Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
‘Second Regular Session

House Bill No,_8619

Introduced by Rep. Edcel C. Lagman
EXPLANATORY NOTE

The authority of the Congress, particularly the House of Representatives where
private bills originate, to grant legislative franchises to qualified applicants to operate
radio and television networks assures the efficacy of the freedoms of speech,
expression and of the press. It is also a recognition of the people's right to access
legitimate sources of information.

The vital importance of the press and free speech in a democratic system of
government was underscored by Chief Justice Reynato Puno in Chavez vs. Gonzalez
and NTC (G.R. No, 168338, February 15, 2008) in this wise:

“Much has been written on the philosophical basis of press freedom
as part of the larger right of free discussion and expression. Its practical
importance, though, is more easily grasped. It is the chief source of
information on current affairs, It is the most pervasive and perhaps most
powerful vehicle of opinion on public questions. It is the instrument by
which citizens keep their government informed of their needs, their
aspirations and their grievances. It is the sharpest weapon in the fight to
keep government responsible and efficient. Without a vigilant press, the
mistakes of every administration would go uncorrected and its abuses
unexposed.”

Consistent with the forgoing verities, the instant bill, entitled "An Act Granting
Capricom Broadcasting Network Corp. a Franchise to Construct, Install, Operate and
Maintain Radio and Television Broadcasting Stations in Tabaco City, Province of Albay,
and Other Areas in the Philippines’, is filed.

Capricom Broadcasting Network Corp. is a domestic corporation registered with
the Securities and Exchange Commission (SEC) with Registration No. CS201952075
dated 25 April 2019. Its principal purpose is to engage in the business of radio and
television broadcasting on a commercial and sustaining basis.

Itis a fact that radio broadcasting is an essential component of mass media, and
plays a vital role in nation-building. Consequently, the Corporation wants to contribute
to and be a part of this undertaking by providing public service and contributing to the
development of Tabaco City and other areas of the Philippines.

It aims to provide important, relevant, and timely news, information and
commentary in various fields of business, economics, politics, and entertainment, both
in the Philippines and abroad, by utilizing the latest medium in broadcasting technology.

The shareholders and officers of the company have extensive knowledge and
experience in broadcasting, and are cognizant of this means of information as a tool for
social change and sustainable development.


Moreover, the Corporation is aware that despite the advances in broadcast
technology, radio broadcasting will always remain a relevant medium for news,
information, and entertainment due to its unique capacity to reach far-flung audiences
belonging to different social classes, ethnic groups and demographics.

Ao

EDCEL C. LAGMAN

Approval of this bill is earnestly sought.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
1Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 3613

Introduced by: Rep. Edcel C. Lagman

AN ACT GRANTING CAPRICOM BROADCASTING NETWORK CORP.
A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN RADIO
AND TELEVISION BROADCASTING STATIONS IN TABACO CITY, PROVINCE
OF ALBAY, AND OTHER AREAS 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
the Capricom Broadcasting Network Corp., its successors or assigns and hereunder
referred to as the grantee, a franchise to construct, install, operate and maintain for
commercial purposes and in the public interest, radio and/or television broadcasting
stations in Tabaco, Albay and other areas in the Philippines where frequencies and/or
channels are still available for radio and television broadcasting, 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.

SECTION 2. Manner of Operation of Stations or Facilities. — The stations
or facilities of the grantee shall be constructed and operated in a manner that would
result in the minimum interference on the wavelengths or frequencies of the other
existing station or stations which may be established by law, without in any way
diminishing its own right to use its selected wavelenaths or frequencies and the quality
of transmission or reception thereon as should maximize rendition of the grantee's
services and/or the availability thereof.

SECTION 3. Prior Approval of the National Telecommu
Commission. — The grantee shall secure from the National Telecommunications
Commission the appropriate permits and licenses 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 not unreasonably withhold or delay the
grant of any such authority.

SECTION 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.

SECTION 5. Rights 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

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operate the stations 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.

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 any time after due process.

SECTION 6, Term of Franchise. — This franchise shall be for a term of twenty-
five (25) years from 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
continuously operate for two (2) years.

SECTION 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 approval of this Act. Upon giving
such acceptance, the grantee shall exercise the privileges granted under this Act. Non-
acceptance shall render the franchise void.

SECTION 8. Self-Regulation and Undertaking of Grantee. — The grantee
shall not require any previous censorship of any speech, play or scene or other matter
to be broadcast from its stations: Provided, That the grantee, during any broadcast
shall cut off from the air any 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.

SECTION 9. 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
caused by the construction or operation of

whether to property or to pet

the station of the grantee.

SECTION 10. Sale, Lease, Transfer, Usufruct, or Assignment of
Franchise. - The grantee shall not lease, transfer, grant the usufruct of, sell nor assign
this franchise or the rights and privileges as acquired thereunder to any person, firm,
company, corporation or other commercial or legal entity, nor merge with any other
corporation or entity, not shall transfer the controlling interest of the grantee, whether
as a whole or in part, and whether simultaneously or contemporaneously, to any such
person, firm, company, corporation or entity without prior approval of the Congress of
the Philippines: Provided, That Congress shall be informed of any sale, lease, transfer,
grant or usufruct of, or assignment of the franchise or the rights or privileges acquired
thereunder, or the merger or transfer of the controlling interest of the grantee, 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 franchise is
sold, transferred or assigned shall be subject to all the same conditions, terms,
restrictions, and limitations of this Act.

SECTION 11, 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

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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
operation: 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 corporation operating public utilities must be implemented. Non-compliance
therewith shall render the franchise ipso facto revoked.

SECTION 12. General Broadcast Policy Law. - The grantee shall comply
with and be subject to the provisions of the general broadcast policy law which
Congress may hereafter enact.

SECTION 13, Commitment to Provide and Promote the Creat
Employment Opportunities. - The grantee shall create employment opportunities as
well as accept on-the-job trainees in their franchise operation: Provided, That priority
shall be accorded to the residents of the place where the principal office of the grantee
is located: Provided, further, That the grantee shall comply with the applicable labor
standards and allowance entitlement under existing labor laws, rules, regulations, and
similar issuances: Provided, finally, That the employment opportunities and jobs
created shall be reflected in the General Information Sheet (GIS) to be submitted to the
Securities and Exchange Commission annually.

SECTION 14. Reportorial Requirement, - The grantee shall submit an
annual report to the Congress of the Philippines, through the Committee on Leaislative
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 its franchise. The
reportorial compliance certificate issued by the Congress shall be required before any
application for permit or certificate is accepted by the NTC.

SECTION 15. Penalty Clause. — Failure of the grantee to submit the requisite
annual report to Congress will be penalized by a fine in the amount of Five Hundred
Pesos (P500.00) per working day of non-compliance. The fine will be collected by the
NTC from the delinquent franchise grantee separate from the reportorial penalties
imposed by the NTC.

SECTION 16. 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, That the foregoing shall neither apply to nor affect the
provisions of broadcasting franchises concerning territory covered by such franchise, the
life span of the franchise or the type of service authorized by the franchise.

SECTION 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.

SECTION 18. Repealability and Non-exclusivity Clause. — This franchi
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 19. Effectivity Clause. - This act shall take effect fifteen (15) days
after its publication in the Official Gazette or in a newspaper of general circulation.

Approved,