Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
'--.
HOUSE BILL NO.
Introduced by HON. BAMBI 8. EMANO
AN ACT GRANTING THE CYS HOLDINGS CORPORATION
A FRANCHISE T0 CONSTRUCT, INSTALL, ESTABLISH, OPHRATE AND
MAINTAIN RADIO AND THLHVISION BROADCASTING STATIONS IN
THE CITY OF CAGAYAN DE 0R0 AND THH PROVINCE OF MISAMIS
ORIENTAL
EXPLANATORY NOTE
In order to establish a nation and handle issues of both national and local significance,
information dissemination is essential. Section 24, Article 11 of the  1987 Constitution states that,
"the  State  recognizes  the  vital  role  Of  communication  and  irf;ormation  in  nation-building."
Broadcasting transcends geographical boundaries, giving the state the opportunity to reach out to
its  citizens  even  in  remote  parts  of the  nation to  inform,  entertain,  and  promote  community
involvement, emergency preparedness and relief, education, and all other endeavors that could
benefit significantly from a stable broadcast medium that is available to every person. In this day
and age, when every home has a radio and other means of connectivity,  it is essential for the
government to ensure that information reaches Filipinos in every comer of the country.
However, many rural areas in the country, particularly those in the highlands and other
remote   communities,   are   hampered   by   a   lack   of  timely   and   reliable   information   and
communication channels. It is a known fact that there are still many areas that do not receive
accurate, sufficient, and reliable information on a regular basis.
This bill aims to grant the  CYS  Holdings  Corporation a franchise to  construct,  install,
establish, operate and maintain radio and television broadcasting stations in the City of Cagayan
de Oro, the Province of Misanis Oriental and its component cities to provide the people timely
and  accurate  information.  The  dissemination  of pertinent  information  on  new  markets  and
opportunities, agricultural know-how on new crops and varieties, land use techniques, among other
things, will lead to rural development through the accessibility of these radio stations in remote
communities, not only in Misamis Oriental but also its surounding areas. These will provide these


marginalized groups with a platform to express their concerns on problems affecting their daily
lives and means of livelihood.
Through  the  passage  of this  bill,  the  people  of Misamis  Oriental,  in  particular  the
underserved farmers, fisherfolks, and indigenous peoples in rural communities and other areas,
will be equipped with the resources they need to  end their marginalization through opportune
access to information, techniques, and innovations as well as through the exchange of knowledge,
insightful observations, and life-changing experiences.
In view of the foregoing, immediate approval of this bill is earnestly sought.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO.
Introduced by HON. BAMBI 8. EMANO
AN ACT GRANTING THE CYS HOLDINGS CORPORATION
A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPHRATE AND
MAINTAIN RADIO AND THLEVISION BROADCASTING STATIONS IN
THH CITY 0F CAGAYAN DE ORO AND THE PROVINCE 0F MISAMIS
ORIENTAL
Be  it  enacted  by  the  Senate  and  House  Of  Representatives  Of  the  Philippines  in  Congress
assembled:
SECTION  1.  IVcz/wre  cz#d  Scape  a/ /fee  Frcz77chz.se.   -  Subject  to  the  provisions  of  the
Constitution  and  applicable  laws,  rules  and  regulations,  there  is  hereby   granted  to   CYS
HOLDINGS CORPORATION, hereunder referred to as the grantee, its successors and assigns, a
franchise to construct, install, establish, operate and maintain for commercial purposes and in the
public interest, radio and/or television broadcasting stations in the City of cagayan de Oro and the
Province of Misamis Oriental, Philippines, where frequencies and/or charmels are still available
for radio  and/or television  broadcasting,  including  digital  radio,  internet protocol  (IP)  related
services,throughmicrowave,satelliteorwhatevermeans,includingtheuseofanynewtechnology
that may hereafter or in the future be developed in the radio broadcasting, with the corresponding
technological  auxiliaries  and  facilities,  special  broadcast  and  other  program  and  distribution
services and relay stations.
SHCTI0N 2. A4lcz##cr a/Operafz.o# a/Srczfz.o#s or Facz./I.fz.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 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.
SE:CTloIN 3. Prior Approval Of the National Telecommunications Commission. -I:he glairrtee
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 having been authorized by the Commission.
The  Commission,  however,  shall  not  unreasonably  withhold  or  delay  the  grant  of any  such
authority.
SECTION 4. Jtespo#sJ.bz./z.fy /a /7}e Pwb/z.c. - The grantee shall provide adequate public service
time to enable the government through the said broadcasting stations or facilities, to reach the
populationonimportantpublicissues;provideatalltimessoundandbalancedprogramming;assist
in the functions of public information and education; conform to the ethics of honest entexprise,
and not use its stations and facilities or 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.
SECTION 5. Rz.g¢/ /a Gover#me#/. -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 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 the said
stations or facilities during the period when the shall be so operated.
The radio spectnm 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.
SECTION 6. rcr77! a/Fra#cfo!.se. -This franchise shall be for a term of twenty-five (25) years
from the date of effectivity of this Act, unless sooner revoked or cancelled. This franchise shall be
deemed ipso  facto revoked in the event the grantee fails to comply \;Ivith any  of the following
conditions:
a) Commence operations within one ( 1 ) year from the approval of its operating permit by
the NTC;
b) Operate continuously for two (2) years; and
c) Commence operations within three (3) years from the effectivity of this Act.
SECTION 7. 4ccep/cz#ce a#d Camp/i.cz#ce.  -Acceptance of this franchise shall be given in
writing 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.
SECTION 8. Bond  - The grantee shall file a bond issued in favor of the NTC, which shall
determine the amount, to guarantee the 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 forfeited in favor
of the government and the franchise ipso facto revoked.


