REPUBLIC ACT 11494

AN ACT .°ROVIDIL'G FOR COVID-19 RESPONSE AND RE CO VE RY

INTERVENTIONS AND PROVIDING MECHANISMS TO ACCELERATE THE
RECOVERY AND BOLSTER THE RESILIENCY OF THE PHILIPPINE
ECONO.MY, PROVIDING FUNDS THERE£"OR, .AND FOR OTHER PURPOSES

Bc i.t enocted by the. !S!enate art d House of Repi-esentotiues of the Pkilippines in

Cortgress assentbled.

SECTION 1. 6/tort ltte. - This Act shall be known and cited as *Bayanihan to Recover
As One Act”.
SEC. 2. State of National Eniergeuc y. — Presidential Proclamation No. 922, s.
202s, was issued declaring a state of public health emergency throughout
the Philippines due to the Coronavfius Disease 2019 (COVID-19). Thus, Republic
Act Km. 11469 or the “Bayanihan to Heal as One Act” was enacted declaring a state
o* national emergency over the entire county to control the spread of the disease.
However, the rise of confirmed cases of COVID-19, and the serious threat to the
health, safety, security, and lives of our countrymen persist. The severe disruption
to livelihood and all other productive activity were reflected in the country’s economic
contraction during the first semester of 2020. In view of unabated spread of the
COVID-19 virus and the ensuing economic disruption therefrom, the existence of
a cont;inuing national emergency is hereby affirmed in this Act.

SET. 3. Declai’atiou of Policy. — It is hereby declared the policy of the State to

promote a just and dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty, particularly in the
aftermath of natural and man-made disasters, through policies that provide
adequate social services, and promote full employment, a rising standard of living,
and an improved quality of life for all. Towards this end, and in cognizance of the
Adverse impact of the COVID-19 pandemic to the Philippine economy and society,
the State shall likewise establish mechanisms to achieve the following objectives:

A. Reduce the adverse impact of COVID-19 on the socioeconomic well-being of all

Filipinos through the provision of assistance, subsidies, and other forms of
socioeconomic relief;

B. Consolidate, update, and validate existing records, through the Department of

Social Welfare and Development (DSWD) in coordination with the Inter-Agency Task
Force for the Management of Emerging Infectious Diseases (IATF-EID) and the
Philippine Statistics Authority including local government units (LGUs), to come up
with a comprehensive, up to date, and unified database to effectively implement the
provision of socioeconomic relief intended for all Filipinos by properly identifying the
recipients thereof;

C. Sustain efforts to test, trace, isolate, and treat COVID-19 cases to mitigate the
transmission of the disease and prevent further loss of lives;

D. Enhance the capacity of the Philippine health care syfitem to eliminate, prevent,
and control disease outbreaks and pandemics and mitigate the effects of other
health or life-threatening concerns by ensuring budgetary support for health care;
E. Mitigate the economic cost and losses stemming from the COVID-19
pandemic;

F. Restore public trust and confidence on social an6 economic institutions;

G. Accelerate the recovery and bolster the resilience of the Philippine economy
through measures grounded on economic inclusivity, and collective growth
through fiscal sustainability;

H. Accommodate alternative modes of transportation, including a network of

bicycle lanes in all roads in every city, municipality, and province for the people
who may opt to use the bicycle as an alternative mode of transportation to
address health, environment, and traffic concerns;

I. Promote and protect the collective interests of all Filipinos in these challenging
times;

J. Optimize the use of science, technology, and innovation in government’s

response measures;

K. Enhance public trust in science and technology and incorporate the use of
scientific research and technological expertise in the policy-making process; and

L. Enhance the financial stability of the country to support government programs

in combatting the COVID-19 pandemic.

SEC. 4. COVID-19 Response a tt d Recover y Interueutio as.

— Pursuant to Article VI, Section 23(2) of the Constitution, the President is
hereby authorized to exercise powers that are necessary and proper to
undertake and implement the following COVID-19 response and recovery
interventions:

A. Following the World Health Organization tjVHO) or the United States Centers
for Disease Control and Prevention guidelines and best practices, adoption and
implementation of measures to prevent or suppress further transmission and
spread of COVID-19 through effective education, detection, protection, and
treatment: Prouided, That the percentage of the population that will undergo
COVID-19 testing shall be in accordance with WHO standards and global
benchmarks, in areas identified by the Department of Health (DOH) and the
Department of the Interior and Local Government (DILG) as epicenters of
COVID-19 infections and in other areas where higher possibility of transmission
of COVID-19 may OCcur or have occurred. The DOH and DILG shall adopt a
COVID-19 disease surveillance protocol that shall define minimum health
standards for workplaces and business activities which shall include COVID-19
testing and the establishment of a contact tracing system including personal
contact tracing whereby a person maintains a record of the places that he/she
had been to and the people he/she had contact with: Provided, That any
individual who tested positive for COVID-19 through laboratory confirmation at
the national reference laboratory, sub-national reference laboratory, or a DOH-
certified laboratory *testing facility shall be automatically treated and if necessary,
isolated in a D OH-accredited quarantine and isolation facility: Prouided, further,
That thee IATF-EID shall identify and prioritize the areas and business activities
critically impacted and severely affected by COVID-19 and with high probability of
COVID-I9 transmission, and coordinate with the relevant LGUs and government
agencies for the implementation of the COVID-19 surveillance protocol: f'rouided,
furthermore, That the DI LG, in p ar tner ship with the LGUs and other
government agencies, shall distribute the testing kits to DOH-accredited
government hospitals and facilities that can perform testing: Pi’ouided, fiu all y,
That the DI LG, in partnership with the LGUS, shall lead the contact- tracing
efforts of the government;

Implementation of an expedited and streamlined registration process of viral

testing kits that diagnose Severe Acute Respiratory Syndrome Coronavirus 2
(SARS-CoV-2), such as polymerase chain reaction (PCR), nucleic acid,
antigen, and other COVID-19 testing kits recommended by the Health
Technology Assessment Council (HTAC) and faciLtation of prompt testing by
public and designated private institutions of suspected, and probable COVID-
19 cases and those with no symptoms but with relevant travel history, or may
have been exposed due to the nature of their work or due to their living
conditions or had contact with a confirmed, suspected or probable case, and the
oompulsory and immediate isolation, and treatment of confirmed, suspected
and probable COVID-19 patients: T'rouided, That the cost of testing and
treatment for COVID-19 patients shall be covered under the National Health
Insurance Program of the Philippine Health Insurance Corporation (PhilHealth).
In addition to testing, isolation and treatment of these patients, the contacts of
these patients shall also be immediately and properly traced through the use of
efficient technology for data collection and analysis, and by engaging contact
tracers that may include, but not limited to, displaced workers both in the formal
and informal sectors, from existing networks of barangay he alth workers,
parent-leaders from the Pantawid Pamilyang Pilipino Program (4Ps), and
members of duly acer edited Civil Society Organizations (CSOs) by national
government agencies, subject to the rules and regulations to be issued by the
DILG which shall include provisions on recruitment, training, and
compensation, among others, of contact traders;

B. Adoption of a protocol on the conduct of viral testing and other COVID-19

testing kits recommended by HTAC. For " this purpose, the IATF-EID, in full
cooperation with the DOH, the DILG, the Department of Labor and Employment
(DOLE), the Department of Trade and Industry (DTI), and the Bureau of
Immigration (BI), shall ensure the following:

1. Adequate number of COVID- l9 testing centers that provide available,

affordable and accessible testing to the public, subject to reimbursement by
PhilHealth under existing guidelines: Provided, That people in geographically
isolated or highly populated and depressed areas shall be provided the same
level of access to COVID-19 testing;

2. Hiring of sliilled medical technologists, molecular biologists, epi6emiologists,

and other skilled laboratory technicians to conduct COVID-19 testing to achieve
 an ideal personnel-to-laboratory ratio taking into consideration DOH targets. To
address the COVID-I9 pandemic and in preparation for future public health
emergencies, biomedical research, training, and programs for skilled medical
technologists, molecular biologists, epidemiologists, and other skilled laboratory
technicians shall be implemented utilizing existing public and private molecular
laboratory infrastructure; and procurement and distribution of supplies for viral
further, That the subsidy received from the current Conditional testing and
other COVID-19 testing kits recommended byb Program and rice subsidy
shall be taken into HTAC based on, among other*, the current levels and
projections of the following:

1. Number of patients and health workers with severe or critical

symptoms and history of travel or exposure; and

2. Number of patients and ’health workers with mild symptoms, re1e'vant history of
travel or exposure, and considered vulnerable arid workers returning to work:
Provided, That LGUs may implement their own procurement, distribution, and
monitoring program consistent with the overall provisions of this Act and the
guidelines of the DOH and recommendations by HTAC based on rapid health
technology assessment process:

Provided, That only testing kits which are sold and have complied with relevant
regulations in the country of origin with an established regulatory agency may be
imported, sold, accepted by way of donation and registered in the Philippines:
Provided, further, That testing kits which have been recalled by established
regulatory agencies of other countries shall be like w ise recalle d and delisted by
the Food and Drug Administration (FDA);

(a) Delivery of uninterrupted immunization program against vaccine preventable

diseases especially on children amidst the C OVID-19 pandemic, including vaccine
for COVID-19;

(b) Adoption by the DOH of a uniform and consistent reporting standard in a

language understandable by the general public;
Provision of any of the following subsidies:

consideration in the computation of the emergency subsidy, as provided for in this

Act: Provided, furthermore, That the vetting and validation of beneficiaries of the
Social Amelioration Program (SAP), and the related liquidation report thereto shall
be simplified to expedite the distribution of the subsidy: Prouided, fiuall y, That a
definite and actual list of beneficiaries of the SAP shall be submitted to Congress;

(2) Five thousand pesos (P5,000.00) to Eight thousand pesos (P8,000.00)

unemployment or involuntary separation assistance for displa ce d workers or emp
loyees due to COVID-19 including probationary, project, seasonal, contractual and
casual employees in private health institutions, culture and arts, creative industries,
including, but not limited to, film and audiovisual workers, broadcast, construction,
public transportation, trade and industries, cooperatives, and other sectors of the
economy, as may be identified by the DOLE, freelancers, the self-employed and
 repatriated OFWs, including O FWs whose dep loym ent were suspende d due to a
government-imposed deployment ban: Provided, That any assietance given to
OFWs shall be separate and distinct from the benefits or assistance, if any, they
receive as members of the O-verseas Workers Welfare Administration (OWWA):
Provided, further, That any subsidy previously received under Republic Act No.
11469 does not preclude the displaced worker or employee, the freelancers, self-
employed, and repatriated OFWs from receiving the unemployment or involuntary
separation assistance provided herein: Provided, further, That members of the
Social Security System (SSS) who have received the unemployment benefit under
Section 14-B (Unemployment Insurance or Involuntary Separation Benefits) of
Republic Act No. 11199 or the “Social Security Act of 2018”, during the COVID-19
pandemic shall no longer be eLgible to avail of tb.e benefits under this subsection:
Provided, fi.call y, That the SSS shall take proactive steps to ensure all qualified
members be given unemployment benefits under Republic Act No. 11199; and

(3) Emergency subsidy to low income households who are qualified but
were not granted such subsidy as mandated under Section 4(c) o* Republic Act No.
11469.
Any subsidy program shall, as far as practicable, be implemented through a social
protection distribution system that embeds secure and privacy-preserving data
Capture, verification, deduplication, payroll generation, grievance, and payout using
digital technologies. For this purpose, the payment of necessary transaction fees for
the last mile delivery of subsidies to qualified beneficiaries is hereby authorized;

A. Access ''to livelihood assistance, skills and training programs, loan assistance, and
employment opportunities for repatriated and returning OFWs to ensure proper
reintegration and the full utilization of their skills for national development;

B. Provision of a “COVID-19 special risk allowance” by the national government for

all public and private health workers directly catering to or in contact with COVID-19
patients for every month that they are serving during the state of national emergency
as declared by the President: Provided, That the COVID-19 special risk
allowance of public health workers shall be in addition to the hasard pay granted
under_ Republic Act No. 7305 or tFe “Magna Carta of Public Health " Workers”
and the active hazard duty pay granted under this

C. Act: Prouided, further, That the CO VID -19 special risk allowance for both public
and private health workers shall be exempt from income tax;
A. Implementation of mandatory COVID-I9 testing of public and private health
workers every fifteen (15) days to ensure their protection;

B. Assumption of all medical expenses of public and private health workers in case of
exposure to COVID-19 or any work-related injury or disease during the state of
national emergency aS declared by the President;
C. Provision of compensation to public and private health workers who have
contracted COVID-19 in the line of duty, , with the following amounts, upon
submission of required documents to support claims:

D. ln case of death of the health worker, One million pesos (P1,000,000.00) shall be
provided to the heirs of the health worker;
2. In case of sickness, for a severe cr critical case, One hundred thousand pesos
(Pl00,000.00) shall be provided to the health worker; and

3. In case of sickness, for a mild or moderate case, Fifteen thousand pesos

(Pl5,000.00) shall be provided to the health worker:

Provided, That this shall have retroactive application from Fe‘bruary l , 2020:
Pro ui ded, furt her, That the compensation provided herein shall be exempt from
the applicable taxes under the National Internal Revenue Code of 1997, as
amended: Provided, finall y, That the compensation provided herein shall be
given to .the beneficiaries not later than three (3) months after the date of
confinement or death.

This subsection shall survive the expiration of this Act for as long as a health
worker contracts mild or severe COVID-19 infection while in the line of duty or dies
while fighting during the state of national emergency as declared by the President;

Provision of life insurance , aceommoda tion, transportation, and meals to all public
and private health workers during the state of national emergency as declared by the
President, regardless of the community quarantine (CQ) status; Provision of financial
relief to Agrarian Refcrm Beneficiaries during the state of national emergency as
declared by the President, the payment of interests, penalties, and surcharges of
loans used for land acquisition to any and all government agencies and government-
owned or -controlled corporations (GOCCs) including Land Bank of the Philippines
(LBP) shall be condoned, and the remaining original principal value be restructured
without interest thereon: Provided, That all previous payment for interest be credited
to principal payment instead: Provided, further, That the condonation of interests,
penalties and surcharges from there loans snaI1 be in conformity u'ith the
applicable general banking Jaws and regulations of the Bangko Sentral ng Pilipinas
(BSP)

A. Provision of subsidies and allowances to quaMied students in private and public

elementary, secondary, and tertiary education whose families are now facing
financial difficulties brought about by work stoppage and closure of establishments
due to the CQ, and neither part of the Listakaiiau of the DSWD nor covered under
the Education Service Contracting (ESC), Senior High School Voucher Program
(SHS VP) and Tertiary Education Subsidy (TES) a* provided in Republic Act Nos.
’8545, 10533 and 10931, respectively: Provided, That the geographic prioritisation of
areas where there are no State Universities and Colleges (SUCs) and Local
Universities and Colleges (LUCs) under Republic Act No. 10931 shall be suspended
to make qualified students under this subsection eligible: Provided, further, That
education subsidies granted under this subsection shall be released directly to the
private tertiary education institutions or private basic education schools,
respectively, for the purpose of applying the subsidy for unpaid tuition in school yer
(SY) 2019-2020 or for payment of tuition fee for SY 2020-2021: Provided, /inofiy,
That the subsidy shall be released prior to the opening of SY 2020-2021 or within a
reasonable period after school opening but in no ease later than September 2020,
in a manner similar to the TES, ESC, and SHS VP;
 B. Provision of a one-time cash assistance to displaced teaching and non-teaching
personnel, including part-time faculty or non-permanent teaching personnel, in
private and public elem e ntary, secondary, and tertiary education institutions and
part-time faculty in SUCs who have lost their jobs or who have not received their
wages;

Ensuring that all LGUs are acting within the letter and spirit of all the rules,
regulations and directives issued by the national government pursuant to this
Act; and implementing standards Of CQ consistent with what the national
government has laid down for the subject area, while allowing LGUs to continue
exercising their autonomy in matters undefined by the national government
or are within the parameters it has set; and are fully cooperating towards a
uniEed, cohesive and orderly implementation of the national policy to address
COVID-19: Provided, That pursuant to the constitutional right of freedom of
movement of persons, the IATF-EID shall be responsible for providing guidance
on cross-border concerns, including, but not limited to, Local stranded
Individuals (LSIs), OFWs, domestic travellers and ’ residents, while
the LGUs shall determine the policies and
regulations within their respective jurisdictions;

Notwithstanding any law to the contrary, the local chief executives of all LGUs
are hereby authorized to realign their respective local funds including, but not
limited to, their develop me nt fund, Gender and Develop ment Fund,
Sangguniang Kabataan Fund, Special Education Fund (SEF), and other local
funds, including unutilized or unreleased subsidies’ and transfers in order to
address the COVID-19 pandemic stranded Individuals (LSIs), OFWs,
domestic travellers and ’ residents,

The punong barangays are likewise authorized to make realignments of all

allotments and subsidies in response to the pandemic.

(a) The LGUs may utilize by up to ten percent (10%) of their current budget to cover
expenditures arising from their COVID-I9 responses: Provided, That the seventy
percent (70%) limit on “pre-disaster” initiatives is hereby waived

The LGUs may also increase their respective personnel services cap by up to
ten percent (10%) for fast (1“) to third (3' d) class municipalities and up to five
percent (5%) for the fourth (4'") to sixth (6“) class municipalities, and cities, and
provinces: Pi’ouided, That the same shall be used for the hiring of additional
health workers, the generation of temporary jobs for marginalized and hard-hit
sectors as well as for other emergency employment programs undertaken by
the LGU in response to the COVID -19 pandemic. Provided, further, That the
allowable debt service ceiling of LGUs is increased to thirty percent (30%) of
their annual regular income including their share in the national taxes: Provided,
firtall y, That the LGUs shall be exempt from the loan ceiling cap imposed by the
Department of Finance (DOF).
 The Department of Budget and Management (DBM) and the Bureau of the
Treasury (BTr) shall automatically and completely release any adjusted or
remaining shares of LGUs in national we alth and National Tax Allotment
(NTA) pursuant to Section 286 of Republic Act No. 7160 or the “Local
Government Code of 1991”.

The amount of Three billion five hundred million pesos (P3,500,000,000.00) to be

appropriated as follows, One billion five hundred million pesos (Pl,500,000,000.00)
to the Local Government Support Fund (LGSF) to p zovide financial assistance to
LGUs in their local anti-COVID efforts, and One billion pesos (Pl,000,000,000.00)
each to the LBP and the Development Bank of the Philippines (DBP) to subsidize
the payment of interest on new and existing loans secured by LGUs from
government financial Institutions (GFIs);

(a) Enforcement of measures to protect the people from hoarding, profiteering,

injurious speculations, manipulation of prices, product deceptions, and cartels,
monopolies or other combinations in restraint of trade, or other pernicious
practices affecting the supply, distribution and movement of food, clothing,
hygiene and sanitation products, medicine and medical sup plies, fuel, fertilizers,
chemicals, building materials, implements, machinery equipment and spare
parts required in agriculture, industry and other essential services, and other
articles of prime necessity, whether imported or locally produced or
manufactured;

(b) Ensuring that donation, acceptance and distribution of health products intended
to address the COVID-19 pandemic are not unnecessarily delayed and that
health products for donation duly certified by the regulatory agency or their
accredited third party from countries with established regulation shall
automatically be cleared: Provided, That this shall not apply to health products
which do not require a certification or clearance from the FDA;

(c) Provision of personal protective equipment (PPE) including, but not limited to,
protective suits, face masks, shoe covers, face shields, and goggles to public
and private COVID-19 referral hospitals, both national and local, barangays, and
other indigent persons that need protection from the spread of COVID-19 by the
national government through the DOH: Provided, That preference and
incentives shalt be given to medical safety products that are locally
manufactured;

(d) Procurement of the following as the need arises, in the most judicious,
economical and expeditious manner, as exemptions from the provisions on
bidding process required under Republic Act No. 9184 or the “Government
Procurement
Reform Act” and other relevant laws: Provided, That the follo w in g
information and documents r elate d to the procurement shall be publish ed in the
Government Procurement Policy Board (GPPB) online portal, the website of
the procuring entity concerned, if available, and at any conspicuous place
reserved for this purpose in the premises of the procuring entity within seven (7)
 working days from the date of acceptance of the award:

(i) Project name;

(ii) Approved budget for contract;

(iii) Contract period;

(iv) Name of winning supplier, distributor, manufacturer, contractor or consultant;

(v) Amount of contract as awarded;

(vi) Notice of award;

(vii) Date of award and acceptance;

(viii) Contract or purchase order; and

(ix) A certification stating that the procuring entity exerted all efforts to secure the most
advantageous price to the government based on existing price data of the agency,
the DTI or other relevant agencies or preliminary market scanning done by the
agency showing prevailing market prices and practice.

