Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 5565

Introduced by REP. ELEANDRO JESUS F. MADRONA

EXPLANATORY NOTE

Broadcast media plays an important and prominent role in providing fast,
relevant and reliable information to the public. It is also instrumental and vital
in shaping the views and opinions of the people relative to the issues of the day.

Through the years, People’s Broadcasting Service, Inc., popularly known
as Bombo Radyo Philippines, has been contributing in the information and
education of the people on relevant issues concerning the nation. It likewise
provides sound and balanced programming, conforming to the ethics of honest
enterprise, and living up to its mission to elevate the consciousness of the
Filipino people.

The hundred percent (100%) Filipino owned Bombo Radyo Philippines, in
its franchise term, seen as a non-partisan media entity with balanced news and
fearless views, heard nationwide.

In view of the foregoing, the renewal of its franchise for another twenty-
five (25) years in order to ensure the uninterrupted efficient and outstanding
service People’s Broadcasting Service, Inc. through Bombo Radyo Philippines,
renders to the Filipino people.

ap ee

REP. ELEANDRO JESUS F. MADRONA
Representative — Lone District- Romblon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

5565

HOUSE BILL NO.

Introduced by REP. ELEANDRO JESUS F. MADRONA

AN ACT
RENEWING THE FRANCHISE GRANTED TO THE PEOPLE'S BROADCASTING SERVICE, INC.
UNDER REPUBLIC ACT. NO. 7477, AS AMENDED BY REPUBLIC ACT 9213, FOR ANOTHER
TWENTY-FIVE (25) YEARS FROM THE DATE OF APPROVAL OF THIS ACT

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 1987
Philippine Constitution and applicable laws, rules and regulations, the franchise granted to
People’s Broadcasting Service, Inc., under Republic Act No. 7477 entitled “An Act Granting the
People’s Broadcasting Service, Inc., a Franchise to Construct, Install, Operate and Maintain
For Commercial Purposes Radio and Television Broadcasting Stations in the Philippines and
For Other Purposes’, as amended by Republic Act No. 9213, hereunder referred to as the
grantee, its successors or assignees, to construct, install, establish, operate and maintain for
commercial purposes and in the public interest, radio and/or television broadcasting stations,
including digital television system, through microwave, satellite or whatever means,
including the use of 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 in the Philippines, is hereby renewed for another twenty-five (25)

years from the approval of this Act.

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 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 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 the construction and operation of its stations and facilities and shall
hot use any frequency in the radio/television spectrum without authorization from the NTC.

The NTC, however, shall not unreasonably withhold or delay the grant of such authority.

SEC. 4. Responsibility to the Public.

The grantee shall provide adequate public service
time to enable the government, through its broadcasting stations or facilities, 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 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.

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
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 the 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.


SEC. 6, Term of Franchise, — This franchise shall be in effect for a period of twenty-five
(25) years from the effectivity of the 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.

SEC. 7. Acceptance and Compliance. — Acceptance of this new 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. Nonacceptance shall render the franchise void

SEC, 8, 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 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 and willful failure to do so shall

constitute a valid cause for the cancellation of this franchise.

SEC. 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.

SEC. 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
privilege 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 lease, transfer, granting the usufruct of, sale or assignment of

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franchise or the rights or privileges acquired thereunder, or of the merger, or transfer of
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
shalll 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 the same conditions,

terms, restrictions, and limitations of this Act.

SEC, 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 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 operations: 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, Noncompliance therewith shall render the franchise ipso facto revoked

SEC. 12, 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. 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 the franchise. The reportorial compliance certificate issued by
Congress shall be required before any application for permit or certificate is accepted by the

NTC.

SEC. 14. Penalty Clause. — Failure to submit the requisite annual report to Congress
will be penalized with a fine of five hundred pesos (PS00.00) per working day of
noncompliance. The fine shall be collected by the NTC from the delinquent franchise grantee
separate from the reportorial penalties imposed by the NTC. The collected funds shall accrue

to the monitoring fund of the NTC in line with its supervisory and regulatory functions,

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SEC. 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, 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: Provided, further, That the
foregoing shall not apply to sale, lease, transfer or grant of usufruct of legislative franchise

with prior congressional approval.

SEC. 16, Separability Clause. - If any of the sections or provisions of this Act is held

invalid, all other provisions not affected thereby shall remain valid.

SEC. 17. Repeatability 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. 18. Effectivity Clause. - This Act shall take effect fifteen (15) after its publication

in the Official Gazette or in a newspaper of general circulation.

Approved,