HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session
503

, House Bill No.

Introduced by HON. EDWARD VERA PEREZ MACEDA and HON. JOHN
MARVIN “YUL SERVO” NIETO

EXPLANATORY NOTE

Mass-media is public utility protected and reserved by the Constitution to the
Filipino people. Broadcasting, as a form of mass-media, has been and continues
to be instrumental in the exercise of the guaranteed right of freedom of
expression under Section 4, Article Ill of the 1987 Philippine Constitution.
Broadcasting is also instrumental in the exercise of the right to information under
Section 7, Article Ill of the 1987 Philippine Constitution. Through broadcasting,
news and information reaches a wider population than printed media

This bill seeks to renew the legislative franchise granted to Audiovisual
Communicators, Inc. under Republic Act No. 8124 entitled “A Franchise to
Construct, Install, Operate and Maintain for Commercial Purposes Radio and
Television Stations in the Philippines and for Other Purposes", enacted into law
on 16 July 1995, for another twenty-five (25) years.

The Audiovisual Communicators, Inc. (ACI) is an entity that has been granted
authority by the State to operate for the last four decades. It has begun its
broadcasting services in 1983 through its stations DWRX (93.1), DYBT (105.9),
and DXBT (99.5) serving Metro Manila, Metro Cebu, and Metro Davao,
respectively, serving the public not only through airing of opinions and freedom of
expression through music, but also through its Monster Scholarship Program that
help college students in dire need of assistance.

The Audiovisual Communicators, Inc. has been serving the Filipino public in the
exercise of its right to freedom of expression and giving assistance to college
students in pursuit of the State's constitutional recognition of the vital role of
communication and information in nation building.

The term of the franchise of Audiovisual Communicators, Inc. which is twenty-
five (25) years, will expire n July 2020

In view of foregoing, approval of this bill is earnestly requested

EDWA\ oy, BA PEREZMACEDA JOHN WA ff. SERVO” NIETO
Representattve, 4" District of Manila Reprd


29

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 5030

Introduced by HON. EDWARD VERA PEREZ MACEDA and HON. JOHN
MARVIN “YUL SERVO” NIETO.

AN ACT
RENEWING THE FRANCHISE GRANTED TO AUDIOVISUAL
COMMUNICATORS, INC. UNDER REPUBLIC ACT NO. 8124TO
CONSTRUCT, INSTALL, OPERATE AND MAINTAIN FOR COMMERCIAL,
PURPOSES RADIO AND TELEVISION STATIONS IN THE PHILIPPINES

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
Audiovisual Communicators, 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 the Philippines, where frequencies and/or
channels are still available for radio and/or television broadcasting, including
digital television system 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 for another twenty-five
(25) years,

SECTION 2. Manner of Operation of Stations of 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 privilege 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 availability thereof.

SECTION 3, Prior Approval of the National Telecommunications Commission. —
The Grantee shall secure from the National Telecommunications Commission
(NTC) 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
without authorization from the NTC. The NTC, however, shall not unreasonably
withhold or delay the grant of any such authority


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SECTION 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 tames sound and balanced programming; assist in the functions of public
information and education; conform to the ethics of honest enterprise: and, nat
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

The Grantee shall operate and maintain all its stations, lines, cables, systems
and equipment for the transmission and reception of messages, signals and
pulses in a satisfactory manner at all times, and as far as economical and
practicable, modify, improve or change such stations, lines, cables, systems and
equipment to keep abreast with the advances in science and technology.

SECTION 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, 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 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 may be
withdrawn any time after due process.

SECTION 6. Term of Renewal Franchise. - The renewal of this franchise shall be
in effect for a period 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 operate continuously 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 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

SECTION 8. Seif-reguiation by and Undertaking of the 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 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 injuries, whether to property or to persons, caused by the
construction or operation of the stations of the Grantee.

SECTION 10. Sale, Lease, Transfer, Grant of Usuffuct, or Assignment of
Franchise. - The Grantee shall not lease, transfer, grant the usufruct of, 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 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 of any sale, lease, transfer, grant of
usufruct or, or assignment of 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 any 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 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 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 corporations operating public utilities must be
implemented. Non-acceptance/compliance therewith shall render the franchise
ipso facto revoked.

SECTION 12. General Broadcast Policy Law. ~ The Grantee shall comply with a
general broadcast policy law which Congress may hereafter enact

SECTION 13. 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 every year during the
term of its franchise. The reportorial compliance certificate issued by Congress
shall be required before any application for permit or certificate is accepted by
the NTC.

SECTION 14. 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 noncompliance. The fine will be
collected by the NTC from the delinquent franchise grantee separate from the
reportorial penalties imposed by the NTC


SECTION 15. 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 16. Separability Clause. — If any of the sections or provisions of this
Act is held invalid, all othe? provisioris not affected thereby shall remain valid

SECTION 17. 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

SECTION 18. Effectivity Clause. - This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in at least two (2) newspapers of
general circulation in the Philippines

Approved,