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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

1737
HOUSE BILL NO.

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

Caceres Broadcasting Corporation is a corporation duly incorporated on May
20, 1991, with office address at Concepcion Pequeno, Naga City. It is an operator of
AM and FM broadcast stations in Camarines Sur by virtue of Republic Act808.

In compliance with the policy of the State and as provided for in Article 11 of
our Constitution, specifically Section 24, in re: State Policies— that "the State
recognizes the vital role of communications and information in nation building," it now
seeks to secure the renewal of its Congressional Franchise.

It can only continue its contribution to nation building after the grant of the
renewal of Republic Act 8108; it being well aware of the need to broadcast relevant,
and updated, educational, social i nformation and concerns affecting our country by
and through the medium of public information brought about by / broadcasting
Moreover, national and local issues especially on matters of development can only be
circularized and transmitted to wider range of coverage by digital data, given the age
of advancement in technology and communications.

The incorporators earnestly seek the grant of the renewal of this

congressional franchise subject of this application in order that it can continue the
operation and maintenance of its radio broadcast stations in the Island of Luzon.

A

LUIS RAY) D Y” F. VILLAFUERTE, JR.

KA REPRESS

RECEIVED
oare4UL_0 9 2019



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. bh

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
RENEWING THE FRANCHISE GRANTED TO CACERES BROADCASTING
CORPORATION UNDER REPUBLIC ACT NO. 8106, ENTITLED "AN ACT
GRANTING CACERES BROADCATING CORPORATION A FRANCHISE TO.
CONSTRUCT, INSTALL, OPERATE AND MAINTAIN RADIO AND
TELEVISION BROADCASTING STATIONS IN THE ISLAND OF LUZON AND.
FOR OTHER PURPOSES", FOR ANOTHER TWENTY-FIVE (25) YEARS
FROM THE EFFECTIVITY OF THIS ACT.

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
Constitution and applicable laws, rules and regulations, there is hereby granted to
Caceres Broadcasting Corporation, its successors or assigns, referred to as the
grantee entitled a franchise to construct, install, operate and maintain for commercial
Purposes and in the public interest, radio and television broadcasting stations in the
island of Luzon with the corresponding auxiliary , special broadcast and other program
distribution services and relay stations and to install radio communication facilities for
the grantees private use in its broadcast services, where frequencies and/or channels
are still available tor radio broadcasting including digital television through microwave,
satellite or whatever means, including the use of any new technologies in radio
systems, with the corresponding technological auxiliaries and facilities, special
broadcast and other program and distribution services and relay stations in the Island
of Luzon is hereby renewed for another twenty-five (25) years from the effectivity of this
Act.


SECTION 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 the 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.

SECTION 3. Prior Approval of tile National Telecommunications Commission. — The
grantee shall secure from the National Telecommunications Commission (NTC) the
appropriate permits and licenses for 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
treasonabie 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, temporarily suspend the operation of any station or facility in
the interest of public safety, security and public welfare, or authorize the temporary use
and operation thereof by any agency of the government, upon due compensation to
the grantee, for the use of its stations or facilities during the period when they shall be
‘80 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 any time after due process.

SECTION 6. Term of Franchise. — This franchise shall be in effect for a period of
twenty-five (25) years from 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.

SECTION 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.

SECTION 8. 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 9. Warranty in Favor of National and Local Governments. — The grantee
shall hold the national, provincial, city and municipal govemments 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 10. Sale, Lease, Transfer, Grant or Usufruct, or Assignment of Franchise.
— The grantee shall not lease, transfer, grant the usufruct of, sell or 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 shalll transfer the controlling interest of the grantee., whether
as a whole or in part, 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 all the same conditions, terms,
restrictions and limitations of this Act.

SECTION 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 operation. 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. Non-acceptance therewith
shall render the franchise ipso facto revoked.

SECTION 12. 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 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 representative 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
feportorial compliance certificate issued by Congress shall be required before any
application for permit or certificate is accepted by the NTC.


SECTION 14. 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
(PSOO.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 15. 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 conceming territory covered by such franchise,
the life span of the franchise or the type of service authorized by the franchise.

SECTION 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.

SECTION 17. 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 18. Effectivity Clause. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,