EXPLANATORY NOTE
The Constitution enshrines the protection of the freedom of the press under section 4
of the Bill of Rights.
The  power of media  amplifies  diverse  opinions  and  helps  spread  news/information,
disaster-related  assistance  and  increase  collaboration  for  various  endeavors.   It  not  only
entertains but provides a public service. More importantly, media calls attention to violation of
rights  and  promotes  good  governance  by  holding  government  officials  and  all  sectors  to
account.
Even in the promotion for social justice in all phases of national development which is
a  State  Policy  under  the  Constitution  (section   10  Art.   11),  the  responsible  use  of  media,
especially those  reaching  the  poorest sectors,  is essential  for those who  have  no  voice  in
S°C'ety Not the  least,  section  24,  Article  H  of the  1987  Philippine  Constitution  Provides that
State recognizes the vital role of communication and information in nation-building.
Even with the advent of the  internet,  many reaches of Mindanao and the Philippines
still  suffer  from  lack  of  access  to  media.  It  cannot  be  disputed  that  the  fastest  and  most
comprehensive medium of communication is still radio and television.  For many of our poorest
citizens, radio and TV are also the cheapest media to utilize.
Through  radio  (both AM  or Amplitude Modulation;  and  FM  or Frequency  Modulation)
and television, the objective of RADY0 DE ORO is to prove the Filipinos with fast and relevant
programs of information that are educational, entertaining, and even life-saving.
Therefore,  this bill  seeks to grant the  RADYO  DE OR0 CORPORATION a franchise
to construct, install, establish, operate, and maintain radio and television broadcasting stations
in all forms in the City of Cagayan De Oro and the Province of Misamis Oriental,  Philippines.
In view of the foregoing, approval of this bill is earnestly requested.


NINETEENTH CONGRESS                  )
REPUBLIC OF THE PHILIPPINES    )
First Regular session                            )
HOUSE 0F REPRESENTATIVES
Introduced by Representative Rufus a. Rodriguez
House Bi~[I No.   5602
AN ACT
GRANTING  RADYO  DE  0RO  CORPORATION  INC.    A  FRANCHISE  TO  CONSTRUCT,
INSTALL,     ESTABLISH,     OPERATE,     AND     MAINTAIN     RADIO    AND    TELEVISION
BROADCASTING STATIONS IN CAGAYAN DE ORO CITY AND PROVINCE OF MISAMIS
ORIENTAL
Be  it enacted  by the  Senate  and  House of Representatives of the  Philippines  in  Congress
assembled:
Section 1. Ivafure and Scape of Franchi.se. - Subject to the provisions of the Constitution and
applicable laws,  rules and regulations, there is hereby granted to Radyo de Oro Corporation
lnc„   hereunder  referred  to  as  the  grantee,   its  successors  or  assignees,   a  franchise  to
construct,  install,   operate,  and  maintain for commercial  purposes and  in the public interest,
radio  and  television  broadcasting  stations  in  Cagayan  de  Oro  and  the  entire  Province  of
Misamis Oriental, where frequencies and channels are still available for radio   and television
broadcasting,    including  digital  television  system,  through  microwave,  internet,    satellite  or
whatever means,  as well as the use of any new technology in television and radio systems,
with  the  corresponding  technological  auxiliaries  or  facilities,  special  broadcast  and  other
programs, and distribution services and relay stations.
Section  2. Mar7ner of Operafi`on  of Sfaf/.ons or Fac/.//.i/.es. -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  privilege 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.
Sectiion 3. Prior Approval  of the  National  Telecommunications  Commission. -The grarrfee
shall   secure  from  the   National  Telecommunications  Commission   (NTC)  the  appropriate
permits and licenses for the construction and operation of its stations or facilities and shall not
use any frequency  in the  radio/television  spectrum without authorization from the  NTC.  The
NTC,  however, shall not unreasonably withhold or delay the grant of any such authority.
In  case  of any  violation  of the  provisions  of this  franchise,  the  NTC  shall  have  the
authority to revoke or suspend,  after due process, the permits or licenses it issued pursuant
to the franchise.  The  NTC  may recommend to Congress the revocation of the franchise for
any violation of the provisions of this franchise.
Section 4. Respons/.b/.//.fy to the Pub//.c. - 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 populations 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 including closed captioning;  and  not use its


stations  or facilities for the  broadcasting  of obscene  or 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.
Public service time referred herein shall be equivalent to a maximum aggregate of ten
percent (10%) of paid commercials or advertisements which shall be allocated based on need
to  the  Executive  and  Legislative  branches,  the  Judiciary,  Constitution  Commissions,  and
international humanitarian organizations duly recognized by statutes: Prov/.ded, 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.
Pursuant to section  9 of Republic Act  No.  8370,  otherwise  known  as the "Children's
Television Act of 1997", the grantee shall allot a minimum of fifteen percent (15%) of the daily
total air time of each broadcasting network or station to child-friendly shows within its regular
programming.
Section 5. Rt.ghf of the Goverrmenf. -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.
Section 6.  Term of France/se. -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 revoked ipso facto, after compliance of due process, in the event the grantee fails
to comply with any of the following conditions:
(a)  Commencement  of  operations  within  three  (3)  years  from  the  approval  of  its
operating permit by the NTC;
(b) Commencement of operations within five (5) years from the effectivity of this Act;
and
(c) Continuous operation for two (2) years.
Section 7. f?enewa/ or Exfenst.on of Franchi.se. - The grantee shall apply for the renewal or
extension  of its franchise three  (3) years  before its expiration  date which  shall  be  reckoned
fifteen (15) days after the publication of the franchise in the Official Gazette or in a newspaper
of general circulation.
Section 8. Se/f-regu/aft'on by and Underfaki'ng of the Gran fee. -The grantee shall not require
any previous censorship of any speech,  play,  act,  or scene,  or other matter to be broadcast
from  its stations: Provi.ted, That the grantee,  during  any broadcast,  shall cut off 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 immoral: Provt.ded, further, That willful failure to do so shall constitute a
valid cause for the cancellation of this franchise.
Section 9. Warranty t.r} Favor of the Ivaf/.ona/ and Loca/ 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.