(l) Goods, which may include PPE such as gloves, gowns, masks, goggles, and face
shields; surgical equipment and supplies; laboratory equipment and its reagents;
medical equipment and devices; support and maintenance for laboratory and
medical equipment, surgical equipment and supplies; medical supplies, tools, and
consumables such as alcohol, sanitizers, tissue, thermometers, hand soap,
detergent, sodium hypochlorite, cleaning materials, povidone iodine, common
medicines (e.g., paracetamol tablet and suspension, mefenamic acid, vitamins tablet
and suspension, hyoscine tablet and suspension, oral rehydration solution, and
cetirizine tablet and 14 suspension); testing kits, and such other supplies or
equipment as may be determined by the DOH and other relevant government
agencies: Provided, That the DOH shall prioritize the allocation and distribution of
the aforesaid goods, supplies and other resources to the following:
 1. Public health facilities in the regions, provinces, or cities, that are designated as
COVID-19 referral hospitals, such as, but not limited to, Philippine ' General
Hospital (PGH), Lung Center of' the Philippines (LCP), and Dr. Jose N. Rodriguez
Memorial Hospital;

2. Private hospitals which have existing capacities to provide support care and
treatment to COVID-19 patients; and

3. Public and private laboratories that have existing capacities to test suspected
COVID-19 patients.

(1) Goods and services for social amelioration measures

in favor of affected communities;
(2) Lease of real proprty or venue for use to house health workers or serve as
quarantine centers, medical relief and aid distribution locations, or temporary
medical facilities;

(3) Establishment, construction, and operation of temporary medical facilities;

(4) Utilities, telecommunications, and other critical services in relation to operation of
quarantine centers, medical relief and aid distribution centers and temporary
medical facilities; and

(5) Ancillary services related to the foregoing:

Provided, That to ensui’e adequate and responsive supply of critical products, the
government, as procuring entity shall give preference and procure product*,
materials and supplies produced, made or manufactured in the Philippines. For
this purpose, the DTI through Negosyo Centers shall coordinate the availment of
relevant credit and training programs under this Act to promote and facilitate
domestic supply: Provided, further, That it shall be subject to competitive
procurement procedures: Provided, furthermore, That the Department of 15
Budget and hIanagement-Procurement Service (DBM-PS) or the concerned
procuring entity shall make the award to the lowest domestic manufacturer-bidder
notwithstanding that its bid is fifteen percent (15%) in excess of the lowest foreign
bid: Provided, furthermore, That it secures from the DTI a certification that the
articlee forming paxt of it* bid are substantially composed of articles, materials, or
supplies grown, produced, or manufactured in the Philippines: Pro uided, noffy,
That other qualification and documentary requirements for local manufacturers
and suppliers shall be prioritized and expedited by the DOH, FDA and other
concerned departments
and agencies;

(v) Partnering with the Philippine Red Cross, as the primary humanitarian agency
.that is auxiliary to the gove rum e nt in giving aid to the p eop Ie, subject to
reimbursement; in the distribution of goods and services incidental in the fight
against COVID-19;

(w)Engaging temporary Human Resou.rces for Health (HRH) such ag medical

and allied medical staff to complement or supplement the current health
workforce or to man the temporary medical facilities to be established in
accordance with Section 4(u)(4) of this Act: Provided, That HRH to be hired on
temporary basis shall receive the appropriate compensation and allowances.
Provided, further, That all HltH serving in the front line ‹luring the state or
emergency due to COVID-19, shall receive an actual hazard duty pay from the
national government: Pi’ouided, furthermore, Tha* the actual hazard duty pay
shall be in addition to the hasard pay granted under Republic Act No. 7305 and
the COVID -19 special risk allowance granted under this Act: Pro rided,
furthermore, That the active hazard duty pay received by all HRH serving in the
front line during the state of national emergency as declared by the President
shall be exempt from income tax: Provided, finall y, That DOH, the DOLE and
their attached agencies shall closely coordinate to ensure that returning OFW-
health workers, or those whose deployments were suu•pended due to COVID-19,
shall be properly referred to theongoing hiring of temporary HRH by the DOH;

(x)Ensuring the availability of credit to the productive sectors o* the economy

especially in the countryside through measures such as, but not limited to,
lowering the effectivelending rates of interest and reserve requirements of
lending institutions: Provided, That credit accommodation to the Micro, Small and
Medium Enterprises (MSMEs) and cooperatives, as well as those who are self-
employed, shall be imposed a low interest, payable within three (3) years and
shall not require any collateral if the loan does not exceed Three million pesos
(P3,000,000.00); I

(v)Provision of loan inteiest rite subsidies for institutions of learning that have been
affected by the decre ase in enrollment due to the CQ or to enable these institutions
to adequately prepare to implement blended learning: Provided, That the terms of
the loan shall be more reasonable than the prevailing market terms: Pro uid ed,
fu rt ke r, That the availm ent of such loan shall be conditione d on the non-
implementation of an increase in tuition and other fees for the next school or
academic year: Provided, fiiiall y, That private schools, colleges and universities
receiving grants will retain their personnel complement at the time of receipt of aid,
and will not engage in retrenchment of employees for a period of nine (9) months
com receipt of grant;

(w)Directing the Small Business Corporation (SBCorp) to expand its existing loan
programs for MSMEs, cooperatives, hospitals, tourism and OFWs affected by the
COVI D- l9 pandemic and by other socioeconomic reversals, through a combination
of increasing available loanable funds, reducing documentary requirements,
increasing maximum loan amounts per borrower, reducing interest rates, extending
loan terms, utilisation of financial technologies to expand reach and increase
access and set fast turn-around loan processing time; and allow the use of the loan
proceeds for payroll costs, materials and suppliers, mortgage payments, rent,
utilities, including fuel and storage, creation of new supportive businesses, re-
purposing of existing business capital, any other business debt obligations that were
incurred before the covered period or acquisition of new technologies and systems
to adjust business processes for resiliency;

(aa) Directing the LBP and the DBP to introduce a low interest and/or “flexible
term” loan program for operating expenses available to businesses affected by the
 COVID-19 pandemic, in order to assist and encourage them arid their creditors to
continue investing in, lending to and operating their businesses: Provided, That
priority shall be given to agri-fishery and non-essential businesses that are micro,
small and medium enterprises, including, but not limited to, start- ups and
cooperatives;

(bb) Directing the Philippine Guarantee Corporation (PhilGuarantee) to

issue an expanded government guarantee program for non-essential
businesses, to ease current rules and re gulations and give preference to
critically impacted businesses, MSMEs, cooperatives and activities that support
DOH initiatives towards ensuring an adequate and responsive supply of health
care services, and to guarantee the loan portfolio of partner financial institutions
of eligible MSME and cooperative loans;

(cc) Liberalisation of the grant of incentives for the manufacture or importation of

critical or needed equipment or supplies or essential goods for the carrying-out of the
policy declared herein, including health care equipment and supplies: Provided, That
the exemption from import duties, taxes, and other fees for manufacture or
importation of critical equipment or essential goods shall be determined by the
Bureau of Customs (BO C) and the Bureau of Internal Revenue (BIR), resp e
ctively: Pro uided, ft rt he r, That limitations and restrictions to the sale, distribution,
and trade of the foregoing goods, equipment or supplies may be imposed to prevent
shortage of supply and to ensure that the prices thereof remfin reasonable, giving
priority and preference to the needs and safety of health workers and frontliners,
violations of which shall be punishable under Section 16 of Republic Act No. 7581 or
the “Price Act”, as amended. For this purpose, critical products, equipment or
supplies or essential goods shall include the following: (1) goods referred to in
Section 4(u)(1) hereof related to the containment or mitigation of COVID -19; (2)
equipment for •vaste management, including, but not limited to, waste segregation,
storage, collection, sorting, treatment and disposal services: Provided, furthermore,
That these said equipment ar'.d technologies and services are approved by the
Department of Environment and Natural Resources (DENlt), DOH or other
concerned regulatory agencies-; (3) inputs, raw materials and equipment necessary
for the manufacture or production of essential goods referred to in Section 4(u)(1) 1'-
ereof related to the containment or mitigation of COVID - lS: Prouided, furtheriri ore,
That for the purpose of qualifying exemption from import duties, taxes, and other
fees and ensuring supply of PPE at competitive prices, DTI shall certify that the
equipment and supplies being imported are not locally available or of insufficient
quality and preference: Pro uided,inolfy, That preference is given to products,
materials and, supplies produced, made or manufactured in the
Philippines;
(dd) Ensuring the availability of essential goods, in particular, food and
mediciné, by Adopting measures as may reasonably be necessary to facilitate
and/or minimize disruption to the supply chain and/or improve the national end-to-
end supply chain, including measures to reduce logistics costs, especially for basic
commodities and services to the maximum extent possible. Further, the D’I'I may
suspend export requirement for export enterprises that produce critical goods as
referred to in Section 4(u)(1) and require them to supply locally subject to the
application of Section 4(cc);
 (ee) Requiring businesses to prioritize and ’accept contracts, subject to fair
and reasonable terms, for materials and services necessary to promote the herein
declared national policy: Provided, That the riles chargeable by accommodation
establishments to persons mandated by law or regulations to undergo quarantine
may be regulated by the Department of Tourism (DOT);

(f9 Provision of extension support, direct cash or loan interest rate subsidy or
other forms of assistance to qualified agri-fishery enterprises, agriculture
cooperatives, farmers, fisherfolk, and other agricultural workers through the
Department of Agriculture (DA);

(gg) Directing the Department of Transportation (DOTr) and such other

agencies or instrumentalities that may be authorized under this Act to extend the
following assistance to critically impacted businesses in the transportation industry,
including transport cooperatives:

(1) Provide direct cash or loan interest rate subsidy;

(2) Provide grants for applicable regulatory fees;
(3) Allow substitution of refund option to travel vouchers;

Provide grants for fuel subsidy and/or digital fare vouchers, as may be
necessary; and

Provide grants for training, equipment, facilities, test kits and necessary
personnel, on coping with increased health risks arising from infectious
diseases.

Within fifteen (15) days from the effectivity of this Act, the DOTr or any of its
instrumentalities shall prescribe the eligibility, requirements and other terms and
conditions for any of the abovementioned assistance, subject to the guidelines
issued under this subsection.

For purposes of item (1) herein, the DOTr or any of its instrumentalities shall
utilize the loan and/or loan guarantee programs and other loan related measures
provided under this Act, subject to the rules, regulations and guidelines issued
under the corresponding intervention, including proper credi.t assessment of the
borrower by the LBP and DBP which will administer the credit facilities or loan
guarantees under this Act: Provided, That a reasonable and proper business
plan shall be submitted by the borrower: Provided, further, That loan
interventions implemented under this subsection shall be exclusively for critically
impacted businesses and transport cooperatives in the transportation industry
only.

For purposes of item (2) herein, the grants may include reductions in (i) rates
through the removal of local taxes as may be applicable, and (ii) fees and
charges imposed by any regulatory agency and LGU. Such grants shall be
payable, respectively, to the BIR, the LGUs and relevant regulatory agencies:
 Provided, That the grant shall be chargeable against the fund created for the
purpose of implementing this subsection: Provided, further, That any critically
impacted business may avail of the grant for a period of not more than six (6)
months.

Availment of any economic relief such as wage subsidy, loan, and loan guarantees
and other relief under the other provisions of this Act, ‹toes not disqualify such
critically impacted businesses belonging to the transportation industry including
transport cooperatives from availing the economic relief provided under this
subsection. For purposes of item (1) herein, the SBCorp under it
require assistance for any activity that supports the Balik Probinsya, Bagong Pag-
asa Program under Executive Order
No. 114,' s. 2020;

, (hh) Directing the DOT to assist critically impacted businesses that are
tourism enterprises, including tourism- oriented barangay micro business
enterprises, cooperatives engaged in tourism-related aétiviti6s or other members of
the informal sector iñ the tourism economy in any of the following ' programs:

(1) Provide loan interest rate subsidy;

(2) Tourism Road Infrastructure Program of the Department of Public Works and
Highways (DPWH);

(3) Cash-for-work programs and the unemployment and involuntary assistance for
the displaced workers or employees in the tourism sector;

(4) Marketing and product development, promotions and programs, including travel
advertising and festival-support strategies;

(5) Grants for education, training, and advising of tourism stakeholder for the new
normal alternative livelihood programs;

(6) Utilisation of information technology for the improvement of tourism services,

development of a tourist tracking system for emergency response, and
establishment of spatial database to improve planning capacity;

(7) In partnership with the LGU and DOH and/or private entities, establish COVID-
19 testing centers in tourist destinations as identified by the DOT, to stimulate
tourism and generate employment; and

(8) Any other relevant programs, including infrastructure, product-sourcing, and

subsidized domestic package tour* necessary to mitigate the economic effects of
COVID-19 on the tourism industry. COVID-19 Assistance to Restart Enterprises
(CARES) Program shall administer the loans for DOT but subject to guidelines from
the DOT that shall be prepared for these purposes: Provided, That the loan
interventions implemented under this section shail be exclusively for accredited
tourism enterprises, including such small-scale tourism-oriented enterprises
accredited by LGUs, under Republic Act No. 9178 or the “Barangay Micro Business
Enterprises Act of 2002”.

Availment of grants, loans or loan guarantees through other provisions of this

Act is not a disqualification for any tourism enterprise to avail of any economic
relief measures in this section.

The DOT shall prioritize establishments that (l) support the Balik Probinsya,
Bagong Pag-asa Program, and (2) comply with the guidelines of the DOH towards
ensuring an adequate and responsive supply of health care services;

(ii) Undertaking measures in partnership with appropriate internet and

communication service providers in the acceleration of the deployment of critical
Information and Communications Technology (ICT) infrastructure particularly
additional cell towers, equipment, software, and wireless technologies throughout
the country to address the need for digital connectivity, internet speed and stability,
and Cybersecurity in E-Commerce, E-Government, online learning, and
telecommuting in order to sufficiently meet the significant additional shift of the
general public to online services and platforms and to home and mobile
communication units for doing work from home, for completing commercial and
other transactions, for conve nin g mee tin gs and conducting conferences and
seminars/webinars, and for obtaining educational instruction during the COVID-19
pandemic through the Department of Information and Communications Technology
(DICT). Such measures shall include the following:

(1) Temporary suspension of requirements to secure permits and clearances

for the construction of telecommunications and internet infrastructure.

Except for the building permit issued by the Office of the Building Official pursuant
to Presidential Decree No. 1096 or the “National Bvulding Code of the Philippines”,
as amended, and the height clearance permit from the Civil Aviation Authority of the
Philipp ines (CAAP), no national or local permit or clearance shall be required
in the construction, in s ta Elation, repair, operation and maintenance of
telecommunications and internet infrastructure by independent tower companies
registered with the DICT, or holders of certificates of public convenience and
necessity or provisional authority granted by the Nati6nal Telecommunications
Commission (NTC) to public telecommunication entities, for a period of three (3)
years from the effectivity of this Act: Pro uided, That for homeowners and other
community clearances, the requirements provided under Section l5 of Republic Act
No. 11032 or the “Ease of Doing Business and Efficient Government Service
Delivery Act”, in relation to Section 10(k) of Republic Act No. 9904 or the “Magna
Carta for Homeowners and Homeowners’ Associations”, shall apply.
*
A CAAP height clearance permit shall be required if the telecommunications
tower infrastructure: (i) is in excess of fifty
(50) meters in height and in the direct flight plan within a three (3) -kilometer radius
of an airport; or (ii) shall be co nstr ucted within the ten (10) -kilo me te r radius of
communication-navigation surveillance facilities located off-airport. When the
proposed structure does not fall within any of the foregoing restrictions, the
applicant shall only be required to submit to the LGU and the CAAP, a notarized
undertaking certified by a geodetic engineer, attesting that the
proposed structure will be built outside the CAAP critical areas.

(2) Streamlining of regulatory processes and procedures for the development

and improvement of digital, internet and satellite technology infrastructure.

Notwithstanding Section 4(eee) of this Act, all pending and new applications for
the construction of cell sites, cell towers, roll out of fiber, installation of poles, ground
terminals and other transmission or similar telecommunications and internet
structure and facilities shall be approved or disapproved within a non-extendible
period of seven (7) working days from the date the application was received. An
application which is not acted upon within such period shall be deemed approved.

Provided, That the advantages of temporary suspension of requirements and

streamlining of regulatory processes shall also apply to other value-added service
providers and internet service providers in the establishment and operation of
necessary equipment and facilities, and use of necessary technologies in order to
expand the coverage of broadband internet networks and provide connectivity to
unnerved and underserved communities.

No court, except the Supreme Court, shall issue any temporary restraining
order, p reliminary injunction or preliminary mandatory injunction against the
construction of telecommunications infrastructure, including cell sites and cell
towers;

(jj) Directing the DTI, in coordination with other implementing agencies, to

accelerate and undertake massive promotion of online commerce and offer
technical and financial assistance through GFIs to those engaged in E-Commerce,
such as those involved in internet retail, digital financial services, digital media, and
ride-hailing. These include programs that will expedite the digitalization of MSMEs
and cooperatives through training subsidies for onboarding or starter kits, wage
support for new online enterprises, upskilling/reskilling and other activities as may
be defined by the DTI, Cooperative Development Authority (CDA), DICT, Technical
Education and Skills Development Authority (TESDA), and Commission on Higher
Education (CHED);

(kk) Regulation and limitation of the operation of all sectors of transportation

through land, sea or air, whether private or public, and provide the necessary
infrastructure and support, including emergency pathways, LGU bicycle sharing
scheme with proper safety equipment and pop-up bike lanes, for commuters,
particularly health workers and other frontliners;

(11) Regulation of traffic on all roads, streets, and bridges, and access
thereto; prohibit putting up of encroachments or obstacles; authorize the removal of
encroachments and illegal constructions in public places; and perform all other
related acts;

(mm) Authorization of alternative working arrangements for employees and

workers in the Executive Branch, and whenever it becomes necessary, in other
independent branches of government and constitutional bodies, and the private
sector;

(nn) Conservation and regulation of the distribution and use of power, fuel, energy
 and water, and ensure adequate supply of the same;

,' (oo) Impleinentation of the proper management and segregation of waste,

especially of hazardous materials coming from health facilities, in the communities
and households in order to contain the COVID-19 virus and other diseases;

(pp) Notwithstanding any law to the contrary, directing the discontinuance of

appropriated programs, activities or projects (P/A/Ps) of any agency of the
Executive Department, including CDOCCs, in the fiscal years (FYs) 2019 aitd 2020
General Appropriations Act (GAA), which cannot be utilized effectively as a result of
the COVID-19 outbreak, whether released or unreleased, the allotments for which
remain unobligated, and utilize the savings generated therefrom to augment the
allocation for any item needed to address the COVID- 19 pandemic consistent with
the herein declared national policy. The P/A/Ps that may be discontinued shall
include discretionary foreign travel, representation, mass events and those
identified by government agencies prior to the effectivity of this Act: Proutded, That
*uch discontinued P/A/Ps do not support the objectives of economic stimulus and
recovery for having low labor intensity or low multiplier effects: Prouided, /urtker,
That infrastructure, having the highest multiplier effect can only be discontinued
when all other funds, including unobligated allotments and unreleased
appropriations, have been exhausted: Provided, furthermore, That the following
items in the budget shall be prioritized for augmentation:

(1) Under the DOH — operational budgets of government hospitals, temporary

treatment, isolation, quarantine and monitoring facilities, primarily those identified
for treatment of COVID-19; prevention and control of other infectious diseases;
emergency preparedness and response; and Quick Response Fund (QRF);
(2) Under the University of the Philippines — the operational budget of the
PGH;

(3) The National Disaster Risk Reduction and Management Fund or GaIamity
Fund;

(4) Programs of the DOLE, such as, but not limited to: COVID-19 Adjustment
Measures Program (CAMP), Tulong Panghañapbuhay sa Ating
Disadvantaged/Displaced Workers (TUPAD), and the DOLE Abot-Kamay Aug
Pagtulong (AKAP) for OFWs: Provided, That in giving assistance under these
programs, priority shall be given to those workers who have not been granted
assistance under any of the programs of the government for workers;

(5) Under the DTI — Livelihood Seeding Program and Negosyo Serbisyo sa
Barangay;

(6) Under the DA — Rice Farmers financial Assistance Program;

(7) Under the Department of Education (DepEd) School-Based Feeding

Program, digital education, digital infrastructure, support to alternative learning
modalities, and printing and delivery of self-learning modules;
 (8) Under various DSWD programs such as, but not limited to, Assistance to
Individuals in Crisis Situations (AICS), distribution of food and non-food items,
livelihood assistance grants, and supplemental feeding program for daycare
children;

(9) Under the DPWH - Local Infrastructure Programs (LIPs); and

(10) Under Allocations to LGUs.

Notwithstanding the provisions of thie Act, the discontinued P/A/P may be revived at
any time after the COVID-19 pandemic has ceased, and notwithstanding
Section 67 of Republic Act No. 11465 or the “General Appropriations Act of 2020”,
may be revived and proposed for funding within the next two (2) fiscal yo entities
providing in-house financing for goods and properties
Memorandum of Agreement (MOA), to transfer funds to the LGUs and allow said
LGUs to facilitate the distribution of the Social Pension for Indigent Senior Citizens
(SocPen), AICS and Food and Non-Food Items (FNFI), CAMP, TUPAD, and the
AKAP for OFWs;

(qq) Any unutilized or unreleased balance in special purpose funds (SPFs)

shall be coñstdered to have their purpose abandoned ditririg the state of national
emergency as declared by the President. All such unspent, unutilized or unreleased
money or funds sourced from SPFS shall be utilized and are hereby appropriated
for such measures to address the COVID-19 situation and accomplish the declared
national policy herein;

(rr) Notwithstanding any law to the contrary, to reprogram, reallocate, and

realign from savings on other items in the FY 2020 CtAA in the Executive
Department, as may be necessary and beneficial to fund measures that address
and
respond to the COVID-19 pandemic, ineluding social _
amelioration for affected communities and the recovery of
areas, sectors and industries severely affected. All amounts so reprogrammed,
reallocated or realigned shall be deemed automatically appropriated for such
measures to address the COVID-19 situation within the period specified under
Section 18 hereof: Provided, That such reprogram, reallocation and realignment
shall be limited to the sources of funding enumerated under Section 11 of this Act;

(ss) Notwithstanding any law to the contrary, the President is hereby authorized
to allocate cash, funds, investments, including unutilized or unreleased subsidies
and transfers, held by any GOCC or any national government agency in order to
address the COVID-19 pandemic;

(tt) Moving of statutory deadlines and timelines for the filing and submission of
any document, the payment of taxes, fees, and other charges required by law, and
the grant of any benefit, in order to ease the burden on individuals under CQ;
(uu) Directing all banks, quasi-banks, financing companies, lending companies, real
estate developers, insurance companies providing Me insurance purchased, asset
and liabilities management companies an6 other financial institutions, public and
private, including the Government Service Insurance System (GSIS), the SSS and
Home Development Mutual Fund (Pag-IBI G Fund), to implement a one-time sixty
(60)-day grace period to be granted for the payment of all existing, current and
outstanding loans falling due, or any part thereof, on or before December 31,
2020, inéluding, but not limited to, salary, personal, housing, commercial, and motor
vehicle loans, amortisations, financial lease payments and premium payments, as
well as credit card payments, without incurring interest on interests, penalties, fees,
or other charges and thereby extending the maturity of the said loans: Provided,
That all loans may be settled on staggered basis without interest on interests,
penalties and other charges until December 31, 2020 or as may be agreed upon by
the parties: Provided, further, That nothing shall stop the parties ñ-om mutually
agreeing for a grace period longer than sixty (60) days: Provided, furthermore,
That the banks and other non-bank financial institutions (NBFIs) that agree to
further loan term extensions or restructuring pursuant to this subsection shall be
entitled to regulatory relief, as may be determined by the BSP, which may
include, but is not limited to, (i) staggered boolcing of allowances for credit losses,
(ii) exemption from loan-loss provisioning, (iii) exemption from
the limits on real estate loans, when applicable, (iv) exemption from related p arty
transaction restrictions, and (v) non-inclusion in the bank’s or NBFI’s reporting on
non- performing loans: Pro vided, finall y, That the loan term extensions or
restructuring pursuant to this subsection shall be exempt from documentary stamp
taxes.

It is understood that this provision shall not apply to interbank loan and bank
borrowings;

(vv) Directing all institutions providing electric, water, telecommunications, and

other similar utilities to implement a minimum of thirty (30)-day grace period for
the payment of utilities falling due within the period of ECQ or Modified Enhanced
Community Quarantine (MECQ) without incurring interests, penalties, and other
charges: Provided, That after the grace period, unpaid residential, MSME and
cooperatives utility bills may be settled on a staggered basis payable in not less
than three (3) monthly installments, subject to the policies, pre-need companies,
procedural requirements of the concerned regulatory agencies in the imposition of
such installment plan without interests, penalties, and other charges: Provided,
further, That covexe6 institutions under this subsection may offer less onerous
payment terms, with the consent of their clients subject to the approval of their
respective regulators: Prorided, furthermore, That in the case of the electric power
sector, the minimum thirty (30)-day-grace period and staggered payment without
interests, penalties 'and ‘6ther charges shall apply to all payments due within the
period of the CQ in the entire electric power value chain to include generation
companies, the transmission utility, and distribution utilities;

(ww) Provision of a minimum of thirty (30)-day grace period on residential rents

and commercial rents of lessees not permitted to work, and MSMEs and
cooperatives ordered to temporarily cease operations, falling due within the period
of the CQ, without incurring interests, penalties, fees, and other charges: Pi’ouided,
That all amounts due within the period of CQ shall be amortized in equal monthly
installments until December 31, 2020 without any interests, penalties and other
charges: Provided, further, That no increase in rent shall be imposed during the
same period: Provided, furthermore, That the minimum thirty (30)-day grace period
shall be reckoned from the date of the lifting of the ECQ or MECQ;
 (xx) Implementation of an expanded and enhanced 4Ps, responsive to the
needs posed by the crisis, and provision of an assistance program, whether in
cash or non-cash, whichever is more practicable, where the Secretary of DSWD or
the Secretary of D OLE, when relevant, shall transfer cash, cash vouchers, or
goods through the LGUs or directly to households who have no incomes or savings
to draw from, including households working in the informal economy and those who
are not currently recipients of the current 4Ps, of an amount adequate to restore
capacity to purchase basic food and other essential items after the duration of the
quarantine. To carry out this subsection, the Secretary of DSWD and the Secretary
of DOLE may approve the temporary emergency standards of eligibility and level of
benefits;
(yy) Lifting of thé thirty percent (30%) cap on the amount appropriated for the
QR£", as provided for in Republic Act No. 10121 or the “Philippine Disaster Risk
Reduction and
Management Act of 2010”, during the state of national emergency as declared by
the President;

(sz) Provision of assistance to the agriculture industry, including agriculture

cooperatives by creating the “Plant, Plant, Plant” Program which shall be
composed of the following: (l) Ahon Lahat, Pagkaing Sapat (ALPAS) kontra sa
COVID-19; (2) food markets — food logistics and other interven'tions; (3) Urban
agriculture program of the DA; and
(4) Cash-for-work program in agriculture;

(aaa) Implementation of a program which would: (l) fast track the approval of all
pending and new applications for housing loans, permits and licenses by simplifying
the requirements and procedure; and (2) accommodate and prioritise critically
impacted home buyers who may want to shift from private bank financing to Pag-
IBIG home financing with simplified requirements through the Department or Human
Settlements and Urban Develop ment (DHSUD) program and its key shelter
agencies;

(bbb) Notwithstanding Section 89 of Republic Act No. 7653 or “The New

Central Bank Act”, as amended, the BSP is hereby authorized to make additional
direct provisional advances with or without interest to the national government to
finance expenditures authorized by law that will address and respond to the COVID-
19 situation: Provided, That such additional direct provisional advances shall not, in
their aggregate, exceed ten percent (10%) of the average income of the national
government for FYs 2017 to 2019: Prouided, further, That said additional direct
provisional advances shall be availed of within two (2) years from the effectivity of
this Act: Pro uided, fart her ciiore, That the additional direct provisional advances
shall be repaid before the end of one (l) year following the date that the national
government received such additional direct provisional advances pursuant to this
Act, extendible for another year as the Monetary Board may allow;

(ccc) Encouraging the BSP to allow private banks and financial institutions to: (1)
reallocate any unutiJized loanable funds to housing loans; and (2) to grant subsidy
to the home loan borrowers at the rate equivalent to the gross receipt tax imposed
on banks and financial institutions on their interest income;
(ddd) Encouraging BSP and the Securities and Exchange Commission (SEC)
to adopt measures, including the relaxation of regulatory and statutory restrictions
and requirements for a period of not more than one (1) year from their date of
effectivity to encourage the banking industry and other financial institutions to
extend loans and other forms of financial accommodation to help business recover
from the economic effects of the COVID-19 crisis and to enable the banking
industry to manage appropriately its risks and potential losses.

