REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bint No, ©460

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

‘The Constitution recognizes the vital role of communication and information in nation-
building, Public information inevitably creates awareness of significant issues and can also be
a mechanism for the transparency of policies and programs of the goverment if used
effectively. Being a critical part of democracy, it can only be efficiently channeled through a
truly independent media

In our country, media has been undeniably dominated by commercial or privately-owned
companies that depend on advertising to be able to sustain itself. Consequently, the growth
and the independence of our journalists are encumbered by practices and schemes that are
primarily dictated by the economic interests of their proprietors or advertisers. The existing
public broadcast system, on the other hand, does not enjoy the trust of the people as it is
perceived as a propaganda vehicle of the incumbent administrations and hence, is deemed
inutile in the effective delivery of broadcasting as a public good. Thus, important concepts of
transparency and accountability are unquestionably compromised by the situation.

Recognizing the need to assert the idea of highest journalistic standards and the preservation
of press freedom, this bill aims to establish a public service broadcasting system which shall
function wholly independent of the governmental and commercial influences and free from
political or other bias or interference. Through this measure, the Public Service Broadcast
System (PSBS) shall be independent in all matters concerning the content of its output, the
times and manner in which this is supplied, and in the management of its affairs. Moreover,
this bill grants fiscal autonomy to the PSBS such that appropriations for the PSBS may not be
reduced by the Legislature below the amount appropriated for the previous year, and after
approval shall be automatically and regularly released. Further, this bill creates a Board of

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Directors whose membership is not appointed by the President. With the aforementioned
provisions, this measure seeks to create a healthy distance between the media and the
potential meddling arm of the State and commercial private interests. Of twin importance is
the measure's provision of general program standards. Broadcasters must ensure that due

impartiality and truthfulness are observed in news and other issues of public importance.

This bill, in essence, seeks to promote high quality public service broadcasting, the free flow
of information in the public interest, and the responsible exercise of journalism through a
broadcast channel that will fill the gap in the ratings-driven, commercially-dominated
Philippine broadcast media and propaganda-driven state broadcasting system.

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

;ARYIC. ALEJAN'


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bit No, 5460

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
ESTABLISHING AN INDEPENDENT BROADCAST SYSTEM IN THE COUNTRY,
PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES

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

TITLEL
GENERAL PROVISIONS

SECTION 1. Title. - This Act shall be known as the "Public Service Broadcast
System Act."

SEC. 2. Declaration of Policies. - In consonance with the Constitutional recognition
of the vital role of communication and information in nation-building, and the important
aspect played by the broadcasting industry, it is hereby declared as the policy of the State to

a) promote the provision of high-quality broadcast programming to the public at large;

b) promote and guarantee the independence of the public service broadcaster from
political or commercial interference within a framework of accountability to the
public;

©) fully develop communication structures suitable to the needs and aspirations of the
nation and in accordance with a policy that respects the freedom of speech and of the
press;

) harness the resources of the government and the private sector towards a close,
continuous and balanced cooperation in order to take advantage of technological
advances in the broadcasting industry:

©) maintain a broadcast industry system that serves as a vital link for participative
democracy and effective government information dissemination through
developmental communication, free from any political or partisan influence and held
accountable directly to the people; and


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f) encourage the development and broadcast of balanced programs which feature public
affairs;

SEC 3. Definition of Terms. - In this Act, unless the context otherwise requires

a) The term "advertisement" refers to any public announcement intended to promote the
sale, purchase or rental of a product or service, to advance a cause or idea or to bring
about some other effect desired by the advertiser, for which broadcasting time has
been given up to the advertiser for remuneration or similar consideration;

b) The term “facilities and equipment” refers to apparatus necessary for production,
interconnection, captioning, broadcast, or other distribution of programming,
including, but not limited to, studio equipment, cameras, microphones, audio and
video storage or reproduction equipment or both, signal processors and switchers,
towers, antennas, transmitters, translators, microwave equipment, industrial utility
vehicle and appropriate mobile equipment, satellite communications equipment,
instructional television fixed service equipment, subsidiary communications
authorization transmitting and receiving equipment, cable television equipment, video
and audio cassettes and discs, optical fiber communications equipment, and other
means of transmitting, emitting, storing, and receiving images and sounds, or
intelligence: Provided, That such term does not include the buildings to house such
apparatus (other than small equipment shelters which are part of satellite earth
stations, translators, microwave interconnection facilities, and similar facilities).

TITLE I
CREATION AND DOMICILE

SEC. 4. Creation. - There shall be created a body corporate to be called the Public
Service Broadcast System hereinafter referred to as the PSBS, which shall engage in
television broadcasting in the Philippines. The PSBS shall have the independence of a
Constitutional Commission under a Board of Directors (hereinafter referred to as the Board):
Provided, That no member of the Board shall be appointed by the President of the
Philippines.

