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

Seventeenth Congress
Second Regular Session

House Bill No. 4180

Introduced by Honorable Gil P. Acosta

EXPLANATORY NOTE

This bill seeks to renew the franchise granted to DXRA — RMC (RIZAL,
MEMORIAL COLLEGES).

RA 8159 granted DXRA — RMC to construct, establish, operate and
maintain a commercial radio broadcasting station in the Philippines. It is not
only operating commercially but is also involved in public service. RMC
Broadcasting Corporation has been a long time partner of the State in providing
traditional public service inherent in and among broadcast media networks. It
allows people from all walks of life the opportunity to air vital information and
concerns, and it also contributes to the coffers of the government in the form of
taxes and fees paid to the National Telecommunications Commission.

Article II, Section 24 of the 1987 Constitution provides that “The State
recognizes the vital role of communication and information in nation building.”
Communication indeed plays a vital role in the development and growth of our
country.

The renewal of RMC’s franchise is needed for its continuing operation to
fully assist the government in disseminating information to the people.


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

Kabarangay ” P. Acosta
entative, 3" District of Palawan


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

Seventeenth Congress
Second Regular Session

“4180

House Bill No.

Introduced by Honorable Gil P. Acosta

An act Renewing the Franchise Granted to DXRA-RMC (Rizal Memorial
Colleges) Broadcasting Corporation to construct, establish, operate and
maintain a commercial radio broadcasting station in the Philippines, and
for other purposes under Republic Act Numbered Eight One Hundred
Fifty Nine to another Twenty-five (25) years

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

SECTION I. Nature and Scope of Franchise. - Subject to the provisions of the
1987 Philippine Constitution and applicable laws, rules and regulations, the
franchise granted to DXRA-RMC (Rizal Memorial Colleges) Broadcasting
Corporation under Republic Act No, 8159, entitled “An Act Granting the
DXRA-RMC (Rizal Memorial Colleges) Broadcasting Corporation a Franchise
To Construct, Establish , Operate and Maintain a Commercial Radio
Broadcasting Station in the Philippines, and for other purpo: 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 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 the 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 its stations and facilities and
shall not use any frequency in the radio spectrum without having been
authorized by 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 ; provide
at all times sound and balanced programming; 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 of 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.

§ ION S. 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 the public safety, security
and public welfare; or to authorize the temporary use and operation thereof by
any agency of the government, upon due the compensation to the grantee, for
the use of said stations or facilities during the period when they 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 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, Acceptance and Compliance. - Acceptance of this franchise shall
be given in writing to the Congress of the Philippines, through the Committee
on Legislative Franchise of the House of Representatives and the Committee on
Public Services of the Senate within (60) days from the effectivity of this Act.
Upon giving such acceptance, the grantee shall exercise the priviledges granted
under this Act. Non acceptance shall render the franchise void.

ION 8. Provisions. - The grantee, its successors or assigns, shall be
liable to pay the same taxes on the real estate, buildings and personal property,



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exclusive of this franchise, as other persons or corporations are now or hereafter
maybe required by law to pay. In addition thereto, the grantee, its successors or
assigns, shall pay a franchise tax equivalent to three percent (3%) of all gross
receipts of the radio business transacted under this franchise by the grantee, its
successors or assigns: Provided, That the grantee, its successors or assigns, shall
continue to be liable for income taxes payable under Title II of the National
Internal Revenue Code pursuant to Section 2 of Executive Order No.72 unless
the later enactment is amended or repealed, in which case the amendment or
repeal shall be applicable thereto.

The grantee shall file the return with and pay the tax due thereon to the
Commissioner of Internal Revenue or his duly authorized representatives in
accordance with the National Internal Revenue Code, and the return shall be
subject to audit by the Bureau of Internal Revenue,

SECTION 9.Warranty in Favor of National and Local Government. - 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 to 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. Any person or
entity to which the franchise is sold, transferred or assigned, shall be subject to
all the same conditions, terms, restrictions, and limitations of the Act.

SECTION 11. General Broadcast Policy Law. - The grantee shall comply with
and be subject to the provisions of a general broadcast policy law, which
Congress may hereafier enact.

SECTION 12. Equality Clause. - Any advantage, favor, privilege, exemption, or
immunity granted under existing franchises or which may hereafter be granted
for radio 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, however, That the foregoing
shall neither apply to nor affect provisions of broadcasting franchises or the type


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of service authorized by the franchise: Provided further, that the foregoing shall
not apply to sale, lease, transfer or grant of usufruct of legislative franchise with
prior congressional approval

SECTION 13. 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 14. Repealibility 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 15. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,