The BSP and the SEC are likewise hereby authorized to grant reporting relief to
its supervised entities by allowing staggered booking of allow ance for credit losses
for all types of credit accommodations extended to individuals and business entities
affected by COVID-19;

(eee) Issuance of a directive that all government agencies and LGUs shall act
on at pending and new applications for permit, license, certificate, clearance,
authorization and resolutions within a non-extendable period of seven (7) working
days, in order to support business continuity and encourage resumption of all
economic activities: Provided, That the applicant Shall be allowed to undertake its
compLance to any additional requirement that may be imposed by the government
agency or LGU, and such will not delay the approval of the application: Provided,
further, That this shall not apply to regulatory processes involving administrative
investigations or enforcement activities by government regulators exercising quasi-
judicial functions: Provided, finall y, That the Philippine Competition Commission
(PCC) shall promote business continuity and capacity building, as such, all mergers
and acquisitions with transaction values below Fifty billion pesos (P50,000,
000,000.00) shall be exempt from compulsory notification under Section 17 of
Republic Act No. 10667 or the “Philippine Competition Act” if entered into within a
period of two (2) years from the effectivity of this Act, and further, shall be exempt
from the PCC's power to review mergers and acquisitions ntotu proprio provided in
Section 12 of Republic Act No. 10667 for a period of one (l) year from the effectivity
of this Act.

(fff) Production of a ma sterliet in electronic and machine-readable data format

of all displaced and critically impacted transport workers under the road, rail, air,
and maritime sectors to effectively implement the distribution of wage subsidies,
cash-for-work program, or service contracting of public utility vehicles as provided
for in Sections 4 and 10 of this Act, through the D OTr: Prouided, That the DOTr
is directed to coordinate the accelerated distribution of remaining subsidy‘ under the
SAP of Rep ublic Act No. 11469 to driver-beneficiaries: T'rouided, further, That the
DOTr is also directed to coordinate with transport service providers, transport
cooperatives and LGUs to negotiate partially subsidized service contracting of
public utility vehicles as a form of temporary livelihood to workers displaced by
restrictions and reduced capacity of public transportation, and other forms of
arrangement to ensure that livelihood in the transport sector is preserved: Provided,
/irtofly, That there shall be no phase-out, at the national and local level, of any
modality of public utility vehicle as the industry transitions to a new normal;
(ggg) Provision of access to free, healthy meals to undernourished children as
mandated by Republic Act No. 11037 or the 'Kasustansyang Pagkain para sa
Batang Pilipino Act" regardless of modality of learning through the DepEd;

(hhh) Provision of regulatory relief to the critically impacted creative sector by

tasking the DTI and the DILG to review the imposition of the amusement tax.
The President shall have the power to suspend, reduce or waive the imposition of
the fees and charges as recommended by the DTI and DILG for a period of six (6)
months;

(iii) Provision of loan assistance, subsidies, discounts or grants to schools,

universities, colleges, technical vocational institutions, teachers, faculties, and
students for the purchase of distance learning tools, such as computers, laptops,
tablets and other ICT devices and equipment necessary to conduct and access
classes and learning materials under alternative delivery modes of teaching and
learning in the new' normal thi’ough the DepEd, the CHED and the TESDA, in
partnership with GFIs: Provided, That the loan shall have terms that are more
reasonable than those prevailing in the market: Provided, further, That private
schools, colleges and universities receiving grants will retain their personnel
complement at the time of receipt of aid, and will not engage in retrenchment of
employees for a period of nine (9) months from receipt of grant;

(jjj) Notwithstanding the provisions of Section 272 of Republic Act No. 7160 or
the ‘kcal Government Code of 1991”, a portion of the SEF may be used for the
support of alternative learning modalities, digital education, digital infrastructure,
and continuity plans, such as the purchase of equipment, materials, and ’supplies
related thereto, printing and delivery of self-learning modules, provision of safe
schools infrastructure, equipment and facilities such as handwashing stations, soap,
alcohol, sanitizers, and other disinfecting solutions, as well as medical health
supplies deemed appropriate by public health officials such as thermometers, face
masks, and face shields, subject to existing accounting and auditing rules;
(kkk) Extension of the term of standby loans entered into
by LGUs;

(III) Utilization of unexpended cash balances of public funds held in trust by

LVUs, for purposes that have been completed or abandoned and allow the transfer
of these funds to the general fund of the LGUs concerned to be made available for
appropriation to support local government programs and projects in response to the
COVID-19 pandemic;

(mmm) Directing the DPWH and other government agencies to expedite the
implementation of infrastructure programs and projects to generate local
employment and stimulate the local economy: Prouided, That infrastructure flagship
projects identified by the National Economic and Development Authority (NEDA)
shall be fast-tracked to pump prime the economy and help promote national
economic recovery: Provided, further, That all permits and licenses including local
government permits, licenses, clearances and registration requirement for
infrastructure flagship projects shall be deemed waived for a period of one (l) year
from the effectivity of this Act: Pi’ouided, furthermore, That permit requirements
relating to environmental laz-s, health and occupational safety shall continue to be
applicable and subject to a process:ng time of seven (7) working days: Provided,
final.1y, That all laws requiring the permits waived under this provision shall be
deemed amended during this one (1)-year period of fast-track development;

In order to address delays in the implementation and immediately stimidate

economic activity and generate employment during the state of national emergency
as declared by the President, notwithstanding any law to the contrary, permits,
licenses, certificates, clearances, consents, authorizations or resolutions by national
government agencies, except those relating to taxes, duties, border control and
environmental laws and regulations, may be waived for private projects that are
nationally significant or those with high economic returns or high employment
potential as may be determined by a committee to be chaired by the Secretary of
DOF, with the Secretary of DTI and Secretary of DENR as members and the
secretariat of the committee shall be the DOF: Provided; That the committee shall
identify the projects that shall be granted regulatory relief and the specific permits,
licenses, certificates, clearances, consents, authorizations or resolutions that shall
be waived: Prouided, further, That entities or projects granted such regulatory relief
and waivers should submit the requirements and pay the fees to the concerned
agencies prior to commencement of any activity: Prouided, furt kermore, That thie
authority shall be valid during the state of national emergency as declared by the
President and the economic rehabilitation period or until the last day of June 2022,
whichever is later: Provided, final I y, That no court, except the Supreme Court,
shall issue any temporary restraining order, preliminary inj unction or preliminary
mandatory injunction against the committee and the completion or operation of the
project granted regulatory relief;

(ooo) Allowing national and local government agencies to directly purchase

agricultural and fishery products from farmers and fisherfolk and agriculture
cooperatives as a form of direct assistance even beyond the lapse of Republic Act
No. 11469 in accordance with Republic Act No. 11321, or the “Sagip Saka Act”;

(ppp) Notwithstanding any law to the contrary, the President is hereby

authorized to realign and reprogram funds from P/A/Ps which cannot be utilized
effectively as a result of the COVID-I9 outbreak, whether released or unreleased,
the
allotments for which remain unobligated and utilize the savings generated
therefrom to fund the following priority programs:
1. Purchase of PPE for health workers and other frontliners;
2. Establishment of isolation and treatment facilities;
3. Construction of field hospitals;
4. Purchase of vaccine and/or cure for COVID-19 once available;
5. Hiring and provision of benefits for health workers and providing for their
allowances;
6. Testing for COVID-19; and
7. Subsidy for COVID-19 positive patients admitted to isolation centers:

Prouided, That appropriations for infrastructure projects shall not be subject of

reprogramming and realignment;

(qqq) Mandating the DOH to issue procedures and guidelines on the

establishment of private isolation and quarantine facilities created for the employees
of private enterprises who are infected with COVID-19 that comply with DOH and
WHO public health and safety standards: Provided, That the DILG shall ensure that
LGUs have supervision and authority over issuance of permits for the establishment
of privately-run isolation and quarantine facilities: Provided, furt her, That the
LGUs, through DILG, be mandated to fast-track the processing of tire issuance of
permits for the isolation and quarantine facilities through strict compliance with
Republic Act No. 9485 or the “Anti-Red Tape Act of 2007”, as amen‹1ed;

(rrr) Subject to the provisions of Republic Act No. 10173 or the “Data Privacy
Act of 2012” and Republic Act No. 11332 or she ‘Mandatory Reporting of Notifiable
Diseases and Health Events of Public Health Concern Act”, mandating the
DOH, in consultation with the National Privacy Commission, DICT, and DILG, to
immediately create and adopt a national online electronic application system
accessible to everyone in each LGU to provide contact tracing capacity, scheduled
transport capability, and information necessary to enable the government to do
effective contact tracing of all individuals in each locality; thereafter, mandating the
DTI to require adoption of the nationwide online electronic appfication at all private
establishments to monitor the movement of individuals and to serve as' a means of
enabling contact tracing for suspected COVID-l9 positive;

(sss) Notwithstanding any law to the contrary, directing the discontinuance of

unutilized automatic appropriations for debt service and available appropriations for
redemption of maturing government securities and use the savings generated
therefrom to augment the allocation for any item necessary for the purposes
identified in this Act. All amounts so reprogrammed, reallocated, or realigned shall
be deemed automatically appropriated for the said purposes: Provided, That for
interest payment, the savings will be generated from the unused appropriations
after actual payment of interest per monthly interest payment submitted by the BTr
to the DBM: Prouided, further, 'I'hat for principal repayment, the savings will be
generated from the funds freed up as a result of a debt exchange by the BTr;

(ttt) Any unutilize d or unreleased balance in the Municipal Development Fund

created under Presidential Decree No. 1914 including investments and undrawn
portions of all loans shall be considered to have their purpose abandoned. All such
unspent, unutilized, unreleased, or undrawn money or funds shall be utilized and
are hereby automatically appropriated for LGU loans and borrowings from the GFIs,
including the provision of loan interest rate subsidy until 2022, and such measures
to address the COVID-19 situation and accomplish the declared national policy
herein: Provided, That all investments, loans, credits, grants, or other credit
accommodations existing at the time of effectivity of this Act shall be assigned to the
GFIs which shall henceforth have all the rights and obligations of the fund under
the contracts: Prouided, further, That the assigned funds shall be accessed and
utilized exclusively by the LGUs: Provided, furlherriiore, That all approved loans
and undi*bursed balances for committed LGU loans and borrowings will continue to
be disbursed and will be administered by the GFIs: Provided, no,ffy, That the Ten
billion peso (P10,000,000,000.00) proceeds of the Municipal Development Fund
Office (MDFO) investments in government securities are hereby automatically
appropriated for such measures to address the COVID-19 situation and
accomplish the declared national policy herein;

(uuu) Directing the appropriate GFIs to prioritize in their lending and ciedit line
operations, hospitals and health care institutions with cashflow or liquidity issues
during the state of national emergency as declared by the President: Provided,
That the GFIs shall adopt necessary mechanisms allowing hospitals and health
care institutions to borrow against arrears due 'them from the PhilHealth: Provided,
further, That as part of eligibility requirements, the availing hospitals and health
care institutions shall be duly accredited by PhilHealth;

(vvv) Directing the P-hilHealth to immediately release and/or reimburse the

funds due to the district, provincial, and city hospitals;

(www) Provision of regulatory relief during the effectivity of this Act for business
entities by directing the SEC and other regulatory agencies to desist from imposing
fines and other monetaq penalties for non-filing, late filing, failure to comply with
compulsory notification and other reportorial requirements relating to business
activities and transactions that promote continuity and capacity-building in all
sectors of the economy during the CQ;

(xxx) E nforcem ent of bed cap acity allocation of government and private
hospitals dedicated for COVID-19 response, as follows:
During the surge of COVID-19 cases, at least thirty percent (30%) of all current
e.uthorized bed capacity of government hospitals or the number of beds
corresponding to the need during the peak day of critical care capacity based on
updated projections from a DOH-recognized epidemiologic p rojection model for
COVID -19 shall be de dicated to acco.mmodate and service COVID-19 patients;

(1) During the surge of COVID-19 cases, at least twenty percent (20%) of all
current authorized bed capacity of private hospitals or the number of beds
corresponding to the need during the peak day of critical care capacity based on
updated projections from a DOH-recognized epidemiologic projection model for
COVID-19 shall be dedicated to accommodate and service COVID-19 patients:

Pro'uided, That the allocation of dedicated COVID-19 beds among t,he ICU,
isolation, and ward beds shall consider the case distribution, profile and service
capability of the health facility: Provided, /urt/ter, That the assignment of dedicated
COVID-19 beds within the network shall be equivalent to the corresponding
percentages ae provided herein: Prouided, furthermore, That there is a formalized
agreement among the health facilities in the network, such that for a network
composed of both private and government hospitals, the dedicated COVID-19 beds
shall be equivalent to at least thirty percent (30%);

(yyy) Construction of temporary medical isolation and quarantine facilities, field

hospitals, and dormitories and expansion of capacities of public hospitals
nationwide;

(zzz) Exemption of personal computers, laptops, tablets, or similar equipment

appropriate for use in schools, donated for distribution to public schools regardless
of level, including SUCs and vocational institutions under TESDA, from import
duties and taxes, including donor’s tax;

(aaaa) Realignment of the unused balance of the DepEd’s 2020 “New School
Personnel Positions” and “Basic Education Facilities” appropriations to the
Maintenance and Other Operating Expenses (MOOE) for “Operations of Schools
Elementary, Junior and Senior High School” under its “Support to Schools and
Learners Program” for the hiring of te acher-assistants, and for the production or
reproduction of modular learning materials for K-12;

(bbbb) Notwithstanding the provision of existing laws to the contrary, the net
operating loss of the business or enterprise for taxable years 2020 and 2021 shall
be carried over as a deduction from gross income for the next five (5)
arbitrary ejectment from dwelling, or unlawful deprivation of liberty,
consecutive taxable years immediately following the year of such loss: Provided,
That this subsection shall remain in effect even after the expiration of this Act; and

(cccc) Utilization of funds as provided in Section 10 of this Act.

SEO. 5. Exemption fro rn Tax of Retire ment Benefits. - Retirement benefits

received by officials and employees of private firms; whether individual or corporate,
from June 5, 2020 until December 31, 2020 shall be excluded from gross income
and shall be exempt from taxation: Provided, That any re-employment of such
official or employee in the same fern, within the succeeding twelve (12)-month
period, shall be considered as proof of non-retirement and shall subject the benefits
received to appropriate taxes. In addition to the payment of appropriate taxes, any
person who willfully evades or deme ats any imposable tax un6er this section- shall
be criminally liable and penalized under Section 255 of Republic Act No. 8424, as
amended.

SEC. 6. Tax on Sat, Barlei or Exchange of S!hares of Stock. Listed and froded
Through Initial Public O ffes. Section 127(B) of the National Internal Revenue
Code of 1997, as amended, is hereby repealed.

SEC. 7. Notionnf Referral S ysteni. — There shall be established a COVID- l9

National Referral System jointly developed by the DOH and the Philippine Red
Cross to provide patients a fast and efficient way to locate and avail of the services
of hospitals, clinics, isolation centers, other health facilities, blood banks,
convalescent plasma facilities, and ambulance systems: Provided, That this section
shall remain in effect even after the expiration of this Act.

SEC. 8. Noii-Discrini rna tiou. - In addition to acts or omissions akeady penalized by

existing laws, any person found to have committed any act or series of acts against
a person declared confirmed, suspected, probable, exposed, or recovered of the
COVID -19 virus, returning OFWs, health workers, frontliners, other service
workers, or indigent which result in unjust distinction, exclusion, restriction, physical,
psychological harm or suffering, intimidation, harassment, damage to property,
public ridicule or humiliation, verbal abuse, shall be penalized with imprisonment
of six (6) months and a fine of One hundred thousand pesos (P100,000.00).

SEC. 9. Authorit y to Direct tke Operation of Private Esmblishments Dtsririg the

Effectiuit y of this Act. - Consistent with Article XII, Section 17 of the Constitution,
when the public interest so requires, the President, during the effeetivity of this Act,
may direct the operation of any privately-owned hospitals‘ and medical and health
facilities including passenger vessels and other establishments, to house health
workers, serve as quarantine areas, quarantine centers, medical relief and aid
distribution locations, or other temporary medical facilities; an6 public
transportation to ferry health, emergency, and frontline
personnel and other persons: Provided, That the management and operation of the
foregoing enterprises shall be retained by the owners of the enterprise, who shall
render a full accounting to the President or his duly authorized representative of the
operations of the utility or business as basis for appropriate compensation: Pro
uided, fiirther, That reasonable compensation for any additional damage or costs
incurred by the owner or the possessor of the subject property solely on account of
complying with the directive shall be given to the person entitled to the possession
of such private properties or businesses after the situation has stabilized or at the
soonest time practicable: Pro uided, furthermore, That if the foregoing enterprises
unjustifiably refuse or signify that they are no longer capable of operating their
enterprises for the purpose stated herein, the President may talce over their
operations subject to the limits and safeguards enshrined in the Constitution.

SEC. 10. Appropriat tous and !Starid b y go rt d. — The amounts that will be raised
under Section 4 paragraphs (pp), (qq), (rr), (ss), (sss) and (ttt) of this Act shall be
used for the response and recovery interventions for the COVID -19 pandemic
authorised in this Act and the following:

A. Thirteen billion five hundred million p esos (Pl3,500,000,000.00) for the following
health-related responses:

1. Continuous employment of existing emergency HRH and additional emergency

HRH for hiring;
2. Augmentation for operations of DOH Hospitals;
3. Special risk allowance for all public and private health workers directly catering to
or in contact with COVID-19 patients for every month that they are serving during
the state of national emergency as declared by the President;
4. Actual hazard duty pay for all health workers serving in the front line during the
state of national emergency as declared by the President;
5. Free life insurance, accommodation, transportation and meals for all public and
private health workers; and
6. Compensation to public and private health workers who may contract mild or
severe/critical COVID-19 infection while in the line of duty, and those who may die
while fighting the COVID -19 pandemic;

B. Three billion pesos (P3,000,000,000.00) for procurement of face masks, PPE,

shoe covers and face shields to be provided to all local health workers, barangay
officials, and other indigent persons that need protection to prevent the spread of
COVID -19: Prouided, That preference shall be given to products manufactured,
produced, or made in the Philippines;
C. Four billion five hundred million pesos (P4,500,000,000.00) to finance the
construction of temporary medical isolation and quarantine facilities, field hospitals,
dormitories for frontliners, and for the expansion of government hospital capacity all
over the country;
D. Thirteen billion pesos (Pl3,000,000,000.00) for the implementation of the
following:

(1) Cash-for-work programs for displaced workers as may be necessary in the

management of or response to the COVID-19 pandemic, such as, but not limited to,
TUPAD,
CAMP and DOLE-AKAP for OFW; and

(2) Unemployment or involuntary separation assistance for displaced workers

or employees, such as those in private health institutions, culture and arts, creative
industry including, but not limited to, film and audiovisual workers, construction,
public transportation, and trade and industries, cooperatives, and other sectors of
the economy as may

entified by the DOLE, in coordination with the BIR, and SSS; freelaneers, the self-
employed and repatriated OFWs including OFW s whose deployment were su
spende d due to a government-imposed deployment ban;

(c) Thirty-nine billion four hundred seventy-two million five hundred thousand
pesos (P39,472,500,000.00) for the infusion of capital to GFIs to be allocated as
follows:

(1) Five billion pesos (P5,000,000,000.00) for the credit guarantee program of
the PhilGuarantee;

(2) Eighteen billion four hundred seventy-two million five hundred thousand
pesos (P18,472,500,000.00) to support wholesale banking and equity infusion of
the LBP for low interest loans to be extended to persons and entities engaged in
industries affected by the COVID-19 pandemic;

(3) Six billion pesos (P6, 000,000, 000.00) to support wholesale banking and
equity infusion of the DBP for low interest loans to be extended to persons and
entities engaged in industries affected by the COVID-19 pandemic; and

(4) Ten billion pesos (P10,000,000,000.00) as additional funding for the

CARES Program of the SBCorp and for its other lending programs, as well as
interest subsidy, to be extended to MSMEs, cooperatives, hospitals, tourism
industry, and OFWs affected by the COVID-19 pandemic and by other
socioeconomic reversals;
(5) Twenty-four billion pesos (P24,000,000,000.00) to provide direct cash or
loan interest rate subsidies, under the programs of the Department of Agriculture-
Agricultural Credit Policy Council (DA-ACPC) and other forms of assistance to
qualified agri-fishery enterprises, farmers and fisherfolk registered under the
Registry System for Basic Sectors in Agricultme (RSBSA), and agriculture
cooperatives, to finance the Plant, Plant, Plant Program to ensure food security
and continuous productivity in the agricultural sector including accessibility
through farm to market roads;
(6) Nine billion five hundred million pesos (P9,500,000,000.00) to finance the
following programs of the DOTr:

(1) Two billion six hundr ed four million pesos (P2,604,000,000.00) to assist the
critically impacted businesses in the transportation industry;

(2) Five billion five hundred eighty million pesos (P5,580,000,000.00) to provide
temporary livelihood to displaced workers in the industry through service
contracting, regardless of quarantine levels, of pubLc utility vehicles, as provided in
this Act, as follows: "

(i) Three billion pesos (P3,000,000,000.00) for public utility jeepney drivers; and

(ii) Two billion five hundred eighty million pesos (P2,580,000,000.00) for drivers
of other public utility vehicles;

(3) One billion three hundred sixteen million pesos (P1,316,000,000.00) to

develop accessible side Walks and protected bicycle lanes, procurement of bicycles
and related safety equipment for bicycle distribution, sharing and lending programs,
and procuremqent of bicycle racks;

