Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

7527
House Bill No.

Introduced by REPRESENTATIVES FERDINAND L. HERNANDEZ
AND JERICHO JONAS B. NOGRALES

EXPLANATORY NOTE

This bill seeks to renew the legislative franchise granted to Baycomms Broadcasting
Corporation (“Baycomms”) to install, operate and maintain radio and television broadcasting
stations in the Philippines.

Baycomms' legislative franchise emanates from Republic Act 8718, entitled “AN ACT
GRANTING THE BAYCOMMS BROADCASTING CORPORATION A FRANCHISE TO
CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND
TELEVISION STATIONS IN THE PHILIPPINES,” which was approved on 16 July 1998.

Since the grant of its legislative franchise, Baycomms has established various AM and
FM radio stations in the various cities and municipalities in the Philippines, and one TV station
in General Santos City, providing quality news, commentary, entertainment and public affairs
programs to its listeners and viewers.

Notwithstanding the innovations in information technology, radio and television
broadcasting remain crucial in disseminating information to the public. Indeed, radio and
television reach more people than any other platform especially in the remote areas of the
country. The instant availability and accessibility of information brought about by these media
help in the day-to-day life of every Filipino. As such, radio and television broadcasting plays a
vital role in economic development and nation-building, The renewal of Baycomms’ legislative
franchise will ensure continuity in the public service that it provides to its listeners and viewers
especially in the provinces.

In view of the foregoing, the immediate passage of this bil

FERDINAND LL. HERNANDEZ JERICH |. NOGRALES


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

EIGHTEENTH CONGRESS
Second Regular Session.

House Bill No. 1527

Introduced by REPRESENTATIVES FERDINAND L. HERNANDEZ
AND JERICHO JONAS B. NOGRALES

AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE
GRANTED TO BAYCOMMS BROADCASTING CORPORATION UNDER REPUBLIC ACT
NO. 8718, ENTITLED "AN ACT GRANTING THE BAYCOMMS BROADCASTING
CORPORATION, A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE
AND MAINTAIN RADIO AND TELEVISION STATIONS IN THE PHILIPPINES."

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

Section 1. Nature and Scope of Franchise. - Subject to the provisions of the 1987
Constitution and applicable laws, rules and regulations, the franchise granted under Republic
Act 8718 to Baycomms Broadcasting Corporation, hereunder referred to as the grantee, its
successors or assignees, under Republic Act No. 8718 to construct, install, operate and maintain,
for commercial purposes and in the public interest radio and/or television broadcasting stations,
including digital and pay television system, through microwave, satellite or whatever means, as
well as 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.

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 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.

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 the construction and operation of its stations or 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 such authority.



The grantee shall not dispose or lease its facilities except to entities with radio or
television broadcasting franchise: Provided, that the grantee shall secure and obtain written
authorization to proceed from the NTC, and report the transaction to the NTC within sixty (60)
days after its completion: Provided, further, that the NTC shall determine the corresponding
sanction for any violation of this provision.

In case of any violation of the provisions of this franchise, the NTC shall have the
authority to revoke or suspend, after due process, the permits or licenses it issued pursuant to
the franchise. The NTC may recommend to Congress the revocation of the franchise for any
violation of this provision.

Section 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
orscene, 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
percent (10%) of the paid commercials or advertisements which shall be allocated based on
need to the Executive and Legislative branches, the Judiciary, Constitutional Commissions, and
international humanitarian organizations duly recognized by statutes: Provided, That the NTC
shall increase the public service time in case of 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.

Pursuant to Republic Act 8370, otherwise known as “Children’s Television Act of 1997”,
the grantee shall allot a minimum of fifteen percent (15%) of the daily total airtime of each
broadcasting network to child-friendly shows within its regular programming.

Section 5. Right of the Government. ~ 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 the stations during the
period when these 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 date of 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, but if any such speech, play, act or 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 or scene, or other matter; Provided, That the
grantee, during any broadcast, shall cut off the airing of 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 revocation or
cancellation of this franchise.

Section 8. 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, 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.

Section 9. Commitment to Provide and Promote the Creation of Employment
Opportunities. — The grantee shall create employment opportunities as well as accept on-the-
job trainees in the franchise operation: Provided, That priority shall be accorded to the residents
of the place where the principal office of the grantee 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 (GIS) to be
submitted to the Securities and Exchange Commission (SEC) annually.

Section 10. Sale, Lease, Transfer, 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 the controlling interest of the
grantee be transferred simultaneously or contemporaneously, to any person, firm, company,
corporation or entity without the prior approval of the Congress of the Philippines. Congress
shall be informed of any sale, lease, transfer, grant of usufruct or assignment of franchise or the
rights and 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. Failure to report to
Congress such change of ownership shall render the franchise ipso facto revoked. Any person or
entity to which this franchise is sold, transferred or assigned shall be subject to all the same
conditions, terms, restrictions, and limitations of this Act.

Section 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%) of its common stocks or a higher percentage that may hereafter be
provided by law, in any securities exchange in the Philippines within five (5) years from the
effectivity of this Act: Provided, That in cases where public offer of shares is not applicable, other
methods of encouraging public participation by citizens and corporations operating public
utilities must be implemented. Non-compliance therewith shall render the franchise ipso facto
revoked.

Section 12. Reportorial Requirement. ~ The grantee shall submit an annual report on its
compliance with the terms and conditions of the franchise and on its operations 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 or before April 30 of
every year during the term of the franchise.


The Annual Report shall include an update on the roll-out, development and operation
and/or expansion of business; audited financial statements; latest GIS officially submitted to the
SEC, if applicable; certification of the NTC on the status of its permits and operation; and an
update on the dispersal of ownership and undertaking, if applicable.

The reportorial compliance certificate issued by Congress shall be required before any
application for permit or certificate is accepted by the NTC.

Section 13. Fine — Failure of the grantee to submit the requisite annual report to
Congress shall be penalized by a fine of Five Hundred Pesos (500.00) 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 Bureau of the Treasury.

Section 14. 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 provisions of broadcasting franchises concerning
territorial coverage, the term, or the type of service authorized by the franchise.

Section 15. 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 the privileges herein provided for.

Section 16. Separability Clause. - If any of the sections or provisions of this Act is held
invalid, all the other provisions not affected thereby shall remain valid.

Section 17. Repealing Clauses. ~ All laws, decrees, orders, resolutions, instructions, rules
and regulations, and other issuance or parts thereof which are inconsistent with the provisions
of this Act are hereby repealed, amended or modified accordingly.

Section 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