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EIGHTEENTH CONGRESS.

First Regular Session Gree
6902

House Bill No.

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ix

Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Mai

Introduced by Representative Ron P. Salo

EXPLANATORY NOTE

Article XVI, Sec. 11 of the 1987 Constitution provides that “(t)he ownership and
management of mass media shall be limited to citizens of the Philippines, or to
corporations, cooperatives or associations, wholly-owned and managed by such
citizens.”

Although not expressly provided under our organic law, the framers of our
Constitution recognize the very important role that mass media plays in nation building,
in creating a cohesive and coherent Filipino consciousness, and in promoting our
culture. With such crucial role, the members of the 1986 Constitutional Commission
limited the ownership and management of such entities to Filipino citizens and juridical
entities managed by Filipinos.

Over the years, many of us have witnessed the decline in the quality of
entertainment being offered by some of the biggest names in the entertainment
industry. Some opine that our favorite noontime shows hardly reflect the deep cultural
heritage of the Filipino people, nor promote positive Filipino values.

Others also notice biased news reporting by certain media organizations and
personalities which tend to promote the interest of certain groups, allowing themselves
to be used as peddlers of misinformation, and thus creates confusion and division
among the people.

Finally, some opine that the focus and driving force behind the operations of
most media outfits is the revenue and net profit, or the so called “bottom line figures,”
having little regard for public service. The Filipino viewers are left to watch infinite
advertisements from a very finite daily airtime, making their viewing experience highly
commercialized.

With the above disquisitions, | respectfully propose seven (7) highly important
parameters with which our television and radio grantees shall be measured within the
period of the franchise. This shall be primarily implemented by the NTC to make sure
that within the life of the franchise, accountability must define the continuing relevance
of the grantees. Otherwise, the owners and officers may be penalized, or their

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programs may be suspended, or ultimately their franchise may be recommended to
Congress for revocation.

The passage of this measure, through the support of my esteemed colleagues
in this august body, will assure us a better viewing experience that will lead to better
informed Filipinos with deeply-shared consciousness and culture.

In view of the foregoing, approval of this bill is earnestly sought.

RON P. SALO
KABAYAN Party List

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 6902

Introduced by Representative Ron P. Salo

AN ACT
REQUIRING ALL FRANCHISE HOLDERS OF TELEVISION AND RADIO
BROADCAST NETWORKS TO COMPLY WITH CERTAIN SPECIFIC
PARAMETERS AND FOR OTHER PURPOSES

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

SEC. 1. Short Title. — This Act shall be known as the “Performance Standards
for Media Franchise Holders Act.”

SEC. 2. Declaration of Policy — The State affirms the important role of mass
media in national development, in the promotion of the country's rich cultural heritage,
and in providing timely, accurate and relevant information to the people. To this end,
the State hereby provides the necessary performance standards for franchise holders
of television and broadcast networks.

SEC. 3. Performance Standards — For the purpose of this Act, the following
shall be the set of Performance Standards that each franchise holder of television and
radio broadcast networks must strictly comply and adhere to:

1. Strict compliance with the Constitution, statutes, rules and regulations,
including labor laws and standards.

2. Promotion of employment and security of tenure. The holder of television
broadcast franchise shall ensure that at least sixty percent (60%) of its
employees are regular employees and.in no case shall the percentage of
contractual employees, job orders, casuals, talents and independent
contractors combined, exceed forty percent (40%) of its total workforce.

In addition, the holder of the broadcast franchise shall submit an annual
report of its regularized employees and secure a compliance and clearance

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certificate from the Department of Labor (DOLE) and its relevant attached
agencies.

2

. Ensure impartial and balanced reporting. The holder of broadcast franchise
shall ensure that news and events are reported accurately and truthfully,
and that all parties involved in such news or events are allowed equal time
and opportunity for information-sharing,

4. Promotion of positive Filipino values. The holder of broadcast franchise shall
ensure that all its programs, including its talents and the languages used by
its talents, are geared towards the promotion of positive Filipino values. The
Movie and Television Review and Classification Board (MTRCB) shall
actively monitor compliance on this aspect.

5. Provision of public service time. Public service time referred herein shall be
equivalent to ten percent (10%) of the paid commercials or advertisements
which shall be allocated based on need to the executive, legislative,
judiciary, constitutional commissions and international humanitarian
organizations duly recognized by statutes; Provided, That the NTC shall
increase the public service time in case of 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.

6. Strengthened self-regulation of contents. The holder of broadcast franchise
shall ensure that within its organization, there is in place a strong
mechanism that will regulate its contents. Consistent with this provision, it
shall not allow to be aired any speeches, plays, acts or scenes, or other
materials through broadcast and/or telecast if the tendency thereof is to
propose and/or incite treason, rebellion or sedition; or the language used
therein or the theme or behavior/action of talents is immoral or indecent.

N

Reasonable and equitable rate for election advertisements. The holder of
broadcast franchise shall ensure that the rate for election advertisement is
reasonable and equitable to allow all candidates, particularly those seeking
national elective positions, equal opportunity to present programs of
government to the electorate. The Commission on Elections (COMELEC),
shall promulgate the guidelines for the implementation of this performance
standard.

SEC. 4. Institutional Plan of Action for Responsibility and Accountability

— The NTC, in coordination with the Department of Budget and Management, DOLE,
MTRCB, COMELEC and relevant stakeholders, shall develop an Institutional Plan of
Action for Responsibility and Accountability (IPARA) which shall fiesh-out the
aforementioned parameters, and will be the basis for monitoring the compliance of all
franchise holders of television and radio broadcast networks. This plan shall include
corporate social responsibility initiatives on the improvement of labor policies,
charitable works, education and research, culture and corporate policies beneficial to
the environment.

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SEC. 5. Filing of Complaint — Any aggrieved person may file a complaint with
the NTC for any violation of this Act and/or the legislative franchise. The said complaint
shall be filed in accordance with the Rules of Practice and Procedure before the NTC.

SEC. 6. Administrative Sanctions - Any violation of this Act and/or the terms
or conditions of the legislative franchise shall be dealt with in accordance with the
administrative sanctions as provided herein:

1. First Offense — a fine not exceeding One Hundred Thousand Pesos
(P100,000.00) depending on the gravity of the offense and/or suspension or
discontinuance of the program.

2. Second Offense — a fine not exceeding Five Hundred Thousand Pesos
(P500,000.) depending on the gravity of the offense and/or suspension or
discontinuance of the program.

3. Third Offense —a fine not exceeding One Million Pesos (P1,000,000.00)
depending on the gravity of the offense and/or suspension or
discontinuance of the program.

SEC. 7. Gross Violation of the Terms and Conditions of the Franchise and
of the Performance Standards. — In cases of gross violation by the grantee of the
terms and conditions of its franchise or of the performance standards specified herein,
the NTC may recommend 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, for the revocation of the franchise.

SEC. 8 Separability Clause. — If any provision or portion of this Act is declared
unconstitutional, the remainder of this Act or any provision not thereby affected shall
remain in full force and effect.

SEC. 9. Repealing Clause. — All laws, decrees, executive orders, ordinances,
rules, regulations, or other issuances, or parts thereof which are inconsistent with any
of the provisions of this Act are hereby repealed, amended, and/or modified
accordingly.

SEC. 10. Implementing Rules and Regulations. ~ The NTC, COMELEC,
DOLE and MTRCB shall issue the Implementing Rules and Regulations (IRR) within
sixty (60) days from the effectivity of this Act.

SEC. 11. Effectivity. — This Act shall take effect fifteen (15) days after its
Publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved.

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