Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

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Nineteenth Congress
First Regular Session

House Bil No,__7055

Introduced by Representative JOEY SARTE SALCEDA

AN ACT
GRANTING SAINT JAMES BROADCASTING PRODUCTION CORPORATION
A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN
RADIO AND TELEVISION BROADCASTING STATIONS IN THE PHILIPPINES

EXPLANATORY NOTE

Saint James Broadcasting Production Corporation serves the rice granary of Albay, the
Municipality of Libon, in the Province of Albay, and its surrounding municipalities, including
inland fishing communities. In this capacity, it provides a critical information service to
farmers, fisherfolk, and other rural communities, helping them with weather reports and
updates, as well as informative programs.

‘The company also ensures that critical information reaches geographically isolated and

displaced areas in the West Coast of Albay — a less-developed area of the province with very
high tourism potential.

The grantee of the proposed franchise has committed to devoting significant airtime to
programs devoted to farmers, fisherfolk, and agribusiness, as well as to public service programs
catering to the unique circumstances of Albay’s rice farming communities and its West Coast.

This would boost Albay’s efforts to achieve food security, boost ecotourism, and support
farming and fishing communities.

In view of the foregoing, the approval of this bill is urgently sou,

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Nineteenth Congress
First Regular Session

Mouse Bill No,__ 7055

Introduced by Representative JOEY SARTE SALCEDA

AN ACT
GRANTING SAINT JAMES BROADCASTING PRODUCTION CORPORATION
A FRANCHISE TO CONSTRUCT, INSTALL, 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
Constitution and applicable laws, rules and regulations, there is hereby granted to the Saint
James Broadcasting Production Corporation, its successors or assigns and hereunder referred
to as the grantee, a franchise to construct, install, operate and maintain for commercial purposes
and in the public interest radio and television broadcasting stations in the Philippines with the
corresponding technological auxiliary or facilities, special broadcast and other broadcast
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 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 and/or television 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 and relay important public announcements and

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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 the paid commercials or advertisements which shall be allocated based on
need to the Executive and Legislative branches, the 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 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 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 operate
continuously for two (2) years.

SEC. 7. 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 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. 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 priority shall be accorded to the residents

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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, simultaneously or contemporaneously, to any 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
the 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. 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 ipso 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 statements; latest General Information Sheet officially
submitted to the SEC (if applicable); certification of the NTC on the status of its permits and
operations; and an 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

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granted under existing franchises, or which may hereafter be granted for radio and 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 provisions of broadcasting franchises concerning
territorial coverage, the term, or the type of service authorized under this franchise.

SEC. 15. Repealability 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

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. 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,

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