Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. 8825

Introduced by Hon. Manuel “Chiquiting” T. Sagarbarria

EXPLANATORY NOTE

This bill seeks the renewal of the Legislative Franchise granted to Gold Label
Broadcasting System, Inc. Under RA 8087 which passed into law on July 6, 1995.

Gold Label Broadcasting System, Inc., also known as Power FM DYGB
91.7MHz, is a Filipino owned and managed media broadcasting company. From its
humble beginnings, it was able to secure numerous exclusive “on-air block time”
business affiliations with the city and provincial government projects and nationally
renowned private companies and advertising firms.

One of the biggest achievements of the company, is the successful FM on-air
programming modification, such as DYGB's 6 a.m. to 9 a.m. News and Public Affairs
show which merged AM and FM programming styles. This is embodied by the
“Operation Tabang” (Help Operations), a public affairs program, and its longest
running show “Hoy Buntag na Bai” (Wake up brothers, it's morning already). The
said programming format was loved by DYGB target crowd and received various
recognitions.

Through the years, Power FM DYGB 91.7MHz airwave supremacy became a
household mindset in the whole Dumaguete and Negros Oriental. Its weaponry
consists of accumulated radio broadcast armament, such as (1) Strongest
transmission power, (2) Dynamic administration team working as an oversight
committee supervising on-air and off-air operations; (3) Highest compensation based
on local rates compared to competitors; (4) Highest demand for airtime for sale
(block-time programs) from product companies, as well as with private and public
institutions; and (5) Long staying rank and file, and most popular radio personalities.

Power FM DYGB 91.7MHz is resolved to continuously improve its programs
to better its service to the public and uphold its battle cry “ANG SIBYAANANG
BALANSE, PATAS UG KADANGPAN SA TANANI” (the radio station that is
balanced, fair, the asylum of the needy).

From the foregoing, it is eamestly sought that this bill be immediately
approved.

Trea ING" T. SAGARBARRIA



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House BILLNo.__ 8825

Introduced by Hon. Manuel “Chiquiting” T. Sagarbarria

AN ACT

RENEWING THE FRANCHISE GRANTED TO GOLD LABEL BROADCASTING
SYSTEM, INC. UNDER REPUBLIC ACT NO. 8087 ENTITLED “AN ACT
GRANTING TO THE GOLD LABEL BROADCASTING SYSTEM, INC. A
FRANCHISE TO ESTABLISH, MAINTAIN AND OPERATE RADIO AND
TELEVISION BROADCASTING STATIONS IN DUMAGUETE AND OTHER
AREAS IN THE VISAYAS AND MINDANAO WHERE FREQUENCIES AND/OR
CHANNELS ARE STILL AVAILABLE FOR RADIO AND TELEVISION
BROADCASTING” FOR ANOTHER TWENTY-FIVE (25) YEARS FROM THE
EFFECTIVITY OF THIS ACT

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, the franchise granted to
Gold Label Broadcasting System, Inc., its successors or assignees under Republic
Act No. 8087 to construct, install, establish, operate, and maintain for commercial
purposes and in the public interest, radio broadcasting stations where frequencies
andlor channels are still available for radio broadcasting, through microwave,
satellite or whatever means, including the use of any new technology in radio
systems, with the corresponding technological auxiliaries and facilities, special
broadcast and other program and distribution services and relay stations in
Dumaguete and other areas in the Visayas and Mindanao, 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

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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 the availability thereof.

SEC. 3. Prior Approval of the National Telecommunications Commission. —
The grantee shalll 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 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, 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 concerning 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; 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.

Public service time referred herein shall be equivalent to a maximum
aggregate of ten (10%) percent of the paid commercials or advertisements which
shall be allocated based on need of the Executive and Legislative branches, the
Judiciary, Constitutional Commissions and intemational 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.


SEC. 5. Right of the Goverment. — 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 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 facilities 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 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 the 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 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. 8. Warranty in Favor of the National and Local Govemments. - 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 and shalll allow
‘on-the-job trainings in their franchise operation: Provided, That priority shall be
accorded to the residents in areas where any of its offices 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 to be submitted to the 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 shall transfer the controlling interest of the grantee,
whether as a whole or in part, and whether simultaneously or contemporaneously, to
any person, firm, company, corporation, or entity without the prior approval of the
Congress of the Philippines and compliance with legal requirements stipulated in
other statutes: Provided, 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. 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%) 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,
the grantee shall apply other methods of encouraging public participation by citizens
and corporations operating public utilities as allowed by law. Noncompliance
therewith shall render the franchise ipso facto revoked.

SEC. 12. Reportorial Requirement. — During the term of its franchise, the
grantee shall submit an annual report to the Congress of the Philippines, through the


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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.

The annual report shall include an update on the roll-out, development,
operation, or expansion of business; audited financial statements; latest General
Information Sheet officially submitted to 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 an application for permit, certificate, or any equivalent thereof, is accepted by
the NTC.

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 National Treasury.

SEC. 14. Equality Clause. — Any advantage, favor, privilege, exemption, or
immunity granted under existing franchises, or which may hereafter be granted for
radio 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 provisions of
broadcasting franchises concerning territorial coverage, the term, or the type of
service authorized by the franchise.

SEC. 15. Repealability 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.


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,