£2 suc 05 sep 2012
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Republic of the Philippines \\ ~ Sfigll
HOUSE OF REPRESENTATIVES \
Quezon City

Fifteenth Congress
Third Regular Session

Q
HOUSE BILL NO. 6599

Introduced by Hon. Carlos M. Padilla and Hon. Napoleon S. Dy

EXPLANATORY NOTE

This bill seeks to grant UMC-BEA Communications Ministry, Inc, a religious
organization affiliated to the Philippines Central Conference of the United
Methodist Church, Inc., a franchise to construct, install, establish, operate and
maintain radio and television broadcasting stations in Nueva Vizcaya, for
commercial and evangelism purposes.

It will be the communications ministry of the United Methodist Church covering
the Baguio Episcopal Area (Central & Northern Luzon). It will provide Christian
education to its listeners and nurture programs through a radio and
communications ministry. Its main goal is to “Make Disciples of Jesus Christ to
Transform the World” adhering to the Wesleyan Traditions and Principles and will
cater to its own membership. Youth and adult listeners will be the main target of

this program, but program for children and special age group will also be
considered.

At this crucial time of our history there is a great need for a radio and/or
television program,that would be an instrument in molding the moral values of
our people in the light of the apparent moral decadence in our midst.

Hence, approval of this bill is earnestly requested.

/HON. CARLOS M. PADILLA

4 Rocky,

a)


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS

Third Regular Session

House BillNo._ 60 89

Introduced by Hon. Carlos M. Padilla and Hon. Napoleon S. Dy

AN ACT GRANTING THE UMC-BEA COMMUNICATIONS MINISTRY, INC., A
FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND
MAINTAIN A RADIO AND TELEVISION BROADCASTING STATIONS IN
NUEVA VIZCAYA.

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
Constitution and applicable laws, rules and regulations, there is hereby granted To UMC —
BEA COMMUNICATIONS MINISTRY, INC., hereunder referred to as the grantee, its
successors or 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 Nueva Vizcaya, where frequencies and/or channels are stil available for radio and/or
television broadcasting, including digital television system, Intemet Protocol (IP) -related
services and IP-value-added services, 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.

SEC. 2. Manner of Operation of Stations of Facilities. - The stations or facilities of
the grantee shail 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.

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SEC. 3. Prior Approval of the National Telecommunications Commission (NTC). —
The grantee shall secure from the NTC, hereinafter referred to as the Commission, 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,

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 reasonable 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
se of said 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
anytime after due process.

SEC. 6, Term of Franchise. ~ This franchise shall be in effect for a period of twenty-five
(25) years , unless sooner cancelled. This franchise shall be deemed ipso facto revoked in

the event the grantee fails to comply with any of the following conditions:

(2) Commence operations within one (1) year from the approval of its operating permit
by the NTC;

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

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

SEC. 7. Acceptance and Compliance. — Acceptance of this 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. Bond. - The grantee shall file a bond with the NTC in the amount that it shall
determine to guarantee compliance with and fulfillment 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 cancelled by the
Commission. Otherwise, the bond shall be forfeited in favor of the government and the
franchise ipso facto revoked.

SEC. 9. 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
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 and 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, provini

|, city and municipal governments of the Philippines harmless
from all claims, accounts, demands or actions arising out of accidents or injuries, whether to
properly or to persons, caused by the construction or operation of the stations of the
grantee.

SEC. 11. Sale, Lease, Transfer, Usufruct, Assignment. - The grantee shall not lease,
transfer, grant the usufruct of, sell nor assign this franchise or the rights and privilege
‘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

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of any lease, transfer, granting the usufruct of, sale or assignment of franchise or the rights
or privileges acquired 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

ns, terms,

franchise is sold, transferred or assigned, shall be subject to the same condi
restrictions and limitations of this Act.

SEC. 12. Dispersal of Ownership. - In accordance with the constitutional provision to
encourage public participation in public utlities, the grantee shall offer to Filipino citizens at
least thirty per centum (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. Noncompliance therewith shall render the
franchise ipso facto revoked.

SEC. 13. 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.

SEC. 14. 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 the succeeding year.

SEC. 15. Penalty Clause — Any grantee who fails to submit the Annual Report to
Congress will be fined Five Hundred Pesos (P500.00) per working day of non-compliance.
Said fine will be collected by the NTC from said delinquent franchise grantee separate from
the reportorial penalties imposed by NTC. The collected funds shall accrue to the monitoring
fund of the NTC in line with its supervisory and regulatory functions. The reportorial
compliance certificate issued by Congress shall be required before any application for permit
or certificate is accepted by NTC.

SEC. 16. Equality Clause. - Any advantage, favor, privilege, exemption, or immunity
granted under existing franchise, 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

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broadcasting franchises concerning territory covered by the franchise, the life span of the
franchise or the type of service authorized by the franchise.

SEC. 17. 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. 18. Repealability and Non-exclusivity 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. 19. Publication. This Act shall be published, through the initiative of the
Grantee, fifteen (15) days after this Act is signed by the President of the Philippines or has

lapsed into law.

SEC. 20 Affectivity Clause. - This Act shall take effect fifteen (15) days from the
date of its publication in at least two (2) newspapers of general circulation in the Philippines.

Approved,

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