Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. 8501

Introduced by Hon. Karlo A. B. Nograles and Hon. Jericho Jonas B. Nograles

EXPLANATORY NOTE

This bill seeks the renewal of the Legislative Franchise granted to Swara Sug
Media Corporation under RA 8122 which passed into law on July 16, 1995.

Swara Sug is a Filipino owned and managed media company. From its humble
beginnings, it now views itself as both a traditional media company and a media
company driven by modem technologies. Nonetheless, the main priority of the
company is to serve, and to continue to serve, the Filipino people, wherever they may
be, by bringing only balanced and fair news reports through objective and candid
reporting.

As a traditional company, it operates, and continues to steadily grow, to
currently operating 15 AM radio stations, 4 FM radio stations, and a network of 14
Ultra High Frequency or UHF TVs, and no less than 7 Digital Terrestrial Television
Broadcast (or digital TV), throughout the country. Broadcasting is still the staple of
most Filipino households through basic radio and television sets and the company
continues to broadcast important news and current events to the farthest reaches of
the nation using its legacy systems. Complementarily, as a technology media
company, it has also utilized modern media tools to further provide the need of the
Filipino people to verifiable and trustworthy news and information in real time. It
reaches both the domestic and international audience, particularly the Filipinos
abroad, through this mix of the traditional and the modern.

On the other hand, as part of its corporate social responsibility, it also launched
the Sonshine Philippines Movement or SPM — an environmentally-focused initiative
specifically dedicated to countering the ill-effects of Climate Change. Since 2005, SPM
has been dedicated in its mission to give back to nature through reforestation initiatives
of approximately 10 million planted trees, clean up drives, and eco-tourism
development. Using both traditional and modem media tools, the company has
relayed nationwide to our countrymen the importance of proper environmental
protection and preservation.

The company continues with its thrust to be the trusted media company by the
Filipino people and in order to achieve this goal for decades to come, the company
continues to evolve and invest, both capital and human resources, towards a more


digitized media outlet that is able to continue serving the people - ready and willing to
keep up with the demands of the increasingly digitized Filipino consumer.

From the foregoing, it is earnestly sought that this bill be immediate approved.

KARLO A. B. NOGRALES JE JONAS EY Ni Ss


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. 8501

Introduced by Hon. Karlo A. B. Nograles and Hon. Jericho Jonas B. Nograles

AN ACT

RENEWING THE FRANCHISE GRANTED TO SWARA SUG MEDIA CORPORATION
UNDER REPUBLIC ACT. NO. 8122 ENTITLED “AN ACT GRANTING THE SWARA SUG
MEDIA CORPORATION OF THE PHILIPPINES A FRANCHISE TO CONSTRUCT,
INSTALL, OPERATE AND MAINTAIN FOR COMMERCIAL PURPOSES RADIO AND
TELEVISION BROADCASTING STATIONS IN THE PHILIPPINES AND FOR OTHER
PURPOSES” 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
Philippine Constitution and applicable laws, rules and regulations, the franchise granted to
SWARA SUG MEDIA CORPORATION, hereunder referred to as the grantee, its successors
or assignees, under Republic Act No. 8122 entitled “AN ACT GRANTING THE SWARA SUG
MEDIA CORPORATION OF THE PHILIPPINES A FRANCHISE TO CONSTRUCT, INSTALL,
OPERATE AND MAINTAIN FOR COMMERCIAL PURPOSES RADIO AND TELEVISION
BROADCASTING STATIONS IN THE PHILIPPINES AND FOR OTHER PURPOSES’, 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 anywhere in
the Republic of the Philippines, 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
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 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 any
time 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. 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 thereaf 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 wilful failure to do so shall constitute a
valid cause for the cancellation of this franchise.

SEC. 8. 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. 9. 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 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. 10. 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 or in lieu thereof, establishment of or ownership by cooperative/s and
other methods of encouraging public participation by citizens and corporations operating
public utilities must be implemented. Noncompliance therewith shall render the franchis ipso
facto revoked.


SEC. 11. 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. 12. 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. 13. 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. 14. 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. 15. 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. 16 Effectivity.— This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation,

Approved,