Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

HOUSE BILLNO. 2284

Introduced by HONORABLE SALVIO B. FORTUNO

EXPLANATORY NOTE

The Bicol Broadcasting Systems, Inc. (BBS!) was granted a
franchise to construct, install, operate and maintain radio broadcasting
Stations in the Bicol Region effective July 6, 1995 under Republic Act
No. 8092. The same law has given the grantee the rights, privileges,
and authority to function for a period of twenty-five (25) years.

For twenty-three (23) years now, the Bicol Broadcasting Systems,
Inc. through its sound and balanced Programming has made information
accessible to the general public. Bicol Broadcasting Systems, Inc.
(BBS!) has regularly communicated with the people on vital and relevant
issues that concern the public, Through all these years, Bicol
Broadcasting Systems, Inc. has also been consistent in the promotion of
Bicol songs and music on the air and in launching of Bicol compositions
on original music and lyrics.

The renewal of its franchise would allow Bicol Broadcasting
Systems, Inc. to continue Providing public service while taking into
account the latest technologies in the broadcasting industry to improve
the quality of its service.

In view of the foregoing, the Passage of this bill is earnestly
requested.

s

SALVIO/B. FORTUNO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

HOUSE BILLNO. 8284

Introduced by HONORABLE SALVIO B. FORTUNO

AN ACT

RENEWING THE FRANCHISE GRANTED TO BICOL
BROADCASTING SYSTEMS, INC. (UNDER REPUBLIC ACT
NO. 8092 ENTITLED “AN ACT GRANTING THE BICOL
BROADCASTING SYSTEMS, INC. (BBSI) A FRANCHISE TO
ESTABLISH, OPERATE AND MAINTAIN COMMERCIAL
RADIO AND TELEVISION BROADCASTING STATIONS IN
REGION V’) - FOR ANOTHER TWENTY-FIVE (25) YEARS
FROM THE EFFECTIVITY OF THIS ACT

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

SECTION 1.Nature and Scope of Franchise. - Subject to
the provisions of the 1987 Philippine Constitution and
applicable laws, rules and regulations, the franchise granted to
Bicol Broadcasting Systems, Inc., hereunder referred to as
the grantee, its successors or assignees, under Republic Act
No. 8092 entitled “An Act Granting the Bicol Broadcasting
Systems, Inc. (BBSI), a Franchise to Establish, Operate and
Maintain Commercial Radio and Television Broadcasting

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Stations in Region V”, to construct, install, establish, Operate,
and maintain for commercial purposes and in the public
interest, radio and/or television broadcasting stations, where
frequencies and/or channels are still available for radio and/or
television broadcasting, including digital television system,
through microwave, satellite or whatever means, including the
use of any new technologies in television and radio systems,
with the corresponding technological auxiliaries and facilities,
special broadcast and other program and distribution services
and relay stations in the Bicol Region, is hereby renewed for
another twenty-five (25) years from the effectivity of this Act.

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
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.

SEC. 3. Prior Approval of the National
Telecommunications Commission. — The grantee shall secure
from the National Telecommunications Commission (NTC) the

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appropriate permits and licenses for the construction and
Operation of its stations and 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.

SEC. 4. Responsibility to the Public. - The grantee shall
provide adequate public service time to enable the government,
through the said broadcasting stations or facilities, to reach the
population on important 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 and 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.

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
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

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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 its stations or facilities during the period when they shall
be so operated.

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 anytime
after due process.

SEC. 6. Term of Franchise. — This franchise shall be in
effect for a period of twenty-five (25) years from the effectivity
of the Act, unless sooner revoked or cancelled. This franchise
shall be deemed jpso facto revoked in the event the grantee
fails to operate continuously for two (2).years.

SEC. 7. Acceptance and Compliance. — Acceptance of this
new franchise shall be given in writing 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.
Nonacceptance shall render the franchise void.


SEC. 8. 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 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:
Provided, further, That willful failure to do so shall constitute a
valid cause for the cancellation of this franchise.

SEC. 9. 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. 10. Sale, Lease, Transfer, Grant of Usufruct, or
Assignment of Franchise. - 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 other commercial or legal entity,
nor merge with any other corporation or entity, nor shall transfer
the controlling interest of the grantee, whether as a whole or in

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parts, and whether simultaneously or contemporaneously, to
any such person, firm, company, corporation or entity without
the prior approval of the Congress of the Philippines: Provided,
That Congress shall be informed of any sale, lease, transfer,
grant of usufruct of, or assignment of franchise or the rights or
privileges acquired thereunder, or the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after
the completion of said transaction: Provided, further, That
failure to report to Congress such change of ownership shall
render the franchise ipso facto revoked: Provided, finally, That
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.

SEC. 11. 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 per cent (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, establishment of
cooperatives and 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.

SEC. 12. 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. 13. Reportorial Requirement. — 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 its franchise. The reportorial
compliance certificate issued by Congress shall be required
before any application for permit or certificate is accepted by
the NTC.

SEC. 14. Penalty Clause — Failure of the grantee to
submit the requisite annual report to Congress will be penalized
by a fine in the amount of Five hundred pesos (P500.00) per
working day of noncompliance. The fine will be collected by the
NTC from the delinquent franchise grantee separate from the
reportorial penalties imposed by the NTC.


SEC. 15. Equality Clause. - 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: Provided, That the foregoing shall neither apply to nor
affect the provisions of broadcasting franchises concerning
territory covered by the franchise, the life span of the franchise
or the type of service authorized by the franchise.

SEC. 16. Separability Clause. — If any of the sections or
Provisions of this Act is held invalid, all other provisions not
affected thereby shall remain valid.

SEC. 17. 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.

SEC. 18 Effectivity.— This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in a
newspaper of general circulation.


Approved,