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Republic of the Philippines pe J
HOUSE OF REPRESENTATIVES
Quezon City
EIGHTEENTH CONGRESS
FIRST REGULAR SESSION

HOUSE BILL NO. __3279

INTRODUCED BY REPRESENTATIVE XAVIER JESUS D. ROMUALDO

EXPLANATORY NOTE

Amcara Broadcasting Network, Inc. (“Amcara”) was incorporated on 11 April 1994 and
was granted a legislative franchise under Republic Act No. 8135, entitled, An Act
Granting the Amcara Broadcsting Network, Incorporated, a Franchise to Establish,
Operate and Maintain Radio and Television Broadcasting Stations In The Philippines,
which lapsed into law 16 July 1995.

Ameara is a pioneer in the digital broadcast service, which provides the public with
better broadcast signals and an enhanced television experience. It has provided varied
content, programming, and information that has educational and entertainment value to
the Filipino audience. Amcara presently operates thirty-two television and two radio
stations in different parts of the country.

In view of the fact that Amcara has made appropriate use of its franchise, complied with
the provisions thereof, invested significantly in its stations and equipment, and intends
to continue and expand its operations, it is only proper for Congress to renew
Amaraca’s franchise to operate radio and television broadcasting stations in the
country.

The support of the Members of Congress for the prompt and timely passage of this

measure is eamestly sought.

XAVIER JESUS D. ROMUALDO


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3279

INTRODUCED BY REPRESENTATIVE XAVIER JESUS D. ROMUALDO-

AN ACT
RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO AMCARA
BROADCASTING NETWORK, INC. UNDER REPUBLIC ACT NO. 8135, ENTITLED “AN ACT GRANTING
AMCARA BROADCASTING NETWORK, INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH,
OPERATE, AND MAINTAIN BROADCASTING STATIONS IN 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 Constitution and
applicable laws, rules, and regulations, the franchise granted to Amcara Broadcasting Network, Inc.,
hereunder referred to as the grantee, its successors, or assignees, under Republic Act No. 8135, to
construct, install, operate, and maintain, for commercial purposes and in the public interest, radio and
television broadcasting stations in the Philippines, including very high frequency television, ultra high
frequency television, amplitude modulation radio, frequency modulation radio, direct broadcast via
sateliite, master antenna television, cable television, digital audio broadcast, digital television, high-

definition television, multichannel multipoint distribution service, and other forms of radio and

television broadcasting, with the corresponding technological auxiliaries or facilities, special broadcast

and other program and distribution services and relay stations, and to install radio communication

faci

ies for the grantee’s private use in its broadcast services, 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 right to use its wavelengths or frequencies and the quality


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of transmission or reception thereof as should maximize the rendition of the grantee’s services and the

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 its stations and facilities and shall not use any frequency in the radio or television spectrum without
having been authorized by the NTC, which, however, shall not unreasonably withhold or delay the grant

of any such authority.

SEC. 4. Responsibility to the Public. — The grantee shall provide, free of charge, adequate public
service time that is reasonable and sufficient to enable the government, through the broadcasting
stations or facilities of the grantee, to reach the pertinent population, 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 broadcast of any
obscene or indecent language, speech, act, or scene; or for the dissemination of deliberately false
information or willful misinterpretation, to the detriment of the public interest; or to incite, encourage

or assist in subversive or treasonable acts.

The public service time referred to 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 and Legislative Branches, the Judiciary, the 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.


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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 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. 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:
Provided, That the grantee, during any broadcast, shall cut off from the air any speech, play, act, or
scene, or other matter being broadcast, if the tendency thereof is to propose or incite treason, rebellion,

or sedition, or the language used therein or the theme thereof

\decent or immoral: Provided, further,

‘That willful failure to do so shall constitute a valid cause for the cancellation of this franchise.

SEC. 8 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. 9. 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


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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 private
person, firm, company, corporation or entity without the prior approval of the Congress of the
Philippines: Provided, That 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.

SEC. 10. 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 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 citizens and corporations operating public utilities

as allowed by law. Non-compliance herewith shall render the franchise ipso facto revoked.

SEC. 11. Reportorial Requirement. ~ During the term of i

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 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.

The annual report shall include an update on the roll-out, development, operation, or expansion
of the grantee’s business; its audited financial statements; its latest General Information Sheet officially
submitted to the SEC; certification from the NTC on the status of its permits and operations; and an
update on the dispersal of ownership undertaking. The reportorial compliance certificate issued by
Congress shall be required before an application for permit, certificate, or any equivalent thereof, of the

grantee is accepted by the NTC.

SEC. 12. Fine. - Failure on the part of the grantee to submit the required annual report to
Congress shall be penalized with a fine of Five hundred pesos (P500.00) per working day of non-
compliance. The fine shall be collected by the NTC from the grantee separate from the reportorial

penalties imposed by the NTC and the same shall be remitted to the National Treasury.


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SEC. 13. Equality Clause. - Any advantage, favor, privilege, exemption, or immunity granted

under existing franchises, or which may hereafter be granted to ra‘

and television broadcasting, upon

prior review and approval of Congress, shall become part of this franchise and shall be accorded
immediately and unconditionally to the grantee: Provided, That the foregoing shall neither apply to nor
affect provisions of broadcasting franchises concerning territorial coverage and the term or the type of

service authorized under this franchise.

SEC. 14. Repealability 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.

SEC. 15. Separability Clause.— If any of the sections or provisions of this Act is held invalid, all

other provisions not affected thereby shall remain valid.

SEC. 16. Repealing Clause.— All laws, decrees, orders, resolutions, instructions, rules and

regulations, and other issuances, or parts thereof, which are incor Act

istent with the provisions of thi

are hereby repealed, amended, or modified accordingly.

SEC. 17. Effectivity.— This Act shall take effect fifteen (15) days after its publication in the

Official Gazette or in a newspaper of general circulation.

Approved,