The PSBS shall run news and public affairs coverage, and commentaries for twenty-
four hours, seven days a week, for television and radio broadcasting. Further, it shall provide
equal coverage of both local and national events. Furthermore, foreign events shall also be
covered by the PSBS

SEC. 5. Domicile. - The PSBS shall have its principal office and domicile in the
Metropolitan Manila area. It may also establish offices, branches and/or stations in any part
of the Philippines as its Board may see fit

TITLE 1
FRANCHISE AND LICENSE TO OPERATE

SEC. 6. Franchise Grant. - Subject to the provision of the Constitution, laws, orders,
decrees not inconsistent herewith, the PSBS is hereby granted a franchise to construct,
maintain and operate television broadcasting stations and satellite receiving and transmitting
facilities in the Philippines for a period co-terminus with the corporate existence of the PSBS,

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‘SEC. 7. License to Operate. - The National Telecommunications Commission (NTC)

shall forthwith cause the issuance to the PSBS of the corresponding license to operate upon
compliance with all its requirements

a)

b)

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d)

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h)

i)

TITLE IV
POWERS AND FUNCTIONS

SEC. 8. Powers of the PSBS. - The PSBS shall have the following powers

to establish, install, use, and maintain national, regional, provincial and community-
stations for television and radio broadcasting throughout and in any part of the
country;

to provide, equip, and maintain studios and other premises for television and radio

production and broadcasting purposes;

to accept advertising materials for television and radio broadcasting upon payment of
such charges as may be determined from time to time by the PSBS, and to determine
the conditions subject to which the said advertisements may be accepted for
transmission;

to adopt and use a PSBS seal;

to adopt by-laws, not contrary to law, morals, or public policy, and to amend or repeal
the same in accordance with the provisions of existing laws;

to purchase, receive, take or grant, hold, convey. sell, lease, pledge, mortgage and
otherwise deal with such real and personal property

to establish, purchase, install, construct, use and maintain national, regional,
provincial and community stations and facilities for television broadcasting
throughout and in any part of the country;

{o enter into joint ventures or partnerships with other broadcasting authorities and
stations or international agencies or private organizations for the purpose of
promoting its broadcasting services: and

to exercise such other powers as may be necessary to carry-out the purpose for which
the PSBS was established or which from time to time may be declared by the Board
of Directors to be necessary, useful, incidental or auxiliary 10 accomplish such

purposes
SEC. 9. Independence of the PSBS. - The PSBS shall be independent in all matters

concerning the content of its output, the times and manner in which this is supplied, and in
the operational management of its affairs, such that the Oversight Committee provided for in
Section 12 of this Act may not question the PSBS on matters relating to the aforementioned.


SEC. 10. Functions of the PSBS. - The PSBS shall have the following functions:
a) to serve the public interest;

b) to serve primarily as a vehicle for communicating the news and public affairs to the
public; and

©) to provide subsidized airtime to legitimate people's organizations and NGOs in the
promotion of their programs and projects.

TITLE V
CORPORATE STRUCTURE

SEC. 11. The Board of Directors. - The PSBS shall be governed by the PSBS Board
of Directors, hereinafter referred to as the Board.

The Board shall be composed of fifteen (15) members. The members of the Board
shall be elected from the following organizations

a) Seven (7) directors, representing each of the seven (7) biggest national broadcast
media organizations in the country, in terms of membership: Provided, That the three
(3) directors shall represent each of the three (3) biggest regional broadcast media
organizations in Luzon, Visayas, and Mindanao, respectively, in terms of
membership;

b) Two (2) directors representing each of the two (2) biggest investigative media
organizations in the country, in terms of membership;

Five (5) directors representing each the five (5) biggest national newsprint media
organizations in the country, in terms of membership; and

qd

4) The Dean of the University of the Philippines College of Mass Communication will
serve as a director, representing the academe.

The initial members of the Board shall have a two (2) - year term. Subsequent directors
shall serve a term of four (4) years: Provided, That they shall be eligible for re-election for
another term of four (4) years. Replacement for any vacancy in the Board shall be for the
unexpired portion of the term of the predecessor. Except for the Dean of the UP College of
Mass Communications, the Directors of the Board for the subsequent terms shall be duly
elected by members of their respective organizations. The Directors shall elect among
themselves, one who will serve as Chairman of the Board.

‘The Board shall meet at least twice a month to discuss matters of policy in order to
effectively carry out the provision of this Act.

The Chairman of the Board shall have a salary grade equivalent to a Cabinet
Secretary. The other members of the Board shall carry a salary grade equivalent to a Cabinet
Undersecretary.