(h) One hundred million pesos (P100,000,000.00) to finance the training and
subsidies for tourist guides;

(i)Three billion pesos (P3,000,000,000.00) to assist SUCs in the

development of smart campuses through investments in ICT infrastructure,
acquisition of learning management systems and other appropriate equipment to
fully implement flexible learning modalities;

(j)Six hundred million pesos (PG00,000,000.00) for subsidies and allowances

to qualified students of public and private elementary, secondary, and tertiary
education institutions;

(k) Three hundred million pesos (P300,000,000.00) for subsidies and

allowances of displaced teaching and non-teaching personnel, including part-time
faculty, in private and public elementary, secondary, and tertiary education
institutions including part-time faculty in SUCs;

(l)One billion pesos (P1,000,000,000.00) as additional scholarship funds of

TESDA under its Training for Work

Scholarship Program (TWSP) and Special Training for Employment Program

(STEP) for the retooling, retraining, and upzkilling of displaced workers including
returning OFWs, as well as provision of tool kits under the STEP;

(m)Six billion pesos (P6,000,000,000.00) to finance DSWD programs such as,

 but not limited to, AICS, emergency subsidy to cater for areas which will be
placed on granular lockdown, Sustainable Livelihood Program (SLP) for informal
sectors not being catered by DOLE, distribution of food and non-food items,
livelihood assistance grants, and supplemental feeding program for daycare
children: Provided, further, That funds of the AICS program can also be utilized to
address COVID-19 response and recovery and to procure food packs subject to
the existing circulars of DSWD;

(n) Four billion pesos (P4,000,000,000.00) to assist the DepEd in the

implementation of Digital Education, Information Technology (IT) and Digital
Infrastructures and Alternative Learning Modalities, including printing and delivery of
self-learning modules of the DepEd;

(o) One billion five hundred million pesos (Pl,500,000,000.00) as assistance to

LGUs under the Local Government Support Fund (LGSF);

(p) One hundred eighty million pesos (P180,000,000.00) to finance the

allowances for National Athletes and Coaches whose allowances were reduced due
to the pandemic;

(q) Eight hundred twenty million pesos (P820,000,000.00) for the

augmentation of the Department of Foreign Affairs- Office of the Migrant Workers
Affairs 2020 Assistance-to- Nationals Fund for repatriation-related expenses,
shipment of remains and cremains of overseas Filipinos (OFs) who passed away
due to COVID-19, medical assistance of OFs, and other assistance that may be
provided for OFs who are affected by the pandemic;

(r) Four billion pesos (P4,000,000,000.00) for the tourism industry, to be

distributed as follow z:

(l) One billion pesos (Pl,000,000,000.00) for the Tourism

Road Infrastructure Programs of DPWH; and
(1) Three billion pesos (P3,000, 000,000.00) for the
implementation of cash-for-work programs under DOLE snd for the unemployment
and involuntary separation assistance for displaced workers or employees;

(s) Four billion five hundred million pesos (P4,500, 000,000.00) for
construction and maintenance of isolation facilities including billing of hotels, food
and transportation to be used for ’the COVID-19 response and recovery program by
the Office of Civil Defense as the head of the National Task Force against
COVID-19;

(t)Five billion pesos (P5,000,000,000.00), subject to Section 4(b) hereof, to

finance the hiring of at least 50,000 contact tracers to be implemented by the DILG
which shall include, but not limited to, recruitment, training, compensation,
monitoring, logistics, and operational expenses;

(u) Tw o million five hundre d thousand pesos (P2,500,000.00) for Professional

Regulation Commission’s computer-based licensure examination;
 (v) Two billion pesos (P2,000,000,000.00) to subsidize the payment of interest
on new and existing loans secured by the LGUo from LBP and DBP at One billion
pesos (Pl,000,000,000) each;

(w) Ten million pesos (P10,000,000.00) for the HTAC research fund to provide
for the commissioning of more COVID-19 research and enhance its internal
capacity of evidence generation; and

(x) Fifteen million pesos (P15,000,000. 00) for the establishment of a

computational research laboratory in the University of the Philippines-Diliman
Institute of Mathematics to process big data analysis for COVID-19 and other
pandemic research.

In addition, a standby fund in the amount of Twenty-five billion five hundred

twenty-seven million and five hundred thousand pesos (P25, 527,500,000.00) is
hereby authorized and shall be made available once additional funcis are generated
from savings and unused amounts to fund the following:

(1) Ten billion pesos (P10,000,000,000.00) for COVID-19 testing and

procurement of COVID-19 medication and vaccine;

(2) Nine billion twenty-seven million and five hundred thousand pesos
(P9,027,500,000.00) to support wholesale banking and equity infusion of the LBP
for low interest loans to be extended to persons and entities engaged in industries
affected‘by the COVID-19 pandemic;

(3) Six billion five hundred million pesos (P6,500,000,000.00) to support

wholesale banking and equity infusion of the DBP for low interest loans to be
extended to persons and entities engaged in industries affected by the COVID-19
pandemic; and
(4) All other programs and activities authorized in this Act:

Provided, That the DBM shall submit reports on the releases made pursuant to
this section as part of the monthly report as mandated in Section 14 of this Act.

SEC. 11. !Sources of f' undirig. — The enumerated siibsidy and stimulus
measures, as well as all other measures to address the COVID-19 pandemic shall
be funded from the following:

(a) 2020 GAA: Prouided, That funds for the herein authorised programs and
projects shall be sourced primarily from the unprogrammed funds and savings
realised from modified, realigned, or reprogrammed allocations for operational
expense of any government agency or instrumentality under the Executive
Department, including, but not limited to, travelling expenses, supplies and
materials expenses, professional services, general services, advertising expenses,
printing and publication expenses, and other maintenance and operating expenses
in the 2020 GAA;

(b) Savings pooled pursuant to Republic Act No. 11469 and Section 4
paragraphs (pp), (qq), (rr), (ss), (sss) and (ttt) of this Act; Excess revenue
collections in any one of the identified
SEC. 12. Procurement of COMD- I9 Dr mgs arid Vaccine tax or non-tax
revenue sources from its coiaesponding revenue collection target, as provided in
the FY 2020 Budget of Expenditures and Sources of Financing (BESF);

(a) New revenue collections or those arising from new tax or non-tax sources
which are not part of nor included in the original sources included in the FY
2020 BESF;

(b) All Amounts derived from the cash, funds, and investments held by any GO
CC or any national government agency;

(c) Amounts derived from the five percent (5%) franchise tax on the gross bets
or turnovers or the agreed pre-determined minimum monthly revenues from gamin
g op erations, whichever is higher, earned by offshore gaming licensees, including
gaming operators, gaming agents, servicerproviders and gaming support providers;

(d) Income tax, VAT, and other applicable taxes on income from non-gaming
operations earned by offshore gaming licensees, operators, agents, service
providers and support providers.

The tax shall be computed on the peso equivalent of the foreign currency used,
based on the prevailing official exchange rate at the time of payment, otherwise the
same shall be considered as a fraudulent act constituting underdeclaration of
taxable receipts or income, and shall be subject to interests, fines and penalties
under Sections 248(B), 249(B), 253, and 255 of the National Internal Revenue Code
of the Philippines.

After two (2) years or upon a determination that the threat of COVID-19 has been
successfully contained or abated, whichever comes first, the revenues derived from
franchise taxes on gross bets or turnovers under paragraph (f) and income from
non-gaming operations under paragraph (g) shall continue to be collected and shall
accrue to the General Fund of the Government. The BIR shall implement closure
orders against offshore gaming licensees, operators, agents, service providers and
support providers who fail to pay the taxes due, and such entities shall cease to
operate. — Notwithstanding any law to the contrary, the requirement of Phase IV
trials for COVID-19 medication and vaccine stipulated in the Universal Health Care
Law is hereby waived to expedite the procurement of said medication and vaccine:
Prouided, That these are recommended and approved by the WHO and/or other
internationally recognized health agencies: Provided, farthe r, That the minimum
standards for the distribution of the said medication and vaccine shall be
determined by the FDA and HTAC, as may be applicable: Provided, furthermore,
That nothing in this Act shall prohibit private entities from conducting research,
developin g, manufacturing, importing, distributing or selling COVID-19 vaccine
sourced from registered pharmaceutical companies, subject to the provisions of this
Act and existing laws, rules and regulations: Provided, finall y, That this section
shall remain in effect three (3) months after December 19, 2020.

SEC. 13. Report to Congress. — Within one (1) week from the effectivity of this
Act, the DOH shall present a report to Congress detailing an improved COVID-19
surveillance and control plan, which shall include improvements to data monitoring
and communication, instilling of proper COVID related conduct in the public, and
controlling the spread of the virus particularly in areas with high disease
transmission, among others.

SEC. 14. Reportorial Requirement artd Creat tou of an Oversight Committee. -

The President, every first Monday of the month, shall submit a monthly report to
Congress and to the Commission on Audit (COA) of all acts performed pursuant to
this Act during the immediately preceding month including a report on the targets
and actual accomplishments of government programs, strategies, plans, and efforts
relative to the COVID-19 pandemic as well as relevant and more granulated health-
related data, and such other information which Congress and COA may require.
The terms and conditions of any loan entered into by the government to finance the
programs and projects to implement this law shall likewise be included in the
Report. The Report shall also contain detailed BESF tables for COVID-19, similar to
the BESF tables submitte‹1 to Congress by the Development Bu6get Coordination
Committee.
For this purpose, the Cor.gress shall establish a Joint Congressional Oversight
Committee composed of four (4) members of each House to be appointe d by the
Senate President and the House Speaker, i’espectively. This Committee shall
determine whether such acts, orders, rules and regulations are within the
restrictions provided herein.

SEC. 15. Goris t ructiori or In termi etat tori. — Nothing herein shall be construed as
ah impairment, restriction or modification of the provisions of the Constitution. In
case the This Act which is a consoLdation of Senate Bill No. 1564 and House Bill
No. 6953 was passed by the Senate of the Philippines and the House of
Representatives on August 20, 2020 and August 24, 2020, reepectivély exercise of
the powers herein granted conflicts with other statutes, orders, rules or regulations,
the provisions of this Act shall prevail.

SEC. 16. !Separabilily Clause. - If any provision of this Act or the application of
such provision to any person or circumstance is declared invalid, the remainder of
this Act or the application of such provision to any other person or circumstance
shall not be affected by such declaration.

SEC. 17. Repeol ing Clause. — Republic Act No. 11469 is repealed upon the
adjournment of the First Regular Session.
 Republic of the Philippines
Congress of the Philippines
Aletro HMavila
Eighteenth Congress
First Regular Session

Begun and held in Metro Manila, on Monday, the twenty-second

day of July, two thousand nineteen.

[ REPUBLIC ACT No. 11493]

AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25)

YEARS THE FRANCHISE GRANTED TO BICOL
BROADCASTING SYSTEMS, INC. UNDER REPUBLIC
ACT NO. 8092, ENTITLED “AN ACT GRANTING THE
BICOL BROADCASTING SYSTEMS, INC. (BBSI), A
FRANCHISE TO ESTABLISH, OPERATE AND
MAINTAIN COMMERCIAL RADIO AND TELEVISION
BROADCASTING STATIONS IN REGION V”

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, the franchise granted to
Bicol Broadcasting Systems, Inc., hereunder referred to as the grantee, its
successors or assignees, under Republic Act No. 8092, to construct, install,
establish, operate, and maintain for commercial purposes and in the public interest,
radio and/or television broadcasting stations where frequencies and/or channels are
still available for radio and/or television broadcasting, including digital television
system, through microwave, satellite or whatever means, as well as the use of any
new technology in television and radio systems, with the corresponding technological
auxiliaries and facilities, special broadcast and other program and distribution
services and relay stations in the Bicol Region, is hereby renewed for another
twenty-five (25) years from the effectivity of this Act.

SEC. 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 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.
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 the construction and operation of its stations or
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.

The grantee shall not dispose or lease its facilities except to entities with radio or
television broadcasting franchise: Provided, That the grantee shall inform and secure
written authorization to proceed from the NTC, and report the transaction to the NTC
within sixty (60) days after its completion: Provided, further, That the NTC shall
determine the corresponding sanction for any violation of this provision. In case of
violation/s of any of the provisions of this franchise, the NTC shall have the authority
to revoke or suspend, after due process, the permits, or licenses issued by the NTC
pursuant to the franchise. NTC may recommend to Congress the revocation of the
franchise if there are any violation/s of the provisions of the franchise.

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 populations or portions thereof, on important public issues and relay
important public announcements and warnings concerning public emergencies and
calamities, 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 including closed captioning: and not use its
stations or facilities for the broadcasting of obscene or indecent language, speech,
act or scene; or for the dissemination of deliberately false information or willful
misrepresentation, to the detriment of public interest; or to incite, encourage, or
assist in subversive or treasonable acts.

Public service time referred herein shall be equivalent to a maximum aggregate of

ten percent (10%) of the paid commercials or advertisements which shall be
allocated based on need to the Executive and Legislative branches, the Judiciary,
Constitutional Commissions, and international humanitarian organizations duly
recognized by statutes: Provided, That the NTC shall increase the public service
time in case of extreme 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.
Pursuant to Republic Act No. 8370, the grantee shall allot a minimum of fifteen
percent (15%) of the daily total air time of each broadcasting network to child-friendly
show/s within its regular progring.

SEC. 5. Right of the Government. — 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. 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 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 during the period when these shall be so operated.

SEC. 6. Term of Franchise. — This franchise shall be in effect for a period of twenty-
five (25) years from the 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.

SEC. 7. 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, but if any such 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 speech, play, act or
scene, or other matter: Provided, That the grantee, during any broadcast, shall cut
off the airing of 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.

SEC. 8. Warranty in Favor of the National and Local Governments. — The grantee
shall hold the national, provincial, city, and municipal governments of the Philippines
free from all claims, liabilities, demands, or actions arising out of accidents causing
injury to persons or damage to properties, during the construction or operation of the
stations of the grantee.

SEC. 9. Commitment to Provide and Promote the Creation of Employment

Opportunities, — The grantee shall create employment opportunities and shall allow
on-the-job trainings in their franchise operation: Pro vided, That priority shall be
accorded to the residents of the place where their principal office is located:
Provided, further, That the grantee shall follow the applicable labor standards and
allowance entitlement under existing labor laws, rules and regulations and similar
issuances: Provided, finally, That the employment opportunities or jobs created shall
be reflected in the General Information Sheet (GIS) to be submitted to the Securities
and Exchange Commission (SEC) annually.

SEC. 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. —

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 the controlling interest of the grantee be transferred,
simultaneously or contemporaneously, to any person, firm, company, corporation, or
entity without the prior approval of the Congress of the Philippines. Congress shall
be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise
or the rights and privileges acquired thereunder, or of the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after the completion of the
said transaction. Failure to report to Congress such change of ownership shall
render the franchise ipso facto revoked. Any person or entity to which this franchise
is sold, transferred, or assigned shall be subject to the same conditions, terms,
restrictions, and limitations of this Act.

SEC. 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 ofits 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. 12. 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 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 its franchise. The
annual report shall include an update on the roll-out, development, operation and/or
expansion of business; audited financial statements; latest GIS officially submitted to
the SEC, if applicable; certification of the NTC on the status of its permits and
operations; and an update on the dispersal of ownership undertaking, if applicable.
The reportorial compliance certificate issued by Congress shall be required before
any application for permit or certificate is accepted by the NTC.

SEC. 13. Fine. — Failure of the grantee to submit the requisite annual report to
Congress shall be penalized by a fine of Five hundred pesos (P500.00) per working
day of noncompliance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed
by the NTC and the same shall be remitted to the Bureau of the Treasury.

SEC. 14. 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 territorial
coverage, the term, or the type of service authorized by the franchise.

SEC. 15. 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.

SEC. 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. :

SEC. 17. Repealing Clause. — All laws, decrees, orders, resolutions, instructions,
rules and regulations, and other issuances or parts thereof which are inconsistent
with the provisions of this Act are hereby repealed, amended, or modified
accordingly.
SEC. 18. Effectivity. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Republic of the Philippines

Congress of the Philippines
Aleteo Msi
Righteentl Congress
First Regular Session

Begun and held in Metro Manila, on Monday, the twenty-second

day of July, two thousand nineteen.

[ REPUBLIC AcT No. 11492] |

AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25)

YEARS THE FRANCHISE GRANTED TO GOLD
LABEL BROADCASTING SYSTEM, INC. UNDER
REPUBLIC ACT NO. 8087, ENTITLED “AN ACT
GRANTING TO THE GOLD LABEL BROADCASTING
SYSTEM, INC., A FRANCHISE TO ESTABLISH,
MAINTAIN, AND OPERATE RADIO AND TELEVISION
BROADCASTING STATIONS IN DUMAGUETE CITY
AND OTHER AREAS IN THE VISAYAS AND MINDANAO
WHERE FREQUENCIES AND/OR CHANNELS ARE
STILL AVAILABLE FOR RADIO AND TELEVISION
BROADCASTING”

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, the franchise granted to
Gold Label Broadcasting System, Inc., hereunder referred to as the grantee, its
successors or assignees, under Republic Act No. 8087, to construct, install,
establish, operate, and maintain for commercial purposes and in the public interest,
radio broadcasting stations where frequencies and/or channels are still available for
radio broadcasting, through microwave, satellite or whatever means, including the
use of any new technology in radio systems, with the corresponding technological
auxiliaries and facilities, special broadcast and other program and distribution
services and relay stations in Dumaguete
City and other areas in the Visayas and Mindanao, is hereby renewed for another
twenty-five (25) years from the effectivity of this Act.

SEC. 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 ofexisting
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.

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 the construction and operation of its stations or
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. The grantee shall not dispose or lease its
facilities except to entities with radio or television broadcasting franchise: Provided,
That the grantee shall inform and secure written authorization to proceed from the
NTC, and report the transaction to the NTC within sixty (60) days after its
completion: Provided, further, That the NTC shall determine the corresponding
sanction for any violation of this provision. In case of violation/s of any of the
provisions of this franchise, the NTC shall have the authority to revoke or suspend,
after due process, the permits, or licenses issued by the NTC pursuant to the
franchise. NTC may recommend to Congress the revocation of the franchise if
there are any violation/s of the provisions of the franchise.

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 populations or portions thereof, on important public issues and relay
important public announcements and warnings concerning public emergencies and
calamities, 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 including closed captioning; and not use its
stations or facilities for the broadcasting of obscene or indecent language, speech,
act or scene; or for the dissemination of deliberately false information or willful
misrepresentation, to the detriment of public interest; or to incite, encourage, or
assist in subversive or treasonable acts. Public service time referred herein shall be
equivalent to a maximum aggregate of ten percent (10%) of the paid commercials or
advertisements which shall be allocated based on need to the Executive and
Legislative branches, the Judiciary, Constitutional Commissions, and international
humanitarian organizations duly recognized by statutes: Provided, That the NTC
shall increase the public service time in case of extreme 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. Pursuant to Republic Act No. 8370, the grantee shall allot a
minimum of fifteen percent (15%) of the daily total air time of each broadcasting
network to child-friendly show/s within its regular programming.

SEC. 5. Right of the Government. — 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.

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
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 stations or facilities during the period when these shall
be so operated.

SEC. 6. Term of Franchise. — This franchise shall be in effect for a period of

twenty-five (25) years from the 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.

SEC. 7. Self-regulation by and Undertaking of the 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, 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 speech,
play, act or scene, or other matter: Provided, That the grantee, during any
broadcast, shall cut off the airing of 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.

SEC. 8. Warranty in Favor of the National and Local Governments. — The grantee
shall hold the national, provincial, city, and municipal governments of the
Philippines free from all claims, liabilities, demands, or actions arising out of
accidents, causing injury to persons or damage to properties, during the
construction or operation of the stations of the grantee.

SEC. 9. Commitment to Provide and Promote the Creation of Employment

Opportunities. — The grantee shall create employment opportunities and shall
allow on-the-job trainings in their franchise operation: Provided, That priority shall
be accorded to the residents of the place where their principal office is located:
Provided, further, That the grantee shall follow the applicable labor standards and
allowance entitlement under existing labor laws, rules and regulations and similar
issuances: Provided, finally, That the employment opportunities or jobs created
shall be reflected in the General Information Sheet (GIS) to be submitted to the
Securities and Exchange Commission (SEC) annually.

SEC. 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. —

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 the controlling interest of the grantee be transferred,
simultaneously or contemporaneously, to any person, firm, company, corporation,
or entity without the prior approval of the Congress of the
Philippines. Congress shall be informed of any sale, lease, transfer, grant of
usufruct, or assignment of franchise or the rights and privileges acquired
thereunder, or of the merger or transfer of the controlling interest of the grantee,
within sixty (60) days after the completion of the said transaction. Failure to report
to Congress such change of ownership shall render the franchise ipso facto
revoked. Any person or entity to which this franchise is sold, transferred, or
assigned shall be subject to the same conditions, terms, restrictions, and limitations
ofthis Act.

SEC. 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 ofits outstanding capital stock in any securities

SEC. 12. Reportorial Requirement. — The grantee shall submit an annual report to
the Congress of the Philippines, the franchise and on its operations on or before
April 30 of every year during the term of its franchise. The annual report shall
include an update on the roll-out, development, operation and/or expansion of
business; financial statements; latest GIS officially submitted to the SEC, if
applicable; certification of the NTC on the Status ofits permits and operations; and
an update on the dispersal of ownership undertaking, if applicable. The reportorial
compliance certificate issued by Congress shall be required before any application
for permit or certificate is accepted by the NTC.

SEC. 13. Fine. — Failure of the grantee to submit the requisite annual report to
Congress shall be penalized by a fine of Five hundred pesos (P500.00) per working
day of noncompliance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC and
the same shall be remitted to the Bureau of the Treasury.

SEC. 14. 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 territorial coverage, the term, or the type of service
authorized by the franchise.

SEC. 15. 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.

SEC. 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.

SEC. 17. Repealing Clause. — All laws, decrees, orders, resolutions, instructions,
rules and regulations, and other issuances or parts thereof which are inconsistent
with
the provisions of this Act are hereby repealed, amended, or modified accordingly.
SEC. 18. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

H. No. 4584

Republic of the Philippines

Congress of the Philippines
Metra Manila z
Righteenth Congress

First Regular Session

Begun and held in Metro Manila, on Monday, the twenty-second

day of July, two thousand nineteen.

[ REPUBLIC ACT No.11491]

AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25)

YEARS THE FRANCHISE GRANTED TO CRUSADERS
BROADCASTING SYSTEM, INC., UNDER REPUBLIC
ACT NO. 8091, ENTITLED “AN ACT GRANTING THE
CRUSADERS BROADCASTING SYSTEM, INC., A
FRANCHISE TO CONSTRUCT, ESTABLISH, OPERATE,
AND MAINTAIN COMMERCIAL RADIO AND
TELEVISION BROADCASTING STATIONS WITHIN
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, the franchise granted to
Crusaders Broadcasting System, Inc., hereunder referred to as the grantee, its
successors or assignees, under Republic Act No. 8091, to construct, install,
establish, operate, and maintain for commercial purposes and in the public interest,
radio and/or television broadcasting stations, where frequencies and/or channels are
still available for radio and/or television broadcasting, including digital television
system, through microwave, satellite or whatever means, including the use of any
new technologies in television and radio systems, with the corresponding
technological auxiliaries and facilities, special broadcast and other program and
distribution services and relay stations in the Philippines, is hereby renewed for
another twenty- five (25) years from the effectivity of this Act.

SEC. 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 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. ‘i

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 the construction and operation ofits stations or
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.

The grantee shall not dispose or lease its facilities except to entities with radio or
television broadcasting franchise: Provided, That the grantee shall inform and secure
written authorization to proceed from the NTC, and report the transaction to the NTC
within sixty (60) days after its completion: Provided, further, That the NTC shall
determine the corresponding sanction for any violation of this provision.

