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

Eighteenth Congress
First Regular Session

House Bill No,__ 6748

Introduced by: Representative Gil “Kabarangay Jr.” A. Acosta

EXPLANATORY NOTE

This Bill seeks to renew the franchise granted to Palawan
Broadcasting Corporation to install, construct, operate and maintain
commercial radio and television broadcasting stations in the
Philippines for another twenty-five (25) years.

Palawan Broadcasting Corporation has been previously
authorized and granted the authority to operate, maintain and establish
radio and television broadcasting stations throughout the Philippines
under Republic Act No. 8060.

Section 24, Article II of the 1987 Constitution explicitly
provides that “The State recognizes the role of communication and
information in nation-building.” Communication and media play a
vital role in the development and growth of our country particularly in
the remote areas in the Philippines.

The renewal of Palawan Broadcasting Corporation’s franchise
holds great meaning and significance to the public especially to the
Palawefios brought about by Palawan Broadcasting Corporation’s role
in providing entertainment, education and information.

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

Gil “Kabarangay Jr.” A. Acosta
Representative, 3r District of Palawan


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

Eighteenth Congress
First Regular Session

House Bill No.__ 6748

Introduced by: Representative Gil “Kabarangay Jr.” A. Acosta

AN ACT RENEWING THE FRANCHISE GRANTED TO PALAWAN
BROADCASTING CORPORATION UNDER REPUBLIC ACT NO. 8060
ENTITLED ‘AN ACT GRANTING THE PALAWAN BROADCASTING
CORPORATION A FRANCHISE TO INSTALL, CONSTRUCT, OPERATE
AND MAINTAIN COMMERCIAL RADIO AND TELEVISION
BROADCASTING STATIONS THROUGHOUT THE PHILIPPINES’ FOR
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 the Franchise. — Subject to the provisions
of the 1987 Philippine Constitution and applicable laws, rules and regulations, the
franchise granted to Palawan Broadcasting Corporation hereunder referred to as the
grantee, its successors or assignees, under Republic Act No. 8060, to install,
construct, 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, and to install radio communication
facilities for the grantee’s private use in its broadcast services in the Philippines is
hereby extended 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 right to use its selected wavelengths or frequencies and
the quality of transmission or reception thereon as should maximize rendition of
the grantee’s services and/or availability thereof.


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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, 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 such as in
community programming; 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 and indecent language, speech, act or scene, or for
the dissemination of deliberately false information or willful misrepresentation, or
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 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 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.

Section 5. Right of 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 of the grantee,
to temporarily suspend the operation of any station 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 during the period when they shall be so operated.

Section 6. Term of Franchise. - This franchise shall be for a term 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 two (2) years.


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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 broadcasted 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 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
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 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 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 shall transfer the controlling interest in the grantee,
simultaneously or contemporaneously, to any such 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 the said transaction. Failure to report to the 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. Disposal 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


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citizens and corporations operating public utilities as allowed by law.
Noncompliance therewith shall render the franchise ipso facto revoked.

Section 12. Reportorial Requirement, — During the term of its franchise,
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 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 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 operations; 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 (P500.00)
per working day of noncompliance. The fine shall be collected by the NTC from
the delinquent franchise grantee separate from the reportorial penaities imposed by
the NTC and the same shall be remitted to the National Treasury.

Section 14. Equality Clause. — Except for taxes and customs duties, 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. Repeatability 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 Clause. — All laws, decrees, orders, resolutions,
structions, rules and regulations, and other issuance or parts thereof which are
consistent 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.


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Approved,