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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIV!
Quezon City, Metro Mani

ENTH CONGRESS
First Regular Session

HOUSE BILL No. 4342

Introduced by Representative Benbur I, Salimbangon.

EXPLANATORY NOTE

ystems, Inc. (PBSI) owns and operates radio stations mostly in the
S-FM”, while maintaining several AM stations in the

Pacific Broadcasting
FM band, currently branded ¢
provinces.

DWYS, the first FM station in Metro Manila, is the flagship station of the YES-FM
brand, It fed on December 18, 1995 under the call sign “DWST”. It had # mix of show
business news and the latest music hits, and even employed showbiz. reporters with a reporting
style similar to that of local AM stations.

On December 6, 1998, 101.1 was re-launched as YES! FM with a different call sign
(DWYS). Its format was adult contemporary / easy listening and became the undisputed number
1 FM station in 1999 to 2002, Its slogan from 2002 to 2008 was Derecho! & YiSterday Pal In
and adopted the slogans Automatic 'Yan! and Hayahay! YE

was again re-launched and has a new tagline of Yes! The Best!

M

goo, La Union, DYES — FM
gupan City, DWGR - F

Besides DWYS, PBSI also maintains DWIS — FM
Cebu City, DWIZ — FM - Claveria, Cagayan, DWHR ~ FM - Di
Gumaca, Quezon, DYJJ — FM - Hamtic, Antique, DXIL — FM - Iligan City, DWIR ~ FM - tri
City, DXLR — FM - Lebak, Sultan Kudarat, DWCM — FM - Legaspi City, DWLW — FM -
City, DXEM ~ FM - Marawi City, DYRQ — FM - Masbate City, DXWE — FM - Molave.
Zambo del Sur, DXWH — FM - Nabunturan, Davao Del Norte, DYXC ~ FM - Ormoe City
DWST — EM - San Fernando City, Tagum City - DXWG — FM and DWJS — PM - Virac,

Catanduanes



In the AM band, DYBH — AM Bacolod City, DXCH — AM —Cotabato City, DXGO —
AM ~ Davao City, DXGH — AM- Gen, Santos City, DYDH ~ AM - Iloilo City, DZMT ~ AM-
Laoag City, DWRH ~ AM - Santiago City, and DYTH — AM - Tacloban City

With its lead both in FM and AM market in terms of listenership, PBSI plays a big role as
government’s partner in ensuring growth of the local music industry, promoting original Filipino
music (OPM), faithfully complying with Executive Order (EO) No. 255 (s. 1987) requiring. all
radio stations to broadcast a minimum of four original Pilipino musical compositions in every
clock hour.

Entertainment, however, is not the only role of PBSI. In times of calamities, PBSI radio
stations in and out of Metro Manila air important public announcements to help its listeners.

When Tropical Storm Ondoy hit she country in 2009, putting a big part of Metro Manila
under water, PBSI stations were among the frontliners in facilitating post-calamity assistance to
the iyphoon victims, PBSI radio stations called on its listeners to volumeer in the rescue and
relief efforts of the government and NGOs.

Indeed, the radio stations of PBSI remain relevant for the promotion of music and in the
lives of the listening public, providing not only entertainment but also other important forms of
services that come easy, affordable and reliable even when the rest of modern forms
communication are down, PBSI is also fully compliant with the conditions of its franchise and is
therefore worthy of another 25 years in the broadcast industry.

‘The author encourages everyone to support the passage of thjs bill ‘



REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

4342

HOUSE BILL No.

Introduced by Representative Benhur I. Salimbangon

AN ACT RENEWING THE FRANCHISE GRANTED TO PACIFICBROADCASTING
SYSTEM, INC, UNDER REPUBLIC ACT NO, 7967, ENTTELED “AN ACT GRANTING
THE PACIFIC BROADCASTING SYSTEM, INC., A FRANCHISE TO CONSTRUCT,
INSTALL, OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING

STATION WITHIN THE PHILIPPINES, AND FOR OTHER PURPOSES”

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 Pacific
Broadcasting System, Inc,, under Republic Act No. 7967 entitled “An Act Granting the Pacific
Broadcasting System, Inc., a Franchise to Construct, Install, Operate and Maintain Radio and
television Broadcasting Station Within the Philippines, and for Other Purposes”, hereunder
referred to as the grantee, its successors or assigns, a franchise to construct, install, operate and
maintain for commercial purposes and in the public interest radio and television broadcasting
stations in the Philippines with the corresponding technological auxiliaries or facilities, special
broadcast and other broadcast distribution services and relay stations, and to construct, install,
Operate and maintain communication facilities for the grantee’s private use in its broadcast
services and relay stations in the Philippines, is hereby renewed for another twenty-five (25)
years from the approval of this Act.

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
he 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,



C. 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

SEC. 4. Responsibility to the Public. ~ The grantee shall provide adequate public service time to
enable the govemment, through the said broadcasting station, to reach the population on
important public issues, provide at all times sound and balanced programming, assist in the
functions of public information and edueation, conform to the ethies 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 willfial mistepresentation

to the detriment of the public interest, or 10 incite, encourage or assist in subversive or
treasonable acts

SEC. 5. Right of Government, ~ A special right is hereby reserved to the President of the
Philippines in times of war, rebellion, public peri, 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 govemment, upon due compensation to the grantee, for the use of said stations ot
fucilities during the period when these shail be so operated

SEC. 6. Term of Franchise, ~ This franchise shall be in effect for a period of twenty-five
years from the approval 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,

SEC, 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. Non-acceptance shail render the franchise void,

SEC. 8. 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
centun (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 approval of
this renewal: 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 fircio revoked

SEC. 9. 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, fisrther, That willful failure to do so shall constitute a valid cause for the
cancellation of this franch

SEC. 10. Warranty in Favor of National and Local Governments, ~ The grantee shall hold the

tional, provincial, city and municipal govemments 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, 11, Sale, Lease, Transfer, Usufiuct
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 ot 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
Contemporancously, 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 and
privileges acquired thereunder, or of the merger, or transfer of controlling, interest of the grantee,
within sixty (60) days after the completion of said transaction: Provided, further, That failure to
teport to Congress such change of ownership shall render the franchise ipso.
Jacto 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

or Assignment of Franchise. ~ The grantee shall not

SEC. 12. General Broadcast Policy Law. ~ The grantee shall comply with and be subject to the
provisions ofa general broadcast policy law, which Congress may hereafter enact

SEC. 13, 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,
however, That the foregoing shall neither apply to nor affect provisions of broadcastin
franchises concerning tertitory covered by the franchise, the life span of the franchise, or the type
of service authorized by the franchise: Provided, further, That the foregoing shall not apply to
sale, lease, transfer, or grant of usuftuct of legislative franchise with prior congressional
approval

SEC. 14, Separabitity Clause. — If any of the sections or provisions of this

Act is held invalid, all
other provisions not affected thereby shall remain valid.

SEC. 15. Repealabiity. and Non-Evelusivity Clauses, —This franchise shall be subject to
amendment, alteration, or repeal by the Congress of the Philippines when the public interest so
tequires and shall not be interpreted as an exclusive grant of the privileges herein provided for



SEC. 16. Effectivity, ~ This Act shall take effect fifteen (15) days oer ‘its publication in at least
two (2) newspapers of general circulation. yoo

Approved,