In case of violation/s of any of the provisions of this franchise, the NTC shall have
the authority to revoke or suspend, after due process, the permits, or licenses issued
by the NTC pursuant to the franchise. NTC may recommend to Congress the
revocation of the franchise if there are any violation/s of the provisions of the
franchise.

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 populations or portions thereof, on important public issues and relay
important public announcements and warningsconcerning public emergencies and
calamities, 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 including closed captioning; and not use its
stations or facilities for the broadcasting of obscene or indecent language, speech,
act or scene; or for the dissemination of deliberately false information or willful
misrepresentation, to the detriment of public interest; or to incite, encourage, or
assist in subversive or treasonable acts.

Public service time referred herein shall be equivalent to a maximum aggregate of

ten percent (10%) of the paid commercials or advertisements which shall be
allocated based on need to the Executive and Legislative branches, the Judiciary,
Constitutional Commissions, and international humanitarian organizations duly
recognized by statutes: Provided, That the NTC shall increase the public service
time in case of extreme 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.

Pursuant to Republic Act No. 8370, the grantee shall allot a minimum of fifteen
percent (15%) of the daily total air time of each broadcasting network to child-friendly
show/s within its regular programming.
SEC. 5. Right of the Government. — 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.

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 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 during the period when these shall be so operated.

SEC. 6. Term of Franchise. — This franchise shall be in effect for a period of twenty-
five (25) years from the 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.

SEc. 7. Self-regulation by and Undertaking of the 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, but if any such 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 speech, play, act or
scene, or other matter: Provided, That the grantee, during any broadcast, shall cut
off the airing of speech, play, act or scene, or other matter being broadcast if the
tendency thereofis 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. 8. Warranty in Favor of the National and Local Governments. — The grantee
shall hold the national, provincial, city, and municipal governments of the Philippines
free from all claims, liabilities, demands, or actions arising out of accidents causing
injury to persons or damage to properties, during the construction or operation of the
stations of the grantee.

SEC. 9. Commitment to Provide and Promote the Creation of Employment

Opportunities. — The grantee shall create employment opportunities and shall allow
on-the-job trainings in their franchise operation: Provided, That priority shall be
accorded to the residents of the place where their principal office is located:
Provided, further, That the grantee shall follow the applicable labor standards and
allowance entitlement under existing labor laws, rules and regulations and similar
issuances: Provided, finally, That the employment opportunities or jobs created shall
be reflected in the General Information Sheet (GIS) to be submitted to the Securities
and Exchange Commission (SEC) annually.

SEC. 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. —

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 the controlling interest of the grantee be transferred,
simultaneously or contemporaneously, to any person, firm, company, corporation, or
entity without the prior approval of the Congress of the Philippines. Congress shall
be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise
or the rights and privileges acquired thereunder, or of the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after the completion of the
said transaction. Failure to report to Congress such change of ownership shall
render the franchise ipso facto revoked. Any person or entity to which this franchise
is sold, transferred, or assigned shall be subject to the same conditions, terms,
restrictions, and limitations of this Act.

SEC. 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 ofits 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 citizensand ~ corporations
operating public utilities as allowed by law. Noncompliance therewith shall render the
franchise ipso facto revoked.

SEC. 12. 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 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 ofevery year during the term of its franchise.

The annual report shall include an update on the roll-out, development, operation
and/or expansion of business; audited financial statements; latest GIS officially
submitted to the SEC, if applicable; certification of the NTC on the status of its
permits and operations; and an update on the dispersal of ownership undertaking, if
applicable.

The reportorial compliance certificate issued by Congress shall be required before

any application for permit or certificate is accepted by the NTC.

SEC. 13. Fine. — Failure of the grantee to submit the requisite annual report to
Congress shall be penalized by a fine of Five hundred pesos (P500.00) per working
day of noncompliance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC and
the same shall be remitted to the Bureau of the Treasury.

SEC. 14. 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 territorial
coverage, the term, or the type of service authorized by the franchise.

SEC. 15. 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. ;

SEC. 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.

SEC. 17. Repealing Clause. - All laws, decrees, orders, resolutions, instructions,
rules and regulations, and other issuances or parts thereof which are inconsistent
with the provisions of this Act are hereby repealed, amended, or modified
accordingly.

SEC. 18. Effectivity. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.
H. No. 4583

Republic of the Philippines

Congress of the Philippines
Metro Manila
Kighteenth Congress

First Regular Session

Begun and held in Metro Manila, on Monday, the twenty-second

day of July, two thousand nineteen.

[ REPUBLIC ACT No. 11482]

AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25)

YEARS THE FRANCHISE GRANTED TO BROADCAST
ENTERPRISES AND AFFILIATED MEDIA, INC. UNDER
REPUBLIC ACT NO. 8098 TO CONSTRUCT, INSTALL,
ESTABLISH, OPERATE, AND MAINTAIN RADIO AND
TELEVISION 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, the franchise granted to
Broadcast Enterprises and Affiliated Media, Inc., hereunder referred to as the
grantee, its successors or assignees, under Republic Act No. 8098, to construct,
install, operate, and maintain, for commercial purposes and in the public interest,
radio and television broadcasting stations, including cable and digital television
systems, pay service, through microwave, satellite, terrestrial, or broadcasting
through any other means, as well as the use of any new technology in television and
radio systems, with the corresponding auxiliaries and facilities, special broadcast and
other program and distribution services and relay stations in the Philippines, is
hereby renewed for another twenty-five (25) years.

SEC. 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 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.

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 the construction and operation of its stations or
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.

The grantee shall not dispose or lease its facilities except to entities with radio or
television broadcasting franchise: Provided, That the grantee shall inform and secure
written authorization to proceed from the NTC, and report the transaction to the NTC
within sixty (60) days after its completion:
Provided, further, That the NTC shall determine the corresponding sanction for any
violation of this provision.

In case of violation/s of any of the provisions of this franchise, the NTC shall have
the authority to revoke or suspend, after due process, the permits, or licenses issued
by the NTC pursuant to the franchise. NTC may recommend to Congress the
revocation of the franchise if there are any violation/s of the provisions of the
franchise.

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 populations or portions thereof, on important public issues and relay
important public announcements and warnings concerning public emergencies and
calamities, 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 including closed captioning; and not use its
stations or facilities for the broadcasting of obscene or indecent language, speech,
act or scene; or for the dissemination of deliberately false information or willful
misrepresentation, to the detriment of public interest; or to incite, encourage, or
assist in subversive or treasonable acts.

Public service time referred herein shall be equivalent to a maximum aggregate of

ten percent (10%) of the paid commercials or advertisements which shall be
allocated based on need to the Executive and Legislative branches, the Judiciary,
Constitutional Commissions, and international humanitarian organizations duly
recognized by statutes: Provided, That the NTC shall increase the public service
time in case of extreme 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.

Pursuant to Republic Act No. 8370, the grantee shall allot a minimum of fifteen
percent (15%) of the daily total air time of each broadcasting network to child-friendly
show/s within its regular programming.

SEC. 5. Right of the Government. — The radio spectrum is a finite resource that is
part of the national patrimony and the use thereofis a privilege conferred upon the
grantee by the State and may be withdrawn any time after due process.

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 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 stations or facilities during the period when these shall be so operated.

SEC. 6. Term of Franchise. — This franchise shall be in effect for a period of twenty-
five (25) years from the 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.

SEC. 7. 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, 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 speech, play, act or scene, or
other matter: Provided, That the grantee, during any broadcast, shall cut off the
airing of 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.

SEC. 8. Warranty in Favor of the National and Local Governments. — The grantee
shall hold the national, provincial, city, and municipal governments of the Philippines
free from all claims, liabilities, demands, or actions arising out of accidents, causing
injury to persons or damage to properties, during the construction or operation of the
stations of the grantee.

SEC. 9. Commitment to Provide and Promote the Creation of Employment

Opportunities. — The grantee shall create employment opportunities and shall allow
on-the-job trainings in their franchise operation: Provided, That priority shall be
accorded to the residents of the place where their principal office is located:
Provided, further, That the grantee shall follow the applicable labor standards and
allowance entitlement under existing labor laws, rules and regulations and similar
issuances: Provided, finally, That the employment opportunities or jobs created shall
be reflected in the General Information Sheet (GIS) to be submitted to the Securities
and Exchange Commission (SEC) annually.

SEC. 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. —

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 the controlling interest of the grantee be transferred,
simultaneously or contemporaneously, to any person, firm, company, corporation, or
entity without the prior approval of the Congress of the Philippines. Congress shall
be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise
or the rights and privileges acquired thereunder, or of the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after the completion of the
said transaction. Failure to report to Congress such change of ownership shall
render the franchise ipso facto revoked. Any person or entity to which this franchise
is sold, transferred, or assigned shall be subject to the same conditions, terms,
restrictions, and limitations of this Act.

SEC. 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 ofits 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. 12. 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 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 its franchise.

The annual report shall include an update on the roll-out, development, operation
and/or expansion of business; audited financial statements; latest GIS officially
submitted to the SEC, if applicable; certification of the NTC on the status of its
permits and operations; and an update on the dispersal of ownership undertaking, if
applicable.

The reportorial compliance certificate issued by Congress shall be required before

any application for permit or certificate is accepted by the NTC.

SEC. 13. Fine. — Failure of the grantee to submit the requisite annual report to
Congress shall be penalized by a fine of Five hundred pesos (P500.00) per working
day of noncompliance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC and
the same shall be remitted to the Bureau of the Treasury.

SEC. 14. 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 territorial coverage, the term, or the
type of service authorized by the franchise.

SEC. 15. 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.

SEC. 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.
SEC. 17. Repealing Clause. — All laws, decrees, orders, resolutions, instructions,
rules and regulations, and other issuances or parts thereof which are inconsistent
with the provisions of this Act are hereby repealed, amended, or modified
accordingly.

SEC. 18. Effectivity. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.
H. No. 4463

Republic of the Philippines

Congress of the Philippines
Metro Manila

Eighteenth Congress
First Regular Session

Begun and held in Metro Manila, on Monday, the twenty-second

day of July, two thousand nineteen.

[ REPUBLIC ACT No.11481]

AN ACT EXTENDING FOR ANOTHER TWENTY-FIVE (25)

YEARS THE FRANCHISE GRANTED TO FIRST UNITED
BROADCASTING CORPORATION, PRESENTLY
KNOWN AS GLOBAL SATELLITE TECHNOLOGY
SERVICES INC., AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 8079, AS AMENDED, ENTITLED
“AN ACT GRANTING THE FIRST UNITED
BROADCASTING CORPORATION (FUBC) A
FRANCHISE TO CONSTRUCT, INSTALL, OPERATE,
AND MAINTAIN FOR COMMERCIAL PURPOSES
RADIO AND TELEVISION BROADCASTING STATIONS
ANYWHERE IN THE PHILIPPINES, AND FOR OTHER»
PURPOSES”

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, the franchise granted to First
United Broadcasting Corporation (FUBC), presently known as Global Satellite
Technology Services Inc., its successors or assignees and hereunder referred to as
the grantee, to construct, install, operate, and maintain for commercial purposes and
in the public interest, radio and television broadcasting stations throughout the
Philippines, where frequencies and/or channels are still available for radio and/or
television broadcasting, including digital television system, through microwave, over
the top (OTT), uplink services or whatever means, including the use of any new
technology in television and radio systems, with the corresponding technological
auxiliaries and facilities, special broadcast and other program and distribution
services and relay stations in the Philippines, including multichannel microwave
transmission, repeater stations, translators, satellite transmission, and direct to home
user satellite broadcast system, cable or community antennae television system
(CATV), interactive system or station, transmitting, receiving, and switching stations,
both for local and international services, lines, fiber optics, microwave, satellite,
transmit and receive systems, control signals, audio and video systems, information
service bureau, pay and pay per view television, video on demand and public
information on demand services, multidisc read only memory, memory network
delivery, packet and frame relay and electronic mail services and other value-added
services and all other technologies as are presently available through technical
advances or innovations in the future, as is, or are convenient to or essential to
efficiently carry out the purpose of this franchise and to install radio communication
facilities for the grantee’s private use in its broadcast services, means of distribution
including the use of all new technologies in broadcasting as are at present available
or to be made available through technological advances or innovations in the future,
with the corresponding technological auxiliaries and facilities, special broadcast and
other broadcast distribution services, is hereby extended for another twenty-five (25)
years from the effectivity of this Act.

SEC. 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 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.

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 the construction and operation of its stations or
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.

The grantee shall not dispose or lease its facilities except to entities with radio or
television broadcasting franchise: Provided, That the grantee shall inform and secure
written authorization to proceed from the NTC, and report the transaction to the NTC
within sixty (60) days after its completion. Provided, further, that the NTC shall
determine the corresponding sanction for any violation of this provision.

In case of violation/s of any of the provisions of this franchise, the NTC shall have
the authority to revoke or suspend, after due process, the permits, or licenses issued
by the NTC pursuant to the franchise. NTC may recommend to Congress the
revocation of the franchise if there are any violation/s of the provisions of the
franchise.

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 populations or portions thereof, on important public issues and relay
important public announcements and warnings concerning public emergencies and
calamities, 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 including closed captioning; and not use its
stations or facilities for the broadcasting of obscene or indecent language, speech,
act or scene; or for the dissemination of deliberately false information or willful
misrepresentation, to the detriment of public interest; or to incite, encourage, or
assist in subversive or treasonable acts.

Public service time referred herein shall be equivalent to a maximum aggregate of

ten percent (10%) of the paid commercials or advertisements which shall be
allocated based on need to the Executive and Legislative branches, the Judiciary,
Constitutional Commissions, and international humanitarian organizations duly
recognized by statutes: Provided, That the NTC shall increase the public service
time in case of extreme 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.

Pursuant to Republic Act No. 8370, the grantee shall allot a minimum of fifteen
percent (15%) of the daily total air time of each broadcasting network to child-friendly
show/s within its regular programming.

SEC. 5. Right of the Government. — 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.

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 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 stations or facilities during the period when these shall be so operated.

SEC. 6. Term of Franchise. — This franchise shall be in effect for a period of twenty-
five (25) years from the 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.

SEC. 7. Self-regulation by and Undertaking of the 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, but if any such 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 speech, play, act or
scene, or other matter: Provided, That the grantee, during any broadcast, shall cut
off the airing of 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.

SEC. 8. Warranty in Favor of the National and Local Governments. — The grantee
shall hold the national, provincial, city, and municipal governments of the Philippines
free from all claims, liabilities, demands, or actions arising out of accidents, causing
injury to persons or damage to properties, during the construction or operation of the
stations of the grantee.
SEC. 9. Commitment to Provide and Promote the Creation of Employment
Opportunities. — The grantee shall create employment opportunities and shall allow
on-the-job trainings in their franchise operation: Provided, That priority shall be
accorded to the residents of the place where their principal office is located:
Provided, further, That the grantee shall follow the applicable labor standards and
allowance entitlement under existing labor laws, rules and regulations and similar
issuances: Provided, finally, That the employment opportunities or jobs created shall
be reflected in the General Information Sheet (GIS) to be submitted to the Securities
and Exchange Commission (SEC) annually.

SEC. 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. —

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 the controlling interest of the grantee be transferred,
simultaneously or contemporaneously, to any person, firm, company, corporation, or
entity without the prior approval of the Congress of the Philippines. Congress shall
be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise
or the rights and privileges acquired thereunder, or of the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after the completion of the
said transaction. Failure to report to Congress such change of ownership shall
render the franchise ipso facto revoked. Any person or entity to which this franchise
is sold, transferred or assigned shall be subject to the same conditions, terms,
restrictions, and limitations of this Act.

SEC. 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 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. 12. 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 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 its franchise.

The annual report shall include an update on the roll-out, development, operation
and/or expansion of business; audited financial statements; latest GIS officially
submitted to the SEC, if applicable; certification of the NTC on the status of its
permits and operations; and an update on the dispersal of ownership undertaking, if
applicable.

The reportorial compliance certificate issued by Congress shall be required before

any application for permit or certificate is accepted by the NTC.
SEC. 13. Fine. — Failure of the grantee to submit the requisite annual report to
Congress shall be penalized by a fine of Five hundred pesos (P500.00) per working
day of noncompliance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC and
the same shall be remitted to the Bureau of the Treasury.

Sec. 14. 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 territorial coverage, the term, or the
type of service authorized by the franchise.

SEC. 15. 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.

SEC. 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.

SEC. 17. Repealing Clause. — All laws, decrees, orders, resolutions, instructions,
rules and regulations, and other issuances or parts thereof which are inconsistent
with the provisions of this Act are hereby repealed, amended, or modified
accordingly.

SEC. 18. Effectivity. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.
 An Act Declaring the Existence of a National Emergency Arising from the
Coronavirus
Disease 2019 (COVID-19) Situation and a National Policy in Connection
Therewith, and Authorizing the President of the Republic of the Philippines for
a Limited Period and Subject to Restrictions, to Exercise Powers Necessary
and Proper to Carry Out the Declared National Policy and For Other Purposes
Republic Act No. 11469
Congress of the Philippines

25 March 2020

S. No. 1418

H. No. 6616

Republic of the Philippines

Congress of the Philippines
Metro Manila

Eighteenth Congress
First Special Session

Begun and held in Metro Manila, on Monday, the twenty-third day of March, two
thousand twenty.

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled:

SECTION 1. Short Title.— This Act shall be known and cited as “Bayanihan to Heal
As One Act”.

SECTION 2. State of National Emergency.— Presidential Proclamation No. 922, s.

2020, was issued declaring a State of Public Health Emergency throughout the
Philippines due to the Coronavirus Disease 2019 (COVID-19) and the Code Alert
System for COVID-19 was raised to Code Red Sublevel Two (2) in accordance with
the recommendation of the Department of Health (DOH) and the Inter-Agency Task
Force for the Management of Emerging Infectious Diseases. Further Presidential
Proclamation No. 929, s. 2020, was issued declaring a State of Calamity throughout
the Philippines and imposed an Enhanced Community Quarantine throughout Luzon.

In view of the continuing rise of confirmed cases of COVID-19, the serious threat to
the health, safety, security, and lives of our countrymen, the long-term adverse
effects on their means of livelihood, and the severe disruption of economic activities,
a state of national emergency is hereby declared over the entire country.

SECTION 3. Declaration of Policy.— The COVID-19 pandemic has greatly affected

nations worldwide, including the Philippines, and has caused and is continuing to
cause loss of lives and disruption to the economy. Thus, there is an urgent need to:
(a) mitigate, if not contain, the transmission of COVID-19; (b) immediately mobilize
assistance in the provision of basic necessities to families and individuals affected by
the imposition of Community Quarantine, especially indigents and their families; (c)
undertake measures that will prevent the overburdening of the healthcare system;
(d) immediately and amply provide healthcare, including medical tests and
treatments, to COVID-19 patients, persons under investigation (PUIs), or persons
under monitoring (PUMs); (e) undertake a program for recovery and rehabilitation,
including a social amelioration program and provision of safety nets to all affected
sectors; (f) ensure that there is sufficient, adequate and readily available funding to
undertake the foregoing; (g) partner with the private sector and other stakeholders to
deliver these measures and programs quickly and efficiently; and (h) promote and
protect the interests of all Filipinos in these challenging times. By reason thereof, and
in order to optimize the efforts of the President to carry out the tasks needed to
implement the aforementioned policy, it is imperative to grant him authority subject to
such limitations as hereinafter provided.

SECTION 4. Authorized Powers.— Pursuant to Article VI, Section 23 (2) of the

Constitution, the President is hereby authorized to exercise powers that are
necessary and proper to carry out the declared national policy. The President shall
have the power to adopt the following temporary emergency measures to respond to
crisis brought by the pandemic:

(a) Following World Health Organization guidelines and best practices, adopt and
implement measures to prevent or suppress further transmission and spread of
COVID-19 through effective education, detection, protection, and treatment;

(b) Expedite and streamline the accreditation of testing kits and facilitate prompt
testing by public and designated private institutions of PUIs and PUMs, and the
compulsory and immediate isolation and treatment of patients: Provided, That the
cost of treatment for COVID-19 patients shall be covered under the National Health
Insurance Program of the Philippine Health Insurance Corporation;

(c) Provide an emergency subsidy to around eighteen (18) million low income
households: Provided, That the subsidy shall amount to a minimum of Five thousand
pesos (₱5,000.00) to a maximum of Eight thousand pesos (₱8,000.00) a month for
two (2) months: Provided, further, That the subsidy shall be computed based on the
prevailing regional minimum wage rates: Provided, finally, That the subsidy received
from the current conditional cash transfer program and rice subsidy shall be taken
into consideration in the computation of the emergency subsidy as provided for in
this Act;

(d) Ensure that all public health workers are protected y providing them with a
“COVID-19 special risk allowance”, in addition to the hazard pay granted under the
Magna Carta of Public Health Workers or Republic Act No. 7305;

(e) Direct the Philippine Health Insurance Corporation (PhilHealth) to shoulder all
medical expenses of public and private health workers in case of exposure to
COVID-19 or any work-related injury or disease during the duration of the
emergency;
 (f) Provide compensation of One hundred thousand pesos (₱100,000.00) to public
and private health workers who ma contract severe COVID-19 infection while in the
line of duty Provided, further, That a compensation of One million pesos
(₱1,000,000.00) shall be given to public and private health workers, who may die
while fighting the COVID-19 pandemic Provided, finally, That this shall have
retroactive application from February 1, 2020;

(g) Ensure that all Local Government Units (LGUs) are acting within the letter and
spirit of all the rules, regulations and directives issued by the National Government
pursuant to this Act; are implementing standards of Community Quarantine
consistent with what the National Government has laid down for the subject area,
while allowing LGUs to continue exercising their autonomy in matters undefined by
the National Government or are within the parameters it has set; and are fully
cooperating towards a unified, cohesive and orderly implementation of the national
policy to address COVID-19: Provided, That all LGUs shall be authorized to utilize
more than five percent (5%) of the amount allocated for their calamity fund subject to
additional funding and support from the National Government;

(h) Consistent with Section 17, Article XII of the Constitution, when the public
interest so requires, direct the operation of any privately-owned hospitals and
medical and health facilities including passenger vessels and, other establishments,
to house health workers, serve as quarantine areas, quarantine centers, medical
relief and aid distribution locations, or other temporary medical facilities; and public
transportation to ferry health, emergency, and frontline personnel and other
persons: Provided, however, That the management and operation of the foregoing
enterprises shall be retained by the owners of the enterprise, who shall render a full
accounting to the President or his duly authorized representative of the operations of
the utility or business as basis for appropriate compensation: Provided, further, That
reasonable compensation for any additional damage or costs incurred by the owner
or the possessor of the subject property solely on account of complying with the
directive shall be given to the person entitled to the possession of such private
properties or businesses after the situation has stabilized or at the soonest time
practicable: Provided, finally, That if the foregoing enterprises unjustifiably refuse or
signify that they are no longer capable of operating their enterprises for the purpose
stated herein, the President may take over their operations subject to the limits and
safeguards enshrined in the Constitution;

(i) Continue to enforce measures to protect the people from hoarding, profiteering,
injurious speculations, manipulation of prices, product deceptions, and cartels,
monopolies or other combinations in restraint of trade, or other pernicious practices
affecting the supply, distribution and movement of food, clothing, hygiene and
sanitation products, medicine and medical supplies, fuel, fertilizers, chemicals,
building materials, implements, machinery equipment and spare parts required in
agriculture, industry and other essential services, and other articles of prime
necessity, whether imported or locally produced or manufactured;

(j) Ensure that donation, acceptance and distribution of health products intended to
address the COVID-19 public health emergency are not unnecessarily delayed and
that health products for donation duly certified by the regulatory agency or their
accredited third party from countries with established regulation shall automatically
be cleared: Provided, That this shall not apply to health products which do not
require a certification or clearance from Food and Drug Administration (FDA);

(k) Undertake the procurement of the following as the need arises, in the most
expeditious manner, as exemptions from the provisions of Republic Act No. 9184 or
the “Government Procurement Reform Act” and other relevant laws:

(1. )Goods, which may include personal protective equipment such as gloves,
gowns, masks, goggles, face shields, surgical equipment and supplies; laboratory
equipment and its reagents; medical equipment and devices; support and
maintenance for laboratory and medical equipment, surgical equipment and
supplies; medical supplies, tools, and consumables such as alcohol, sanitizers,
tissue, thermometers, hand soap, detergent, sodium hydrochloride, cleaning
materials, povidone iodine, common medicines (e.g., paracetamol tablet and
suspension, mefenamic acid, vitamins tablet and suspension, hyoscine tablet and
suspension, oral rehydration solution, and cetirizine tablet and suspension); testing
kits, and such other supplies or equipment as may be determined by the DOH and
other relevant government agencies: Provided, That the DOH shall prioritize the
allocation and distribution of the aforesaid goods, supplies and other resources to
the following:

i. Public health facilities in the regions, provinces, or cities, that are designated as
COVID-19 referral hospitals, such as, but not limited to, Philippine General Hospital,
Lung Center of the Philippines, and Dr. Jose N. Rodriguez Memorial Hospital;

ii. Private hospitals which have existing capacities to provide support care and
treatment to COVID-19 patients; and

iii. Public and private laboratories that have existing capacities to test suspected
COVID-19 patients.

iv. Goods and services for social amelioration measures in favor of affected
communities;

Lease of real property or venue for use to house health workers or serve as
quarantine centers, medical relief and aid distribution locations, or temporary medical
facilities;

Establishment, construction, and operation of temporary medical facilities;

Utilities, telecommunications, and other critical services in relation to operation of

quarantine centers, medical relief and aid distribution centers and temporary medical
facilities; and (6) Ancillary services related to the foregoing.

