‘SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES }
Second Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
__Representative Maximo B. Rodriquez, Jr: *

House BillNo. 5929

EXPLANATORY NOTE.

The bill seeks to grant the ULTRACRAFT BROADCASTING CORPORATION a
legislative franchise to construct, install, establish, operate and maintain radio and television
broadcasting stations in the Philippines.

The importance of communication and information in nation-building is expressly
recognized by our Constitution. It is clearly provided, under Section 24, Article 11 of the
1987 Constitution

“Sec 24. The State recognizes the vital role of
Communication and information in nation-building,”

To date, radio is still the cheapest, most effective, and most far-reaching medium of
communication in the Philippines. The bulk of its users belong to the medium and low
economic strata, who have less access to new and sophisticated technology

It is @ fact, that there are stil numerous areas in the country that do not receive
accurate, up-to-date and sufficient information on a regular basis. Fortunately, this can
easily be remedied through the inexpensive technology of radio

It is an added benefit that radio reaches people at relevant times and places. Most
radio users are engaged in other activities, like housework, farming or studying as they
listen. So radio can insinuate itself into a person's daily routine, without displacing a big
chunk of their time. And since the radio is portable, they can bring it with them as they go
places. It can unobtrusively become a part of people's lives, and has a huge influence in
their decision-making.

Therefore, radio is a powerful tool, not only in the dissemination of information and
knowledge, but also in bringing positive transformation in the lives of people. It opens
‘opportunities to educate, teach, guide, govern and enlighten the huge listening masses,
many of whom wallow in extreme poverty due to ignorance.

Given its necessity and extensive benefits, it is essential for lawmakers to make
accessible the pathways of information, through more liberal approbation of modern
communication applications.

In view of the foregoing, we immediate approval of this bill is earnestly requested.

RUFUS B. RODRIGWEZ

MAXIMOZB. IGUEZ, JR.


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
Second Regular Session )

HOUSE OF REPRESENTATIVES:

Introduced by Representative Rufus B. Rodriquez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. 5929

EXPLANATORY NOTE

AN ACT
GRANTING THE ULTRACRAFT BROADCASTING CORPORATION A FRANCHISE TO
CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND
TELEVISION BROADCASTING STATIONS IN THE PHILIPPINES

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 ULTRACRAFT
BROADCASTING COMPANY, hereunder referred to as the grantee, its successors or
assigns, a franchise to construct, install, establish, operate and maintain for education,
social, cultural and/or religious and commercial purposes and in the public interest, radio
andior television broadcasting, 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 Operations 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 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

SEC. 3. Prior Approval of the National Telecommunication Commission. - The grantee shall
secure from the National Telecommunication Commission (NTC) the appropriate permits
and license for the construction and operation of its stations and facilities and shall not use
any frequency in the radioftelevision 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 sound and balanced programming, assist
in the function 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 the Government. - A special right is hereby reserved to the President of the
Philippines, in times of war, rebellion, public peril, calamity, emergency, disorder or
disturbance of peace and order, to temporarily take over and operate the station 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 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 maybe withdrawn any time after due
process.

SEC. 6, Terms of Franchise. - This franchise shall be for a term of twenty-five (25) years
from the date of the 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 by the NTC;

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

(c) 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
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 in favor of the NTC, which shall determine the.
amount, to guarantee the compliance with the 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; and willful failure to do so 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 government 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.

SEC 11. Nontransferability 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 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. Any person or entity to which this franchise is sold, transferred or
assigned, shall be subject to the same condition, terms, restrictions and limitations of this
Act.


SEC. 12. Equality Clause. - Any advantage, favor, privilege, exemption, or immunity granted
under the existing franchise, or which may hereafter be granted for radio and/ or television
broadcasting, shall ipso facto become part of the franchise and shall be accorded
immediately and unconditionally to the grantee: Provided, 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 authorized by the franchise.

SEC. 13. General Broadcast Policy Law. - The grantee shall comply with and be subject to
the provisions of a general policy law, which Congress may hereafter enact,

SEC 14, Reportorial Requirement. - 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.

SEC. 15. 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 16. Repealing and Non-exclusivity Clause. - This franchise shall be subject to
amendment, alteration or repeal by the Congress of the Philippines when the public interest
0 requires and shall not be interpreted as an exclusive grant of the privileges herein
provided for.

SEC 17. Effectivity Clause. - This Act shall take effect fifteen (15) days from the date of its
Publication, upon initiative of the grantee, in at least two (2) newspapers of general
circulation of the Philippines.

Approved,