Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. 6011

Introduced by REP. ARTURO B, ROBES

EXPLANATORY NOTE

The Constitution recognizes the vital role of communication in nation-building
It is through the process of communication that the citizens acquire accurate and
adequate information to capacitate them to make informed judgments as they
participate in the democratic processes in our country. Crucial and so inextricably
woven into the right of free speech and free expression is freedom of the press that
any attempt to restrict it must be met with an examination so critical that only a
danger that is clear and present would be allowed to curtail it.

Mass media play a very crucial role in this communication process since it is
through the same that information is shared to a larger number of the population
regardless of economic status, sex, religion, political affiliation, and the like. Of all the
forms of mass communication, the radio may be considered as the most accessible
to a larger number of people aside from the fact that it shares information to the
public relatively for free.

In one study about the relevance of a community radio in livelihood
improvement, the research concluded that a local radio “has worked to improve
awareness and knowledge of solutions to community development problems ranging
from culture, rural development, education, hygiene and sanitation, agriculture to
local governance. The station has been an appropriate medium that has facilitated
an interface between duty bearers and rights holders. It has prompted small and
medium enterprise development by creating market opportunities for Small and

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Medium Enterprise (SME) operators and consequently improved sales and

incomes.”

Bohol has continued to attract local and foreign tourists every year. Although
the tourism industry suffered setbacks after the 7.2 magnitude earthquake that struck
the province in October 2013 and after typhoon Yolanda deprived the province of
electricity, tourism has quickly made a turnaround and is now back to its normal
operations. The boom in the tourism industry in the province is manifested by the
opening of big resorts and the commencement of civil works of the New Bohol
Airport Project in April 2015. Currently, studies are ongoing with respect to the
planned Cebu-Bohol Friendship Bridge that will connect the provinces of Cebu and
Bohol

The aforementioned developments as well as those planned developments
are expected to drive the economy of the province towards progress. As this
develops, Bohol’s population, labor force, business, and others also seem to
experience exponential growth. As the Bohol economy develops further, there is a
need for more accurate, relevant, and adequate information to be communicated to
all stakeholders especially on matters of public policy, disaster risk, business
developments, new products, and services.

With the growth in population, economic activities, government transactions,
and the need for more relevant, accurate and adequate information, the Boholano
community deserves more choices in the terms of medium of communication, In a
democracy, as argued by a communication researcher, the people must have
access to diverse opinions about public affairs and information that directly affect
their communities and families. Concentration of ownership in the hands of a few
jeopardizes the entire concept of a diverse and informative media that lies at the
foundation of a healthy democracy.

Given the current situation in the province, the Boholanos deserve more
choices of radio stations that can provide progressive and development formats of
radio programs. Two existing radio stations in the AM band and three under the FM
band in the Province of Bohol are clearly inadequate to support the public's need for

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varied, informative, relevant, and accurate news and public affairs reporting
Moreover, the flourishing tourism industry and other industries in the province need
to be supported by more choices of communication medium to increase public
awareness and to help people make informed and better judgments.

Owing to a small number of radio stations in the province, there is a very
limited airtime available for advertisements and public announcements from
businesses, government entities, and other organizations. There are also few
programs which are catering to the specific needs of the population such as those
dealing with law, business, agriculture, science and technology, and the like. This
explains the need for more information from the listening public.

Moreover, the emergence of new and innovative technologies in the field of
television and cable TV has ushered in a new medium of communication. The
Province of Bohol also deserves to have another dynamic and forward-thinking
company that will lead innovations in the convergence of radio, local TV, and cable
TV channel production and broadcasting,

ARTURO B. ROBES
Representative
Lone District, San Jose Del Monte City


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. 60i1

Introduced by REP. ARTURO B. ROBES

AN ACT
GRANTING VERITAS MEDIA ARTS INC. A FRANCHISE TO CONSTRUCT, INSTALL,
ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING
STATIONS IN THE PROVINCE OF BOHOL,

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assemble

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
Veritas Media Arts Inc,, 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 Province of Bohol,
where frequencies and/or channels are stil available for radio andior television broadcasting,
including digital television system, through microwave, satellite or whatever means, including
the use of any new technology in television and radio systems, with the corresponding
technological auxiliaries and 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 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

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


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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 batanced
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 , 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

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

SEC. 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

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shall exercise the privileges granted under this Act. Nonacceptance 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 willful 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 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.

SEC. 11. Sale, Lease, Transfer, Usufruct, or Assignment 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 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 compietion 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



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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 cent (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 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.

SEC. 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
(P500.00) 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.

SEC. 16. Equality Clause. - 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.


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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 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. 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,