Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 2916

Introduced by Representative Leo Rafael M. Cueva

EXPLANATORY NOTE

This bill seeks to renew and expand the coverage granted to the Cadiz Radio
and Television Network, Inc. (CRTN) under Republic Act (R.A.) No, 8111 which took
effect last July 9, 1995. R.A. No. 8111 granted a franchise to CRTN to construct,
install, operate and maintain radio and/or television broadcasting stations in the City
of Cadiz, Province of Negros Occidental, The franchise term was for twenty-five (25)
years. Even before the passage of the R.A. No. 8111, CRTN was originally granted a
franchise to operate in the whole Western Visayas area for twenty-five (25) years.

During CRTN operations, it serves as the most important medium through
Which the right to freedom of expression is realized. Even in the most far-flung area,
the right of the public to information was being fulfilled. Freedom of expression
includes the right not only to seek and impart information and ideas, but also the
right to receive them to which CRTN was able to cater to the people in the City of
Cadiz.

In this measure, this representation intends to perpetuate the franchise until
expressly revoked by the Congress and to broaden the coverage from Cadiz City to
the whole Western Visayas. With this bill, not only the City of Cadiz will enjoy the
right of the public to information but also the whole Western Visayas especially in
terms of political, economic, environment, social, weather, and other current events
affecting their daily lives.

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

‘Wa

Leo Rafael M. Cueva
2™ District, Negros Occidental


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SIXTEENTH CONGRESS
First Regular Session

House Bill No. 2916

Introduced by Representative Leo Rafael M. Cueva

AN ACT
RENEWING THE FRANCHISE OF CADIZ RADIO AND TELEVISION NETWORK,
INC., TO CONSTRUCT, ESTABLISH, MAINTAIN AND OPERATE RADIO AND
TELEVISION BROADCASTING STATION IN THE WESTERN VISAYAS AREA

Be it enacted by the Senate and the 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 Cadiz Radio and Television Network, Inc., 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/or television broadcasting
stations in the Western Visayas, with the corresponding technological auxiliaries or
facilities, 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

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 the
other existing stations or stations which may be established by law, without in any
way diminishing its own right to use its selected wavelengths or frequencies of the
other existing stations or 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 the availability thereof.


Sec. 3 Prior Approval of the National Telecommunications Commission.
= The grantee shall secure from the National Telecommunications Commission the
appropriate permit and license for its stations and shall not use any frequency in the
radio/television spectrum without having been authorized by the Commission. The
Commission, however, shall be 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,
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 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 rebellion, public peril, calamity, emergency,
disaster or disturbance of peace and order, to temporarily take over and operate the
station of the grantee, to temporarily suspend the operation of any station 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 during the period when they
shall be so operated.

Sec. 6 Term of Franchise. — This franchise shall be continuously granted
unless sooner revoked or cancelled by the Congress of the Philippines. 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. — This franchise shall become
effective upon acceptance in writing by the grantee. Upon giving such acceptance,
the grantee shall exercise the privileges granted under this Act. Non-acceptance
shall render the franchise void

Sec. 8. Tax Provisions. - The grantee, its successors or assigns shall be
liable to pay the same taxes on their real estate, buildings and personal property,
exclusive of this franchise, as other persons or corporations are now or hereafter
may be required by law to pay. In addition thereto, the grantee, its successors or
assigns shall pay a franchise tax equivalent to three percent (3%) of all gross
receipts of the radio/television business transacted under this franchise by the
grantee, its successors or assigns: Provided, That the grantee, its successors or
assigns shall continue to be liable for income taxes payable under Title II of the
National Internal Revenue Code pursuant to Section 2 of Executive Order No. 72
unless the latter enactment is amended or repealed, in which case the amendment
or repeal shall be applicable thereto.


The grantee shall file the return with, and pay the tax due thereon to the
Commissioner of Internal Revenue or his duly authorized representatives in
accordance with the National Internal Revenue Code and the return shall be subject
to audit by the Bureau of Internal Revenue.

Sec. 9. Self-regulation by and Undertaking of the Grantee. — The grantee
shall not require any previous censorship of any speech, paly, act or scene or other
matter to be broadcast and/or telecast from its stations: Provided, That the grantee,
during any broadcast and telecast 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 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 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.

Sec. 11 Sale, Lease, Transfer, Usufruct, and other Similar Deeds — The
grantee shall not lease, transfer, grant the usufruct, sell or assign this franchise or
the rights and privileges acquired thereunder to any person, firm, company,
corporation or other commercial or legal entity, nor shall the controlling interest of the
grantee be transferred to any such private 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 all
the same conditions, terms, restrictions and limitation of this Act.

Sec. 12. General Broadcast Policy Law. - The grantee shall comply with a
general broadcast policy law which Congress may hereafter enact.

Sec. 13. 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. 14. 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.

Sec. 15. Effectivity. - This Act shall take effect upon its approval

Approved,