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EIGHTEENTH CONGRESS
‘Second Regular Session

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5991 INDE

HOUSE BILL NO.

Introduced by HONORABLE PETER JOHN D. CALDERON
‘7th District of Cebu

EXPLANATORY NOTE

This bill seeks to extend the franchise granted to GVM Radio/TV Corporation under
Republic Act 8129, which allows it to construct, operate, and maintain radio and television
stations in Cebu City and other areas in the Philippines where frequencies and/or channels still
available for religious, educational, cultural and commercial purposes.

GVM Radio/TV Corporation operates and maintains DYIO-FM in Cebu City,
broadcasting quality contemporary radio hits, news and information, as well as emergency and
traffic updates at a frequency of 101.1 Mhz; reaching listeners in Cebu, Dumaguete, Ormoc,
Tagbilaran, Dipolog and even parts of Northern Mindanao.

Radio broadcasting, as an essential part of mass media, plays a vital role in nation-
building. GVM Radio/TV Corporation provides this public service and contributes to the
development of the region by providing relevant and timely headline news and information in
the world of sports, technology, business and entertainment, both here and abroad. The
shareholders and managers of the company are well aware of their responsibility of using
broadcasting as a tool of social change and development. Even in this advanced age of
technology and communications, radio broadcasting remains a relevant medium because of its
ability to reach audiences belonging to different social classes and demographics.

The original franchise granted to GVM Radio/TV Corporation lapsed into law on 16
July 1995 and its term will expire on July 2020. It is therefore requested that the renewal of
this Congressional Franchise be granted so that applicant-corporation can continue the
operation and maintenance of the subject broadcast station.

ee

vert JOHN D. CALDERON


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

EIGHTEENTH CONGRESS
‘Second Regular Session

HOUSE BILL Ni

6993

Introduced by HONORABLE PETER JOHN D. CALDERON
7th District of Cebu

AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE
GRANTED TO GVM RADIO/TV CORPORATION, UNDER REPUBLIC ACT NO. 8129,
ENTITLED “A FRANCHISE TO CONSTRUCT, MAINTAIN AND OPERATE A STATION
FOR RADIO AND TELEVISION IN CEBU CITY AND OTHER AREAS IN THE
PHILIPPINES”.

Be it enacted by the Senate and House of Representative 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 GVM
Radio/TV 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/or television broadcasting stations in Cebu City and other areas in the
Philippines, where frequencies and/or channels are still available for radio and television
broadcasting, with the corresponding technological auxiliaries or facilities, special broadcast
and other program and distribution services and relay stations, and to install radio
communication facilities for the grantee’s private use in its broadcast services.

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 the
‘minimum interference on the wavelengths or frequencies of the other existing station or 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 the availability thereof.

SECTION 3. Prior Approval of the National Telecommunications Commission. — The
grantee shall secure from the National Telecommunications Commission (NTC) the
appropriate permits and licenses for its stations and shall not use any frequency in the
radio/television spectrum without having been authorized by the Commission. The
Commission, however, shall not unreasonably withhold or delay the grant of any such
authority.


The grantee shall not dispose nor lease its facilities except to entities with radio or
television franchise; Provided, That the grantee shall inform and secure written authorization
to proceed from the NTC, and report the transaction to the NTC within sixty (60) days after its
completion; Provided, further, That the NTC shall determine the corresponding sanction for
any violation of this provision.

SECTION 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 said broadcasting stations or facilities of the grantee, to reach the population on
important public issues and relay important public announcements and warnings concerning
public emergencies; 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 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.

Public service time referred herein shall be equivalent to a maximum aggregate of ten
percent (10%) of paid commercials or advertisements which shall be allocated based on need
to the executive, legislative, 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.

SECTION 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 of the grantee, to temporarily suspend the
operation of any station 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 during the period when they shall be
so operated.

SECTION 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 operate continuously for two (2) years.

SECTION 7. Self-Regulation and Undertaking of Grantee. — The grantee shall not
require any previous censorship of any speech, play or scene or other matter to be broadcast
from its stations, but if such speech, play, act or scene, or other matter should constitute a
violation of the law or infringement of a private right, the grantee shall be free of any liability,
civil or criminal, for such speech, play, act or scene, or other matter: Provided, That the grantee,


during any broadcast shall cut off the airing of 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 8. 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 9. Commitment to Provide and Promote the Creation of Employment
Opportunities. — The grantee shall create employment opportunities and shall allow on-the-
job training in their franchise operation: Provided, That priority shall be accorded to the
residents where their principal office is located: Provided, further, That the grantee shall follow
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 (GIS) to be submitted to the
Securities and Exchange Commission annually.

SECTION 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.
—The grantee shall not sell, lease, transfer, grant the usuftuct 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 the
controlling interest of the grantee be transferred simultaneously or contemporaneously, to any
such person, firm, company, corporation or entity without prior approval of the Congress of
the Philippines. Congress shall be informed of any sale, lease, transfer, grant of usufruct, or
assignment of the franchise or the rights and 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. 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 all the same conditions, terms, restrictions, and limitations of
this Act.

SECTION Il. 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, the grantee shall apply other methods of encouraging public
participation by citizens and corporations operating public utilities as allowed y law. Non-
compliance therewith shall render the franchise ipso factor revoked.

SECTION 12. 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 Philippine 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.

SECTION 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 will 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.

SECTION 14. Equality Clause, — Except for taxes and customs duties, 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 pertaining to the term, type of service, or
territorial coverage authorized by the franchise.

SECTION 15. Repealability and Nonexclusivity Clause. — This franchise shall be
subject to amendment, alteration, or repeal by the Congress of the Philippines when public
interest so requires and shall not be interpreted as an exclusive grant of the privileges herein
provided for.

SECTION 16. Separability Clause. — If any of the sections or provisions of this Act is
held invalid, all the other provisions not affected thereby shall remain valid.

SECTION 17. Repealing Clause. — All laws, decrees, orders, resolutions, instructions,
rules or regulations, and other issuances or parts thereof which are inconsistent with this Act
are hereby repealed, amended, or modified accordingly.

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