HOUSE OF REPRESENTATIVES

Republic of the Philippines REE
HOUSE OF REPRESENTATIVES, Faby,

Quezon City, Metro Manila

DATE:
Time:
SEVENTEENTH CONGRESS sn

First Regular Session | BY:

2202 REGISTRATION UNIT
HOUSE BILL NO. BILLS AND INDEX SERVICE

Introduced by Representative Leo Rafael M. Cueva

EXPLANATORY NOTE

This bill seeks to renew and expand the coverage granted to the Cadiz Radio and
Television Network, Inc, (CRTN) under Republic Act (R.A.) No. 8111 which took effect last
July 9, 1995, R.A. No, 8111 granted a franchise to CRTN to construct, install, operate and
maintain radio and/or television broadcasting stations in the City of Cadiz, Province of Negros
Occidental. The franchise term was for twenty-five (25) years. Even before the passage of the
RA. No. 8111, CRTN was originally granted a franchise to operate in the whole Western
Visayas area for twenty-five (25) years

During CRTN operations, it serves as the most important medium through which the
right to freedom of expression is realized. Even in the most far-flung area, the right of the public
to information was being fulfilled, Freedom of expression includes the right not only to seek and
impart information and ideas, but also the right to receive them to which CRTN was able to cater
to the people in the City of Cadiz.

In this measure, this representation intends to perpetuate the franchise until expressly
revoked by the Congress and to broaden the coverage from Cadiz City to the whole Western
Visayas. With this bill, not only the City of Cadiz will enjoy the right of the public to
information but also the whole Western Visayas especially in terms of political, economic.
environment, social, weather, and other current events affecting their daily lives.

Lastly the foregoing bill was filed last Congress but the same was not considered due to
lack of material time.

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

Leo Rafael M. Cueva
2" District, Negros Occidental


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

SEVENTEENTH CONGRESS.
First Regular Session

HOUSE BILL NO, &#0%

Introduced by Representative Leo Rafael M. Cueva

AN ACT
RENEWING THE FRANCHISE OF CADIZ RADIO AND TELEVISION
NETWORK, INC., TO CONSTRUCT, ESTABLISH, MAINTAIN AND
OPERATE RADIO AND TELEVISION BROADCASTING STATION IN THE
WESTERN VISAYAS AREA

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

TITLE, POLICY, SCOPE, AND DEFINITION OF TERMS

Section 1, Nature and Scope of Franchise. — Subject to provisions of the Constitution
and applicable laws, rules and regulations, there is hereby granted to Cadiz Radio and
Television Network, Inc,, hereunder referred to as grantee, its successors or assigns, a
franchise to construct, install, operate and maintain for commercial purposes and in the
public interest, radio and/or television broadcasting stations in the Western Visayas, with the
corresponding technological auxiliaries or 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

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 the other existing stations or
stations which may be established by law, without in any way diminishing its own right to
use its selected wavelengths or frequencies of the other existing stations or 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.



r Approval of the National Telecommunications Commission. — The
grantee shall secure from the National Telecommunications Commission the appropriate permit
and license for its stations and shall not use any frequency in the radio/television spectrum
without having been authorized by the Commission. The Commission, however, shall be
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 government, through the said broadcasting stations, to reach the population on
import 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 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 public interest, or to incite, encourage, or assist in subversive or treasonable acts

Sec. 5 Right of the Government. — A special right is hereby reserved to the President of
the Philippines, in times of rebellion, public peril, calamity, emergency, disaster or disturbance
of peace and order, 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 period when they shall be so operated.

Sec. 6 Term of Franchise. ~ This franchise shall be continuously granted unless sooner
revoked or cancelled by the Congress of The Philippines. In the event the grantee fails to operate
continuously for two (2) years, this franchise shall be deemed ipso facto revoked

Sec. 7 Acceptance and Compliance. — This franchise shall become effective upon
acceptance in writing by the grantee. Upon giving such acceptance, the grantee shall exercise the
privileges granted under this Act. Non-acceptance shall render the franchise void

Sec. 8 Tax Provisions. ~ The grantee, kits successors or assigns shall be liable to pay the
same taxes on their real estate, buildings and personal property, exclusive of this franchise, as
other persons or corporations are now or hereafter may be 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/television 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 latter 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.


Sec. 9 Self-regulation by and Undertaking of the Grantee. — The grantee shall not
require any previous censorship of any speech, apply, act or scene or other matter to be broadcast
and/or telecast from its stations: Provided, That the grantee, during any broadcast and telecast
shall cut 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 immortal; and willful failure to do so shall constitute a
valid cause for the cancellation of this franchise

Sec. 10 Warranty in Favor of National and Local Governments. — The grantee shall
hold the national, provincial and municipal governments of the Philippines harmless from all
claims, accounts, demands or actions arising out of accidents or injuries, whether to property ot
to persons, caused by the construction or operation of the stations of the grantee

Sec. 11 Sale, Lease, Transfer, Usufruct, and other Similar Deeds — The grantee shall
not lease, transfer, grant the usufruct, sell or assign this franchise or the rights and privileges
acquired thereunder to any person, firm, company, corporation or other commercial or legal
entity, nor shall the controlling interest of the grantee be transferred to any such private person,
firm, company, corporation or entity without the prior approval of the Congress of the
Philippines. 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. 12 General Broadcast Policy Law — The grantee shall comply with a general
broadcast policy law which Congress may hereafter enact

Sec. 13 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.

Sec 14 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

See. 15 Effecti

This Act shall take effect upon its approval

Approved,