(l) Partner with the Philippine Red Cross, as the primary humanitarian agency that is
auxiliary to the government in giving aid to the people, subject to reimbursement, in
the distribution of goods and services incidental in the fight against COVID-19;

(m) Engage temporary Human Resources for Health (HRH) such as medical and
allied medical staff to complement or supplement the current health workforce or to
man the temporary medical facilities to be established in accordance with Section 4
k(4) of this Act: Provided, That HRH to be hired on temporary basis shall receive the
appropriate compensation and allowances: Provided, further, That all HRH serving in
the front line during the state of calamity due to COVID-19, shall receive an actual
hazard duty pay from the government;

(n) Ensure the availability of credit to the productive sectors of the economy
especially in the countryside through measures such as, but not limited to, lowering
the effective lending rates of interest and reserve requirements of lending
institutions;

(o) Liberalize the grant of incentives for the manufacture or importation of critical or
needed equipment or supplies for the carrying-out of the policy declared herein,
including healthcare equipment and supplies: Provided, That importation of these
equipment and supplies shall be exempt from import duties, taxes and other fees;

(p) Ensure the availability of essential goods, in particular food and medicine, by
adopting measures as may reasonably be necessary to facilitate and/or minimize
disruption to the supply chain, especially for basic commodities and services to the
maximum extent possible;

(q) Require businesses to prioritize and accept contracts, subject to fair and
reasonable terms, for materials and services necessary to promote the herein
declared national policy;

(r) Regulate and limit the operation of all sectors of transportation through land, sea
or air, whether private or public;

(s) Regulate traffic on all roads, streets, and bridges, and access thereto; prohibit
putting up of encroachments or obstacles; authorize the removal of encroachments
and illegal constructions in public places; and perform all other related acts;

(t) Continue to authorize alternative working arrangements for employees and

workers in the Executive Branch, and whenever it becomes necessary, in other
independent branches of government and constitutional bodies, and the private
sector;

(u) Conserve and regulate the distribution and use of power, fuel, energy and water,
and ensure adequate supply of the same;

(v) Notwithstanding any law to the contrary, direct the discontinuance of appropriated
programs, projects or activities (P/A/P) of any agency of the Executive Department,
including government-owned or -controlled corporations (GOCCs), in the FYs 2019
and 2020 General Appropriations Act (GAA), whether released or unreleased, the
allotments for which remain unobligated, and utilize the savings generated therefrom
to augment the allocation for any item directly related to support operations and
response measures, which are necessary or beneficial in order to address the
COVID-19 emergency, consistent with the herein declared national
policy: Provided, however, That the following items in the budget shall be prioritized
for augmentation:

(1) Under the Department of Health – operational budgets of government hospitals,

primarily those identified for treatment of COVID-19; prevention and control of other
infectious diseases; emergency preparedness and response; quick response fund;

(2) Under the University of the Philippines – the operational budget of the Philippine
General Hospital;

(3) The National Disaster Risk Reduction Fund or calamity fund;

(4) Programs of the Department of Labor and Employment, such as but not limited to
Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers and COVID-19
Adjustment Measures Program (CAMP);

(5) Under the Department of Trade and Industry – Livelihood Seeding Program and
Negosyo Serbisyo sa Barangay;

(6) Under the Department of Agriculture – Rice Farmers Financial Assistance

Program;

(7) Under the Department of Education – School-Based Feeding Program;

(8) Under various Department of Social Welfare and Development programs, such
as but not limited to Assistance to Individuals in Crisis Situations (AICS), distribution
of food and non-food items, livelihood assistance grants, and supplemental feeding
program for daycare children;

(9) Under allocations to local government units;

(10) Quick Response Funds lodged in the various relevant departments, such as, but
not limited to the DOH and DSWD.

Notwithstanding the provisions of this Act, the discontinued program, activity or

project may be revived at any time after the national emergency has ceased, and
notwithstanding Section 67 of Republic Act No. 11465 or the “General Appropriations
Act of 2020”, may be revived and proposed for funding within the next two (2) fiscal
years;

(w) Any unutilized or unreleased balance in a special purpose fund, as of the date of
declaration of a State of Emergency, shall be considered to have their purpose
abandoned for the duration of the State of Emergency. All such unspent, unutilized
or unreleased money or funds sourced from collections or receipts, including future
collections and receipts, shall be utilized and are hereby appropriated for such
measures to address the COVID-19 situation and accomplish the declared national
policy herein;

(x) Notwithstanding any law to the contrary, reprogram reallocate, and realign from
savings on other items of appropriations in the FY 2020 GAA in the Executive
Department, as may be necessary and beneficial to fund measures that address and
respond to the COVID-19 emergency, including social amelioration for affected
communities, and the recovery of areas, sectors and industries severely affected. All
amounts so reprogrammed, reallocated or realigned shall be deemed automatically
appropriated for such measures to address the COVID-19 situation within the period
specified under Section 9 hereof;

(y) Notwithstanding any law to the contrary, the President is hereby authorized to
allocate cash, funds, investments, including unutilized or unreleased subsidies and
transfers, held by any GOCC or any national government agency in order to address
the COVID-19 emergency, as declared in Section 3 hereof;

(z) Move statutory deadlines and timelines for the filing and submission of any
document, the payment of taxes, fees, and other charges required by law, and the
grant of any benefit, in order to ease the burden on individuals under Community
Quarantine;

(aa) Direct all banks, quasi-banks, financing companies, lending companies, and
other financial institutions, public and private, including the Government Service
Insurance System, Social Security System and Pag-ibig Fund, to implement a
minimum of a thirty (30)-day grace period for the payment of all loans, including but
not limited to salary, personal, housing, and motor vehicle loans, as well as credit
card payments, falling due within the period of the enhanced Community Quarantine
without incurring interests, penalties, fees or other charges, persons with multiple
loans shall likewise be given the minimum thirty (30)-day grace period for every loan;

(bb) Provide for a minimum of thirty (30)-day grace period on residential rents falling
due within the period of the enhanced community quarantine, without incurring
interests, penalties, fees, and other charges;

(cc) Implement an expanded and enhanced Pantawid Pamilya Pilipino Program,

responsive to the need posed by the crisis, and provision of an assistance program,
whether in cash or non-cash, whichever is more practicable, where the Secretary of
Social Welfare and Development, or the Secretary of Labor and Employment, when
relevant, shall transfer cash, cash voucher, or goods through the LGUs or directly to
households who have no incomes or savings to draw from, including households
working in the informal economy and those who are not currently recipients of the
current Pantawid Pamilya Pilipino Program, of an amount adequate to restore
capacity to purchase basic food and other essential items during the duration of the
quarantine. To carry out this subsection, the Secretary of the Department of Social
Welfare and Development and the Secretary of the Department of Labor and
Employment may approve the temporary emergency standards of eligibility and level
of benefits.

(dd) Lift the thirty percent (30%) cap on the amount appropriated for the quick
response fund, as provided for in Republic Act No. 10121 or the “Philippine Disaster
Risk Reduction and Management Act of 2010”, during the existence of the state of
national emergency due to COVID-19;
(ee) Undertake such other measures as may be reasonable and necessary to enable
the President to carry out the declared national policy subject to the Bill of Rights and
other constitutional guarantees.

SECTION 5. Reports to Congress and Creation of an Oversight Committee.— The

President, during Monday of every week, shall submit a weekly report to Congress of
all acts performed pursuant to this Act during the immediately preceding week. The
report shall likewise include the amount and corresponding utilization of the funds
used, augmented, reprogrammed, reallocated and realigned pursuant to this Act.

For this purpose, the Congress shall establish a Joint Congressional Oversight
Committee composed of four (4) members of each house to be appointed by the
Senate President and the House Speaker, respectively. This Committee shall
determine whether such acts, orders, rules and regulations are within the restrictions
provided herein.

SECTION 6. Penalties.— In addition to acts or omissions already penalized by

existing laws, the following offenses shall be punishable with imprisonment of two (2)
months or a fine of not less than Ten thousand pesos (₱10,000.00) but not more
than One million pesos (₱1,000,000.00), or both, such imprisonment and fine, at the
discretion of the court:

(a) LGU officials disobeying national government policies or directives in imposing

quarantines;

(b) Owners and possessors of privately-owned hospitals, medical and health

facilities, including passenger vessels, and other establishments who unjustifiably
refuse to operate pursuant to the directive of the President;

(c) Engaging in hoarding, profiteering, injurious speculations, manipulation of

prices, product deceptions, and cartels, monopolies or other combinations in
restraint of trade, or other pernicious practices affecting the supply, distribution and
movement of food, clothing, hygiene and sanitation products, medicine and medical
supplies, fuel, fertilizers, chemicals, building materials, implements, machinery
equipment and spare parts required in agriculture, industry and other essential
services, and other articles of prime necessity, whether imported or locally produced
or manufactured

(d) Refusal to prioritize and accept contracts for materials and services necessary
to promote the herein declared national policy;

(e) Refusal to provide thirty (30)-day grace periods provided under Section 4;

(f) Individuals or groups creating, perpetrating, or spreading false information

regarding the COVID-19 crisis on social media and other platforms, such information
having no valid or beneficial effect on the population, and are clearly geared to
promote chaos, panic, anarchy, fear, or confusion; and those participating in cyber
incidents that make use or take advantage of the current crisis situation to prey on
the public through scams, phishing, fraudulent emails, or other similar acts;
 (g) Failure to comply with reasonable limitations on the operation of certain
transportation sectors or sectors, whether land, sea or air, be it private or public; and

(h) Impeding access to roads, streets and bridges; putting-up prohibited

encroachments or obstacles; and maintenance of illegal constructions in public
places that have been ordered to be removed;

Provided, however, That if the offender is a corporation, association, partnership or

any other juridical person, the penalty shall be imposed upon the president,
directors, managers, managing partners, as the case may be, who participated in the
commission of the offense or who shall have knowingly permitted or failed to prevent
the commission of the same. If the offender is an alien, he shall, in addition to the
penalties herein prescribed, be deported without further
proceedings: Provided, further, That if the offender is a public official or employee,
he shall, in addition to the penalties prescribed herein, suffer perpetual or temporary
absolute disqualification from office, as the case may be.

SECTION 7. Construction or Interpretation.— Nothing herein shall be construed as

an impairment, restriction or modification of the provisions of the constitution, in case
the exercise of the powers herein granted conflicts with other statutes, orders, rules
or regulations, the provisions of this Act shall prevail.

SECTION 8. Separability.— If any provision of this Act or the application of such

provision to any person or circumstance is declared invalid, the remainder of this Act
or the application of such provision to any other person or circumstance shall not be
affected by such declaration.

SECTION 9. Effectivity.— This Act shall take effect immediately upon its publication
in a newspaper of general circulation or in the Official Gazette and shall be in full
force and effect only for three (3) months, unless extended by Congress: Provided,
That the powers granted under this Act may be withdrawn sooner by means of a
concurrent resolution of Congress or ended by Presidential Proclamation.
 An Act Amending Sections 109, 141, 142, 143, 144, 147, 152, 263, 263-A, 265,
and 288-A, and Adding a New Section 290-A to Republic Act No. 8424, as
Amended, Otherwise Known as The National Internal Revenue Code of 1997,
and for Other Purposes
Republic Act No. 11467
Congress of the Philippines
22 January 2020

H. No. 1026

S. No. 1074

Republic of the Philippines

Congress of the Philippines
Metro Manila

Eighteenth Congress
First Regular Session

Begun and held in Metro Manila, on Monday, the twenty-second day of July, two
thousand nineteen.

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled:

SECTION 1. Section 109 of the National Internal Revenue Code of 1997, as

amended, is hereby further amended to read as follows:

“SEC. 109. Exempt Transactions.— (1) Subject to the provisions of Subsection 2

hereof, the following transactions shall be exempt from the value-added tax:

“(A) x x x

“x x x

“(Z) x x x

“(AA) Sale or importation of prescription drugs and medicines for:

“(i) Diabetes, high cholesterol, and hypertension beginning January 1,2020; and

“(ii) Cancer, mental illness, tuberculosis, and kidney diseases beginning January
1,2023.

“Provided, That the DOH shall issue a list of approved drugs and medicines for this
purpose within sixty (60) days from the effectivity of this Act; and
 “(BB) x x x”

SECTION 2. Title VI, Chapter III, Excise Tax on Alcohol Products, of the National
Internal Revenue Code (NIRC) of 1997, as amended, is hereby further amended to
read as follows:

“Chapter III
“Excise Tax on Alcohol Products

“SEC. 141. Distilled Spirits.— On distilled spirits, subject to the provisions of Section

133 of this Code, an excise tax shall be levied, assessed and collected based on the
following schedules:

“(A) Effective January 1, 2020

“(1) An ad valorem tax equivalent to twenty-two percent (22%) of the net retail price
(excluding the excise tax and the value-added tax) per proof; and

“(2) In addition to the ad valorem tax herein imposed, a specific tax of Forty-two

pesos (₱42.00) per proof liter.

“(B) Effective January 1, 2021

“(1) An ad vqlorem tax equivalent to twenty-two percent (22%) of the net retail price
(excluding the excise tax and the value-added tax) per proof; and

“(2) In addition to the ad valorem tax herein imposed, a specific tax of Forty-seven

pesos (₱47.00) per proof liter.

“(C) Effective January 1, 2022

“(1) An ad valorem tax equivalent to twenty-two percent (22%) of the net retail price
(excluding the excise tax and the value-added tax) per proof; and

“(2) In addition to the ad valorem tax herein imposed, a specific tax of Fifty-two

pesos (₱52.00) per proof liter.

“(D) Effective January 1, 2023

“(1) An ad valorem tax equivalent to twenty-two percent (22%) of the net retail price
(excluding the excise tax and the value-added tax) per proof; and

“(2) In addition to the ad valorem tax herein imposed, a specific tax of Fifty-nine

pesos (₱59.00) per proof liter.

“(E) Effective January 1, 2024

“(1) An ad valorem tax equivalent to twenty-two percent (22%) of the net retail price
(excluding the excise tax and the value-added tax) per proof; and
“(2) In addition to the ad valorem tax herein imposed, a specific tax of Sixty-six pesos
(₱66.00) per proof liter.

“(F) In addition to the ad valorem tax herein imposed, the specific tax imposed under
this Section shall be increased by six percent (6%) every year thereafter, effective
January 1, 2025, through revenue regulations to be issued by the Secretary of
Finance.

“Medicinal preparations, flavoring extracts, and all other preparations, except toilet
preparations, of which, excluding water, distilled spirits form the chief ingredient,
shall be subject to the same tax as such chief ingredient.

“This tax shall be proportionally increased for any strength of the spirits taxed over
proof spirits, and the tax shall attach to this substance as soon as it is in existence as
such, whether it be subsequently separated as pure or impure spirits, or transformed
into any other substance either in the process of original production or by any
subsequent process.

“‘Spirits or distilled spirits’ is the substance known as ethyl alcohol, ethanol or spirits
of wine, including all dilutions, purifications and mixtures thereof, from whatever
source, by whatever process produced, and shall include whisky, brandy, rum, gin
and vodka, and other similar products or mixtures.

“‘Proof spirits’ is liquor containing one-half (½) of its volume of alcohol of a specific
gravity of seven thousand nine hundred and thirty-nine ten thousandths (0.7939) at
fifteen degrees centigrade (15°C). A ‘proof liter’ means a liter of proof spirits.

“‘Net retail price’ shall mean the price at which the distilled spirits is sold on retail.in
at least five (5) major supermarkets in Metro Manila, excluding the amount intended
to cover the applicable excise tax and the value-added tax. For distilled spirits which
are marketed outside Metro Manila, the ‘net retail price’ shall mean the price at which
the distilled spirits is sold in at least five (5) major supermarkets in the region
excluding the amount intended to cover the applicable excise tax and the value-
added tax. This shall initially be provided by the manufacturer through a sworn
statement and shall be validated by the Bureau of Internal Revenue through a price
survey.

“Major supermarkets, as contemplated under this Act, shall be those with the highest
annual gross sales in Metro Manila or the region, as the case may be, as determined
by the Bureau of Internal Revenue, and shall exclude retail outlets or kiosks,
convenience or sari-sari stores, and others of a similar nature: Provided, That no two
(2) supermarkets in the list to be surveyed are affiliated and/or branches of each
other: Provided, finally, That in case a particular distilled spirit is not sold in major
supermarkets, the price survey can he conducted in retail outlets where said distilled
spirit is sold in Metro Manila or the region, as the case may be, upon the
determination of the Commissioner of Internal Revenue.

“The net retail price shall be determined by the Bureau of Internal Revenue through
a biannual price survey under oath.
“The methodology and all pertinent documents used in the conduct of the latest price
survey shall be submitted to the Congressional Oversight Committee on the
Comprehensive Tax Reform Program (COCCTRP) created under Republic Act No.
8240.

“Understatement of the suggested net retail price by as much as fifteen percent

(15%) of the actual net retail price shall render the manufacturer or importer liable for
additional excise tax equivalent to the tax due and difference between the
understated suggested net retail price and the actual net retail price.

“Distilled spirits introduced in the domestic market after the effectivity of this Act shall
be initially taxed according to their suggested net retail prices.

“‘Suggested net retail price’ shall mean the net retail price (excluding the excise tax
and the value-added tax) at which locally manufactured or imported distilled spirits
are intended by the manufacturer or importer to be sold on retail in major
supermarkets or retail outlets in Metro Manila for those marketed nationwide, and in
other regions, for those with regional markets. At the end of three (3) months from
the product launch, the Bureau of Internal Revenue shall validate the suggested net
retail price of the new brand against the net retail price as defined herein and initially
determine the correct tax on a newly introduced distilled spirits. After the end of nine
(9) months from such validation, the Bureau of Internal Revenue shall revalidate the
initially validated net retail price against the net retail price as of the time of
revalidation in order to finally determine the correct tax on a newly introduced
distilled spirits.

“The methodology and all pertinent documents used in the conduct of the latest price
survey shall be submitted to the Congressional Oversight Committee on the
Comprehensive Tax Reform Program created under Republic Act No. 8240.

“Manufacturers and importers of distilled spirits shall, within thirty (30) days from the
effectivity of this Act, and within the first five (5) days of every third month thereafter,
submit to the Commissioner a sworn statement of the volume of sales and removals
for each particular brand of distilled spirits sold at their establishments for the three-
month period immediately preceding.

SEC. 142. Wines.— On wines, there shall be levied, assessed and collected effective
on January 1, 2020, an excise tax equivalent to Fifty pesos (₱50.00) per liter. The
rate of tax imposed under this Section shall be increased by six percent (6%) every
year thereafter, effective January 1, 2021, through revenue regulations issued by the
Secretary of Finance.

“Manufacturers and importers of wines shall, within thirty (30) days from the
effectivity of this Act, and within the first five (5) days of every month thereafter,
submit to the Commissioner a sworn statement of the volume of sales and removals
for each particular brand of wine sold at their establishments for the ,three-month
period immediately preceding.

“x x x.”
“SEC. 143. Fermented Liquors.— There shall be levied, assessed and collected an
excise tax on beer, lager beer, ale, porter and other fermented liquors regardless if
manufactured in factories or sold and brewed at micro-breweries or small
establishments such as pubs and restaurants, except tuba, basi, tapuy and similar
fermented liquors in accordance with the following schedule:

“Effective on January 1, 2020, the tax shall be Thirty-five pesos (₱35.00) per liter;

“Effective on January 1,2021, the tax shall be Thirty-seven pesos (₱37.00) per liter;

“Effective on January 1,2022, the tax shall be Thirty-nine pesos (₱39.00) per liter;

“Effective on January 1,2023, the tax shall be Forty-one pesos (₱41.00) per liter; and

“Effective on January 1,2024, the tax shall be Forty-three pesos (₱43.00) per liter.

“The rates of tax imposed under this Section shall be increased by six percent (6%)
every year thereafter effective January 1,2025, through revenue regulations issued
by the Secretary of Finance.

“Every brewer, manufacturer or importer of fermented liquor shall, within thirty (30)
days from the effectivity of this Act, and within the first five (5) days of every month
thereafter, submit to the Commissioner a sworn statement of the volume of sales
and removals for each particular brand of fermented liquor sold at his establishment
for the three-month period immediately preceding.

“Any brewer, manufacturer or importer who, in violation of this Section, misdeclares

or misrepresents in his or its sworn statement herein required any pertinent data or
information shall, upon final findings by the Commissioner that the violation was
committed, be penalized by a summary cancellation or withdrawal of his or its permit
to engage in business as brewer, manufacturer or importer of fermented liquor.

“x x x.”

SECTION 3. Section 144 of the National Internal Revenue Code of 1997, as

amended by Republic Act No. 11346, is hereby amended to read as follows:

“SEC. 144. Tobacco Products, Heated Tobacco Products, and Vapor Products.—

“(A) Tobacco Products.— x x x

“(B) Heated Tobacco Products.— There shall be levied, assessed and collected on

heated tobacco products an excise tax at the rate prescribed below:

“Effective on January 1,2020, Twenty-five pesos (₱25.00) per pack of twenty (20)
units or packaging combinations of not more than twenty (20) units;

“Effective on January 1, 2021, Twenty-seven pesos and fifty centavos (₱27.50) per
pack of twenty (20) units or packaging combinations of not more than twenty (20)
units;‘Effective on January 1, 2022, Thirty pesos (₱30.00) per pack of twenty (20)
units or packaging combinations of not more than twenty (20) units; and

“Effective on January 1,2023, Thirty-two pesos and fifty centavos (₱32.50) per
pack of twenty (20) units or packaging combinations of not more than twenty (20)
units.

“The rates of tax imposed under this Subsection shall be increased by five percent
(5%) every year effective on January 1, 2024 through revenue regulations issued by
the Secretary of Finance.

