 Constitution
which provides that, “The state recognizes the vital role of communication
and information in nation-building.” A most effective means of
communication and dissemination of information is broadcast media
particularly radio in the remote places of the Philippine Archipelago.

It is imperative that the government continue to play an active role in
sustaining and encouraging the development of broadcast media.

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

REGINA ONGSIAKO REYES


Republic of the Philippines.
HOUSE OF REPRESENTATIVES
Quezon City

16" CONGRESS
First Regular Session

HOUSE BILL NO. 3462

Introduced by Representative REGINA ONGSIAKO REYES
Lone District, Marinduque

AN ACT
RENEWING THE FRANCHISE GRANTED TO.

RADIO VERITAS-GLOBAL BROADCASTING SYSTEM, INCORPORATED
TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN FOR
RELIGIOUS, EDUCATIONAL, CULTURAL AND COMMERCIAL
PURPOSES RADIO AND TELEVISION BROADCASTING STATION
IN THE PHILIPPINES, AND FOR OTHER PURPOSES,

UNDER REPUBLIC ACT NUMBERED SEVENTY FIVE HUNDRED
AND SEVENTY NINE TO ANOTHER TWENTY-FIVE YEARS
FROM THE DATE OF APPROVAL OF THIS ACT

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

Section 1. Renewal of Franchise. - Subject to the provisions of
the 1987 Philippine Constitution and applicable laws, rules and regulations,
the franchise granted to Radio Veritas-Global Broadcasting System,
Incorporated, its successors and assigns, hereinafter referred to as the
grantee, to construct, install, operate and maintain for religious, educational,
cultural and commercial purposes radio and television broadcasting station in
the Philippines, and for other purposes, under Republic Act numbered
Seventy Five Hundred and Seventy Nine, is hereby renewed to another
twenty-five 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 the other existing station or stations which may


be established by law without in any way diminishing its own right to use its
selected wavelengths or frequencies and the quality of transmission or
reception thereon as should maximize rendition of the grantee’s services
and/or the availability thereof.

Section 3. Prior Approval of the National Telecommunications
Commission. - The grantee shall secure from the National
Telecommunications Commission (NTC) the appropriate permits and licenses
for its stations and shall not use any frequency in the radio and television
spectrum without having been authorized by 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 reasonable public service time to enable the Government, through the
said broadcasting stations, to reach the population on important public issues;
provide at all times sound and balanced programming; promote public
Participation such as in community programming; assist in the functions of
Public information and education; conform to the ethics of honest enterprise;
and not use its stations for the broadcasting of obscene and indecent
language, or speech, 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. - The President of the
Philippines, in times or rebellion, public peril, calamity, emergency, disaster or
disturbance of peace and order, may temporarily take over and operate the
stations of the grantee, temporarily suspend the operation of any station in
the interest of public safety, security and public welfare, or authorize the
temporary u se and operation thereof by any agency of the Government,
upon due compensation to grantee, for the use of said stations during the
period when they shall be so operated.

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, 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. Non-acceptance shall render the franchise void.


Section 8. Tax Provisions. - The grantee, its successors or
assigns, shall be liable to pay the same taxes on its real estate, buildings and
personal property, exclusive of this franchise, as other persons or
corporations are now or hereafter may be required by law to pay. In addition
thereto, the grantee, its successors or assigns, shall pay a franchise tax
equivalent to three and a half percent (3.5%) of all gross receipts of the radio
business transacted under this franchise by the grantee, its successors or
assigns and the said percentage shall be in lieu of all taxes on this franchise
or earnings thereof. Provided, that the grantee, its successors or assigns
shall continue to be liable for income taxes payable under Title II of the
National Internal Revenue Code pursuant to Section 2 of Executive Order No.
72 unless the latter enactment is amended or repealed, in which case the
amendment or repeal shall be applicable thereto.

The grantee shall file the return with and pay the tax due thereon to
the Commissioner of Internal Revenue or his duly authorized representative in
accordance with the National Internal Revenue Code and the return shall be
subject to audit by the Bureau of Internal Revenue.

Section 9. Public Ownership. in compliance with the
constitutional mandate to democratize ownership of public utilities, the herein
grantee shall make public offering through the stock exchanges of at least
thirty percent (30%) of its common stock within a period of three (3) years
from the date of effectivity of this Act: Provided, That no such single person
or entity shall be allowed to own more than five (5%) of the stock offerings.

Section 10. General Broadcast Policy Act. - The grantee shall
comply with and be subject to the provisions of a general broadcast policy law
that may hereafter be enacted.

Section 11. Self-Regulation by and Undertaking of Grantee.
- The grantee shall not require any previous censorship of any speech, play,
act, scene or other matter to be broadcast and/or telecast from its stations;
but if any such speech, play, act, 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, scene or
other matter. Provided, That the grantee, during any broadcast and telecast,
shall cut-off from the air the speech, play, act, 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; and willful failure to do so shall constitute a valid cause for the
cancellation of this franchise.


Section 12, Warranty in Favor of National and Local
Governments. - The grantee shall hold the national, provincial and
municipal governments of the Philippines harmless 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.

Section 13. Sale, Lease, Transfer, Usufruct of Franchise. —
The grantee shall not lease, transfer, grant the usufruct of, sell or assign this
franchise or the rights and privileges acquired thereunder to any person, firm,
company, corporation or entity, nor merge with any other corporation or
entity without the prior approval of the Congress of the Philippines. Neither
shall the controlling interest in 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. Any person or entity to which this franchise is
validly sold, transferred or assigned shall be subject to all the same
conditions, terms, restrictions and limitations provided for in this Act.

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

Section 15. Repeatability 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.

Section 16. Reportorial Requirement. - The grantee shall
submit an annual report to the Congress of the Philippines on its compliance
with the terms and conditions of the franchise and on its operations within
sixty (60) days from the end of every year.

Section 17. Effectivity Clause. - This Act shall take effect fifteen

(15) days from the date of its publication in at least two (2) newspapers of
general circulation in the Philippines.

APPROVED.