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

SEVENTEENTH CONGRESS

First Regular Session

Housepnino 4668 _

INTRODUCED BY REPRESENTATIVE XAVIER JESUS D, ROMUALDO.

EXPLANATORY NOTE,

Republic Act No. 7478, enacted in 5 May 1992, granted Sarraga Integrated and Management
(SIAM) Corporation a 25-year franchise to operate radio and television broadcasting stations in

the country.

Today, SIAM Corporation owns two AM radio stations, DYHH-AM 864 Bantay Radyo in Bogo
City and DYZZ-AM 1458 Bantay Radyo in Guihulngan City, one FM radio station, DXJL103.3
TV Channel 4 in

The New J in Cagayan de Oro City, and two television (TV) stations, DYTS

Tacloban City and DXNL-TV Channel 27 in Cagayan de Oro City. It also has a television
translator about 10,000 feet above mean sea level in Mount Kitanglad, Bukidnon. All of SIAM

Corporation’s TV and radio transmitters are on full solid-state power and are maintained by
highly trained and experienced engineers. Moreover, it is presently processing applications with

the National Telecommunications Commission for the operation of Ultra High Frequency/Very

High Frequency TV stations, 14 FM radio stations, two AM radio stations, and eight wireless

cable TV systems.

Considering that SIAM Corporation has made appropriate use of its franchise, complied with the
provisions thereof, invested significantly in broadcasting stations and equipment, and intends to
continue and expand its operations, it is only proper for Congress to renew SIAM Corporation's

franchise to operate radio and television broadcasting stations in the country,

‘The support of the Members of Congress for the prompt and timely passage of this measure is

earnestly sought

KA DVO

XAVIER JESUS D. ROMUALDO


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

First Regular Session

HOUSE BILL NO. 4668

INTRODUCED BY REPRESENTATIVE XAVIER JESUS D. ROMUALDO.

AN ACT
RENEWING THE FRANCHISE GRANTED TO SARRAGA INTEGRATED AND
MANAGEMENT CORPORATION UNDER REPUBLIC ACT NO. 7478 TO
CONSTRUCT, INSTALL, OPERATE, AND MAINTAIN, FOR COMMERCIAL,
PURPOSES, RADIO AND TELEVISION BROADCASTING STATIONS IN
PHILIPPINES,

Be it enacted by the Senate and House of Representative 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, a franchise is hereby granted again to
the Sarraga Integrated Management Corporation, hereinafter referred to as the Grantee, its
successors of assigns, t0 construct, install, establish, operate, and maintain, for commercial
purposes and in the public interest, radio and television broadcasting stations in the Philippines,
where frequencies or channels are still available for radio or television broadcasting, including
digital television, through microwave, satellite, or whatever means, including the use of any new
technologies in television and radio systems, 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 and Facilities. ~ The stations and facilities of the
Grantee shall be constructed and operated in a manner that will result, at most, only in minimum
interference on the wavelengths or frequencies of existing stations or other stations which may
be later established, 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 the rendition of the Grantee’s services and the availability thereof.


j SEC. 3. Prior Approval of the National Telecommunications Commission, - The Grantee

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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 radio and television spectrum without authorization from the NTC; Provided,
that the NTC shall not unreasonably delay or withhold the grant of any such authority

SEC. 4. Responsibility to the Public. ~ The Grantee shall:

(a) provide adequate public service time to enable the Government, through its broadcasting

stations or facilities, to reach the population on important public issues;

(b) provide, at all times, sound, and balanced programming;

(c) assist in the functions of public information and educat

(d) conform to the ethics of an honest enterprise, and

(e) not use its stations and facilities for the broadcasting of obscene and indecent language,

speech, act, or scene, 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 treasonous acts.

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>. 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 stations or facilities of the Grantee,
temporarily suspend the operation of any station or facility of the Grantee in the interest of public
safety, security, and public welfare, or authorize the temporary use and operation thereof by any
agency of the Government, upon due compensation to the Grantee, for the use of its stations or

facilities during the period when they shall be so operated.


f and privileges acquired thereunder to any person, firm, company, corporation, or other

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commercial or legal entity, nor merge with any other corporation or entity, nor shall transfer its
controlling interest, whether as a whole or in part, 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 sold,
transferred, or assigned shall be subject to the same conditions, terms, restrictions, and
limitations of this Act

SEC. 11. General Broadcast Policy Law. ~ The Grantee shall comply with and be subject
to the provisions of a general broadcast policy law, which the Congress of the Philippines may

hereafter enact.

SEC. 12. Reportorial Requirement. ~The Grantee shall submit an annual report to the
Congress of the Philippines, through the Committee on Legislative Franchises of the House of
representative 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

during the term of this franchise

SEC. 13. Equality of Treatment. ~ Any advantage, favor, privilege, exemption, or
immunity granted under existing franchises or which may hereafter be granted for radio or
television broadcasting, upon prior review and approval of the Congress of the Philippines, shall
automatically become part of this franchise and shall be accorded immediately and
unconditionally to the Grantee, Provided, that the foregoing shall neither apply to nor affect the
provisions of broadcasting franchises concerning territory covered by such franchise, the life

span of the franchise, or the type of service authorized by the franchise.

SEC 14. Amendment, Repeal, and Non-Exclusivity. ~The franchise shall be subject to
amendment, modification, or repeal by the Congress of the Philippines, when the public interest

80 requires and shall not be interpreted as an exclusive grant of the privileges herein provided


y he radio spectrum is a finite resource that is part of the national patrimony and the use thereof is

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a privilege conferred upon the Grantee by the State and may be withdrawn anytime with the

observance of due process.

SEC. 6. Term of Franchise. — This franchise shall be in effect for a period of 25 years
from the effectivity of this Act, unless sooner revoked or cancelled, This franchise shall be ipso

facto revoked in the event the Grantee fails to operate continuously for two (2) years

SEC. 7. Acceptance and Compliance. ~ Acceptance of this new franchise by the Grantee
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 60 days from the effectivity of this Act. Upon the giving of such acceptance,

the Grantee shall exercise the privileges granted under this Act. Non-acceptance of this franchise

within the period provided herein shall render the same void.

SEC. 8. 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
broadcasted from its stations; Provided, that the Grantee, during any broadcast, shall cut off from
the air a 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 of the Grantee to do so. shall

constitute a valid cause for the cancellation of this franchise.

SEC. 9. 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,
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. 10, Sale, Lease, Transfer, Grant, Usufruet, or Assignment of this Franchise. ~ The

Grantee shall not lease, transfer, grant the usufruct of, sell, or assign this franchise or the rights


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SEC 15. Separability. — If any provision of this Act is declared invalid or

unconstitutional, the other provisions not affected thereby shall remain in full force and effect.

SEC 16. Effectivity. - This Act shall take effect immediately after its publication in the

Official Gazette or a newspaper of general circulation