Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Second Regular Session
HOuifeBILLNO.      8oo2
Introduced by: REP. RACHEL MARGUERITE "CUTIE" DBL MAR
EXPLANATORY NOTE
Exodus Broadcasting Company, Inc. ("Exodus") is a 100°/o F`ilipino-owned
multi-generational   family   corporation   registered   with   the   Securities   and
Exchange  Commission  on   11   October   1993  with  the  primary  purpose  of
engaging in the business of radio broadcasting on a commercial basis and to
act as an advertising agent.  It was granted a nationwide legislative franchise
under  Republic  Act  No.  8603,I  which  lapsed  into  law  on  March  26,   1998,
became effective on April 17.  1998. and expired on April 17. 2023.
Exodus  is  the  sole  and  current  owner  of  the  WRocK  brand  of  radio
stations   and  its   corresponding  LlteRock  music   programming,   which  was
conceptualized in the late  1980's and first hit the airwaves in  1988. The brand
has  not  reformatted  since  then,  enabling  Exodus  to  build  a  loyal  base  of
audiences  all  throughout  the  country  and  even  to  listeners  abroad;  but  it
remains ever-relevant to the masses by injecting new music and tapering off
old  music as the  new decade  approaches.  Exodus also promotes  responsible
citizenry  through  its  time-tested  award-winning  WRocK  brand  and  LI.teRock
programming as it is designed to primarily inform, educate, and entertain the
public  through  a  healthy  balance  of music,  news  snippets,  and  informative
segments which promote good and timeless Filipino values.
With  the  advent  of online  technology,  the  company  has  been  able  to
digitally  expand  the  geographical  reach  of  its  radio  station  DYRK-FM  96.3
WRocK  Cebu  beyond  its  area of FM  coverage  via WRocK  Online -  an  online
livestreaming  simulcast  hastened  to  by  millions  of local  Filipinos  nationwide
whilst also delivering a slice of home to migrant F`ilipinos worldwide.
1 AN ACT GRANTING THE EXODUS BROADCASTING CO., INC., A FRANCHISE
TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE, AND MAINTAIN RADIO
AND TELEVISION STATIONS IN THE PHILIPPINES.


Exodus is seeking the grant of a new lerislative franchise for another 25
years in order to support its plans to expand its WRocK brand by establishing
stations  in  key  cities  nationwide  and  delivering  integrated  online  and  on-
ground  activities  to  its  local  areas  of operation.  Exodus  aims  to  deliver  the
same quality of programming which Filipinos have come to love in the past two
decades  all while  advocating and promoting good  Filipino values  on  a more-
scaled national level.
In view of the foregoing, the approval of this bill is earnestly sought.


Republic of the Philippines
HOUSE OF` REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Second Regular Session
a
HOUSE BILL NO.
Introduced by REP. RACHEL hIARGUERITE "CUTIE" DEL MAR
AN ACT
GRANTING EXODUS BROADCASTING COMPANY, INC. A FRANCHISE
TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE, AND MAINTAIN
RADIO AND TELEVISION BROADCASTING STATIONS IN THE
PHILIPPINES FOR A TERIl OF TWENTY-FIVE (25) YEARS
Be it enacted bg the Senate and House Of RepreseITtolives Of the Philippines in
Ccmgress assembled:
Section   I.   J\hatz.rie  arLd  Scope  a/  Franchise.   -  Subject  to  the
27     provisions  of the  Constitution  and  applicable  laws,  rules  and  regulations,
28     there is hereby granted to Exodus Broadcasting Company,  Inc.,  hereunder
29     referred to as the grantee, its successors or assigns, a franchise to construct,
3o     install, establish, operate and maintain for commercial purposes and in the
31      public interest, radio and television broadcasting stations in the philippines,
32     where frequencies and channels are  still available  for radio and  television
33     broadcasting,   including   digital   television   system,   through   microwave,
34     satellite or whatever means,  as well as the use of ariy technology in radio
35     and television  systems, with the corresponding technological auxiliaries or
36     facilities, special broadcast and other program and distribution services and
37      relay stations.
38
39               Section 2.  Manner oif Operation oif Sta;tions or Faciufies.  - rrhe
4o     stations or facilities of the grantee  shall be constructed and operated in a
41      manner as  will,  at most,  result  only in  the  minimum  interference  on  the
1


I     wavelengths or frequencies of existing stations or other stations which may
2     be established by law, without in any way diminishing its own privilege to
3     use its assigned wavelengths or frequencies and the quality of transmission
4     or  reception  thereon  should  maximize  rendition  of the  grantee's  services
5     and/or availability thereof.
6
7              Section 8.  Prior Appro-rat Of the  National Telecommunhafions
8      Colrur.€ss€on.     -     The     grantee     shall     secure     from     the     National
9     Telecommunications   Commission    (NTC)    the   appropriate   permits   and
1o     licenses for the constmction and operation of its  stations or facilities and
11      shall not use any frequency in the radio spectrum without the authorization
12     from the NTC. The NTC, however,  shall not unreasonably withhold or delay
13     the grant of any such authority.
14
15                 In  case  of any violation  of the  provisions  of this  franchise,  the  NTC
16     shall have the authority to revoke or suspend, after due process, the permits
17     or   licenses   it   has   issued   pursuant   to   the   franchise.   The   NTC   may
18     recommend   to   the   Congress   of  the   Philippines   the   revocation   of  the
19     franchise for any violation of the provisions thereof.
20
21                Section 4. ResponREZzt5/ to the ntz)Zte. -The grantee shall provide,
22     free of charge, adequate public service time, through the said broadcasting
23     stations  or  facilities,  to  reach  the  population  on  important  public  issues;
24     provide  at  all   times   sound   and   balanced  programming;   assist  in   the
25     functions  of  public  information  and  education;  confomi  to  the  ethics  of
26     honest enterprise; and not use its stations and facilities for the broadcasting
27     of  obscene   and   indecent  language,   speech,   act,   or   scene,   or  for   the
28     dissemination of deliberately false information or willful misrepresentation,
29     to the detriment of the public interest,  or to incite,  encourage or assist in
30     subversive or treasonable acts.
31
32                Public service time referred herein shall be equivalent to a maximum
33     aggregate of ten percent (loo/o) of paid commercials or advertisements which
2


1      shall be allocated based on need to the Executive and Legislative branches,
2     the Judiciary, Constitutional commissions, and international humanitarian
3     organizations  duly  recognized  by  statutes:  ProtH.decz,  That  the  NTC  shall
4     increase the public service time in case of extreme emergency or calamity.
5     The NTC shall issue rules and regulations for this purpose, the effectivity of
6     which  shall  commence  upon  applicability  with  other  similarly  situated
7     broadcast network franchise holders.
8
9                Pursuant   to   Republic   Act   No.   8370,   otherwise   known   as   the
1o     "Children's Television Act  of  1997,"  the  Grantee  shall  allot  a lninimum  of
11      fifteen percent (15°/o) of the daily programs and other materials broadcast on
12     television  of each  broadcasting  network  or  station  to  child-friendly  shows
13     within its regular programming.
14
15                Section  5.  RIght  a/ the  Gozierrimerit.  -  A  special  right  is  hereby
16     reserved to the president of the philippines, in times of war, rebellion, public
17     peril,  calamity,  emergency,  disaster,  or disturbance  of peace and order:  to
18     temporarily  take  over  and  operate  the  stations,  transmitters,  facilities  or
19     equipment  of  the  grantee;  to  temporarily  suspend  the  operation  of  any
2o     station,  transmitter,  facility,  or equipment in  the interest of public  safety,
21      security,   and   public   welfare;   or  to   authorize   the   temporary  use   and
22     operation thereof by any agency of the government, upon due compensation
23     to  the  grantee  for  the  use  of  said  stations,   transmitters,   facilities,   or
24     equipment during the period when these shall be so operated.
25
26                The  radio  spectrum is  a finite  resource  that is  part of the  national
27     patrimony, and the use thereof is a privilege conferred upon the grantee by
28     the state that may be withdrawn any time after due process.
29
3o               Section 6. Term a/Franchise. -This franchise shall be in effect for a
31      period of twenty-five (25) years from the effectivity of this Act, unless sooner
32     revoked or cancelled.  This franchise shall be deemed  tpso /cicto revoked in
33     the event the grantee fails to operate continuously for two (2) years.
3


1                Section  7.  Acceptarlce and Corrpzfarlce.  - Acceptance of this new
2     franchise  shall  be  given  in  writing  to  the  Congress  of  the  Philippines,
3     through   the   Committee   on   Legislative   Franchises   of   the   House   of
4     Representatives and the Committee on Public Services of the Senate, within
5      sixty (60) days from the effectivity of this Act. Upon giving such acceptance,
6     the    grantee    shall    exercise    the    privileges   granted   under   this   Act.
7     Nonacceptance shall render the franchise void.
8
9              Section 8. Setlfregula:fion bg and undertald:ng of the grautee. -
1o      The grantee shall not require any previous censorship of any speech, play,
11      act     or     scene,     or     other     matter     to     be     broadcast     from     its
12     stations,  Prozriczed,  That the grantee,  during any broadcast,  shall cut from
13     the air the speech, play, act or scene, or other matter being broadcast if the
14     tendency thereof is to propose and/or incite treason, rebellion, or sedition;
15     or   the   language   used   therein   or   the   theme   thereof   is   indecent   or
16     immoral:  Prorfudecz,  further,  That willful  failure  to  do  so  shall  constitute  a
17     valid cause for the cancellation of this franchise.
18
+9               Section   9.   Wd;rrarirty   in   Fcaror   Of  the   Nd:tional   and   Local
2o     Gouemments.  -  The  grantee  shall  hold  the  national,  provincial,  city,  and
21      municipal  governments  of the  Phihppines  free  from  all  claims,  liabilities,
22     accounts, demands, or actions arising out of accidents or injuries, whether
23     to  property or to  persons,  caused  by the  construction  or operation  of the
24      stations of the grantee.
25
26               Stecthon   10.   Sake,   Irease,   Th:nsifer,   Grartt   Of   Usufruct,   or
27     Assignment  oJ FrancJiise.  -  The  grantee  shall  not  sell,  lease,  transfer,
28     grant of usufruct of,  nor assign this franchise or the rights and privileges
29     acquired  thereunder  to  any  person,  fiml,  company,  corporation  or  other
3o     commercial  or  legal  entity,  nor merge with  any corporation  or entity,  nor
31      shall  the  controlling  interest  of the  grantee  be  transferred,  whether  as  a
32     whole  or  in  parts,  and  whether  simultaneously  or  contemporaneously,  to
33     any  such  person,  firm,  company,  corporation,  or  entity without  the  prior
4


