Republic of the Phil
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

House Bill No. 4028

Introduced by HON. JESUS CRISPIN C. REMULLA

This bill seeks to renew the franchise granted to SBS Radio Network,
Inc., under Republic Act No. 7397 entitled, “AN ACT GRANTING SBS RADIO
NETWORK, INC., A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND
MAINTAIN RADIO BROADCASTING STATIONS IN THE PHILIPPINES AND FOR
OTHER PURPOSES" enacted into law on 13 April 1992.

The term of the franchise of SBS Radio network, Inc., which is twenty-
five (25) years, will expire in April 2017. The filing of this bill is very timely
considering that it will undergo public hearings and consultations in the
committee level and be processed thru the legislative mill. The renewal of its
franchise is needed for long-term planning and capital investment due to the
emerging technologies that make the broadcasting industry capital intensive.

Communications and media play a vital role in the development and
growth of our country. The state policy is laid down in the 1987 Constitution
which provides that ‘The state recognizes the vital role of communication and
information in nation-building.” A most effective means of communication and
dissemination of information is broadcast media particularly radio in the
remote places of the Philippine archipelago.

It is imperative that the government continue to play an active role in
sustaining and encouraging the development of broadcast media.

In view of the foregoing, approval of this bill is earnestly requested,

JESUS CRISPIN C. REMULLA


Republic of the Philippines
HOUSE OF THE REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

23
House Bill No, 4028

Introduced by HON. JESUS CRISPIN REMULLA

AN ACT RENEWING THE FRANCHISE GRANTED TO SBS RADIO
NETWORK, INC. TO CONSTRUCT, MAINTAIN AND OPERATE RADIO
BROADCASTING STATIONS IN THE PHILIPPINES UNDER REPUBLIC
ACT NUMBERED SEVENTY THREE HUNDRED AND NINETY SEVEN TO
ANOTHER TWENTY-FIVE YEARS FROM THE DATE OF APPROVAL OF
THIS ACT

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

Section 1. Renewal of Franchise. - The franchise of the SBS Radio Network,
Inc., its successors and assigns, hereinafter referred to as the grantee, to
construct, maintain and operate radio broadcasting stations in the Philippines
under Republic Act Numbered Seventy Three Hundred Ninety Seven, is
hereby renewed to another twenty-five years from the date of approval of
this Act.

Section 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 existing stations or other stations which may be
established in accordance with law of other telecommunications services
grantees, without in any way diminishing its own right to use its selected
wavelengths or frequencies and the quality of transmission or reception
thereof as should maximize rendition of the grantee’s services and/or the
availability thereof.

Section 3. Prior Approval of the National Telecommunications Commission. —
The grantee shall secure from the National Telecommunications Commission
the’ appropriate permits and licenses 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 not unreasonably withhold or
delay grant of nay such authority.

Section 4. Responsibility to the Public. --- The grantee shall provide
reasonable public service time to enable the Government, through said


broadcasting stations, to reach the population on important public issues;
provide at all times sound and balanced programming; promote public
Participation such as in community programming; assist in the functions of
Public information and education; conform to the ethics of private 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 the public interest,
or to incite, encourage, or assist in subversive or reasonable acts.

Section 5. Tax Provisions. — The grantee, its 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 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 (NIRC) 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 representative in
accordance with the NIRC and the return shall be subject to audit by the
Bureau of Internal Revenue.

Section 6, Self-regulation by and Undertaking of Grantee. --The grantee shall
not require any previous censorship of any speech, play, act, scene, or other
matter to be broadcast and/or telecast from its stations: Provided, That the
grantee, during any broadcast and/or telecast shall cut off from the air the
speech, play, act, 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; and
willful failure to do so shall constitute a valid cause for the cancellation of this
franchise.

Section 7. Sale, Lease, Transfer, Usufruct, etc. - The grantee shall not 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
entity, nor merge with any other corporation or entity without the prior
approval of the Congress of the Philippines. Neither shall the controlling
interest in the grantee be transferred, whether as a whole or in part and
whether simultaneously or contemporaneously, to any such 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 validly sold or
transferred or assigned shall be subject to all the same conditions, terms,
restrictions and limitations of this Act.


Section 8. General Broadcast Policy. - The grantee shall comply with and be
subject to the provisions of a general broadcast policy law which Congress
may hereafter enact.

Section 9. Reportorial Requirement. - The grantee shall submit an annual
report to the Congress of the Philippines on its compliance with the terms and
conditions of the franchise and on its operations within sixty (60) days from
the end of every year.

Section 10. 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 11. Effectivity Clause. - This Act shall take effect fifteen (15) days
from the date of its publication in at least two (2) newspapers of general
circulation in the Philippines.

Approved,