Republic of the Philippines 03 JUL 2013
HOUSE OF REPRESENTATIVES ieee
Quezon City :

Sixteenth Congress
First Regular Session

HOUSE BILL NO. ae

Introduced by HONORABLE CATHERINE BARCELONA-REYES, M.D.

EXPLANATORY
Communication through Mass Media plays a vital role in nation building.

Tn a country like the Philippines, wherein more than 7, 000 islands constitute the
archipelago, the need for an effective and economical way of transmitting information can
only be realized through the improvement of radio telecommunications systems in the
country. The sluggish growth of the Philippine economy is not only brought about by the
inefficient delivery of social services, the lack of funds for much needed infrastructure
projects but also it is due to the unharnessed medium of information dissemination.

In this age of globalization the Filipino people cannot be insulated from the rest of
the world. It is the duty of the government as well as private individuals and entities to
provide our countrymen with adequate facilities. of communication. Radio
telecommunications systems, albeit commerial in nature, will provide us with greater access
to educational, scientific and cultural information.

Through this medium, the inhabitants of one of the poorest region in the Philippines
can put this into good use thereby improving their intellectual, cultural and social well-being
and in the process contributing to the progress of the nation in general.

In view of the forgoing, the passage of this bill is earnestly sought.

CATHE! BARCELONA-REYES, M.D.
Representative
1" District, Camarines Norte


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Sixteenth Congress
First Regular Session

993

HOUSE BILL NO.

Introduced by HONORABLE CATHERINE BARCELONA-REYES, M.D.

AN ACT GRANTING THE DZRA
A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN
AM/FM RADIO BROADCASTING STATIONS IN REGION V

Be it enacted by the Senate and the House of Representative of the Philippine in Congress
assembled:

SECTION 1. Nature and Scope of Franchise. Subject to the provisions of the
Constitution and applicable laws, rules and regulations, there is hereby granted to DZRA,
hereunder referred to as the grantee, its successors or assigns, a franchise to construct,
install, operate and maintain for commercial purposes and in the public interest, AM/FM.
radio broadcasting stations in Region V, where frequencies, are still available for radio
broadcasting, through microwave, satellite, or whatever means including the use of any new
technologies in radio broadcasting, systems, with the corresponding technological
auxilliaries and facilities, special broadcast and other program and distribution services and
relay stations.

SECTION 2. Manner of Operation of Stations or Facilities. The stations or
facilities of the grantee shall be construct and operated 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 anyway 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.

SECTION 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 having


been authorized by the Commission. The Commission, however, shall not unreasonably
withold or delay the grant of such authority.

SECTION 4. Responsibility to the Public. The grantee shall provide adequate public
service time to enable the government, through the said broadcasting stations of facilities, to
reach the population on important public issues; provide at all times sound and balanced
programming; assist in the function of public information and education; conform to the
ethics to honest enterprise; and not use its stations or 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 it reasonable acts.

SECTION 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 distrubance 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 and facility in
the interest of public safety, security and public welfare, or to authorize the temporary use
and operation thereof by the 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
operated.

‘The radio spectrum is a finite resource that is a 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.

SECTION 6. Term of Franchise. 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 with
any of the following conditions:

(a) Commence operations within one (1) year from the approval of its
operating permit or provisional authority by the NTC;

(b) Operate continuously for two (2) years; and

(¢ ) Commence operations within three (3) years from the effectivity of this
Act.

SECTION 7. Acceptance and Compliance. Acceptance of this franchise shall be
given in writing sixty (60) days from the effectivity of this Act. Upon giving such
acceptance, the grantee shall exercise the privileges granter under this Act. Non-acceptance
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 fulfillment of the
conditions under which this franchises 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 govenrment and the franchise ipso facto revoked.

SECTION 9. Tax Provisions. The grantee, its successors or assigns, shall be subject
to the payment of all taxes, duties, fees or charges and other impositions under the National
Internal Revenue Code (NIRC) of 1997, as amended, and other applicable laws; Provided,
That nothing herein shall be construed as repealing any specific tax exemptions, incentives,
or privileges granted under any relevant law. Provided, further, That all rights, privileges,
benefits and exemptions accorded to existing and future broadcasting station franchises shall
likewise be extended to the grantee.

The grantee shall file the return with the city or province wherein its facility is
located and pay the taxes due thereon to the Commissioner of Internal Revenue or his duly
authorized representatives in accordance with the NIRC and the return shall be subject to
audit by the Bureau of Internal Revenue.

SECTION 10. Self-Regulation by and Undertaking of Grantee. The grantee shall
not require any previous censorship of any speech, play, act or scenes, or other matter being
broadcast if the tendency thereof is to propose and/or incite treason, rebellion or sedition; or
the language used therein of 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 11. Obligation of Grantee. Any person aggrieved by any remark, report,
statement, commentary or the like by broadcasters using the same facilities of the grantee
shall have the right to reply in the same program or any other program the aggrieved party
may choose.

‘TION 12. Warrantly in Favor of National and Local Governments. The grantee
shall hold the national, provincial 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 13. Sale, Lease, Transfer, Usufruct, Etc. The grantee shall not lease,
transfer, grant the usufruct of, sell nor assign this franchise or the rights and priviliges
acquired thereunder to any person, firm, company, corporation or other commercial ot 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 wthether simultaneously or
contemporaneously, to any person, firm, company, corporation or entity without prior
approval of the Congress of the Philippines. 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.

SECTION 14. Dispersal of Ownership. In accordance with constitutional provisions
to encourage public participation in public utilities, the grantee shall offer at least thirty
percentum (30 %) of its outstnading 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 the status of a national broadcasting network. A “ national
broadcasting network” is hereby defined as one that operates three (3) or more radio and/or


television stations. Noncompliance therewith shall render the franchise ipso facto revoked.

SECTION 15. 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.

SECTION 16. Equality Clause. Any advantage, gavor, privilige, exemption, or
immunity granter under existing franchises, or may hereafter be granted, shall ipso facto
become part of previously granted telecommunications franchises and shall be accorded
immediately and unconditionally to the grantees of such franchises: Provided, however,
That the forgoing shall neither apply to nor affect provisions of telecommunications
franchises concerning territory covered by the franchise, the lifespan of the franchise, or the
type of service authorized by the franchise.

SECTION 17. Separability Clause. If any of the sections or provisions of this Act is
held invalid, all the other provisions not affected hereby shall remain valid.

SECTION 18. Repealability and Nonexclusivity Clause. This franchise shall be
subject to amendment, alteration or appeal by the Congress of the Philippines when the
public interest so requires and shall nor be interpreted as an exclusive grant of the privileges
herein provided for.

SECTION 19. Reprotorial Requirement. The grantee shall submit an annual report to
the Congress of the Philippines on its compliance with the terms and conditions of the
frnachise and on its operations within (60) days from the end of every year.

SECTION 20. Effectivity. This Act shall take effect fifteen (15) days from the date of

its publication, upon the initiative of the grantee, in at least two (2) newspapers of general
circulation in the Philippines.

APPROVED.