Sea:tiion    10.Commitment    to    Provide    and    Promote    the    Creation    of    Employment
Opporfuni.fi.es. - The grantee shall create employment opportunities and shall allow on-the-
job  trainings  in  their franchise  operations:  Provided; That  priority  shall  be  accorded  to  the
residents in areas where the principal office of the grantee is located:  Provi.ded, further, That
the  grantee  shall  ensure  that  at  least  sixty  percent  (60°/o)  of  its  employees  are  regular
employees and in no case shall the percentage of contractual employees, job order and casual
employees,  and  independent  contractors  combined,  exceed forty  percent  (40°/o)  of its total
workforce unless the same is allowed under the provisions of the Labor Code and issuances
of the Department of Labor and Employment:  Provi.ded, finally, That the grantee shall comply
with   applicable  labor standards  and  allowance  entitlement  under existing  labor laws,  rules
and regulations and similar issuances.
The  employment  opportunities  or  jobs  created  shall   be   reflected   in  the  General
Information  Sheet (GIS) to be submitted to  he Securities and  Exchange Commission  (SEC)
annually.  In addition, the grantee shall include in its annual report to Congress the number of
trainees and workers whose employment status are made regular, and append the applicable
certificate from the Department of Labor and  Employment attesting that it has complied with
the employment requirement under this section.
See;tlon  11. Sale,  Lease,  Transfer,  Grant  of  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,   not  merge  with  any  other  corporation  or  entity,   nor  shall  the
controlling interest of the grantee be transferred, simultaneously or contemporaneously, to any
person, firm,  company,  corporation,  or entity without the prior approval of the Congress. The
grantee shall inform the Congress of any sale, lease, transfer, grant of usufruct, or assignment
of franchise or the  rights and  privileges  acquired thereunder,  or of the merger or transfer of
the controlling  interest of the grantee,  within  sixty  (60) days after the completion  of the said
transaction.   Failure  to   report  to   Congress  such   change   of  ownership  shall   render  the
franchise ipso facto revoked, after compliance with due process. Any person or entity to which
this franchise is sold, transferred,  or assigned shall be subject to the same conditions, terms,
restrictions,  and limitations of this Act.
Section   12. D/.spersa/  of  Owr}ersh/.p. -ln  accordance  with  the  constitutional   provision  to
encourage  public  participation  in  public  utilities,  the  grantee  shall  offer to  Filipino  citizens  at
least thirty percent  (30%)  of its outstanding  capital  stocks,  or a  higher percentage that may
hereafter be provided by law, in any securities exchange in the Philippines within five (5) years
from  the  effectivity  of  this  Act: Provi.ded, That  in  cases  where  public  offer  shares  is  not
applicable,  other  methods  of encouraging  public  participation  by  citizens  and  corporations
operating  public  utilities  must  be  implemented.  Noncompliance  therewith  shall  render  the
franchise ipso facto revoked, after compliance with due process.
Section  13. Raporfort.a/ Requ/.remenf. -The  grantee  shall  submit  an  annual  report  on  its
compliance  with  the  terms  and  conditions  of  the  franchise  and  on  its  operations  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 or before April 30
of every year during the term of its franchise.
The annual  report shall  include an update on the roll-out,  development,  operation,  or
expansion of business; audited financial statements; latest General Information Sheet officially
submitted  to  SEC,  if  applicable;  certification  of  the  NTC  on  the  status  of  its  permits  and
operations; and an update on the dispersal of ownership undertaking,  if applicable.
The  reportorial  compliance  certificate  issued  by the  Congress  shall  be  required  before  any
application for permit or certificate is accepted by the NTC.
Section 14. Fi'ne. -Failure of the grantee to submit the requisite annual report to Congress
shall   be   penalized   by   a   fine   of   Five   hundred   pesos   (P500.00)   per   working   day   of


noncompliance. The fine shall be collected by the NTC from the delinquent franchise grantee
separate from the reportorial penalties imposed by the NTC and the same shall be remitted to
the National Treasury.
Section   15. Eqt/a//ty  C/ause.-Any  advantage,  favor,   privilege,   exemption,   or  immunity
granted   under  existing  franchises,   or  which   may  hereafter  be  granted  for  radio  and/or
television 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:  Prov/.bed, That  the  foregoing  shall   neither  apply  to  nor  affect  the  provisions  of
broadcasting  franchises  concerning  territorial  coverage,  the  term,  or  the  type  of  service
authorized under the franchise.
Section  16. Rapeafabi./t.fy and IVon  exc/us/'vi.fy C/ause. -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 17. Saparab7./;ty C/ause. -lf any of the sections or provisions of this Act is held invalid,
all other provisions not affected thereby shall remain valid.
Section 18. Rapea/r.ng C/at7se. -All laws, decrees, orders, resolutions, instructions, rules and
regulations, and other issuances or parts thereof which are inconsistent with the provisions of
this Act are hereby repealed, amended, or modified accordingly.
Section  19. Effecfi.vt.fy. -This  Act  shall  take  effect  fifteen (15)  days  after  its  publication  in
the Official Gazette or in a newspaper of general circulation.
Approved,