Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

HOUSE BILL No. 8105

Introduced by Rep. ANNA KATRINA M. ENVERGA

EXPLANATORY NOTE

This bill seeks the renewal of the franchise of BEACON COMMUNICATIONS
SYSTEMS, INC.

BEACON COMMUNICATIONS SYSTEMS, INC. was granted a franchise to
construct, install, operate and maintain radio broadcasting stations under RA 8063. This law
has given the grantee the rights, privileges and authority to function for a period of twenty-
five (25) years from June 15, 1995.

For more than twenty-two (22) years now, BEACON COMMUNICATIONS
SYSTEMS, INC. has served as an important vehicle in information dissemination that
bridges communication gaps among the populace of the country. Its radio stations have
provided sound and balanced programming, making information easily accessible to the
general public. It has also frequently communicated with the people on important and major
issues confronting the nation.

In less than three (3) years’ time, the law that has given life and mandate to BEACON
COMMUNICATIONS SYSTEMS, INC. to operate will expire. Therefore, this bill seeks to
extend the term of franchise of BEACON COMMUNICATIONS SYSTEMS, INC. for
another twenty-five (25) years from its original expiration date.

In view of the foregoing, the passage of this bill is eamestly sought.

ANNA KAT! ENVERGA
ne ict, Quefgn Province


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Third Regular Session
8105
HOUSE BILL NO.

Introduced by REP. ANNA KATRINA M. ENVERGA

AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE
FRANCHISE GRANTED TO BEACON COMMUNICATIONS SYSTEMS, INC.
UNDER REPUBLIC ACT NO. 8063 ENTITLED “AN ACT GRANTING THE
BEACON COMMUNICATIONS SYSTEMS, INC. A FRANCHISE TO CONSTRUCT,
INSTALL, ESTABLISH, OPERATE AND MAINTAIN COMMERCIAL RADIO
STATIONS IN THE PHILIPPINES”

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

SECTION 1. The Franchise granted to Beacon Communications Systems, Inc. under
Republic Act No. 8063 is hereby amended to read as follows:

“SEC. 1. Nature and Scope of Franchise. ~ Subject to the provisions of the 1987
Constitution and applicable laws, rules and regulations, the franchise granted to
Beacon Communications Systems, Inc. hereunder referred to as the grantee, its
successors or assignees, under Republic Act No. 8063 to construct, install, establish,
operate and maintain for commercial purposes and in the public interest, radio
broadcasting stations in the Philippines, including digital radio system, through
microwave, satelite, terrestrial or whatever means, or the use of any new technologies
in radio systems, with the corresponding auxiliary, special broadcast and other
program and distribution services and relay stations, and to install radio
communication facilities for the grantee’s private use in its broadcast services is
hereby renewed for another twenty-five (25) years from the expiration of its original
franchise.


“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 any way diminishing its
‘own right 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 its stations and shall not use any frequency in the
radio spectrum without having been authorized by the NTC.

“SEC. 4. Responsibility to the Public. ~The grantee shall provide free of charge,
adequate public service time which is reasonable and sufficient to enable the
government, through the broadcasting stations or facilities of the grantee, to reach the
pertinent population/s or portions thereof on important public issues and relay
important public announcements and warnings as necessity, urgency or law may
require; provide at all times sound and balanced programming; promote public
participation; assist in the functions of public information and education; conform to
the ethics of honest enterprise; promote audience sensibility and empowerment
through, but not limited to, closed captioning; 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 or
treasonable acts.

“Public service time referred herein shall be equivalent to ten percent (10%) of the
paid commercials or advertisements which shall be allocated based on need to the
executive, legislative, judiciary, constitutional commissions and intemnational
humanitarian organizations duly recognized by statutes: Provided, That the NTC shall
increase the public service time in case of emergency or calamity. The NTC shall
issue rules and regulations for this purpose, the effectivity of which shall commence
upon applicability with other similarly situated broadcast network franchise holders.

“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 serious 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 stations or facilities of the grantee during
the period when these shall be operated.


“SEC. 6. Term of Franchise- The renewal of the franchise granted under Republic
Act No. 8063. for another twenty-five (25) years shall take effect on June 16, 2020,
unless sooner revoked. In the event the grantee fails to operate continuously for two
(2) years, this franchise shall be deemed ipso facto revoked.

“SEC. 7. Acceptance and Compliance. - The renewed franchise shall become
effective upon acceptance given in writing by the grantee 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 of the grantee shall
render the franchise void.

“SEC. 8. Tax Provisions. — The grantee, its successors or assignees, shall continue to
be subject to all applicable taxes, duties, fees or charges and other impositions under
Republic Act. No. 8424, otherwise known as “The National Internal Revenue Code of
1997”, as amended, Republic Act. No. 7160, otherwise known as “The Local
Government Code of 1991”, as amended, and other applicable laws.

“SEC. 9. Compliance with Labor Standards. - The grantee, its successors or
assignees, shall comply with the applicable labor standards under existing labor laws,
rules and regulations and such other issuances as may be promulgated by the
Department of Labor and Employment, taking into consideration the nature and
peculiarities of the broadcast industry.

“SEC. 10. 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
not allow to be aired 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. 11. 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. 12. Sale, Lease, Transfer, Usufruct or Assignment of Franchise. ~ The grantee
shall not sell, lease, transfer, grant the usufruct of 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 private person,
firm, company, corporation or entity without the prior approval of the Congress of the
Philippines: Provided, That any person or entity to which this franchise is sold,
transferred or assigned shall be subject to all the same conditions, terms, restrictions,
and limitations of this Act.

“SEC. 13. 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 percent (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, the grantee shall apply
other methods of encouraging public participation by citizens and corporations
operating public utilities as allowed by law. Noncompliance therewith shall render the
franchise ipso facto revoked.

“SEC. 14. 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. 15. Reportorial Requirements. -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 the franchise.

“SEC. 16. Equality Clause. - Any advantage, favor, privilege, exemption, or
immunity granted under existing franchise, or which may hereafter be granted for
radio 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 not apply to nor affect provisions of
broadcasting franchises concerning territory covered by the franchise, the lifespan 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 the other provisions not affected thereby shall remain valid.



“SEC. 18. 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.

SECTION 2. Effectivity, — This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,