1     approval of congress: Proulc!ed, that congress shall be informed of any lease,
2     transfer,  granting the  usufruct of,  sale  or assignment of franchise  or  the
3     rights and privileges acquired  thereunder,  or of the  merger,  or transfer of
4     controlling interest of the grantee, within sixty (60) days after the completion
5     of said transaction: jJrondecz, jit7ther, that failure to report to congress such
6     change of ownership shall render the franchise lpso /c[cto revoked: Prioridecz,
7     flnaJky, that any person or entity to which this franchise is sold, transferred,
8     or assigned shall be subject to the same conditions, terms, restrictions, and
9      limitations of this Act.
10
I I                Section  11.  General  Broadcast PoZ±cgr  lazo.  -The  grantee  shall
12     comply with and be subject to the provisions of a general broadcast policy
13     law, which congress may hereafter enact.
14
15                Section 12. Reportoriaz Reqt(irement. -The grantee shall submit an
16     annual report to the Congress of the Philippines, through the Committee on
17     Legislative  Franchises of the House of Representatives and the  Committee
18     on  Public  Services  of the  Senate,  on  its  compliance  with  the  terms  and
19     conditions  of the  franchise  and  on  its  operations  on  or  before April  30  of
20     every year during the term of its franchise.
21
22                The annual report may include an update on the commencement of
23     activities,   development,   operation   or   expansion   of   business;   audited
24     financial statements; latest GIS officially submitted to the SEC, if applicable;
25     certification of the NTC on the status of its permits and operations; and an
26     update  on  the  sale,  lease,  transfer,  grant  of usufruct,  or  assignment  of
27      franchise, if applicable.
28
29                Section 13. Periazt=/ Czaztse. -Failure to submit the requisite annual
3o     report  to  Congress  shall  be  penalized  with  a  fine  of Five  hundred  pesos
31      (P500.00) per working day of noncompliance. The fine shall be collected by
32     the NTC from the delinquent franchise grantee separate from the reportorial
33      penalties  imposed  by  the  NTC.  The  collected  funds  shall  accrue  to  the
5


I      monitoring  fund  of  the  NTC  in  line  with  its  supervisory  and  regulatory
2     functions. The reportorial compliance certificate issued by congress shall be
3     required before any application for permit or certificate is accepted by the
4       NTC.
5
6                 Section   14.   Jrtyztazft=/  Czaz.se.  -  Any  advantage,  favor,   privilege,
7     exemption,  or  immunity  granted  under  existing  franchises,  or which  may
8     hereafter  be  granted  for  radio  and/or  television  broadcasting,  upon  prior
9     review and  approval of Congress,  shall  become  part of this  franchise  and
1o     shall    be    accorded    immediately    and    unconditionally    to    the    herein
11      grantee:  ProL„.czecz,  hotueuer,  That  the  foregoing  shall  neither  apply  to  nor
12     affect the provisions of broadcasting franchises concerning territory covered
13     by  the  franchise,  the  life  span  of  the  franchise,  or  the  type  of  service
14     authorized by the  franchise:  Prour.c!€c!, jitrfher, That the foregoing shall not
15     apply to sale,lease, transfer, or grant of usufruct or assignment of legislative
16     franchise with prior congressional approval.
17
18                Section   15.   SeparabilitE/   Chaiise.   -   If  any   of  the   sections   or
19     provisions of this Act is held invalid, all other provisions not affected thereby
2o      shall remain valid.
21
22              Sectto"  16.   Repealab"t3|  and  NInexclusivity  eta:use.  -  rrhis
23     franchise shall be subject to amendment, alteration, or repeal by Congress
24     of the  Philippines  when  the  public  interest  so  requires  and  shall  not  be
25     interpreted as an exclusive grant of the privileges herein provided for.
26
27                 Section 18. EJTectfultg/ Challse. -This Act shall take effect fifteen (15)
28     days   after   its   publication   in   at   least   two   (2)   newspapers   of  general
2 9      circulation.
30
3 \              Apprond,
6