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

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. aoe

Introduced by Representatives Cyrille “Beng” F. Abueg-Zaldivar and Gil
“Kabarangay Jr.” A. Acosta

EXPLANATORY NOTE

Section 24, Article II of the 1987 Constitution provides that “the State
recognizes the vital role of communication and information in nation-
building.” This means that the mass media serves as a conduit that ensures
the flow of information between the government and the people. Further,
Section 7 of said Constitution declares “the right of the people to information
on matter of public concern.” These legal provisions of the highest law of the
land serve as the centerpoint and basis of Romeo Cabrestante Servando for his
mass media practice and in securing a legislative franchise to operate a
broadcast media.

For several years, Romeo Cabrestante Servando has made it his
personal mission to disseminate information to the public in the far-flung
areas of the Philippines. Primarily located in the Province of Palawan, his
radio stations have served as one of the most reliable sources of news and
information needed by the public through relevant, timely and balanced
broadcast programs.

Romeo Cabrestante Servando recognizes the essentiality of the free flow
of ideas and information in a democracy. His radio stations play an important
role in catering to the needs of, and providing a voice for, communities that
are not adequately serviced by other broadcast sectors. In so doing, these
community radio stations share with their listeners a diverse range of
viewpoints that enrich the social and cultural fabric of local communities in
the province, and provide opportunities for participation in public
broadcasting and content production.

The law that grants Romeo Cabrestante Servando the mandate to fulfill


his mission will expire very soon. With full knowledge of the significance of
the franchise given to him, as well as having the interest of the public at heart,
this bill seeks to extend the term of the franchise granted to’ Romeo
Cabrestante Servando, to construct, install, establish, operate, and maintain
for commercial purpose and in the public interest, radio stations in the
Province of Palawan for another twenty-five (25) years.

Taking into account the significance of this measure, its immediate
passage into law is earnestly sought.

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CYRILLE es , ABUEG-ZALDIVAR GIL “KABARANGAY JR. A. ACOSTA
Representative, 2! District of Palawan Representative, 3 District, Palawan


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 4162

Introduced by Representatives Cyrille “Beng” F. Abueg-Zaldivar and Gil
“Kabarangay Jr.” A. Acosta

AN ACT
RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE
GRANTED TO ROMEO CABRESTANTE SERVANDO UNDER REPUBLIC ACT
NO. 8202, TITLED “AN ACT GRANTING ROMEO CABRESTANTE SERVANDO, A
FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN.
RADIO AND TELEVISION BROADCASTING STATIONS IN THE PROVINCE OF
PALAWAN”

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
Romeo Cabrestante Servando hereunder referred to as the grantee, its successor or
assignees, under Republic Act No.8202, to construct, establish, maintain and operate
in the public interest and for and commercial purposes, radio and/or television
broadcasting stations, including digital television system, through microwave,
satellite, terrestrial 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 in the province of Palawan, is hereby renewed for another twenty-five (25)
years.

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 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 availability thereof.


SEC. 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 and/or television spectrum
without authorization from the NTC.

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 its broadcasting stations or facilities of the grantee, to reach the
pertinent population/s 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 through, but not limited to, 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 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, legislative, judiciary, constitutional
commissions and international 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 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 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 and
cancelled. This franchise shall be deemed ipso facto revoked in the event the grantee
fails to operate continuously for two (2) years.


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SEC. 7. Renewal or Extension of Franchise. - The grantee shall apply for the
renewal or extension of its franchise five (5) years before its expiration date which
shall be reckoned fifteen (15) days after the publication of the franchise in the Official
Gazette or in any newspaper of general circulation, whichever comes earlier.

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 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 from its stations: Provided, That the grantee, during any
broadcast and/or telecast shall cut off from the air the speech, play, act or scene, or
other matter being broadcast and/or telecast 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 and cancellation of this franchise.

SEC. 9. Warranty in Favor of the 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.

SEC. 10. Commitment to Provide and Promote the Creation of Employment
Opportunities. - The grantee shall create employment opportunities and shall 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 follow 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 Securities and Exchange Commission
annually.

SEC. 11. Tax Provisions. - The grantee, its successors or assignees shall
continue to be subject to all applicable taxes, duties, fees or charges and other
impositions under Republic Act No. 8424, otherwise known as “The National Internal
Revenue Code of 1997”, as amended, and other applicable laws.

SEC. 12. 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, 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: Provided, That such transfer, sale or issuance is in accordance with any


applicable constitutional limitation: 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. 13. 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 per cent (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 (6) 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. 14. Compliance with Labor Standards. - The grantee, its successors or
assignees shall comply with the applicable labor standards under existing labor laws,
rules and regulations and such other issuances as may be promulgated by the
Department of Labor and Employment, taking into consideration the nature and
peculiarities of the broadcasting industry.

SEC. 15. 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 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 during the term of its franchise.

The annual report shall include an update on the roll-out, development,
operation and/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 any application for permit or certificate is accepted by the NTC.

SEC. 16. 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. 17. 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


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to nor affect the provisions of broadcasting franchises concerning territorial coverage,
the term, or the type of service authorized by the franchise.

SEC. 18. 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 for.

SEC. 19, Separability Clause. - If any section or provision of this Act is held
invalid, all other provisions not affected thereby shall remain valid.

SEC. 20. Repealing Clause. - All other laws, orders, issuances, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed, amended
or modified accordingly.

SEC. 21. Effectivity. -This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of general circulation.

Approved,