SIXTEENTH CONGRESS
Third Regular Session
Republic of the Philippines
HOUSEOFREPRESENTA~S
Quezon City, Metro Manila
HOUSE BILL NO.
5971
Introduced by HON. RENE L. RELAMPAGOS
First District, Bohol
EXPLANATORY
NOTE
This bill seeks to renew the franchise
granted
to Bohol Chronicle
Radio
Corporation, under Republic Act No. 7634 entitled, "An Act Authorizing the Transfer
and Assignment
to the
Bohol Chronicle
Radio Corporation
of the
Franchise
to
Construct, Operate, and Maintain Television and Radio Broadcasting Station in the
Province of Bohol Granted Under Republic Act Numbered Forty-Seven Hundred and
Ninety-Two
to Zoilo Dejaresco,
Jr.
and All the
Properties
and
Rights Acquired
Thereunder
of Zoilo Dejaresco, Jr. and Renewing the Terms of the Said Franchise To
Another Twenty Five (25) Years From the Date of Effectivity of This Act," enacted into
law on July 24,1992.
The Bohol Chronicle Radio Corporation
is an entity that has been granted
authority by the State to operate for the last fifty (50) years. It has began wirecasting in
1961, through its station DYRD-AM, serving the people of Bohol through its public
service, and current
affairs programs.
In 1980, it branched
out in the FM band,
establishing DYZD-AMin the town of Ubay.
Media plays a crucial role in the development
and growth of our country.
Through the years, the Bohol Chronicle Radio Corporation has exemplified this role,
especially in every crisis - be it a ravaging typhoon or a massive earthquake, giving the
much needed updates and information
to the people, and connecting their concerns
with the appropriate government authorities.
The
Bohol
Chronicle
Radio
Corporation
has
served
the
Boholanos
in
disseminating vital information, in pursuit of the constitutional recognition of the State
of the vital role of communication and information in nation building.
The term of the franchise of the Bohol Chronicle Radio Corporation, which is
twenty five (25) years, will expire on July 2017.
It is therefore imperative that the continuation
of this kind of public service be
given the State's imprimatur, and support.
In view of the foregoing, the approval of this bill is earnestly requested.
\
\
RENJt:Wr~
RELAMPAGOS


Republic of the Philippines
HOUSEOFREPRESENTA~S
Quezon City
SIXTEENTH CONGRESS
Third Regular Session
5971
HOUSE BILL NO.
_
Introduced by HON. RENE L. RELAMPAGOS
First District, Bohol
"AN ACf RENEWING AND AMENDING THE FRANCHISE
GRANTED TO THE BOHOL CHRONICLE RADIO CORPORATION
UNDER REPUBLIC ACT NO. 7634 TO CONSTRUCT, INSTALL,
ESTABLISH, OPERATE AND MAINTAIN RADIO 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
Bohol Chronicle Radio Corporation, 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 broadcasting, through microwave, satellite or whatever means, including the use
of any new technologies
in radio systems, with the corresponding
technological
auxiliaries and facilities, special broadcast and other program and distribution services
and relay stations.
Section
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 existing
stations
or other 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 availability thereof.
Section 3. Prior Approval of the National Telecommunications
Commission. -
The Grantee shall secure from the National Telecommunications
Commission CNTC)
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 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 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 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.
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 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, 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.
Section 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.
Section 8. Bond. - The Grantee shall file a bond with the NTC in the amount
that the NTC shall determine
to guarantee
compliance with and fulfillment of the
conditions under which this franchise is granted. If after three (3) years from the date of


L
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.
Section
9. Tax Provisions.
- The grantee, its successors or assigns, shall be
subject to the payment of all taxes, duties, fees or charges and other impositions under
the National Internal Revenue Code (NIRC) of 1997, as amended, and other applicable
laws; Provided, That nothing herein shall be construed
as repealing any specific fax
exemptions, incentives or privileges granted under any relevant law; Provided,further,
That all rights, privileges, benefits and exemptions accorded to existing and future
telecommunications
franchises shall likewise be extended to the grantee.
The grantee shall file the return with the city or province where its facility is
located and pay the income tax due thereon to the Commissioner of Internal Revenue or
his duly authorized representatives in accordance with the NIRC and the return shall be
subject to audit by the Bureau of Internal Revenue.
Section 10. Self-regulation
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
11. Warranty
in Favor of National
and Local Governments. - The
Grantee shall hold the national,
provincial, city 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.
Section
12. Non-transferability
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. The conditions,
terms, restrictions
and limitations set by this Act shall be imposed on any person or
entity to which this franchise is sold, transferred or assigned.
Section 13.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 time it has achieved the status of a national
broadcasting


network. A "national broadcasting network" is hereby defined as one that operates three
(3) or more radio and/or television stations. Noncompliance therewith shall render the
franchise ipso facto revoked.
Section. 14. Right of Interconnection.
- The grantee is hereby authorized to
connect
or demand
connection
of its telecommunications
systems
to any other
telecommunications
systems installed,
maintained
and operated
by any other duly
authorized
person or entity in the Philippines for the purpose of providing extended
and
improved
telecommunications
services to the public,
under
such terms
and
conditions mutually agreed upon by the parties concerned and the same shall be subject
to the review or modification of the Commission.
Section 15. Equality
Clause. - Any advantage, favor, privilege, exemption or
immunity granted under existing franchise, or which may hereafter be granted for radio
and/ or television broadcasting,
shall ipso facto become part of this franchise and shall
be
accorded
immediately
and
unconditionally
to
the
herein
grantee: Provided,
however, 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 of service authorized by the franchise.
Section 16. 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.
Section 17. 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.
Section 18. Separability
Clause. - If any of the sections or provisions of this
Act is held invalid, all other provisions not affected thereby shall remain valid.
Section 19. Repeatability
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 20. Effectivity Clause. - This Act shall take effect fifteen (15) days after
its publication,
upon the initiative of the grantee, in at least two (2) newspapers
of
general circulation in the Philippines.
Approved,