Republic of the Philippines
HOUSE OF REPRESENTATIVE
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

4989

HOUSE BILL NO.

Introduced by: REPS. RAUL V. DEL MAR, RODRIGO A. ABELLANOSA,
GERALD ANTHONY V. GULLAS, JR., WILFREDO S. CAMINERO,
DEPUTY SPEAKER GWENDOLYN F. GARCIA, BENHUR L. SALIMBANGON,
RAMON “RED” H. DURANO VI, JONAS C. CORTES, PETER JOHN D. CALDERON
and AILEEN C. RADAZA

EXPLANATORY NOTE

Word Broadcasting Corporation, formerly Filipinas Broadcasting Association,
Inc. (as amended on July 20, 1991) and registered at the Securities and Exchange
Commission on May 23, 1967 with a primary purpose of establishing radio and
television stations network throughout the Philippines, to the extent that it may be
authorized by the law.

The SVD Fathers of the University of San Carlos, the owners of the franchise
were very grateful when the broadcast franchise was granted to them on May 5,
1992. The broadcast franchise enabled them to make use of the radio in their
missionary task of education, evangelization and development of the human person
guided by the Christian values. The students of the University of San Carlos- which
the missionary Fathers also owned and managed- were benefited with the existence
of the radio station inside its main campus. Education was not only confined to the
four corners of their classrooms, it spilled out to the airwaves. Some of the
developmental activities of the students were aired and they reached greater areas
particularly communities in far flung vlillages in Visayas and Mindanao. After all radio
transcends the barrier of illiteracy.


In times of disasters, radio broadcast was paramount source of information for
the public. A case in point was super typhoon Yolanda. The relevance of the radio as
was exalted the days and weeks that followed that Herculean tragedy. Radio became
an indispensable tool. It was the fastest and most handy source of timely
information being a companion medium. Everybody relied on the radio. In the midst
of the thousands of lives lost, juxtaposed the thousands more left homeless, radio
became an ally. The SVD Fathers and the students of the University of San Carlos
were there to extend a helping hand to our suffering brothers and sisters who were
traumatized to say the least. They were able to organize and plan relief operations
the soonest aided by the airwaves. Thanks to the radio- thanks to the broadcast
franchise.

On May 5, 2017, the broadcast franchise under RA 7485 granted to Word
Broadcasting Corporation of the SVD Fathers of the University of San Carlos _ will
expire. Twenty-five years after they were given the legislative franchise they remain
faithful to their mission of helping our brothers and sisters in education,
evangelization and total human development through their work in the airwaves.
There is no letting up to SVD Fathers desire to continue their noble task as
missionary priests and brothers in touching the lives of others; in accompanying the
human and spiritual jpurney of the faithful through their broadcast ministry.

This bill therefore seeks to renew the legislative franchise of Word
Broadcasting Corporation to enable it to continue its commitment to public service
on 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.

Gee

P, RAUL. DEL MA\ REP. RODRIGO A. ABELLANOSA
Ast District, Cebu City 2nd District, Cebu City

dba, wa
ITHONY V. GULLAS, JR. (EP. WILHREDO S. CAMINERO
2nd District, Cel

REP.|BENHUR L. SALIMBANGON



. RAMON “RED” H. DURANO VI
Sth District, Cebu

REP. ER ke Ze “esti

7th District, Cebu

REP. JONAS C CORTES
6th Distkict, Cebu

REP. AILEEN C. RADAZA
Lone District, Lapu-Lapu City


Republic of the Philippines
HOUSE OF REPRESENTATIVE.
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

49

HOUSE BILL NO.

Introduced by: REPS. RAUL V. DEL MAR, RODRIGO A. ABELLANOSA,
GERALD ANTHONY V. GULLAS, JR., WILFREDO S. CAMINERO,
DEPUTY SPEAKER GWENDOLYN F. GARCIA, BENHUR L. SALIMBANGON,
RAMON “RED” H. DURANO VI, JONAS C. CORTES, PETER JOHN D. CALDERON
and AILEEN C. RADAZA

AN ACT

RENEWING THE FRANCHISE GRANTED TO WORD BROADCASTING CORPORATION UNDER
REPUBLIC ACT NO. 7485 ENTITLED “AN ACT GRANTING WORD BROADCASTING
CORPORATION FORMERLY FILIPINAS BROADCASTING ASSOCIATION, INC. (AS AMENDED
ON JULY 20, 1991) A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN FOR
COMMERCIAL PURPOSES RADIO BROADCASTING AND TELEVISION STATIONS IN THE
VISAYAS AND MINDANAO 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 Representative of the Philippines in Congress
assembled:

