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

FIFTEENTH CONGRESS
First Regular Session

HOUSE BLENO, 1858

Introduce by Honorable Carlos M. Padilla

EXPLANATORY NOTE

Article Il, Section 24 of the 1987 Constitution, expressly provides that “The State
recognizes the vital role of communication and information in nation building”. It further
declared in section 10, Article XVI, that “The State shall provide the policy environment for the
full development of Filipino capability and the emergence of community structures suitable to
the needs and aspirations of the nation and the balanced flow of information into, out of, and
across the country, in accordance with a policy that respects the freedom of speech and of the
press,”

Public information is needed vital to administration or governance. Radio in one hand is
indispensable medium for speedy information dissemination. It is an effective tool in providing
information to prospective listening public

One of the thrusts of the Nueva Vizcaya State University is to bring to the people in the
community its various programs contributory to the community development and promotion of
academic excellence. The establishment of the University FM Radio-96.5 is one of the
significant milestones of NVSU’s accounts. Various developmental programs are now broadcast
on air and are gaining positive remarks from the listening public. In furtherance of the services of
the university, the radio is deemed to be sustained and be able to acquire larger coverage and
scope legally granted by the state’s jurisdiction.

For this purpose, it is but fitting to endorse the University FM 96.5 Radio to acquire
congressional franchise to broaden its coverage and capacities as an effective instrument in
information dissemination geared largely to community development. Thus by granting said
franchise, the university can further sustain the operations of the radio station and be able of
better public service.

‘The approval of requested congressional franchise is thereby earnestly requested.

CALA

LOS M. PADILLA


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

Fifteenth Congress
First Regular Session

House ‘Bil No. 1858

Introduced by Honorable Carlos M. Padilla

AN ACT
GRANTING THE NUEVA VIZCAYA STATE UNIVERSITY A FRANCHISE,
TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN
RADIO AND TELEVSION BROADCASTING STATIONS IN THE
PHILIPPINES.

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
the Nueva Vizcaya State University, here under referred to as the grantee, its
succors 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 Philippines, where frequencies and/or channels are
still available for radio and/or television broadcasting, through microwave satellite
or whatever means, including the use of any technologies in television and radio
systems, with the corresponding technological auxiliaries and facilities, special

broadcast and other program distribution services and relay stations.


SECTION 2. Manner of Operation of Stations of 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 existing stations or other stations which may be established by law, without in

any way diminishing its own right co use its selected wavelengths or frequencies

and the quality of transmi

ion or reception thereon as should maximize rendition

of the grantee’s service and/or availability thereof.

SECTIONS. Prior Approval of the National Telecommunications Commission-—
‘The grantee shall secure from the National Telecommunications Commission
(NTC) the appropriate permits and licenses for the construction and operation of
its stations and facilities and sball 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 adequate
public service time table to enable the government, through he 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 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, to temporarily suspend the


operation of any station or facility in the interest 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 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 anytime fetter due process.

SECTION 6. Term of Franchise — This franchise shall be for a term of
twenty-five (25) years from the date of effectively of this Act, unless sooner
revoked or cancelled. This franchise shall be deemed #pso facto revoked in the event

the grantee fails to comply with any of the following conditions:

a. Commence Operations within one (1) year from the approval of its
operating permit by the National Telecommunications Commission;

b. Operative continuously for two (2) years; and

c. Commence operations within three (3) years from the effectivity of this
Act.

SECTION 7. Aareptance and Compliance.-Acceptance of this franchise shall be
given in writing 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 renter the franchise void.

SECTION 8. Bond—tThe grantee shall file a bond issued in favor of the
National Telecommunications Commission, which shall determine the amount, to

guarantee the compliance with and fulfillment of the conditions under which this


franchise is granted. If after (3) three years from the date of the approval of its
permit by the Commission, the grantee shall have fulfilled the same, the bond
shall be cancelled by the Commission. Otherwise, the bond shall be forfeited in

favor of the government and the franchise ipso facto revoked.

SECTION 9. Sei/Regulation by and Undertaking of Grantez"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 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; and willful failure to do 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, city and municipal governments of the
Philippines harmless of 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 11. Nontransferability of Franchise. ~The grantee shall not lease,
transfer, grant the usufruct of, sell nor assign this franchise or the rights and the
privilege acquired thereunder to any person, firm, company, corporation or entity,
nor shall the controlling interest of the grantee be transferred, whether as a whole
or in parts and whether simultaneously or contemporaneously, to any such
person, firm, company, corporation or entity without the prior approval of the
Congress of the Philippines. Any person or entity to which the franchise is sold,
transferred or assigned, shall be subject to the same conditions, terms, restrictions

and limitations of this Act.


SECTION 12. Dispersal of Ownersbip.- In accordance with the constitutional
provision to encourage public participation in public utilities, the grantee shall
offer at least thirty per centum (30%) of its outstanding capital stock on a higher
percentage that may hereafter be provided by law in any securities exchange in the
Philippines within five (5) years from the time it has achieved the status of a
national broadcasting network. A “national broadcasting network” is hereby
defined as one that operates three (3) or more ration and/or television stations.

Noncompliance therewith shall render the franchise ipso favo revoked.

SECTION 13. Equity Clause.- Any advantage, favor, privilege, exemption,
or immunity granted under the existing franchise, or which may hereafter be
granted for radio and/or television broadcasting, shall ipso facto become part of
this franchise and shall be accord immediately and unconditionally to the herein
grantee: Provided, however, that the foregoing shall neither apply to nor affect
provisions of broadcasting franchises concerning territory covered by the

franchise, the life span of the franchise or the type of service authorized by the

franchise.

SECTION 14. 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 15. Reportorial Requirement The grantee shall submit an annual
report to the Congress of the Philippines on its compliance with the terms and
conditions of the franchise and on its operations within sixty (60) days from the

end of every year.


SECTION 16.- Separability Clause.- \f 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
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. Bffctivity Clause

the date of its publication, upon the initiative of the grantee, in at least nwo (2)

is Act shall effect fifteen (15) days from

papers of general circulation in the Philippines.

Approved: