Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
‘Second Regular Session

HOUSE BILL no.?756

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
Act 8108.

Incompliance 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 information 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.

LUIS INI \Y” F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
‘Second Regular Session

HOUSE BILL NO. 7706

Ee

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 for 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 treasonable acts.

SECTION 5. Right of Government. - A special right is hereby reserved to the
President of the Phil
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,

pines, in times of war, rebellion, public peril, calamity,

upon due compensation to the grantee, for the use of its 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 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 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 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 shall 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 reportorial 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
(PS00.00) 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 concerning 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,