SECTION 1. Nature and Scope of the Franchise. Subject to the provisions of the
1987 Philippine Constitution and applicable laws rules and regulations the franchise granted
to Word Broadcasting Corporation, under Republic Act 7485 entitled “ an act granting
Filipinas Broadcasting Association, Inc./Word broadcasting Corporation a franchise to
construct, install, operate and maintain for commercial purposes radio broadcasting and
television stations in the Visayan and Mindanao and for other purposes” hereunder referred
toas 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 Visayan and Mindanao, with the corresponding technological
auxiliaries or facilities, special broadcast and other program, distribution services and relay
stations, and to install radio communication facilities for the grantee’s private use in its
broadcast services, 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 wavelength or frequencies of the existing stations or other
stations which may be established in accordance with the law of other telecommunications
services grantees 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 Telecommunication Commission 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.

SECTION 4. Responsibility to the Public. The grantee shall provide reasonable public
service time to enable the Government, through the said broadcasting stations, to reach the
population on important public issues; provide at all times sound and balanced
programming; promote public participation such as in community programming; assist in the
function of public information and education; conform to the ethics of honest enterprise;
and not use its stations for broadcasting of obscene and indecent language, speech, act or
scene, or for dissemination of deliberately false information or willful misrepresentation, or
to the detriment of the public interest, of 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 rebellion, public peril, calamity, emergency, disaster or

disturbance of peace and other, 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 the said

stations during the period when they shall be so operated.

SECTION 6. Terms of the Franchise. This franchise shall be for a term of twenty five
(25) years from the date effectivity of this Act unless revoked or cancelled. In the event the
grantee fails to operate continuously for two (2) years, this franchise shall be deemed ipso

facto revoked.

SECTION 7. Acceptance and Compliance. Acceptance of this franchise shall be given
in writing within sixty (60) dayés after approval of this act. The grantee shall construct,
complete and operate a television or radio station within two (2) years from the date of its

acceptance in wri

ing of this franchise. Refusal or failure to accept the franchise or to

operate within the prescribed period shall render the franchise void.

SECTION 8. Tax Provisions. The grantee, its successors or assigns shall be liable to
pay the same taxes on their real estate, buildings and personal property, exclusive of this
franchise, as other persons or corporations are now or hereafter may be required by law to
pay. In addition thereto, the grantee, its successors or assigns shall pay a franchise tax
equivalent to three percent (3%) of all gross receipts of radio/television business transacted/
under this franchise by the grantee, its successors or assigns and the said percentage shall
be in lieu of all taxes on this franchise or earnings thereof: Provided, That the grantee, its
successors or assigns shall continue to be liable for income taxes payable under Title I! of the
National Internal Revenue Code pursuant to Section 2 of Executive Order No. 72 unless the
latter enactment is amended or repealed, in which case the amendment or repeal shall be

applicable thereto.

The grantee shall file the return with and pay the tax due thereon to the
Commissioner of Internal Revenue or his duly authorized representative in accordance with
the National Internal Revenue Code. The return shall be subject to audit by the Bureau of

Internal Revenue.


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 and or telecast from its stations; but if any 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 from any liability, civil or criminal, for such play, act or scene, or other matter:
Provided, That the grantee, during any broadcast and or telecast, shall cut-off 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 the theme
thereof is indecent or immoral; and 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 and municipal governments of the Philippines harmless
from all claims, accounts, demands or actions arising out of accidents or injuries, weather to
property or to persons, caused by the construction or operation of its stations of the

grantee.

SECTION 11. Sale, Lease, Transfer, Usufruct, etc. 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 entity, nor merge with
any other corporation or entity without the prior approval of the Congress of the
Philippines. Neither shall the controlling interest in the grantee be transferred, whether as a
whole or in part, whether simultaneously or contemporaneously, to any such person, firm,
company, corporation or entity without prior approval of the Congress of the Philippines.
Any person or entity to which this franchise is validly sold, transferred or assigned shall be

subject to all the same conditions, terms restrictions and limitations of this Act.

SECTION 12. Separability Clause. | any of the section or provision of this Act is held

invalid, all the other provisions not affected thereby shall remain valid.

SECTION 13. Repealing and Non-exclusive Clause. This franchise is subject to

amendments, 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 14. General Broadcast Policy. The grantee shall comply with and be

subject to the provisions of a general broadcast policy law that may hereafter be enacted.

SECTION 15. Reportorial Requirements. The grantee shall submit an annual report
to the Congress of the Republic of the Philippines on its compliance with the terms and
conditions of the franchise and on its operations within sixty days (60) from the end of every

year.

SECTION 16. The Effectivity Clause. This Act shall take effect fifteen (15) days from
the date of its publication in at least (2) days newspapers of the general circulation in the

Philippines.

Approved,