Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Eighteenth Congress
First Regular Session

5381

HOUSE BILL NO.

Introduced by Representative Lucy Torres-Gomez

EXPLANATORY NOTE

Among the state policies i in the 1987 Philippine Constitution is the
one enunciated under Section 24 thereof, to wit: “The State recognizes
the vital role of communication and information in nation-building.”

The broadcast media plays a crucial role in the formation of an
enlightened citizenry, in the over-all development of society and in the
protection of national welfare and security. It creates public awareness
inasmuch as it is engaged in information dissemination on matters of
public concern. Citizens, whose opinions are enriched via mass media,
are therefore empowered to actively participate in the national and local
discourse. These are the requisites of a strong and stable democratic
polity.

On the moral side, it has been said that mass media is uniquely
placed in a position where it can “comfort the afflicted and afflict the
comfortable” in our society.

This bill grants a franchise to Ugmok Bay Broadcasting Network
Corporation to construct, install, establish, operate and maintain radio and
television broadcasting station(s) anywhere in the Philippines, with its
base of operations located in the City of Ormoc, Province of Leyte.
Ugmok Bay Broadcasting Network Corporation promises to be an
advocate of responsible media, a purveyor of truth, an agent of change
and a partner of society in the pursuit of its developmental aspirations.
Finally, the approval of this franchise is expected to further promote
healthy competition among the present players in the airwaves.


In view of the foregoing considerations, the early approval of this
bill is earnestly requested.

LU¢X TO! OMEZ
Repfesentative
Fourth District of Leyte


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Eighteenth Congress
First Regular Session

HOUSE BILL NO. 5381

Introduced by Representative Lucy Torres-Gomez

AN ACT
GRANTING THE UGMOK BAY BROADCASTING NETWORK
CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL,
ESTABLISH, OPERATE AND MAINTAIN RADIO AND
TELEVISION BROADCASTING 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 Philippine Constitution and applicable laws, rules and
regulations, there is hereby granted to the Ugmok Bay Broadcasting
Network Corporation, hereunder referred to as the grantee, its successors
or assignees, a franchise to construct, install, establish, operate and
maintain for commercial purposes and in the public interest, radio and/or
television broadcasting stations anywhere in the Philippines, where
frequencies and/or channels are still available for radio and/or television
broadcasting, including analog, digital, television and/or radio systems,
one way or interactive, through terrestrial, fiber, line, internet,
microwave, satellite or whatever means, including the use of any new
technologies in television and radio systems including stream or
datacasting, with the corresponding technological auxiliaries and/or

facilities, special broadcast, and other program and distribution services


and relay stations in the Philippines, and to install communication

facilities for the grantee's private use in its broadcast services.

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 or facilities and
shall not 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 any such authority.

The grantee shall not dispose or lease its facilities except to entities

with radio or television franchis

: Provided, That the grantee shall inform
and secure written authorization to proceed from the NTC, and report the
transaction to the NTC within sixty (60) days after its
completion: Provided, further, That the NTC shall determine the

corresponding sanction for any violation of this provision.

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 and relay important public
announcements and warnings concerning 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 willful
misrepresentation, to the detriment of 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 percent (10%) of paid commercials or
advertisements which shall be allocated based on need to the executive,
legislative, judiciary, constitutional commissions and _ international
humanitarian organizations duly recognized by statutes: Provided, That
the NTC shall increase the 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 similarly 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 stations or facilities of the grantee; to temporarily suspend the
operation 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 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 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) Commence operations within three (3) years from the
effectivity of this Act; and

(c) Operate continuously for two (2) years.

SEC. 7. 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 the approval of its permit by the
NTC, the grantee shall have fulfilled the same, the bond shall be
cancelled by the NTC. Otherwise, the bond shall be forfeited in favor of
the government and the franchise ipso facto revoked.


SEC. 8. 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.

SEC. 9. 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. 10. 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 priority shall be accorded to the residents
where their principal office is located: Provided, further, That the grantee
shall follow 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 (GIS) to be
submitted to the Securities and Exchange Commission annually.

SEC. 11. 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,
simultaneously or contemporaneously, to any such person, firm,
company, corporation, or entity without the prior approval of the
Congress of the Philippines. Congress shall be informed of any sale,
lease, transfer, grant of usufruct, or assignment of franchise or the rights
and privileges acquired thereunder, or of the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after the
completion of said transaction. Failure to report to Congress such change
of ownership shall render the franchise ipso facto revoked. 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. 12. 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 ipso
facto revoked.

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 Philippine 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.

SEC. 14. 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
imposed by the NTC and the same shall be
remitted to the National Treasury.

the reportorial penalti

SEC. 15. Equality Clause. - Except for taxes and customs duties,
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 the franchise, the life span of the
franchise, or the type of service authorized by the franchise.

SEC. 16, 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. 17. 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. 18. Repealing Clause. - All laws, decrees, orders, resolutions,
instructions, rules and regulations, and other issuances or parts thereof
which are not consistent with this Act are hereby repealed, amended, or
modified accordingly.

Section 19. Effectivity. - This Act shall take effect fifteen (15) days

after its publication in the Official Gazette or in a newspaper of general

circulation.

Approved,