Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

HOUSE BILL No. __ 8993

Introduced by Honorable: MA. LOURDES R. AGGABAO

This bill seeks the renewal of the franchise of PHILIPPINE RADIO
CORPORATION.

PHILIPPINE RADIO CORPORATION was granted a franchise to construct,
install, operate and maintain radio broadcasting stations under RA 8032. This law has
given the grantee the rights, privileges and authority to function for a period of twenty-
five (25) years from June 5, 1995.

For more than twenty-two (22) years now, PHILIPPINE RADIO
CORPORATION has served as an important vehicle in information dissemination that
bridges communication gaps among the populace of the country. Its radio stations have
provided sound and balanced programming, making information easily accessible to the
general public. It has also frequently communicated with the people on important and
major issues confronting the nation.

In less than three (3) years’ time, the law that has given life and mandate to
PHILIPPINE RADIO CORPORATION to operate will expire. Therefore, this bill seeks
to extend the term of franchise of PHILIPPINE RADIO CORPORATION for another
twenty-five (25) years from its original expiration date.

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


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

SEVENTEENTH CONGRESS
Third Regular Session

8093
HOUSE BILL NO.

Introduced by Honorable: MA. LOURDES R. AGGABAO

AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE
FRANCHISE GRANTED TO PHILIPPINE RADIO CORPORATION UNDER
REPUBLIC ACT NO. 8032 ENTITLED “AN ACT GRANTING THE
PHILIPPINE RADIO CORPORATION A FRANCHISE TO CONSTRUCT,
INSTALL, ESTABLISH, OPERATE AND MAINTAIN COMMERCIAL RADIO
STATIONS IN THE PHILIPPINES”

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

SECTION 1. The Franchise granted to Philippine Radio Corporation under Republic
Act No. 8032 is hereby amended to read as follows:

“SEC. 1. Nature and Scope of Franchise. — Subject to the provisions of the 1987
Constitution and applicable laws, rules and regulations, the franchise granted to
pine Radio Corporation hereunder referred to as the grantee, its successors
or assignees, under Republic Act No. 8032 to construct, install, establish, operate
and maintain for commercial purposes and in the public interest, radio
broadcasting stations in the Philippines, including digital radio system, through
microwave, satellite, terrestrial or whatever means, or the use of any new
technologies in radio systems, with the corresponding auxiliary, 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 is hereby renewed for another twenty-five (25) years from the expiration
of its original franchise.



“SEC. 2. Manner of Operations 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 assigned 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.

“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 shall not use any
frequency in the radio spectrum without having been authorized by the NTC.

“SEC. 4. Responsibility to the Public. ~The grantee shall provide free of charge,
adequate public service time which is reasonable and sufficient to enable the
government, through the broadcasting stations or facilities of the grantee, to
reach the pertinent population/s or portions thereof on important public issues
and relay important public announcements and warnings 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 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 the public interest,
or to incite, encourage, or assist in subversive or treasonable acts.

“Public service time referred herein shall be equivalent to ten percent (10%) of
the paid commercials or advertisements which shall be allocated based on need
to the executive, legislative, judiciary, constitutional commissions and
international humanitarian organizations duly recognized by statutes: Provided,
That the NTC shall increase the public service time in case of 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.

“SEC. 5. 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 serious 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 stations or facilities of the grantee during the period when these
shall be operated.

“SEC. 6. Term of Franchise~ The renewal of the franchise granted under
Republic Act No. 8032 for another twenty-five (25) years shall take effect on
June 6, 2020, unless sooner revoked. 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. ~ The renewed franchise shall become
effective upon acceptance given in writing by the grantee 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 of
the grantee shall render the franchise void.

“SEC. 8. Tax Provisions. ~ The grantee, its successors or assignees, shall
continue to be subject to all applicable taxes, duties, fees or charges and other
impositions under Republic Act. No. 8424, otherwise known as “The National
Internal Revenue Code of 1997”, as amended, Republic Act. No. 7160, otherwise
known as “The Local Government Code of 1991”, as amended, and other
applicable laws.

“SEC. 9. Compliance with Labor Standards. — The grantee, its successors or
assignees, shall comply with the applicable labor standards under existing labor
laws, rules and regulations and such other issuances as may be promulgated by
the Department of Labor and Employment, taking into consideration the nature
and peculiarities of the broadcast industry.

“SEC. 10. 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 not allow to be aired 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 further, That willful failure to do so shall constitute a valid
cause for the cancellation of this franchise.

“SEC. 11. Warranty in Favor of National and Local Governments. — 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.

“SEC. 12. 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 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. 13. 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.
Noncompliance therewith shall render the franchise ipso facto revoked.

“SEC. 14. General Broadcast Policy Law. - The grantee shall comply with and
be subject to the provisions of a general broadcast policy law, which Congress
may hereafter enact.

“SEC. 15. Reportorial Requirements. ~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 during the
term of the franchise.

“SEC. 16. Equality Clause. - Any advantage, favor, privilege, exemption, or
immunity granted under existing franchise, 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, That the foregoing shall not
apply to nor affect provisions of broadcasting franchises concerning territory
covered by the franchise, the lifespan of the franchise or the type of service
authorized by the franchise.

“SEC. 17. 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. 18. 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 for.

SECTION 2. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,