“x x x

“Manufacturers, distributors, and importers of heated tobacco products shall, within

thirty (30) days from the effectivity of this Act, and within the first five (5) days of
every month thereafter, submit to the Commissioner a sworn statement of the
volume of sales and removals for each particular brand of heated tobacco products
sold for the three-month period immediately preceding.

“x x x

“If the offender is not a citizen of the Philippines, he/she shall be deported
immediately after serving the sentence, without further proceedings for deportation.

“The Food and Drug Administration (FDA) shall periodically determine and
regulate, consistent with evolving medical and scientific studies, the manufacture,
importation, sale, packaging, advertising, and distribution of heated tobacco
products, including banning the sale to nonsmokers or persons below twenty-one
(21) years old.

“Selling heated tobacco products to persons below twenty-one (21) years old shall
be prohibited, and shall be punished with a fine of Ten thousand pesos (₱10,000.00)
and imprisonment of thirty (30) days.

“x x x

“Manufacturers, distributors, importers, and sellers of heated tobacco products are

given a period of eighteen (18) months from the effectivity of the implementing rules
and regulations (IRR) of this Act to comply with the requirements under such IRR.

“x x x

“The Bureau of Internal Revenue is mandated to issue a revenue regulation

prescribing the floor price or the minimum price of heated tobacco product taking into
account the sum of the excise and value-added taxes as provided herein.

“(C) Vapor Products.— There shall be levied, assessed and collected on vapor

products an excise tax at the rates prescribed below:
 “(1) Nicotine Salt or Salt Nicotine.— There shall be levied, assessed and collected
on any liquid substance, regardless of nicotine content, including nicotine-free liquids
or any similar product, further classified as nicotine salt or salt nicotine, an excise tax
based on the following schedules:

“Effective on January 1, 2020, Thirty-seven pesos (₱37.00)

per milliliter or a fraction thereof;

“Effective on January 1, 2021, Forty-two pesos (₱42.00) per

milliliter or a fraction thereof;

"Effective on January 1, 2022, Forty-seven pesos (₱47.00)

per milliliter or a fraction thereof; and

“Effective on January 1,2023, Fifty-two pesos (₱52.00) per

milliliter or a fraction thereof.

“Provided, That the rates of tax imposed under this

Subsection shall be increased by five percent (5%) every year
effective on January 1, 2024, through revenue regulations
issued by the Secretary of Finance.

“(2) Conventional ‘Freebase’ or ‘Classic’ Nicotine.— There

shall be levied, assessed and collected on any liquid
substance, regardless of nicotine content, including nicotine-
free liquid or any similar product, further classified as
conventional ‘freebase’ or ‘classic’ nicotine an excise tax
based on the following schedules:

“Effective on January 1, 2020, Forty-five pesos (₱45.00) per

ten (10) milliliters or a fraction thereof;

“Effective on January 1, 2021, Fifty pesos (₱50.00) per ten

(10) milliliters or a fraction thereof;

‘Effective on January 1, 2022, Fifty-five pesos (₱55.00) per

ten (10) milliliters of a fraction thereof; and

‘Effective on January 1, 2023, Sixty pesos (₱60.00) per ten

(10) milliliters or a fraction thereof.

“Provided, That the rates of tax imposed under this

Subsection shall be increased by five percent (5%) every year
effective January 1, 2024, through revenue regulations to be
issued by the Secretary of Finance.

“x x x
 “If the offender is not a citizen of the Philippines, he/she
shall be deported immediately after serving the sentence,
without further proceedings for deportation.

"The FDA shall periodically determine and regulate,

consistent with evolving medical and scientific studies, the
manufacture, importation, sale, packaging, advertising, and
distribution of vapor products, including banning the sale to
nonsmokers or persons below twenty-one (21) years old, and
banning of flavorings.

“Provided, That vapor products which exceed sixty-five

milligrams of nicotine per milliliter (65 mg/ml) of liquid or gel,
or which does not exceed this limit but seeks to make health
claims, shall be subject to additional requirements as the DOH
and the FDA may impose: Provided, however That this shall
not diminish the regulator powers of the FDA over vapor
products, regardless of nicotine content.

“Selling vapor products to persons below twenty-one (21)

years old shall be prohibited, and shall be punished with a fine
of Ten thousand pesos (₱10,000.00) and imprisonment of
thirty (30) days.

“The manufacture, importation, sale and distribution of vapor

products with flavoring other than plain tobacco or plain
menthol, shall be prohibited.

" “x x x

“Manufacturers, distributors, importers, and sellers of vapor

products are given a period of eighteen (18) months from the
effectivity of the IRR of this Act to comply with the
requirements under such IRR.

“x x x

“The Bureau of Internal Revenue is mandated to issue a

revenue regulation prescribing the floor price or the minimum
price of vapor products taking into account the sum of the
excise tax and value-added tax as provided herein.”

SECTION 4. Section 147 of the National Internal Revenue Code of 1997, as

amended by Republic Act No. 11346 is hereby amended to read as follows:

“SEC. 147. Definition of Terms.— x x x

“x x x
 “(f) Vapor products shall mean electronic nicotine and non-nicotine delivery
systems (ENDS/ENNDS), which are combinations of (i) a liquid solution or gel, that
transforms into an aerosol without combustion through the employment of a
mechanical or electronic heating element, battery or circuit that can be used to heat
such solution or gel, and includes, but is not limited to (ii) a cartridge, (iii) a tank, and
(iv) the device without a cartridge or tank. It is commonly known as nicotine salt/salt
nicotine, and conventional ‘freebase’ or ‘classic’ nicotine, and other similar
products: Provided, That all vapor products shall be covered by this Act regardless of
its nicotine content.”

SECTION 5. Section 152 of the National Internal Revenue Code of 1997, as

amended, is hereby further amended to read as follows:

“SEC. 152. Extent of Supervision Over Establishments Producing Taxable Output.

— The Bureau of Internal Revenue has authority to supervise establishments where
articles subject to excise tax are made or kept. The Secretary of Finance shall
prescribe rules and regulations in which the process of production shall be
conducted insofar as may be necessary to secure a sanitary output and to safeguard
revenue, such rules and regulations to safeguard revenue may allow the
appointment of third parties to monitor production and removal processes and
volumes, and the exclusion of excise able goods from duty-free barter transactions.

“In the case of tobacco products, any internal revenue officer may, in the discharge
of his official duties, upon order of the court, enter any house, building or place,
including those located within areas deemed as separate customs territories where
articles subject to tax under this Title are produced or kept, or are believed by him
upon reasonable grounds to be produced or kept, insofar as may be necessary to
examine, discover or seize the same.”

SECTION 6. Section 263 of the National Internal Revenue Code of 1997, as

amended, is hereby further amended to read as follows:

“SECTION 263. Unlawful Possession or Removal of Articles Subject to Excise Tax

Without Payment of the Tax.— Any person who owns and/or is found in possession
of imported articles subject to excise tax, the tax on which has not been paid in
accordance with law, or any person who owns and/or is found in possession of
imported tax-exempt articles other than those to whom they are legally issued shall
be punished by:

“(a) A fine of not less than One hundred thousand pesos (₱100,000.00) but not
more than Two hundred thousand pesos (₱200,000.00) and imprisonment of not
less than sixty (60) days but not more than one hundred (100) days if the appraised
value, to be determined in the manner prescribed in Republic Act No. 10863,
otherwise known as the ‘Customs Modernization and Tariff Act (CMTA) including
duties and taxes, of the articles does not exceed Two hundred fifty thousand pesos
(₱250,000.00);

“(b) x x x
 “x x x.”

SECTION 7. Section 263-A of the National Internal Revenue Code of 1997, as

amended, is hereby amended to read as follows:

“SEC. 263-A. Selling of Heated Tobacco Products and Vapor Products at a Price

Lower Than the Combined Excise and Value-Added Taxes.— Any person who sells
heated tobacco products and vapor products at a price lower than the combined
excise and value-added taxes shall be punished with a fine of not less than ten (10)
times the amount of excise tax plus value-added tax due but not less than Two
hundred thousand pesos (₱200,000.00) nor more than Five hundred thousand pesos
(₱500,000.00), and imprisonment of not less than four (4) years but not more than
six (6) years ”

SECTION 8. Section 265 of the National Internal Revenue Code of1997, as

amended, is hereby further amended to read as follows:

“SEC. 265. Offenses Relating to Stamps.— Any person who commits any of the

acts enumerated hereunder shall, upon conviction thereof, be punished by a fine of
not less than Ten million pesos (₱10,000,000.00) but not more than Five hundred
million pesos (₱500,000,000.00) and imprisonment of not less than five (5) years but
not more than eight (8) years:

“(a) x x x

“(b) x x x

“(c) x x x

“(d) x x x

“(e) x x x

“Provided, That the cumulative possession of false/counterfeit/recycled tax stamps

in excess of the amount of Fifty million pesos (₱50,000,000.00) shall be punishable
by a fine of Five hundred million pesos (₱500,000,000.00) or up to ten (10) times the
value of the illegal stamps seized, whichever is higher, and imprisonment of not less
than ten (10) years but not more than fifteen (15) years.”

SECTION 9. Section 288-A of the National Internal Revenue Code of 1997, as

amended, is hereby amended to read as follows:

“SEC. 288-A. Disposition of Revenues from Excise Tax on Sweetened Beverages,

Alcohol, Tobacco Products, Heated Tobacco Products, and Vapor Products.—

“(A) Revenues from Excise Tax on Sweetened Beverages from Republic Act No.
10963.— The provisions of existing laws to the contrary notwithstanding, fifty percent
(50%) of the total revenues collected from the excise tax on sweetened beverages
shall be allocated and used exclusively in the following manner:
 “(B) Revenues from Excise Tax on Alcohol Products.— The provisions of existing
laws to the contrary notwithstanding, one hundred percent (100%) of the total
revenues collected from the excise tax on alcohol products shall he allocated and
used exclusively in the following manner:

“(1) Sixty percent (60%) for the implementation of Republic Act No. 11223,
otherwise known as the 'Universal Health Care Act1 of 2019;

“(2) Twenty percent (20%) shall be allocated nationwide, based on political and
district subdivisions, for medical assistance, the Health Facilities Enhancement
Program (HFEP), the annual requirements of which shall be determined by the DOH;
and

“(3) Twenty percent (20%) shall be allocated for the attainment of the Sustainable
Development Goals (SDGs): Provided, That the specific SDG targets shall be
determined by the National Economic and Development Authority (NEDA).

“x x x

“(D) Revenues from Excise Tax on Heated Tobacco Products and Vapor Products.
— The provisions of existing laws to the contrary notwithstanding, one hundred
percent (100%) of the total revenues collected from the excise tax on heated tobacco
products and vapor products shall be allocated and used exclusively in the following
manner:

“(1) Sixty percent (60%) for the implementation of Republic Act No. 11223,
otherwise known as the ‘Universal Health Care Act’ of 2019;

“(2) Twenty percent (20%) shall be allocated nationwide, based on political and
district subdivisions, for medical assistance and the Health Facilities Enhancement
Program (HFEP), the annual requirements of which shall be determined by the DOH;
and

“(3) Twenty percent (20%) shall be allocated for the attainment of the Sustainable
Development Goals (SDGs): Provided, That the specific SDG targets shall be
determined by the NEDA.

“x x x

“Provided, further That the allocation for Universal Health Care under Section 288-
A shall be based on the collection of the second fiscal year preceding the current
fiscal year.”

SECTION 10. A new Section 290-A is hereby added in the National Internal
Revenue .Code of 1997, as amended, to read as follows:

“SEC. 290-A. Joint Congressional Oversight Committee on Illicit Trade on

Excisable Products.— A Joint Congressional Oversight Committee, herein referred
to as the Oversight Committee on Illicit Trade on Excisable Products, shall be
constituted. The Oversight Committee on Illicit Trade on Excisable Products shall be
composed of the respective Chairpersons of the Committees on Ways and Means of
the Senate and the House of Representatives as co-chairpersons and six (6)
additional members from each House to be designated respectively by the Senate
President and the Speaker of the House of Representatives

“The Oversight Committee on Illicit Trade on Excisable Products shall, in aid of

legislation, perform the following dudes and functions, among others:

“(1) Review and evaluate the programs and performance of the Bureau of Internal
Revenue and the Bureau of Customs in addressing illicit trade on excisable products
and recommend necessary remedial legislation;“(2) Require concerned government
agencies to submit reports and all pertinent data and information which will aid in
resolving illicit trade of excisable products;

“(3) Hold public hearings and summon concerned private individuals, government
personnel and officials as resource persons;

“(4) Deputize the Bureau of Internal Revenue, Bureau of Customs, Philippine

National Police, National Bureau of Investigation, and other enforcement agencies of
the government as may be necessary in undertaking its duties and functions; and

“(5) Perform such other duties and functions as may be necessary to perform its
mandate.

“The Joint Congressional Oversight Committee shall be assisted by a Secretariat

composed of even number of monitors from both Houses. It shall be co-headed by
the service directors of the Committees on Ways and Means of the Senate and the
House of Representatives.”

SECTION 11. Annual Report.— Government agencies and offices involved in the

implementation of the Universal Health Care and the SDGs shall each submit to the
Congressional Oversight Committee created under Republic Act No. 8424, as
amended by Republic Act No. 10351, a detailed report on the expenditure of the
amounts earmarked in this Act on the first week of August every year. The reports
shall be simultaneously published in the Official Gazette and in the agencies’
websites.

SECTION 12. Implementing Rules and Regulations.— The Secretary of Finance

shall, upon the recommendation of the Commissioner of Internal Revenue,
promulgate the necessary rules and regulations for the effective implementation of
this Act.

SECTION 13. Separability Clause.— If any provision of this Act shall be held

unconstitutional or invalid, the other provisions not otherwise affected shall remain in
full force and effect.
 SECTION 14. Repealing Clause.— All laws, decrees, executive orders, rules and
regulations or parts thereof which are contrary to or inconsistent with this Act are
hereby repealed, amended or modified accordingly.

SECTION 15. Effectivity.— This Act shall take effect on January 1, 2020 after its
complete publication either in the Official Gazette or in a newspaper of general
circulation.

An Act Creating the Davao International Airport Authority, Transferring

Existing Assets of Francisco Bangoy International Airport to the Authority,
Vesting the Authority with Power to Administer and Operate the Francisco
Bangoy International Airport and Appropriating Funds Therefor
Republic Act No. 11457
Congress of the Philippines
30 August 2019

S. No. 2168

H. No. 8691

Republic of the Philippines

Congress of the Philippines
Metro Manila

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
thousand eighteen.

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled:

SECTION 1. Short Title.— This Act shall be known and cited as the “Charter of the
Davao International Airport Authority”.

SECTION 2. Creation of the Davao International Airport Authority.— There is hereby

established a body corporate to be known as the Davao International Airport
Authority, hereinafter referred to as the “Authority”, which shall be attached to the
Department of Transportation (DOTr). The principal office of the Authority shall be
located at the Francisco Bangoy International Airport in Davao City.

The Authority may have such branches, agencies or subsidiaries as it may deem
proper and necessary.
 SECTION 3. Objectives.— The Authority shall principally undertake the economical,
efficient and effective control, management and supervision of the Francisco Bangoy
International Airport in Davao City, the existing airports in the Davao Region, and
such other airports as may thereafter be established in any of the provinces of the
same region.

In addition, the Authority shall have the following objectives:

(a) Encourage, promote and develop international and domestic air traffic in Davao
Region as a means of making the region a center of international trade and tourism,
and accelerating the development of the means of transportation and
communications in the country; and

(b) Upgrade the services and facilities of the Francisco Bangoy International
Airport and formulate internationally acceptable standards of airport accommodation
and service.

SECTION 4. Duties and Functions.— The Authority shall exercise the following

duties and functions:

(a) Formulate a comprehensive and integrated development policy and program

for the Francisco Bangoy International Airport and implement, review and update
such policy and program periodically;

(b) Control, supervise, construct, maintain, operate and provide such facilities or
services as shall be necessary for the efficient functioning of the Francisco Bangoy
International Airport compliant with International Civil Aviation Organization (ICAO)
standards;

(c) Promulgate rules and regulations governing the planning, development,

maintenance, operation and improvement of the Francisco Bangoy International
Airport, and control and supervise the construction of any structure or the rendition of
any service within the Francisco Bangoy International Airport;

(d) Exercise all the powers of a corporation under Batas Pambansa Blg. 68,
otherwise known as “The Corporation Code of the Philippines” insofar as those
powers are not inconsistent with the provisions of this Act;

(e) Acquire, purchase, own, administer, lease, mortgage, sell or otherwise dispose
of any land, building, airport facility, or property of whatever kind and nature, whether
movable or immovable, or any interest therein: Provided, That any asset located in
the Francisco Bangoy International Airport important to national security shall not be
subject to alienation or mortgage by the Authority nor to transfer to any entity other
than the National Government;

(f) Exercise the power of eminent domain in the pursuit of its purposes and
objectives;
 (g) Levy and collect dues, charges, fees or assessments for the use of airport
premises, works, appliances, facilities or concessions, or for any service provided by
Jhe Authority;

(h) Retain and appropriate dues, fees, and charges collected by the Authority
relative to the use of airport premises for such measures as may be necessary to
make the Authority more effective and efficient in the discharge of its assigned tasks;

(i) Invest its idle funds, as it may deem proper, in government securities and other
evidences of indebtedness; and

(j) Provide services, whether on its own or otherwise, within the Francisco Bangoy
International Airport and the approaches thereof as may be necessary or in
connection with the maintenance and operation of the Francisco Bangoy
International Airport and their respective facilities.

SECTION 5. Police Authority.— The Authority shall have the power to exercise such
police authority as may be necessary within its premises or areas of operation to
carry out its functions and attain its purposes and objectives: Provided, That the
Authority may request the assistance of law enforcement agencies, including request
for deputization as may be required. Such police authority shall be exercised in
connection with the following, among others:

(a) Maintenance of security to passengers, cargoes, aircraft, airport equipment,

structures, facilities, personnel, funds and documents;

(b) Regulation of the entry to, exits from and movement within the airports;

(c) Maintenance of peace and order within the premises of the Francisco Bangoy
International Airport;

(d) Regulation and supervision of private security agencies operating in the

Francisco Bangoy International Airport;

(e) ) Enforcement of rules and regulations promulgated by the Authority pursuant

to law; and

(f) In case of emergencies or imminent danger involving national security within

the airport premises, the Philippine Air Force Security Command shall take charge.

SECTION 6. Board of Directors.— The corporate powers of the Authority shall be

exercised by and vested in the Board of Directors which shall be composed of a
Chairman, a Vice-Chairman and thirteen (13) members. The Secretary of the DOTr
and the General Manager of the Authority shall be the ex officio Chairman and Vice-
Chairman of the Board, respectively.

The Director General or the duly appointed representative of the Civil Aviation
Authority of the Philippines (CAAP) and the Secretaries of the following executive
departments or any Undersecretary or Assistant Secretary designated by the
respective Secretaries shall be ex officio members, to wit:

Department of Finance, Department of Justice, Department of Health, Department

of Agriculture and Department of Tourism. An appointive nonelective official of
Davao City, to be designated by the Mayor of Davao City shall be the last ex
officio member of the Board.

In addition, seven (7) members from the private sector who are residents of the
provinces and cities of the Davao Region shall be appointed by the President of the
Philippines for a term of one (1) year, subject to the existing rules and regulations of
the Governance Commission on Government-Owned or -Controlled Corporations
(GCG). Two (2) of the seven (7) private sector members shall come from the City of
Davao. Davao del Sur, Davao del Norte, Davao Oriental, Davao Occidental and
Compostela Valley shall have one (1) representative each. The mayor of Davao City
and the governors of Davao del Sur, Davao del Norte, Davao Oriental, Davao
Occidental and Compostela Valley shall submit to GCG lists of candidates who are
of known probity, competence and integrity on airport management, aviation,
finance, business, law and other related fields to represent their respective city and
provinces in the Board.

The GCG after examining the lists following the fit and proper rule and the
standards on integrity, experience, education, training and competence shall
recommend to the President a list of four (4) qualified candidates from each province
and city, from this list shall be selected two (2) candidates for the City of Davao and
one (1) candidate from each of the provinces, who shall be appointed by the
President of the Philippines as the authorized representative of the respective city
and provinces in the Board.

The Board shall promulgate its rules relative to meetings, quorum requirements
and compensation or allowances of the members of the Board.

SECTION 7. Functions of the Board.— The Board shall exercise the following

functions:

(a) Define and approve the programs, plans, policies, procedures and guidelines of
the Authority for the development and operation of the Francisco Bangoy
International Airport;

(b) Appoint the General Manager of the Authority who shall be the chief executive
officer of the Authority;

(c) Approve the Authority’s organizational and administrative structure, staffing

pattern, operating and capital expenditures, and financial budgets, upon
recommendation of the General Manager, subject to the final approval of the GCG;

(d) Approve salary ranges, benefits and other terms and conditions of service for
all officers and employees of the Authority, upon recommendation of the GCG, which
shall, as far as possible, be competitive with those offered in the private sector,
subject to the approval of the President

(e) Fix the rate of dues, charges, fees, or assessments for the use of airport
premises, works, appliances, facilities, concessions, services and other fees and
charges related to the activities of the airports, upon recommendation of the General
Manager; and

(f) Exercise all the functions and powers necessary or incidental to attain the
purposes and objectives of this Act.

SECTION 8. Duties of the General Manager.— The General Manager shall be

directly responsible to the Board and exercise the following duties:

(a) Direct and supervise ^tbe day-to-day management, operation and

administration of the Francisco Bangoy International Airport

(b) Implement and enforce decisions, orders, rules and regulations issued,
prescribed or adopted by the Board;

(c) Undertake researches, studies, investigations and other activities related to the
present operations and future improvement of the Francisco Bangoy International
Airport, and submit comprehensive reports and appropriate recommendations to the
Board for proper action;

(d) Appoint, transfer, suspend, remove or otherwise discipline any subordinate

officer or employee of the Authority, subject to the approval of the Board and in
accordance with the existing rules and regulations of the Civil Service Commission

(e) Within the limits of the authority delegated to him by the Board, execute
contracts, incur obligations, acquire and dispose of assets, and deliver documents
on behalf of the Authority;

(f) Grant permits or concessions to do business within the airports in accordance

with such rules and regulations to be promulgated by the Authority for the purpose;
and

(g) Perform such other duties as the Board may delegate or assign, and such acts
as may be necessary and proper to implement this Act.

SECTION 9. Authorized Capital.— The Authority shall have an authorized capital

stock equal to

A. The value of fixed assets, including airport facilities, runways and equipment
and such other properties, movable and immovable, currently administered by or
belonging to the Francisco Bangoy International Airport, as valued on the date of the
effectivity of this Act;
 B. The value of such real estate owned or administered by the Francisco Bangoy
International Airport; and

C. Government contribution in such amount as may be deemed an appropriate

initial balance. Such initial amount, as approved by the President of the Philippines,
which shall be more or less equivalent to six (6) months working capital requirement
of the Authority, is hereby authorized to be appropriated in the annual General
Appropriations Act of the year following the effectivity of this Act. Thereafter, the
government contribution to the capital of the Authority shall be provided for in the
annual General Appropriations Act.

SECTION 10. Resident Auditor.— The Commission on Audit shall appoint a

representative who shall be the auditor of the Authority, together with the necessary
personnel to assist said representative in the performance of his duties. The number
and salaries of the auditor and said personnel shall be determined by the Chairman
of the Commission on Audit, subject to the rules and regulations of the Commission
on Audit.

The auditor shall, as soon as practicable, but not later than three (3) months after
the accounts have been submitted for audit, send an annual report to the Board. The
auditor may also submit such periodic or special reports as the Board may deem
necessary.