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SEC. 12. Qualifications of the Members of the Board. - The members of the Board
shall be of proven and unquestionable probity, integrity, honesty, impartiality, reputation, and
knowledgeable of the broadcast industry. They shall not be holding key positions with other
broadcasting corporation or hold any position that may conflict with their functions and
duties as Directors of the PSBS

If a member shall be appointed or employed as employee or consultant to another
government office, political party, or shall run for any elective position, he shall be deemed to
have vacated membership in the Board on the day of his appointment or filing of his
candidacy, as the case may be

SEC. 13. Powers and Functions of the Board. - The Board shall have the following
powers and functions:

a) The Board shall elect the Officers of the PSBS, hereinafter referred to as the Officers
Provided, That the officers shall be chosen from among the duly accredited broadcast
organizations in the country.

b) The Board has overall responsibility for the determination of internal policy, for
ensuring compliance with all policies set out in this Act, for ensuring that the PSBS
meets the highest standards of decency, integrity and value for money, for
appointment of senior staff, including the members of the Board, and for setting the
overall strategy of PSBS.

©) The Board shall have the power to fix the other allowances and fringe benefits of its
officers and employees, subject to the provisions of pertinent compensation laws and
regulations,

d) The Board shall not interfere with the day-to-day management of the PSBS or with
the editorial independence of the staff, although it does have responsibility for
ensuring the overall editorial policy respects of the PSBS.

All members of the Board shall be independent and impartial in the exercise of their
functions and shall, at all times, seek to promote the policies as declared in Section 2 of this
Act. Board members shall act at all times in the overall public interest and shall not use their
appointment to advance their personal interests, or the personal interests of any other party or
entity.

SEC. 14. The Officers of the PSBS. - The Officers of the PSBS, hereinafter referred
to as the Officers, shall be elected by the Board, of which the latter shall not be members of.
The initial Officers shall have a three (3) - year term. Subsequent Officers shall serve a term
of four (4) years: Provided, That they shall be eligible for re-election for another term of four
(4) years. The elected President shall carry the salary grade equivalent to a Cabinet
Undersecretary. The other officers shall carry the salary grade equivalent to an Assistant

Secretary

Other broadcast media organizations not represented in the Board shall be given an
opportunity to make representations. All nominations and the corresponding positions to be
filled in shall be submitted to the Board for review and selection before the deadline set by
the Board. Each member of the Board is entitled to one (1) vote.


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SEC. 15. Positions. - The following positions shall be created and filled up for the
proper and effective functioning of the Office:

a) One (1) President:

'b) One (1) Vice President for Finance;

c) One (1) Vice President for Marketing;

d) One (1) Vice President for Human Resource Development,
e) One (1) Vice President for Operations;

f) One (1) Vice President for Legal Affairs; and

g) One (1) Vice President for News and Current Affairs.

SEC. 16. Powers and Functions of the Officers of the PSBS. - Subject to the control
and supervision of the Board, the Officers shall have the following powers and functions:

a) submit policy recommendations and propose measures necessary to carry out the
objectives and functions of the PSBS for the consideration of the Board, and propose
guidelines that liberate rather than restrict program makers;

b) recommend to the Board, for approval, an organizational structure and plantilla for
personnel of the PSBS, in accordance with existing laws, rules and regulations;

©) execute, administer and implement policies and measures approved by the Board:

4) submit to the Board an annual budget and such supplemental budgets as may be
necessary for its consideration and approval;

@) represent the PSBS, its dealings with other persons, entities, agencies and institutions,
whether public or private, domestic or foreign, subject to the limitations and
conditions herein provided;

1) appoint, subject to the confirmation by the Board, discipline or remove for cause,
officer and personnel of the PSBS in accordance with the Civil Service Law, Rules
and Regulations; and

g) perform such other functions and duties which may be assigned to them by the Board.

TITLE VI
PROGRAM STANDARDS,

SEC. 17. General Program Standards. - Broadcasters must ensure that due
impartiality and truthfulness are observed in news and public affairs issues of public
importance. Due impartiality requires programs producers to deal even-handedly when
opposing points of view are presented in a program. On matters of public importance, balance

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should be sought through the presentation, as far as possible, of principal viewpoints.
Programs should not be slanted by the exclusion of facts or by misleading emphasis. Every
reasonable effort must be made to ensure that the factual content of programs is accurate

SEC. 18. Use of Block-timers. - The use of block-timers shall be allowed but limited
to education and sports programs only. The PSBS shall assume solidary liability with each of
the individual producers, for the content of all programs shown by block-timers.

