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

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 5217

Introduced by Rep. Elenita Milagros “Eileen” Ermita-Buhain

EXPLANATORY NOTE

Enshrined in Article II, Section 24 of the 1987 Constitution, states that “The State
recognizes the vital role of communication and information in nation-building.”

Communication through Mass Media plays a vital role in nation-building. With the
current development in technology, particularly the intemet, radio broadcast has become more
relevant and continues to be a source of reliable news and a tool for information.

On March 26, 1992, Bright Star Broadcasting Network Corporation was granted a
legislative franchise by Republic Act 7295 to construct, install, operate and maintain for
commercial purposes radio and television broadcasting stations in the Philippines. However,
the legislative franchise granted them will expire in 2017. As public servants, we are duty
bound to provide our people with relevant information and this can be achieved through the
provision of adequate facilities of communication. Broadcast Media is one of them, albeit
commercial in nature, will provide us with significant information.

This bill therefore seeks to renew the franchise granted to Bright Star Broadcasting
Network Corporation under Republic Act No. 7295, entitled, “An Act Granting the Bright Star
Broadcasting Network Corporation a Franchise to Construct, Install, Operate and Maintain for
Commercial Purposes Radio and Television Broadcasting Stations in the Philippines and for
Other Purposes.”

In view of the foregoing, the approval of this measure is earnestly sought.

REP. ELENITA MILAGROS “EILEEN” ERMITA-BUHAIN


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

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 5217

Introduced by Rep. Elenita Milagros “Eileen” Ermita-Buhain

“AN ACT
RENEWING THE FRANCHISE GRANTED TO BRIGHT STAR BROADCASTING
NETWORK CORPORATION UNDER REPUBLIC ACT NO. 7295 ENTITLED “AN
ACT GRANTING THE BRIGHT STAR BROADCASTING NETWORK
CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND
MAINTAIN FOR COMMERCIAL PURPOSES RADIO AND TELEVISION
BROADCASTING STATIONS IN THE PHILIPPINES AND FOR OTHER
PURPOSES” FOR ANOTHER TWENTY FIVE (25) YEARS FROM THE
EFFECTIVITY OF THIS ACT.”

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 1987
Philippine Constitution and applicable laws, rules and regulations, there is hereby granted to
Bright Star 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 in
the Philippines, where frequencies and/or channels are still available for radio and/or television
broadcasting, including digital television system, through microwave, satellite or whatever
means, including the use of any 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.

SECTION 2. Manner and 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 right 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,

SECTION 3. Prior Approval of the National Telecommunications Commission. ~The
grantee shall secure from the National Telecommunications Communications (NTC), the


appropriate permits and licenses for the construction and operation of its stations and 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.

SECTION 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 and 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.

SECTION 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
said 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 anytime
after due process.

SECTION 6. Term of Franchise. ~ This franchise is renewed for a period of twenty-
five (25) years, 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 conditions of this Act.

SECTION 7. Acceptance and Compliance. ~ Acceptance of this 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. Non-acceptance shall render
the franchise void.

SECTION 8. 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 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 the
franchise ipso facto revoked.


SECTION 9. 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 willful failure to do so shall constitute a
valid cause for the cancellation of this franchise.

Section 10. 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.

SECTION 11. Sale, Lease, Transfer, Usufruct, or Assignment of Franchise. — The
grantee shall not lease, transfer, grant the usuffuct 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 transfer
the controlling interest of the grantee, 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 sale, lease, transfer, grant of usufruct of, or assignment of franchise
or the rights or privileges acquired thereunder, or the merger or transfer of the 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 shall 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.

SECTION 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
Jaw 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.

SECTION 13. 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.

SECTION 14. 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 its franchise. The reportorial compliance certificate
issued by Congress shall be required before any application for permit or certificate is accepted
by the NTC.

SECTION 15. Penalty Clause. — Failure of the grantee to submit the requisite annual
report to Congress will be penalized by a fine in the amount of Five Hundred Pesos (PS00.00)
per working day of noncompliance. The fine will be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC.

SECTION 16. Equality Clause. ~ Any advantage, favor, privilege, exemption, or
immunity granted under the 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

SECTION 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.

SECTION 18. 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.

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,