SE:CTION 9. Segfregulation  by and  Undertaking Of the  Grantee.  - Tire graritee sha.Il rrol
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; and willful failure to do so shall constitute a valid cause for the cancellation
of this franchise.
SECTION 10.  Wclrrcz#ty z.# Favor a/Ivflfz.o#cz/ cr7.d I,occz/ Gover#mej7ts.  - 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.
SECTION 11. IVo#traj7s/er¢bl./try a/Frcr#cfez.se.  -The grantee shall not lease, transfer, grant
theusufructof,sellnorassignthisfranchiseortherightsandprivilegesacquiredthereundertoany
person, firm, company, coxporation 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. cry
person or entity to which this franchise is sold, transferred, or assigned, shall be subject to the same
conditions, terms, restrictions, and linitations of this Act.
SECTION 12. Dz.xperscr/ a/Ow#ersfezp.  -In accordance with the constitutional provision to
encourage public participation in public utilities, the grantee shall offer at least thirty per centun
(30%) of its outstanding capital stock or a higher percentage that may hereafter be provided by
law in any securities exchange in the Philippines within five (5) years from the time it has achieved
thatstatueofanationalbroadcastingnetwork.A"nationalbroadcastingnetwork"isherebydefined
as one that operated three (3) or more radio stations. Noncompliance therewith shall render the
franchise ipso facto revoked.
SECTION  13. Egwz.ty C/a#se.  - Any  advantage,  favor,  privilege,  exemption or immunity
granted under existing franchisees, or which may hereafter be granted for radio broadcasting, shall
ipso facto 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.
SECTION 14. Ge#era/ Brocrc7ccrs/ Po/z.ey I,c";. -The grantee shall comply with and be subject
to the provision of a general broadcast policy law, which Congress may hereafter enact.
SECTION  15. Raporrorj.cr/ Regwz.reme#f.  - The grantee shall submit an annual report to the
Congress of the Philippines on its compliance with the terms and conditions of the franchise and
on its operations within sixty (60) days from the end of every year.


SECTION 16. Separcrbz./I.fy C/awse.  - If any of the sections or provisions of this Act is held
invalid, all other provisions not affected thereby shall remain valid.
SECTION 17. RepecI/crbz./I.ty cli7d IVo7?exc/wsz.vz.fy C/cI"se.  - 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 privileges herein provided for.
SECTION  18. EJorecfz.vz.fy C/cz#se.  -This Act shall take effect fifteen (15) days after its
publication in the OJLJcz.a/ Gc]ze#e or in at least two (2) newspapers of general circulation.
Approved,