TITLE VI
FINANCIAL PROVISIONS

SEC. 19. Initial Appropriation. - The authorized initial funding of the PSBS shall be
One Billion, Five Hundred Million Pesos (P1,500,000,000.00) for facilities and equipment
modernization, which shall be released from funds of the National Treasury upon the
effectivity of this Act: Provided, That the sum of Two Hundred Million Pesos
(P200,000,000.00) in addition to the current fiscal appropriation for the National
Broadcasting Network (NBN-4), absorbed by the PSBS, shall be allocated from the National
Budget of the year following the approval of this Act

‘SEC. 20. Revenue Generation. - The PSBS shall be allowed to generate funds from
advertising and air time sales in accordance with the policies and rates set by the Board of
Directors.

‘The National Goverment shall have fifty percent (50%) share from all fees and
revenues collected or received by the PSBS. Forty-five percent (45%) shall be retained by the
PSBS and utilized solely for facilities and equipment modemization. The remaining five
percent (5%) shall be earmarked for additional expenditure to the PSBS employees’ benefits.

Further, the PSBS may sell the content of its news and current affairs programs to
foreign stations.

SEC. 21. Fiscal Autonomy. - The PSBS shall enjoy fiscal autonomy. Appropriations
for the PSBS may not be reduced by the Legislature below the amount appropriated for the
previous year, and after approval shall be automatically and regularly released.

Further, there shall be a ten percent (10%) automatic increase in the budget of the
PSBS every five (5) years: Provided, That there was no increase in its annual budget for five
(5) consecutive fiscal years

The salary of the Board and Officers of the PSBS shall be fixed by law. During their
continuance in office, their salary shall not be decreased.

TITLE VIL
ADMINISTRATIVE PROVISIONS

SEC. 22. Record of Transactions. - The PSBS shall keep proper accounts and records
of all its transactions and affairs, and shall do all things necessary to ensure that all payments
made out of its moneys are correctly made and properly authorized, and that adequate control
is maintained over the assets of, or in the custody of, the PSBS and the expenditures incurred
by the PSBS. The PSBS shall be subject to audit by the Commission on Audit.


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TITLE IX
EMPLOYEES OF THE PSBS

SEC. 23. Civil Service Law Coverage for Employees. - The hiring, appointment,
employment, promotion, disciplinary control, and other terms and conditions of the service of
all employees of the PSBS, and such other matter affecting its employees shall be consistent
with the provisions of the Civil Service Law, Rules and Regulations.

SEC. 24. Salary Scale for Officials and Employees. - The rates of compensation and
classes of positions in the PSBS shall be covered by the Salary Standardization Law

SEC. 25. GSIS Coverage for Employees. - All employees hired by the PSBS shall be
deemed members of the Governments Service Insurance System (GSIS) for the purpose of
employee benefits.

TITLE X
OVERSIGHT

SEC. 26. Oversight Committee. - The House of Representatives and Senate chairman
of the Committee on Public Information and Mass Media shall have authority to hold public
hearings on matters relating to financial management of the PSBS. The PSBS must at all
reasonable times upon demand, allow the Committee to examine any of its accounts and
furnish the Committee with all forecasts, estimates, reconciliations, information and
documents, which the Committee may require, in such format as the Committee may require,
with financial transactions and engagements of the PSBS.

TITLE XI
MISCELLANEOUS PROVISIONS

SEC. 27. Transition Clause. - All the powers, functions, assets and liabilities, capital,
accounts, contracts, and facilities pertaining to the National Broadcasting Network (NBN-4),
and all equipment relating to television broadcasting owned by the government shall be
transferred to the PSBS.

SEC. 28. Transitory Provision. - The Officers shall recommend to the Board of
Directors a corporate plan that includes programming direction, budget, organizational plan
and structure, a staffing pattem and compensation plan within ninety (90) days from the
effectivity of this Act. Said corporate structure shall be implemented by the Officers within
thirty (30) days after its approval by the Board of Directors: Provided, that the current career
employees of the National Broadcasting Network (NBN-4) shall be absorbed and
accommodated by the PSBS

SEC. 29. Amendments. - The provisions of this Act shall be subject to amendments,
alteration or repeal by the Congress of the Philippines, when public interest so requires.

SEC. 30. Separability Clause. - If any provision or part of this Act is declared invalid
or unconstitutional, the remainder shall not be affected thereby and shall continue to be in full
force and effect.

SEC. 31. Repealing Clause. - Republic Act 7306, and all other laws, presidential
decrees, executive orders, rules and regulations or proclamations and other issuances,

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contrary or inconsistent with the provisions of this Act are hereby repealed or amended
accordingly.

SEC. 32. Effectivity Clause. - This Act shall take effect fifteen (15) days following its
publication in the Official Gazette or in two (2) national newspapers of general circulation.

Approved,