REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 4802

Introduced by Representative Benhur |. Salimbangon

EXPLANATORY NOTE

Cebu Broadcasting Corporation (CBC) traces its roots to post-World War II
operations of DYRC in Cebu, formerly known as KZRC under its former owners, Radio
Corporation of the Philippines and the Heacock Company. KZRC, established in Cebu City
in 1939, was the first radio station ever established outside of the National Capital Region.

Its first manager was Harry Fenton who initiated the first most popular “amateur
hour” program. Being then the only radio station outside NCR, it became popularly called
“The Voice of Cebu” and Fenton also became a household byword as amateur hour anchor.
When the war broke out Fenton became one of the leaders of the Cebu guerrilla movement
but lost control of the station until his execution before the end of the war.

In 1947, KZRC was revived by CBC and became the first post-war commercial radio
station outside NCR. When the government required in 1949 that radio stations in the country
should carry “DY” in its call sign, KZRC, became DYRC.

DYRC and CBC's provincial AM stations focus on News/Public
Affairs/Commentary, Drama and Entertainment format using regional languages and dialects.
CBC’s other AM stations are DYSM Catarman, DYMS Catbalogan, DXKH Cagayan De
Oro, DZSR Tuguegarao and DXZH Zamboanga

To cater to its younger listeners, CBC owns and operates some of the leading FM
stations nationwide- DZMB Manila, better known as “Love Radio” is its Manila flagship
station. Its other FM stations are: DXMB Butuan City, DWLC Catarman, Northern Samar
and DYSM Kalibo, Aklan. Broadening the format it offers, CBC also maintains FM stations
in Bacolod, Baguio, Boracay, Davao, Cauayan, Cebu, Dumaguete, General Santos, Valencia,
Bukidnon and Zamboanga City.


With its lead in the market in terms of listenership, Cebu Broadcasting Corporation
plays a big role as government's partner in ensuring growth of the country’s diverse arts and
culture, including the local music industry. It is in faithfiul compliance with EO No, 255 (s
1987)

Entertainment, however, is not the only role of the Cebu Broadcasting Company. In
times of calamities, Cebu Broadcasting Company radio stations in and out of Metro Manila
air important public announcements to help its listeners.

When Tropical Storm Ondoy hit the country in 2009, putting a big part of Metro
Manila under water, the radio stations of Cebu Broadcasting Corporation were among the
frontliners in facilitating post-calamity assistance to the typhoon victims. Cebu Broadcasting
Corporation temporarily abandoned its regular programming and launched a “radiothon” to
call on other radio networks to unite and help gather relief goods for those affected by the
typhoon. It also called on its listeners to volunteer in the rescue and relief efforts of the
government and NGOs doing relief missions.

Indeed, the radio stations of Cebu Broadcasting Company remain relevant in the lives
of the listing public, providing not only entertainment but also other important forms of
services that come easy, affordable and reliable even when the rest of modern forms
communication are down

‘The author encourages everyone to support the pas:

Zhe

(
BENHUR L, SALIMBANGON

ge of this bill,



REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES.
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 4802

Introduced by Representative Benhur 1. S:

AN ACT RENEWING THE FRANCHISE GRANTED TO CEBU BROADCASTING
COMPANY UNDER REPUBLIC ACT 7963, TITLED “AN ACT GRANTING THE CEBU
BROADCASTING COMPANY A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND
MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS WITHIN THE
(ND FOR OTHER PURPOSE:

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
Cebu Broadcasting Company under Republic Act No, 7963 entitled “An Act Granting the
Cebu Broadcasting Company a Franchise to Construct, Install, Operate and Maintain Radio
and Television Broadcasting Stations Within the Philippines, and for Other Purposes”,
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 radio and television
broadcasting stations in the Philippines with the corresponding technological auxiliaries or
facilities, special broadcast and other broadcast distribution services and relay stations, and to
construct, install, operate and maintain communication facilities for the grantee’s private use
in its broadcast services and relay stations in the Philippines, is hereby renewed for another
twenty-five (25) years from the approval 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 he 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 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 NPC, The
NTC, however, shall not unreasonably withhold or delay the grant of any such authority.

SEC. 4. Responsibility 10 the Public. ~ The grantee shall provide adequate public service time
to enable the government, through the said broadcasting station, 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
hot 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
mistepresentation, to the detriment of the public interest, of 10 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 these shall be so operated

SEC. 6, Term of Franchise, ~ This franchise shall be in effect for a period of twenty-five (25)
years from the approval of this Act, unless sooner revoked or cancelled. ‘This franchise shall
be deemed ipso 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, Dispersal of Ownership. In accordance with the constitutional provision to
encourage public participation in public utilities, the grantee shall offer to Filipina citizens at
least thirty per centun (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 approval of this renewal: 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 shail render the franchise ipso facto revoked

SEC. 9. Seifregulation hy and Undertaking of Grantee. ~ ‘The grantee shalt 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 ait 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: Provided, further, That 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 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. L1. Sale, Lease, Transfer, Usufruct, or Assignment of Franchise. ~ The grantee shall not
lease, transfer, grant the usuftuct 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 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 usuftuct of, sale or assignment of franchise or the rights
and privileges acquired thereunder, or of the merger, or transfer of controlling interest of the
granteo, within. sixty (60) days after the completion of said transaction; Provided,
Jurther, That failure to report to Congress such change of ownership shall render the
franchise ipso jfircto 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. General Broadcast Policy Law. ~'Vhe grantee shall comply with and be subject to
the provisions ofa general broadcast policy law, which Congress may hereafler enact

C. 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, 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 usuftuct of legislative franchise
with prior congressional approval

SEC. 14. Sepairability 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 Non-Exclusivity Clauses, ~'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 efffect fifteen (15) days sifter its publication in at
least two (2) newspapers of general circulation

Approved,