Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. 
Introduced by REP. JOSE FRANCISCO “KIKO” B. BENITEZ 
EXPLANATORY NOTE 
The objective of Executive Order No. 292 (s. 1987) or the Administrative Code of 1987 
(“Code”) is clear – “to [provide] optimum benefit to the people…to serve the people.” 
The continuous increase in the number of people contracting coronavirus disease (“COVID-
19”) has placed several governments, including the world’s best, into a standstill, preventing the usual 
conduct of operations and public services.  
The Philippine Government was not spared. Its offices, instrumentalities, and agencies 
suspended their usual and regular work thereby affecting the performance of its public duties and 
functions, including the renewal of existing franchise for public utilities.  
Public utilities offer services most crucial to public welfare. Thus, failure to renew a franchise 
of a public utility, unlike ordinary licenses, has several social and economic consequences detrimental 
to employment opportunities and promotion of the general welfare of the people, guaranteed by no less 
than our Constitution [Article II, Section 5] and Local Government Code [Republic Act No. 7160 (s. 
1991), Section 16].  
The non-renewal of a franchise due to a fortuitous event or force majeure is not only an injustice 
but an apparent failure to ensure promotion and protection of public welfare amidst difficult times. 
Public welfare demands more protection from our laws.  
The non-renewal of a franchise due to a fortuitous event or force majeure is avoidable. 
Legislation is guided by the principle that a law should be amended dictated by public welfare and the 
advancement of public policy, or demanded by the broader interest of justice. 
It is on the foregoing that the undersigned seeks the immediate approval of this bill aiming to 
amend the Code by incorporating a policy of automatic extension of the effective period of an expired 
franchise until Congress – prevented by a fortuitous event or force majeure – can already act on its 
application for renewal. To clarify, the objective is not automatic renewal but merely automatic 
extension of the effective period of the franchise until Congress can hear the application for its renewal. 
Through the proposed amendment, the (i) provision of public services by public utilities for 
general welfare will continue unhampered and (ii) franchisees will not carry the burden over something 
outside their control.  
For this body’s kind consideration. 
JOSE FRANCISCO “KIKO” BENITEZ 
January 24, 2022
7:43 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. 
Introduced by REP. JOSE FRANCISCO “KIKO” B. BENITEZ 
AN ACT  
AMENDING SECTION 18, BOOK VII, CHAPTER 3 
OF THE ADMINISTRATIVE CODE OF THE PHILIPPINES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:  
SECTION 1. Section 18, Book VII, Chapter 3 of Executive Order No. 292, is hereby 
amended to read as follows:  
“SEC. 18. Non-expiration of License OR FRANCHISE. - THE PROVISIONS OF SECTION 
1 HEREOF AND ANY OTHER PROVISION OF THIS CODE AND OTHER LAWS TO 
THE 
CONTRARY 
NOTWITHSTANDING, 
where 
the 
ADMINISTRATIVE 
OR 
LEGISLATIVE licensee OR FRANCHISEE has made timely and sufficient application for the 
renewal of a license OR FRANCHISE shall not expire until the application shall have been 
finally determined by the agency, DEPARTMENT, OR BRANCH OF GOVERNMENT 
AUTHORIZED TO GRANT THE LICENSE OR FRANCHISE. THERE IS FINAL 
DETERMINATION WHEN AN APPLICANT IS GIVEN WRITTEN NOTICE OF 
APPROVAL OR DENIAL OF ITS APPLICATION FOR RENEWAL. INACTION ON A 
PENDING APPLICATION SHALL NOT BE CONSIDERED A DENIAL THEREOF: 
PROVIDED, THAT, AN APPLICATION FOR RENEWAL OF A LEGISLATIVE 
FRANCHISE IS IPSO FACTO DENIED WHEN A CONGRESS ADJOURNS SINE DIE 
WITHOUT HAVING APPROVED THE APPLICATION. PROVIDED FURTHER, THAT, 
FORTUITOUS EVENTS OR FORCE MAJEURE SUCH AS PANDEMIC, CIVIL STRIFE 
AND OTHER SIMILAR NATIONAL AND GLOBAL CRISES, AMONG OTHERS, SHALL 
WARRANT THE AUTOMATIC EXTENSION OF THE FRANCHISE UNTIL CONGRESS 
CAN CONVENE IN THE USUAL AND REGULAR MANNER TO ACT ON THE 
APPLICATION FOR RENEWAL OF THE FRANCHISE.”  
SEC. 2. Separability Clause. - If any provision of this Act is declared unconstitutional or 
invalid, the provisions not affected thereby shall continue to be in full force and effect.   
SEC. 3. Repealing Clause. - All laws, decrees, orders, rules and regulations inconsistent 
with the provisions of this Act are hereby repealed or modified accordingly.   
SEC. 4. Transitory Provision. - The provisions of this Act shall apply to all applications 
for renewal of legislative franchises filed with the Congress on or after 1 July 2019, which have 
not been approved or denied by the Congress as of the date of the effectivity of this Act.  
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SEC. 5.  Effectivity. - This Act shall take effect within fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.  
 
Approved,