Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
‘Second Regular Session

HOUSE BILL NO. _ 5743

Introduced by: REP, ELEANDRO JESUS F. MADRONA

EXPLANATORY NOTE

The Subic Broadcasting Corporation was granted a franchise to construct, install,
operate and maintain radio broadcasting stations in the Philippines effective May 21,
1992 under Republic Act 7511. The same law has given the grantee the rights,
privileges, and authority to function for a period of twenty-five (25) years.

For forty-six years now, the Subic Broadcasting Corporation serves as an
important instrument in information dissemination that bridges communication gaps
among the populace of the country. It was able to provide sound and balanced
programming, as rendered by its broadcasting stations, making information easily
accessible to the general public. It has also frequently communicated with the people on
important issues that concern the public interest.

In three years’ time, the law that has given life and mandate to the Subic
Broadcasting Corporation's existence and operation will expire. Therefore, this bill
seeks to extend the term of the franchise of the Subic Broadcasting Corporation for
another twenty-five (25) years from its original expiration date, for radio and television
broadcast in Luzon, Visayas, and Mindanao.

In view of the foregoing, the passage of this bill is earnestly sought.

aa

ELEANDRO JESUS F. MADRONA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

5749

HOUSE BILL NO.

Introduced by: REP, ELEANDRO JESUS F. MADRONA

AN ACT
RENEWING THE FRANCHISE GRANTED TO SUBIC BROADCASTING CORPORATION UNDER
REPUBLIC ACT. NO. 7511 ENTITLED “AN ACT GRANTING THE SUBIC BROADCASTING
CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN RADIO AND
TELEVISION BROADCASTING STATIONS IN THE PHILIPPINES AND FOR OTHER PURPOSES” 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 1987
Philippine Constitution and applicable laws, rules and regulations, the franchise granted to
Subic Broadcasting Corporation, hereunder referred to as the grantee, its successors or
assignees, under Republic Act No. 7511 entitled “An act granting the Subic Broadcasting
Corporation a franchise to construct, install, operate and maintain radio and television
broadcasting stations in the Philippines and for other purposes”, to construct, install, establish,
operate, and maintain for commercial purposes and in the public interest, radio and/or
television broadcasting stations, where frequencies and/or channels are still available for radio
and/or televisions broadcasting, including digital television system, 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 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 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 and 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 any such authority.

SECTION 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 deliberately false
information or willful misrepresentation, to the detriment of the public interest, or to incite,
encourage, of assist in subversive or treasonable acts.

SECTION 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; 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 they 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.

SECTION 6. Term of Franchise. ~ This franchise shall be in effect for a period of twenty-
five (25) years from the effectivity of the 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. Acceptance and Compliance. ~ Acceptance of this new 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. Nonacceptance shall render the
franchise void.

SECTION 8. 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.

SECTION 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.

SECTION 10. Sale, Lease, Transfer, Usufruct, or Assignment of Franchise. - The grantee
shall not lease, transfer, grant the usufruct of, sell 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 the controlling interest
of the grantee be transferred, whether as a whole or in parts, 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 Congress shall be informed of any
lease, transfer, granting the usufruct of, sale or assignment of franchise or the rights or
privileges acquired thereunder, or the merger, or transfer of the controlling interest, 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.

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 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 (5) years from
the commencement of its operations: Provided, That in cases where public offer of shares is
not applicable, establishment of cooperatives and other methods of encouraging public
participation by citizens and corporations operating public utilities must be implemented.
Noncompliance therewith shall render the franchise ipso facto revoked.


SECTION 12. General Broadcast Policy Law. - The grantee shall comply with and be
subject to the provisions of a general broadcast policy law, which Congress may hereafter
enact.

SECTION 13. 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 reportorial compliance certificate issued by Congress
shall be required before any application for permit or certificate is accepted by the NTC.

SECTION 14. Penalty Clause ~ Failure of the grantee to submit the requisite annual
report to Congress will be penalized by a fine in the amount of Five hundred pesos (PS00.00)
per working day of noncompliance. The fine will be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC.

SECTION 15. 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 the 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.

SECTION 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.

SECTION 17. 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.

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,