Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS

FIRST REGULAR SESSION
HOUSE BILL NO. 4273

Introduced by REP. ELEANDRO JESUS F. MADRONA

EXPLANATORY NOTE

It is ironical that with the advance of information and communication technologies
in the local and national scale, the need for efficient and modern broadcasting facilities
in the provinces and regions still remain inadequate. The development of modern mass
media has changed dramatically how information has been circulated among its
intended audience. There has been vastly improved information dissemination and
absorption in a global scale. Unfortunately, there are still many communities in the
country bereft of adequate, modem and sustainable broadcasting facilities

This bill seeks to contribute to the spread of modern TV and radio broadcasting
facilities to cover many un-served areas and islands in the Philippines, as what the
grantee did in the islands of Masbate and Rombion.

This measure is in line with the provision of Section 24 , Article II of the 1987
Constitution, which provides that the State recognizes the vital role of communication
and information in nation-building.

The franchise is set to expire on May 2017 thus approval of this measure is
earnestly sought.

mal Gea

REP. ELEANDRO JESUS F. MADRONA
Lone District, Rombion


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS

First Regular Session

4273

House Bill No.

Introduced by REP. ELEANDRO JESUS F. MADRONA

AN ACT

RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS AND EXPANDING INTO NATIONAL
COVERAGE FROM THE EFFECTIVITY OF THIS ACT THE FRANCHISE GRANTED TO
MASBATE COMMUNITY BROADCASTING CO., INC., AMENDING FOR THE PURPOSE
SECTION 1 OF REPUBLIC ACT NO. 7510 ENTITLED “AN ACT GRANTING THE MASBATE
COMMUNITY BROADCASTING CO., INC., A FRANCHISE TO CONSTRUCT, INSTALL,
OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS IN THE
ISLANDS OF MASBATE AND ROMBLON AND THE WHOLE OF THE VISAYAS, AND FOR
OTHER PURPOSES”

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
Masbate Community Broadcasting Co., Inc. under Republic Act No. 7510 entitled “An Act
Granting The Masbate Community Broadcasting Co., Inc., A Franchise To Construct, Install,
Operate And Maintain Radio And Television Broadcasting Stations In The Islands Of Masbate
‘And Romblon And The Whole Of The Visayas, And For Other Purposes”, hereunder referred to
as the grantee, its successors or assigns, to construct, install, establish, operate and maintain
for commercial purposes and in the public interest, radio and/or television broadcasting stations
in the islands of Masbate and Romblon and the whole of the [Visayas] PHILIPPINES, WHERE
FREQUENCIES AND/OR CHANNELS ARE STILL AVAILABLE FOR RADIO AND/OR
TELEVISION BROADCASTING, INCLUDING DIGITAL TELEVISION SYSTEM, INTERNET
PROTOCOL (IP) - RELATED SERVICES AND IP-VALUE-ADDED SERVICES, THROUGH
MICROWAVE, SATELLITE OR WHATEVER MEANS, INCLUDING THE USE OF ANY
TECHNOLOGIES IN TELEVISION AND RADIO SYSTEMS, with the corresponding
technological auxiliaries or facilities, special broadcast and other program and distribution

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services and relay stations, is hereby renewed for another twenty-five (26) years from the

effectivity of this Act.

SEC. 2, Manner of Operation of Stations of 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 selected
wavelengths or frequencies and the quality of transmission or reception thereon as should
maximize rendition of the grantee's services and/or 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 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 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 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 (26)
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. Non-acceptance shall render the franchise void

SEC. 8. Bond. - The grantee shall file a bond with the NTC in the amount that the NTC
shall determine to guarantee compliance with and fulfilment of the conditions under which this
franchise is granted. If after three (3) years from the date of the approval of its permit by the
Commission, the grantee shall have fulfilled the same, the bond shall be cancelled by the
Commission. Otherwise, the bond shall be forfeited in favor of the government and the franchise

ipso facto revoked.

SEC. 9, 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
andior incite treason, rebellion or sedition; or the language used therein or the theme thereof is
indecent or immoral: Provided, further, that and willful failure to do so shall constitute a valid
cause for the cancellation of this franchise.

SEC. 10. Warranty in Favor of National and Local Governments. - The grantee shall hold
the national, provincial, city and municipal governments of the Philippines harmless 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. 11. Sale, Lease, Transfer, Usufruct, or Assignment. - The grantee shall not lease,
transfer, grant the usufruct of, sell nor assign this franchise or the rights and privilege 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 person, firm, company, corporation or entity without the prior approval of the
Congress of the Philippines: Provided, That Congress shall be informed of any lease, transfer,
granting the usufruct of, sale or assignment of franchise or the rights or privileges acquired
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 jpso 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. 12. 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 centum (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. 13. 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. 14. 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 the
succeeding year

SEC. 15. Penalty Clause - Any grantee who fails to submit the Annual Report to
Congress as provided for in Section 14 of this Act will be fined Five Hundred Pesos (P500.00)

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per working day of non-compliance. Said fine will be collected by the NTC from said delinquent
franchise grantee separate from the reportorial penalties imposed by NTC. The collected funds
shall accrue to the monitoring fund of the NTC in line with its supervisory and regulatory
functions. The reportorial compliance certificate issued by Congress shall be required before
any application for permit or certificate is accepted by NTC.

SEC. 16. Equality Clause, - Any advantage, favor, privilege, exemption, or immunity
granted under existing franchise, 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,
however, That the foregoing shall neither apply to nor affect 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: Provided, further, That the foregoing shall not apply
to sale, lease, transfer or grant of usufruct of legislative franchise with prior congressional

approval.

SEC. 17. Separability Clause. - If any provision of this Act is declared unconstitutional,
the remainder of this Act or any provisions not affected thereby shall remain in full force and

effect.

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.

SEC. 19. Publication. This Act shall be published, through the initiative of the Grantee,
fifteen (15) days after this Act is signed by the President of the Philippines or has lapsed into

law.

SEC. 20 Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation in the Philippines

Approved,