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Republic of the Philippines =\
HOUSE OF REPRESENTATIVES | 2 LATE: AY 12 2a |
Quezon City
EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO.__6724

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Introduced by Hon. Manuel “Chiquiting” T. Sagarbarria

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EXPLANATORY NOTE

This bill seeks the renewal of the Legislative Franchise granted to
Franciscan Broadcasting Corporation under RA 8736 which was passed into law
‘on July 26, 1997.

The Franciscan Broadcasting Corporation, also known as DYWC 801 AM
kHz, is a Filipino owned and managed media broadcasting company. Its primary
purpose is to use the word of the Church as an instrument to evangelize,
communicate, and serve the people of Negros Oriental through broadcasting and
technology.

Its audience hail from different areas of Negros Oriental, Northwestem
Cebu, Siquijor and Northern Mindanao. As years pass by, DYWC 801 AM kHz
stayed true to its mission withstanding the changing times. The radio station has
been home to communities seeking relevant information and entertainment. It has
been catering to the needs and cries of the grassroots through evangelization and
accessible communication ever since its establishment.

Among its greatest and distinct achievements are the following: 1) provided
an active dialogue for its listeners on national and local issues 2) strengthened the
cultural background of the people, 3) assisted government agencies in information
dissemination, 4) provided entertainment, and 5) brought the Christian message
into the homes of its listeners. With the goal to develop into a more inclusive and
accessible broadcasting station, the Franciscan Broadcasting Corporation has
established a relay station, DYWC HAPPY FM 104, to reach rural and far-flung
communities in the province of Negros Oriental. Indeed, it has recognized that
broadcasting contributes to the overall development of the people and their
communities through social awareness and education.


In the spirit of sincere service to the people, most especially to the
vulnerable and marginalised, and promotion of greater social awareness and
responsibility, DYWC 901 AM kHz will continuously improve and develop its radio
station through meaningful broadcasting while upholding its mission and meaning:
DYWC — Do Your Work for Christ.

From the foregoing, it is earnestly sought that this bill be immediately
approved.

mance ING” T. SAGARBARRIA

RepreseptStive, Second District, Negros Oriental


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILLNO.__6724

Introduced by Hon. Manuel “Chiquiting” T. Sagarbarria

_—

AN ACT

RENEWING THE FRANCHISE GRANTED TO FRANCISCAN
BROADCASTING CORPORATION UNDER REPUBLIC ACT NO. 8736
ENTITLED “AN ACT GRANTING THE FRANCISCAN BROADCASTING
CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH,
OPERATE AND MAINTAIN RADIO BROADCASTING STATIONS
ANYWHERE IN THE PHILIPPINES WHERE FREQUENCIES AND/OR
CHANNELS ARE STILL AVAILABLE FOR RADIO BROADCASTING” FOR
ANOTHER TWENTY-FIVE (25) YEARS FROM THE EFFECTIVITY 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 provision
of the Constitution and applicable laws, rules and regulations, the franchise
granted to Franciscan Broadcasting Corporation, its successors or assignees
under Republic Act No, 8736 to construct, install, establish, operate, and
maintain for educational, religious, cultural, commercial purposes and in the
public interest, radio broadcasting stations where frequencies and/or channels
are still available for radio broadcasting, through microwave, satellite or
whatever means, including the use of any new technology in radio systems, with
the corresponding technological auxiliaries and facilities, special broadcast and
other program and distribution services and relay station in Dumaguete and
other areas in the Visayas and Mindanao, is hereby renewed for another twenty-
five (25) years from the effectivity of this Act.


SEC. 2. Manner of Operation of Station or Facilities. - The stations or
facilities of the grantee shall be constructed and operated in a manner as will, at
most, result only in 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 or 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 or facilities and shall not use any frequency in the
radio spectrum without authorization from the NTC. The NTC, however, shall not
unreasonably withhold or delay the grant of any such authority.

SEC. 4. Responsibility to the Public. — The grantee shall provide, free of
charge, adequate public service time which is reasonable and sufficient to
enable the government, through the broadcasting stations or facilities of the
grantee, to reach the pertinent populations or portions thereof, on important
public issues; provide at all times sound and balanced programming; and relay
important public announcements and wamings conceming public emergencies
and calamities, as necessity, urgency or law may require; provide at all times
sound and balanced programming; promote public participation; assist in the
functions of public information and education; conform to the ethics of honest
enterprise; promote audience sensibility and empowerment including closed
captioning; and not use its stations or facilities for the broadcasting of obscene or
indecent language, speech, act or scene; or for the dissemination of deliberately
false information or wilful misrepresentation, to the detriment to the public
interest; or to incite, encourage, or assist in subversive or treasonable acts.


Public service time referred herein shall be equivalent to a maximum
aggregate of ten (10%) percent of the paid commercials or advertisements which
shall be allocated based on need of the Executive and Legislative branches, the
Judiciary, Constitutional Commissions and _ International humanitarian
organization duly recognized by statutes: Provided, That the NTC shall issue
public service time in case of extreme emergency or calamity. The NTC
shall issue rules and regulations for this purpose, the effectivity of which shall
commence upon applicability with other similarity situated broadcast network
franchise holders.

SEC. 5. Right of the Government. - 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.

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 these shall be so operated.

SEC. 6. Term of Franchise. — This franchise shall be in effect for a period of
twenty-five (25) years form the date of effectivity of this Act, unless sooner
revoked or cancelled. This franchise shall be deemed jpso facto revoked in the
event the grantee fails to operate continuously for two (2) years.

SEC. 7. Seff-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 or incite treason,
rebellion or sedition; or the language used therein or the theme thereof in
indecent or immoral: Provided, further, That wilful failure to do so shall constitute
a valid cause for the cancellation of this franchise.

SEC. 8. Warranty in Favor of the National and Local Governments. — The
grantee shall hold the national, provincial, city, and municipal governments of the
Philippines free from all claims, liabilities, demands, or actions arising out of
accidents causing injury to persons or damage to properties, during the
construction or operation of the stations of the grantee.

SEC. 9. Commitment to Provide and Promote the Creation of
Employment Opportunities. - The grantee shall create employment opportunities
and shall allow on-the-job trainings in their franchise operation: Provided, That
the priority shall be accorded to the residents in areas where any of its offices is
located: Provided further, That the grantee shall comply with the applicable
labor standards and allowance entitlement under existing labor laws, rules and
regulations and similar issuances: Provided, finally, That the employment
opportunities or jobs created shall be reflected in the General Information Sheet
to be submitted to the Securities and Exchange Commission (SEC) annually.

SEC. 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of
Franchise. — The grantee shall not sell, lease, transfer, grant the usufruct of, 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 transfer the controlling
interest of the grantee, whether as a whole or in part, and whether
simultaneously or contemporaneously, to any person, firm, company,
corporation, or entity without the prior approval of the Congress of the
Philippines and compliance with legal requirement stipulated in other statutes:
Provided, 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 percent (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, the grantee shall apply other methods of encouraging
public participation by citizens and corporations operating public utilities as
allowed by law. Noncompliance therewith shall render the franchise jpso
facto revoked.

SEC. 12. Reportorial Requirement. - During the term of its franchise, 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.

The annual report shall include an update on the roll-out, development,
operation, or expansion of business; audited financial statement; latest General
Information Sheet officially submitted to SEC (if applicable); certification of the
NTC on the status of its permits and operations; and update on the dispersal of
ownership undertaking, if applicable.

The reportorial compliance certificate issued by Congress shall be required
before an application for permit, certificate, or any equivalent thereof, is accepted
by the NTC.


SEC. 13. Fine. — Failure of the grantee to submit the requisite annual report
to Congress shall be penalized by a fine of Five hundred pesos (P500.00) 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 and the same shall be remitted to the National Treasury.

SEC. 14. Equality Clause. — Any advantage, favor, privilege, exemption, or
immunity granted under existing franchises, or which may hereafter be granted
for radio 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 provisions of broadcasting franchises conceming territorial
coverage, the term, or the type of service authorized by the franchise.

SEC. 15. 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. 16. Separability Clause. — If any sections or provisions of this Act
is held invalid, all other provisions not affected thereby shall remain valid.

SEC. 17. Repealing Clause. — All laws, decrees, orders, resolutions,
instructions, rules and regulations, and other issuances or parts thereof which
are inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly.

SEC. 18. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,