House of Representatives
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. 8057

Representative GWENDOLYN F. GARCIA

EXPLANATORY NOTE

The Soundstream Broadcasting Corporation was incorporated and registered at
the Securities and Exchange Commission with a primary purpose of establishing a radio
and television broadcasting stations in the Province of Isabela and to the extent that it
may be authorized by law

On September 05, 1996 it was granted a legislative franchise under Republic Act
No. 8209 to construct, install, operate and maintain radio and television broadcasting
stations in the Philippines. Though, the twenty-five year legislative franchise of this
broadcasting company is expiring in 2021, the company will be expanding its
broadcasting services via television and the internet, hence there is an urgent need to
seek a legislative authorization for its continued operations.

This bill therefore seeks to renew the legislative franchise to enable to continue its
commitment to public service and to its unfailing practice of disseminating timely, truthful
and precise information to the Filipino people.

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

7

ner OW LYN F. GARCIA


House of Representatives
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House BILL No, 8057

Representative GWENDOLYN F. GARCIA

AN ACT

EXTENDING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE
GRANTED TO SOUNDSTREAM BROADCASTING CORPORATION UNDER
REPUBLIC ACT NO. 8209, ENTITLED “AN ACT GRANTING THE SOUNDSTREAM
BROADCASTING CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL,
ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION
BROADCASTING STATIONS IN THE PROVINCE OF ISABELA AND IN OTHER
PLACES IN THE PHILIPPINES”

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 provisions of the
1987 Philippine Constitution and applicable laws, rules and regulations, the franchise
granted to Soundstream Broadcasting Corporation, under Republic Act No. 8209
entitled “An Act Granting The Soundstream Broadcasting Corporation A Franchise
To Construct, Install, Operate And Maintain For Radio And Television Broadcasting
Stations In The Province of Isabela And in Other Places in the Philippines”
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, is
hereby renewed for another twenty-five (25) years from the effectivity of this Act.

SEC. 2, Manner of Operation of Stations of 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 selected wavelengths or frequencies and the
quality of transmission or reception thereon as should maximize rendition of the
grantee’s services and/or 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
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.

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 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.

SEC. 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.


SEC. 6. Term of Franchise. — This franchise shall be in effect for a period of
twenty-five (25) years from the effectivity of the 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. Acceptance and Compliance. — Acceptance of this new 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.

SEC. 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.

SEC. 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 and wilful failure to do so shall constitute a valid cause for the
cancellation of this franchise.

SEC. 10. Warranty in Favor of National and Local Governments. - The
grantee shall hold the national, provincial, city and municipal governments of the
Philippines harmless 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.


SEC. 11. Sale, Lease, Transfer, Usufruct, Assignment. - The grantee shall not
lease, transfer, grant the usufruct of, sell nor assign this franchise or the rights and
Privilege 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: Provided, That Congress shall be informed of any lease, transfer,
granting the usufruct of, sale or assignment of franchise or the rights or privileges
acquired 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.

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 per centum (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,
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.

SEC. 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.

SEC. 14. Reportorial Requirement. — The grantee shall submit an annual
Feport 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 the succeeding year.

SEC. 15. Penalty Clause - Any grantee who fails to submit the Annual
Report to Congress will be fined Five Hundred Pesos (P500.00) per working day of
non-compliance. Said fine will be collected by the NTC from said delinquent
franchise grantee separate from the reportorial penalties imposed by NTC. The
collected funds shall accrue to the monitoring fund of the NTC in line with its
supervisory and regulatory functions. The reportorial compliance certificate issued by
Congress shall be required before any application for permit or certificate is accepted
by NTC.

SEC. 16. Equality Clause. - Any advantage, favor, privilege, exemption, or
immunity granted under existing franchise, 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, however, That the foregoing shall
neither apply to nor affect 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: Provided, further, That the foregoing shall not apply to
sale, lease, transfer or grant of usufruct of legislative franchise with prior
congressional approval.

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. 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 for.

SEC. 19. Publication. This Act shall be published, through the initiative of the
Grantee, fifteen (15) days after this Act is signed by the President of the Philippines
or has lapsed into law.


SEC. 20 Effectivity Clause. — This Act shall take effect fifteen (15) days from
the date of its publication in at least two (2) newspapers of general circulation in the
Philippines.

Approved,