Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

Fifteenth Congress

Third Regular Session

6421

House Bill No.

Introduced by Representative Pedro B. Acharon, Jr.

EXPLANATORY NOTE

Pursuant to and relying on its constitutionally-guaranteed freedom of speech, of expression, and
of the press, and on the policies of the State recognizing the vital role of communication and
information in nation building, and providing the policy environment for the full development of Filipino
capability and the emergence of communication structures enshrined in Article Il, Section 24, and
Article XVI, Section 10 of the 1987 Philippine Constitution, respectively, Brigada Mass Media
Corporation (BMMC) came into existence.

BRIGADA MASS MEDIA CORPORATION is a duly organized and registered domestic corporation,
which for a considerable period of time. has been successfully engaged in the publication and
broadcasting businesses, through its two (2) subsidiaries: BRIGADA NEWS PHILIPPINES and BRIGADA
NEWS FM, principally based in General Santos City, but would practically cover almost the entire island
of Mindanao.

In view thereof, and with the current expansion and development efforts being undertaken by
BMMC, it is but proper and fitting that, through the herein is granted to construct, install,
establish, operate, and maintain in all forms, in the entire Philippines; for it to be rendered even more
effective in the dissemination of valuable information to the reading, listening and viewing public in this
impoverished part of our country.

It is on the light of the foregoing that the approval of the herein legislative measure is hereby
earnestly requested.

PEI A IN, IR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Fifteenth Congress

Third Regular Session

6421

House Bill No.

Introduced by Representative Pedro B. Acharon, Jr.

AN ACT
GRANTING THE BRIGADA MASS MEDIA CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL,
ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS IN THE
PHILIPPINES.

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 Brigada Mass Media 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
and/or television broadcasting, with the corresponding technological auxiliaries or facilities, special
broadcast and other program and distribution services and relay stations.

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 wave lengths or frequencies of existing or other stations which may be established by law,
without in any way diminishing its own right to use its selected wave length 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 the appropriate permits and licenses for the
construction and operation of its stations and facilities and shall not use any frequency in the radio or
television spectrum without having been authorized by the Commission. The Commission, however,
shall not unreasonably withhold or delay the grant of any such authority.

SEC. 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 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



SEC. S. 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 a part of the
national patrimony and the use thereof is a privilege conferred upon the grantee by the State and may
be withdrawn anytime, after due process.

SEC. 6. Term of Franchise. — This franchise shall be for a term of twenty five (25) years from the
date of effectivity of this Act, 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 permit by the National
Telecommunications Commission;

{b) Operate continuously for two (2) years; and

(c) Commence operations within three (3) years from the effectivity of this Act.

SEC. 7. Acceptance and Compliance. ~ Acceptance of this franchise shall be given in writing
within sixty (60) days after 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.

SEC. 8. Bond, ~ The grantee shall file a bond issued in favor of the National Telecommunications
Commission, which shail determine the amount, to guarantee the compliance with and fulfillment of the
conditions under which this franchise is granted. if after three (3) years from the date of 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 franchise ipso
facto revoked.

SEC. 9. Tax Provisions. ~ The grantee, its successors or assigns, shall be liable to pay the same
taxes on their real estate, buildings and personal property, exclusive of this franchise, as other persons
or corporations are now or hereafter may be required by law to pay. In addition thereto, the grantee, its
Successors or assigns, shall pay the value-added tax under Republic Act No. 7716, as amended, on all
gross receipts of its radio or television business transacted under this franchise: Provided, That the
grantee, its successors or assigns, shall continue to be liable for income taxes payable under Title | of
the National Internal Revenue Code pursuant to Section 2 of Executive Order No. 72 unless the latter
enactment is amended or repealed, in which case the amendment or repeal shall be applicable thereto.
The grantee shall file the return with and pay the taxes due thereon to the Commissioner of Internal
Revenue or his duly authorized representatives in accordance with the National Internal Revenue Code
and the return shall be subject to audit by the Bureau of Internal Revenue.

SEC. 10. 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 in¢ite treason,
rebellion or sedition; or the language used ‘therein or the theme thereof is indecent or immoral; and
willful failure to do so shall constitute a valid cause for the cancellation of this franchise.



SEC. 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. 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. 13. Dispersal of Ownership. — in accordance with constitutional provisions to encourage
public participation in public utilities, the grantee shall offer at least thirty per centum (30%) of its
outstanding capital stock or a higher percentage that may thereafter be provided by law 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 or more radio and/or television stations. Non compliance therewith shall render the
franchise ipso facto revoked.

SEC. 14. 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. 15. Separability Clause. — If any of the sections or provisions of this Act is held invalid, all
the other provisions of this Act is held invalid, all the other provisions not affected thereby shall remain
valid.

SEC. 16. 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. 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.

SEC. 18. Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in at least
‘two (2) newspapers of general circulation in the Philippir