Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

HOUSE BILL No. 8094

Introduced by
Rep. ANNA KATRINA M. ENVERGA and Rep. MA. LOURDES R. AGGABAO

EXPLANATORY NOTE

This bill seeks the renewal of the franchise of RADYO PILIPINO
CORPORATION.

RADYO PILIPINO CORPORATION was granted a franchise to construct,
install, operate and maintain radio and television broadcasting stations under RA
8145. This law has given the grantee the rights, privileges and authority to function for
a period of twenty-five (25) years from July 29, 1995.

For more than twenty-two (22) years now, RADYO PILIPINO
CORPORATION has served as an important vehicle in information dissemination that
bridges communication gaps among the populace of the country. Its radio stations
have provided sound and balanced programming, making information easily
accessible to the general public. It has also frequently communicated with the people
on important and major issues confronting the nation.

In less than three (3) years’ time, the law that has given life and mandate to
RADYO PILIPINO CORPORATION to operate will expire. Therefore, this bill seeks
to extend the term of franchise of RADYO PILIPINO CORPORATION for another
twenty-five (25) years from its original expiration date.

In view of the foregoing, the passage of this bill is earnestly sought.

Rep. MA. ES R. AGGABAO.
4" District, Isabela



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

SEVENTEENTH CONGRESS
Third Regular Session

8094
HOUSE BILL NO.

Introduced by
Rep. ANNA KATRINA M. ENVERGA and Rep. MA. LOURDES R. AGGABAO

AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE
FRANCHISE GRANTED TO RADYO PILIPINO CORPORATION UNDER
REPUBLIC ACT NO. 8145 ENTITLED “AN ACT GRANTING THE RADYO
PILIPINO CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL,
ESTABLISH, OPERATE AND MAINTAIN COMMERCIAL RADIO AND
TELEVISION BROADCASTING STATIONS, SATELLITE AND CABLE
STATIONS IN THE PHILIPPINES”

Be it enacted by the Senate and House of Representative of the Philippines in
Congress assembled:

SECTION 1. The Franchise granted to Radyo Pilipino Corporation under Republic
Act No. 8145 is hereby amended to read as follows:

“SEC. 1. Nature and Scope of Franchise. — Subject to the provisions of the
1987 Constitution and applicable laws, rules and regulations, the franchise
granted to Radyo Pilipino Corporation hereunder referred to as the grantee, its
successors or assignees, under Republic Act No. 8145 to construct, install,
establish, operate and maintain for commercial purposes and in the public
interest, radio and television broadcasting stations in the Philippines, including
digital television system, through microwave, satellite, terrestrial or whatever
means, or the use of any new technologies in television and radio systems, with
the corresponding auxiliary, 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 is hereby


renewed for another twenty-five (25) years from the expiration of its original
franchise.

“SEC. 2. Manner of Operations 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 existing stations or other stations which may be established by
law, without in any way diminishing its own right 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.

“SEC.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 NTC.

“SEC. 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 the broadcasting stations or facilities of the
grantee, to reach the pertinent population/s or portions thereof on important
public issues and relay important public announcements and warnings as
necessity, urgency or law may require; provide at all times sound and balanced
programming; promote public participation; assist in the functions of public
information and education; conform to the ethics of honest enterprise; promote
audience sensibility and empowerment through, but not limited to, closed
captioning; and not use its stations or 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

“Public service time referred herein shall be equivalent to ten percent (10%) of
the 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 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.

“SEC. 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 serious 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 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 stations or facilities of the grantee during the period
when these shall be operated.

“SEC. 6. Term of Franchise- The renewal of the franchise granted under
Republic Act No. 8145 for another twenty-five (25) years shall take effect on
July 30, 2020, unless sooner revoked. In the event the grantee fails to operate
continuously for two (2) years, this franchise shall be deemed ipso facto
revoked.

“SEC. 7. Acceptance and Compliance. ~ The renewed franchise shall become
effective upon acceptance given in writing by the grantee 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 of the grantee shall render the franchise void.

“SEC. 8. Tax Provisions. — The grantee, its successors or assignees, shall
continue to be subject to all applicable taxes, duties, fees or charges and other
impositions under Republic Act. No. 8424, otherwise known as “The National
Internal Revenue Code of 1997”, as amended, Republic Act. No. 7160,
otherwise known as “The Local Government Code of 1991”, as amended, and
other applicable laws.

“SEC. 9. Compliance with Labor Standards. — The grantee, its successors or
assignees, shall comply with the applicable labor standards under existing labor
laws, rules and regulations and such other issuances as may be promulgated by
the Department of Labor and Employment, taking into consideration the nature
and peculiarities of the broadcast industry.


“SEC. 10. 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 and/or telecast, shall not allow to be aired the speech, play, act or
scene, or other matter being broadcast and/or telecast 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.

“SEC. 11. 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.

“SEC. 12. Sale, Lease, Transfer, Usufruct or Assignment of Franchis The
grantee shall not sell, lease, transfer, grant the usufruct of 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 shall the controlling interest of the grantee be
transferred, whether as a whole or in parts, and whether simultaneously or
contemporaneously, to any such private person, firm, company, corporation or
entity without the prior approval of the Congress of the Philippines: Provided,
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.

“SEC. 13. 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 operations: 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 by law. Noncompliance therewith shall render the franchise ipso facto
revoked.


“SEC. 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.

“SEC. 15. Reportorial Requirements. -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 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 the franchise.

“SEC. 16. Equality Clause. - Any advantage, favor, privilege, exemption, or
immunity granted under existing franchise, 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 not apply to nor affect provisions of broadcasting franchises
concerning territory covered by the franchise, the lifespan of the franchise or
the type of service authorized by the franchise

“SEC. 17. 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.

“SEC. 18. Repeatability 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 2. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,