oN Ae

Republic of the Philippines st

HOUSE OF REPRESENTATIVES fs v.06 SEP 2012
Quezon City H MES

FIFTEENTH CONGRESS

House Bill NoGD4 4.

Tatroduced by
Hon, Yevgeny Vincente B, Emano

EXPLANATORY NOTE

No less than the 1987 Philippine Constitution in Section 24, Article JI declares how
“the State recognizes the vital role of communication and information in nation-building”
Filipino households rely heavily on radios and televisions as theit primary sources of reliable
information. These media not only entertain, but educate the Filipino people.

While there are now established corporations that operate radio and television
broadcasting stations in various areas within the country, it is undeniable that many parts of
the country still suffer from dearth of these vital services. Healthy competition among
existing franchises would also be encouraged by the entry of new players in the field, which
would foster an even better radio and television broadcasting regime.

It is in view of the foregoing that this bill is submitted to grant SOCSARGEN
BROADCASTING NETWORK, INC. a nationwide franchise to construct, install, establish,
operate and maintain radio and television broadcasting stations in all forms permitted by law
in any area within the Philippines. Approving this bill is an important step towards
empowering the Filipino people through the provision of good information and
communications infrastructure

Therefore, it is earnestly requested that this bill be expeditiously approved



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS

House Bit 6542

Tntroduced by’
Hon. Yevgeny Vincente B, Emano

AN ACT GRANTING
THE SOCSARGEN BROADCASTING NETWORK, INC, A FRANCHISE TO
CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND
TELEVISION BROADCASTING STATIONS IN FHE 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
SOCSARGEN BROADCASTING NETWORK, INC., hereunder referred to as the grantee,
its successors and assigns, a franchise 1o construct, install, establish, operate and maintain for
commercial purposes and in the public interest, radio and/or television broadcasting stations
in the Philippines, where frequencies and/or channels are still available for radio and/or
television broadcasting, including digital radio and television system, internet protocol (IP)
related services and IP value-added services, through microwave, satellite or whatever means,
including the use of any new technology that may hereafter or in the future be developed in
the radio and television broadcasting, with the corresponding technological auxiliaries and
facilities, special broadcast and other program and distribution services and relay stations

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 right
to use it selected 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 Yelecommunications 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
facilities and shall not use any frequency in the radiotelevision spectrum without having
been authorized by the Commission. The Commission, 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 deliberarely
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 suspend the operation of any station
or facility in the interest of public safety, security and public welfare, oc to authorize the
temporary use and operation thereof by any agency of the govemment, upon due
compensation to the grantee, for the use of said stations or facilities during the period when
the 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, unless sooner revoked, This franchise shall be deemed ipso facto
revoked in the event the grantee fails to comply with any of the following conditions:

a. Commence operations within one (1) year from the approval of its operating
permit by the National Telecommunications Commission,

b. Operate continuously for two (2) years; and
¢. Commence operations within three (3) years from the effectivity of this Act.

SEC. 7. Acceptance and Compliance. — Acceptance of this 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. Non-acceptance shall render
the franchise void.

SEC. 8. Bond. - The grantee shall file a bond issued in favor of the NTC,
which shall determine the amount, to guarantee the compliance with and fulfillment of the
conditions under which this franchise is granted. If, after three (3) years from the date of the
approval of its permit by the Commission, the grantee shall have fulfilled the same, the bond
shail be forfeited in favor of the government and the franchise ipso facto revoked.

SEC. 9. 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.10. Warranty in Favor of National and Local Governments, — The grantee
shall hold the national, provincial, city and municipal govemments 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


SEC.11, Sale, Lease, Transfer, Usufruct, Assignment. — The grantee shall not
lease, transfer, grant the usuftuct of, sell or assign this franchise or the rights and privileges
acquired thereunder to any person, firm, company, corporation or other commercial or {egal
entity, or merge with any other corporation or entity, or merge with any other corporation or
entity, or transfer the controlling interest of the grantee, whether as a whole or in parts and
whether simultaneously or contemporaneously, to any such person, firm, company,
corporation of entity without the prior approval of the Congress of the Philippines: Provided,
That Congress shall be informed of any lease, wansfer, granting the usuffuct of, sale or
assignment of franchise or the rights or privileges acquired within sixty (60) days after the
completion of said transaction; Provided, further, That failure to report to Congress such
change of ownership shall render the franchise ipso facto 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 utilitics, the grantee shall offer at least
thirty per centum (30%) of its outstanding capital stock or a higher percentage that may
hereafter be provided by law in any securities exchange in the Philippines within five (5)
years from the commencement of its operations. Noncompliance therewith shall render the
franchise ipso facto revoked

SEC. 13 Equality Clause, — Any advantage, favor, privilege, exemption or
immunity granted under existing franchises, or which may hereafter be granted for radio
and/ot television broadcasting, shall ipso facto become part of this franchise and shall be
accorded immediately and unconditionally to the herein grantee: Provided, however, That the
foregoing shall neither apply to nor affect 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; Provided, further, That the foregoing shall not apply to sale,
lease, wansfer, grant of usufruct, or assignment of legislative franchise with prior
congressional approval.

SEC. 14. General Broadcast Policy Law. - The grantee shall comply with and
be subject to the provision of a general broadcast policy law, which Congress may hereafter
enact,

SEC. 15. Reportorial Requirement. — The grantee shall submit an anual report
to the Congress of the Philippines, through the Committee on Legislative Franchise of the
House of Representatives and the Committee on Public Services o the Senate, on its
compliance with the terms and conditions of the franchise and on its operations on or before
April 30 of the succeeding year.

SEC. 16. Penalty Clause. — Any grantee who fails to submit the annual report to.
Congress shall be fined Five Hundred Pesos (P 500,00) per working day of non-compliance.
The fine shall be collected by the NTC from said delinquent franchise grantee separate form
the reportorial penalties imposed by NTC. The collected funds shall accrue to the monitoring
fund of the NTC in line with its supervisory and regulatory fiunctions. The reportorial
compliance certificate issued by Congress shall be required before any application for permit
or certificate is accepted by NTC

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, _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 privileges herein
provided for

SEC. 19. Publication. This Act shall be published, through the initiative of the
grantee, fifteen (15) days after this Act is signed by the President of the Philippines or has
Tapsed into law.

SEC. 20. _Bfectivity Clause. — This Act shall take efffect fifteen (15) days from

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

Approved,