SECTION 11. Annual Report.— An annual report of the activities and operations of

the Authority, together with the audit report shall be submitted by the Board to the
President of the Philippines and both Houses of Congress of the Philippines through
the DOTr and through posting of the said report in a website made for the Authority.

SECTION 12. Applicability of Civil Service Laws.— The Authority and its officials and
employees shall be subject to the existing civil service laws and its rules and
regulations.

SECTION 13. Borrowing Power.— The Authority may, in accordance with Section

21, Article XII of the Constitution and other existing laws, rules and regulations on
local or foreign borrowing, raise funds, either from local or international sources, by
way of loans, credit or securities, and other financing instruments with the power to
create pledges, mortgages and other voluntary liens or encumbrances on any of its
assets or properties, subject to the prior approval of the President of the Philippines.

All loans contracted by the Authority under this section, together with all interests
and other sums payable in respect thereof, shall constitute a charge upon all the
revenues and assets of the Authority and shall rank equally with one another, but
shall have priority over any other claim or charge on the revenue and assets of the
Authority: Provided, That this provision shall not be construed as a prohibition or
restriction on the power of the Authority to create pledges, mortgages and other
voluntary liens or encumbrances on any asset or property of the Authority. The
payment of the loans or other indebtedness of the Authority may be guaranteed by
the National Government subject to the approval of the President of the Philippines.
 SECTION 14. Tax Exemptions.— The Authority shall be exempt from realty taxes
imposed by the local government or any of its political subdivisions, agencies and
instrumentalities for the first ten (10) years of its operations: Provided, That no tax
exemption herein granted shall extend to any subsidiary which may be organized by
the Authority.

SECTION 15. Transfer of Existing Facilities and Intangible Assets.— All existing

public airport facilities, runways, lands, buildings and other properties, movable or
immovable, belonging to or presently administered by the Francisco Bangoy
International Airport, and all assets, powers, rights, interests and privileges relating
to airport works or air operations, including all equipment which are necessary for the
operation of air navigation, aerodrome control towers, crash, fire, and rescue
facilities are hereby transferred to the Authority: Provided, however, That the
operational control of all equipment necessary for the operation of radio aids to air
navigation, airways communication, the approach control office, and the area control
center shall be retained by the Civil Aviation Authority of the Philippines. No
equipment, however, shall be removed by the Civil Aviation Authority of the
Philippines from Francisco Bangoy International Airport without the concurrence of
the Authority. The Authority shall be responsible for the maintenance and repair of all
airport assets and equipment transferred to the Authority by this Act.

SECTION 16. Projects in Progress.— All ongoing projects relating to the

construction of Francisco Bangoy International Airport facilities and supply of
equipment shall be administered and undertaken by the Authority.

SECTION 17. Transfer of Liabilities and Debts.— Upon the transfer to and

acceptance by the Authority of the existing physical facilities, intangible assets and
completed projects referred to in the preceding sections, all debts, liabilities, and
obligations of government agencies or entities concerned in respect of such physical
facilities, tangible assets and completed projects within the Francisco Bangoy
International Airport shall likewise be assumed by the Authority.

SECTION 18. Transitory Provision.— The General Manager of the Francisco

Bangoy International Airport shall continue in office and shall perform all powers and
functions of the Authority until such time as the General Manager is appointed in
accordance with the provisions of this Act. Officials and employees whose services
are terminated shall, if not eligible for retirement, be given gratuities equivalent to
one (1) month salary for every year of continuous satisfactory service on the basis of
the highest salary received in addition to other benefits accorded to them by existing
laws.

SECTION 19. Repealing Clause.— All laws, executive orders, letters of instruction,

rules and regulations, or provisions thereof which are inconsistent with the provisions
of this Act are hereby repealed, amended or modified accordingly.

SECTION 20. Separability Clause.— If any provision or part of this Act is declared

invalid or unconstitutional, such parts or provisions not affected thereby shall remain
in full force and effect.
 SECTION 21. Effectivity.— This Act shall take effect fifteen (15) days after its
publicatipn in the Official Gazette or in a newspaper of general circulation.

An Act Authorizing the Sale of Certain Parcels of Land in Barangay Krus na

Ligas, Quezon City by the University of the Philippines to the Quezon City
Government, Amending for the Purpose Republic Act No. 9500, Otherwise
Known as “The University of the Philippines Charter of 2008”, and for Other
Purposes
Republic Act No. 11454
Congress of the Philippines
30 August 2019

S. No. 2234

H. No. 165

Republic of the Philippines

Congress of the Philippines
Metro Manila

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
thousand eighteen.

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled:

SECTION 1. As an exception to Section 23 of Republic Act No. 9500 or “The

University of the Philippines Charter of 2008”, the University of the Philippines (the
“University”) is hereby authorized to sell, dispose, and alienate certain parcels of
land owned by the University situated in Barangay Krus na Ligas, Quezon City, but
only to the Quezon City Local Government, at fair market price that is acceptable to
the University: Provided, That the sale of the said parcels of land in Barangay Krus
na Ligas, which shall not exceed twenty-two and four hundred sixty-seven
thousandths hectares (22.467 has.), shall be considered perfected only from the time
that the University is fully paid therefor, which payment in full shall be made within
one (1) year from the signing and execution of the agreement: Provided, further,
That no right of ownership or of possession, nor of any other attribute of ownership
over the said parcels of land, shall transfer to the Quezon City Local Government
until the aforementioned full payment has been actually received by the
University: Provided, finally, That this authorization is deemed automatically revoked
when the University and the Quezon City Local Government fail to agree on the
terms and conditions of the sale within one (1) year from the effectivity of this Act, or
when full payment was not received by the University, for whatever reason, one (1)
 year after the execution of the agreement.

For purposes of this Act, the said parcels of land situated in Barangay Krus na
Ligas, authorized to be sold in this Act, shall not exceed a maximum of twenty-two
and four hundred sixty-seven thousandths hectares (22.467 has.) with the following
metes and bounds:

Technical Descriptions

Dist
ance
Lines Bearings s

Boundary

1 2 N 04°17′ W 19.6
3 m.

2 3 N 88°44′ E 10.3
0 m.

3 4 N 86°36′ E 14.7
1 m.

4 5 N 83°20′ E 14.7
4 m.

5 6 N 80°20’ E 6.60
m.

6 7 N79°10′E 16.8
2 m.

7 8 N 76°10’ E 11.8
2 m.

8 9 N 75°05’ E 74.7
2 m.

9 10 N 75°04’ E 47.1
2 m.

10 11 N 74°41’ E 31.3
1 m.

11 12 N 75°16’ E 21.0
5 m.

12 13 N 76°04’ E 11.4
7 m.
13 14 N 78°54′ E 20.3
2 m.

14 15 N 80°48’ E 8.42
m.

15 16 N 83°53’ E 28.4
2 m.

16 17 S 88°46’ E 3.13
m.

17 18 S 81°22′ E 7.11
m.

18 19 S 87°51′ E 57.8
8 m.

19 20 S 01°53′ W 86.6
5 m.

20 21 S 02°04′ W 64.8
2 m.

21 22 S 02°08′ W 65.2
1 m.

22 23 S 01°56′ W 55.0
6 m.

23 24 S 02°08′ W 10.6
9 m.

24 25 S 02°09′ W 62.3
7 m.

25 26 S 01°54′ W 27.4
2 m.

26 27 S 02°14′ W 31.7
0 m.

27 28 S 07°34′ W 12.3
1 m.

28 29 S 14°20′ W 6.32
m.

29 30 S 19°12′ W 6.03
m.
30 31 S 23°14′ W 6.14
m.

31 32 S 31°25′ W 13.2
0 m.

32 33 S 41°22′ W 17.8
2 m.

33 34 S 51°24’ W 8.90
m.

34 35 S 53°27′ W 204.
54
m.

35 36 S 31°06′ W 4.93
m.

36 37 S 12°03′ E 2.74
m.

37 38 S 28°11′ E 36.4
3 m.

38 39 S 33°07′ E 43.9
7 m.

39 40 S 37°57’ E 50.0
2 m.

40 41 S 34°14′ E 18.0
1 m.

41 42 S 16°23′ E 9.97
m.

42 43 S 03°51′ W 6.45
m.

43 44 S 18°16′ W 5.91
m.

44 45 S 31°46’ W 7.69
m.

45 46 S 48°37’ W 6.88
m.

46 47 S 66°12’ W 9.31
 m.

47 48 S 71°07′ W 3.97
m.

48 49 S 72°02′ W 3.19
m.

49 50 S 73°08′ W 3.80
m.

50 51 S 73°49′ W 89.2
8 m.

51 52 S 35°07′ W 6.49
m.

52 53 S 05°19′ E 150.
97
m.

53 54 S 85°55′ W 77.6
1 m.

54 1 N 04°17’ W 861.
56
m.

TIE LINES from BLLM No. 1, Marikina to corner “1”

Lots Bearings Dista

nces

BDRY. N 64°57’ W 4120

.50
m.
The area to be sold defined by the foregoing metes and bounds shall not include any
facility of the University, as determined by the University, located in the said area.

SECTION 2. Other Terms and Conditions of Sale.— The sale authorized by this Act
shall likewise be subject to other terms and conditions that shall be agreed upon by
the University and the Quezon City Local Government.

No land covered under this Act shall be sold, alienated or conveyed by the
legitimate residents of Barangay Krus na Ligas except to his/her legal heirs. Should
the legitimate residents unlawfully sell, transfer or otherwise dispose his/her lot to or
any right therein, the transaction shall be null and void. He/She shall also lose
his/her right to the land and forfeit the total amount of amortization paid thereon. In
the event that the legitimate resident dies before full ownership of the land is vested
on him/her, transfer to his/her heirs shall take place only upon assumption of his/her
obligations. In case of failure by the heirs to assume such obligations, the land shall
revert to the Quezon City Local Government for disposition.

SECTION 3. Technical Working Group.— Upon transfer of ownership of the said

parcels of land situated in Barangay Krus na Ligas from the University to the Quezon
City Local Government, the Quezon City Local Government shall immediately fence
off the property of the University to segregate it from the area sold under this Act,
and shall subsequently transfer the said property to legitimate residents of Barangay
Krus na Ligas. For this purpose, the Quezon City Local Government shall create a
Technical Working Group to:

(a) Determine the “legitimate residents of Barangay Krus na Ligas”, whose long-
standing residence in the area can sufficiently be established by authenticated
documentary and testimonial evidence, and who are qualified to become subsequent
buyers of parcels of land in Barangay Krus na Ligas;

(b) “Legitimate residents of Barangay Krus na Ligas”, pertain to those who by

themselves, or through their predecessors-in-interest, have been in continuous
possession and occupation of the same parcels of land in the concept of owner since
time immemorial, or for a period of not less than thirty (30) years immediately
preceding the approval of this Act, and uncontested by any resident of the same
parcels of land; and

(c) (b) Assist the University, at the expense of the Quezon City Local Government,
(o resettle all the other settlers found in the remaining property of the University that
is adjacent to the said parcels of land situated in Barangay Ivrus na Ligas.

SECTION 4. Interagency Committee.— An interagency committee headed by the

Quezon City Local Government and composed of the University and the Department
of Housing and Urban Development and the National Housing Authority shall issue
the necessary guidelines for the effective implementation of this Act.

SECTION 5. The sale authorized under this Act shall be exempt from all taxes and
impositions.

SECTION 6. Separability Clause.— If any part or provision of this Act is declared

invalid or unconstitutional, the other parts hereof not affected thereby shall remain
valid.

SECTION 7. Repealing Clause.— All other laws, rules and regulations inconsistent

with this Act are hereby repealed, amended or modified accordingly.

SECTION 8. Effectivity.— This Act shall cake effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

An Act Further Strengthening the Powers and Functions of the Authority of the
Freeport Area of Bataan (AFAB), Amending for this Purpose Republic Act No.
9728, Otherwise Known as the “Freeport Area of Bataan (FAB) Act of 2009”
 Republic Act No. 11453
Congress of the Philippines
30 August 2019

S. No. 2133

H. No. 6524

Republic of the Philippines

Congress of the Philippines
Metro Manila

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
thousand eighteen.

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled:

SECTION 1. Section 3 of Republic Act No. 9728 is hereby amended to read as

follows:

“SEC. 3. Conversion of the Bataan Economic Zone (BEZ) into the Freeport Area of
Bataan.— The existing Bataan Economic Zone located in the Municipality of
Mariveles, Province of Bataan is hereby converted into a special economic zone and
freeport, and along with other territories indicated in this Act, shall be known as the
Freeport Area of Bataan (FAB).

“The FAB shall cover the (a) land territories in the Municipality of Mariveles,
Province of Bataan formerly part of the BEZ comprising an area of approximately
one thousand seven hundred forty-two and 48⁄100 (1,742.48) hectares (the ‘FAB main
zone’), and (b) all other expansion areas within the Province of Bataan which may be
declared as part of the FAB in compliance with Section 4(g) of this Act, including all
municipal waters within the FAB main zone and of the expansion areas located at
the coastline of the Province of Bataan (the ‘other FAB zones’).

“The metes and bounds of the FAB main zone, and the other FAB zones, which
shall be fenced and include the establishment of an administrative office for ease of
customs administration and border control, shall be determined based on the
technical description and coordinates verified and approved by the Land
Management Bureau, the National Mapping and Resource Information Authority, and
other government agencies as may be provided by pertinent law.

“Prospective developers and locators may choose to register with the AFAB, PEZA
or such other investment promotion agency: Provided, That in no case shall a
registered enterprise enjoy incentives from two (2) or more investment promotion
agencies: Provided, further That in no case shall an AFAB-registered enterprise be
located within an ecozone administered or managed by another investment
promotion agency.”

SECTION 2. Section 4 of Republic Act No. 9728 is hereby amended to read as

follows:

“SEC. 4. Governing Principles.— The FAB shall be managed and operated under

the following principles:

“(a) Within the framework and limitations of the Constitution and applicable
provisions of the Local Government Code, the FAE) shall be developed into and
operated as a decentralized self-reliant and self-sustaining industrial, commercial-
trading, research and development, engineering, medical, education, information and
communications technology including emerging and future technologies such as
artificial technology, blockchain, business process outsourcing, cloud computing,
cybersecurity, distributed ledger technology, financial technology solutions, internet
of things, and virtual reality, retirement, and healthcare services, agro-industrial,
tourism, banking, financial, multinational trading and investment center with provision
for suitable residential areas;

“(b) Notwithstanding the autonomy provided in Section 4(a) of this Act, the FAB
shall continue to be provided by the National Government and/or local government
with transportation, telecommunications and other facilities needed to attract
legitimate and productive investments, generate linkage with industries and
employment opportunities for the people of the Province of Bataan and its
neighboring towns and cities. The FAB shall also have priority and preferential
access to such National Government and/or local government transportation and
telecommunications infrastructure and other facilities, and access to the FAB shall
be incorporated in the planning, construction, and operation of such infrastructure or
expansions: Provided, That the autonomy and self-reliance of the AFAB shall not be
a hindrance to assistance and/or partnerships with other units and instrumentalities
of the government: Provided, further, That no assistance or partnership be construed
as a waiver of the autonomy of the AFAB;

“(c) x x x

“(d) Foreign citizens and companies owned by non-Filipinos in whatever proportion

may set up enterprises in the FAB, either by themselves or in joint venture with
Filipinos in any sector of industry, international trade, and commerce within the
territorial jurisdiction of the FAB as provided in Section 3 of this Act: Provided, That
the AFAB may require a minimum investment in freely convertible currencies from
any enterprise seeking registration as a FAB enterprise;

“(e) The FAB shall be managed and operated as a separate customs territory
ensuring free flow or movement of goods and capital within, into and out of its
territory: Provided, That in accordance with Sections 301 and 817 of Republic Act
No. 10863, the Bureau of Customs (BOC) shall continue to exercise border
protection and customs control authority over the customs territory adjacent to the
FAB: Provided, further, That the AFAB shall allow patrol or other law enforcement
arrangements by the BOC and other government agencies within the municipal
waters covered by the other FAB zones subject to coordination with the AFAB to
enhance its protection and control capacity and ensure compliance with customs,
fisheries and other laws and regulations;

“(f) x x x

“(g) The areas comprising the FAB may be expanded or reduced when necessary.
For this purpose, the AFAB, with the concurrence of the appropriate and affected
local government units (LGUs) and the agreement of appropriate national
government agencies, government-owned and -controlled corporations and
instrumentalities, and the approval of the AFAB Board in accordance and in
compliance with existing laws and local ordinances shall have the power to acquire,
procure, and/or expand either by purchase, negotiation, condemnation proceedings,
or any other arrangement, any private or alienable and disposable public lands
and/or their respective water territories within the territorial jurisdiction of the
Province of Bataan, if any, for the following purposes: (1) consolidation of lands for
FAB development and establishment of new industrial estates and economic zones
under the FAB; (2) acquisition of right-of-way to the FAB; and (3) the protection, and
safeguard of watershed areas and the maintenance and improvement of its water
yield and natural assets valuable to the prosperity of the FAB, the LGU, and the
National Government, the effective management of solid and water waste in
compliance with existing national laws and local ordinances, and its impact to
adjacent areas within the local government concerned: Provided, That any
expansion shall be aligned with the comprehensive land use plan of the affected
LGUs: Provided, further, That the expansion outside the Municipality of Mariveles
may be revoked by the President of the Philippines: Provided, finally, That the AFAB
and the relevant LGUs and national government agencies shall provide for
immediate and responsive mechanisms, best management practices and suitable
environmental protection programs for land and coastal management to address any
abuse and/or exploitation of the natural environment within the territorial jurisdiction
of the FAB as provided in Section 3 of this Act;

“(h) Goods manufactured by FAB enterprises shall be made available for

immediate retail sale in the domestic market, subject to the payment of
corresponding taxes on raw materials and other regulations that may be formulated
by the AFAB, together with the Philippine Economic Zone Authority (PEZA), the
Bangko Sentral ng Pilipinas (BSP), the Department of Finance (DOF), the BOC and
the Department of Trade and Industry (DTI) in accordance with the National Internal
Revenue Code (NIRC) of 1997, as amended, and the Tariff and Customs Code of
the Philippines, as amended: Provided, That the value of the goods at the time of the
importation shall be the basis in determining the appropriate duties and
taxes: Provided, further, That in cooperation with the AFAB, the foregoing agencies
shall provide and implement measures to support the improvement of ease and cost
of doing business within the FAB and the enhancement of the investment promotion
capacity of the AFAB. In order to protect the domestic industries, a negative list of
industries shall be drawm up and regularly updated by the AFAB. Enterprises
engaged in industries included in such negative list shall not be allowed to sell their
products locally notwithstanding the registration of such enterprises in the FAB; and

“(i) The defense of the FAB and the security of its perimeter fence shall be the
responsibility of the National Government in coordination with the AFAB and the
LGUs. The AFAB shall provide its own internal security and firefighting forces.”

SECTION 3. Section 6 of Republic Act No. 9728 is hereby amended to read as

follows:

“SEC. 6. Imposition of a Tax Rate of Five Percent (5%) on Gross Income Earned.
— No taxes, local and national, shall be imposed on registered business
establishments operating within the FAB. In lieu thereof, and subject to Section 10 of
this Act, said business establishments shall pay a five percent (5%) final tax on their
gross income earned in the following percentages:

“(a) One per centum (1%) to the National Government;

“(b) One per centum (1%) to the Province of Bataan;

“(c) One per centum (1%) to the host city/municipality; and

“(d) Two per centum (2%) to the Authority of the Freeport Area of Bataan.”

SECTION 4. Section 7 of Republic Act No. 9728 is hereby amended to read as

follows:

“SEC. 7. Incentive to Investors.— Any foreign national who invests an amount of

Seventy-five thousand US dollars (US$75,000.00), either in cash and/or equipment,
in a registered enterprise shall be entitled to an investor’s visa: Provided, That he
has the following qualifications:

“(a) He is at least eighteen (18) years of age;

“(b) He has not been convicted of a crime involving moral turpitude;

“(c) He is not afflicted with any loathsome, dangerous or contagious disease; and

“(d) He has not been institutionalized for any mental disorder or disability.

“As a holder of investor’s visa, an alien shall be entitled to reside in the Philippines
while his investment subsists. For this purpose, he should submit an annual report,
in the form duly prescribed for the purpose, to prove that he has maintained his
investment in the country, should said alien withdraw his investments from the
Philippines, then the investor’s visa issued to him shall automatically expire.”

SECTION 5. Section 13 of Republic Act No. 9728 is hereby amended to read as

follows:

“SEC. 13. Powers and Functions of the AFAB.— The AFAB shall have the following
functions:

“(a) x x x;

“(b) x x x;

“(c) To operate, administer, manage, and develop, in accordance with Executive

Order No. 525, as amended, the FAB according to the principles and provisions set
forth in this Act and to coordinate with the LGUs for the development plans, activities
and operation of the FAB;

“(d) To register, regulate and supervise the enterprises in the FAB in an efficient
and decentralized manner, subject to existing laws;

“(e) To coordinate with the LGUs and the Metro Bataan Development Authority
(MBDA) and exercise general supervision over the development plans, activities and
operations of the FAB. The exclusive delegation of certain powers to AFAB under
this Act notwithstanding, the AFAB may partner with the MBDA in the
implementation of development plans, enforcement of environmental laws,
maintenance of road network and transport facilities, and performance of such other
services designed to enhance the attractiveness of the FAB as an investment
destination. The AFAB may provide assistance to the MBDA to ensure that the
equipment and other resources necessary to perform the services envisaged under
this Act are adequately provided;

“(f) To authorize or undertake, on its own or through others, and to regulate the
establishment, construction, operation and maintenance of public utilities, services,
and infrastructure in the FAB such as shipping, barging, stevedoring, cargo handling,
hauling, warehousing, storage of cargo, port services or concessions, piers,
wharves, bulkheads, bulk terminals, mooring areas, storage areas, roads, bridges,
reclamation projects, terminals, conveyors, water supply and storage, sewerage,
drainage, airport operations in coordination with the Civil Aviation Authority of the
Philippines and such other services or concessions or infrastructure necessary or
incidental to the accomplishment of the objectives of this Act: Provided, however,
That the private investors in the FAB shall be given priority in the awarding of
contracts, franchises, licenses, or permits for the establishment, operation and
maintenance of utilities, services and infrastructure in the FAB;

“(g) To license, set fees, regulate and undertake the establishment, operation and
maintenance of utilities, other services, educational and medical institutions and
infrastructure in the FAB such as, but not limited to, heat, light and power, water
supply, telecommunications, mobile, internet and other data facilities, transport, toll
roads and bridges, port services, etc., and to fix just, reasonable and competitive
rates, fares, charges and prices thereof;

“(h) To construct, acquire, own, lease, operate and maintain on its own or through
contracts, franchises, licenses, bulk purchase from the private sector and build-
operate-transfer scheme, or under a joint venture with the private sectors, any or all
of the public utilities and infrastructure required or needed for the operation and
development of the FAB, including transportation, access and connection to, and out
of the FAB. in coordination with appropriate national and local government
authorities and in conformity with applicable laws thereon. For this purpose, the
AFAB shall exercise the power of eminent domain over private lands granted in
paragraph (b) of this section insofar as it may be reasonably necessary, without
prejudice to the execution of agreements with public agencies, and subject to the
limitations prescribed therein and the observance of the prerequisites of taking of
possession and the determination and payment of just compensation in accordance
with Republic Act No. 10752. otherwise known as ‘The Right-of-Way Act’;

“(i) To operate on its own, either directly or through a license to other tourism-
related activities, including games, amusements, recreational and sports facilities,
subject to the approval and supervision of the Philippine Amusement and Gaming
Corporation (PAGCOR);

“(j) To raise, or borrow, within the limitation provided by law, and subject to the
approval or opinion of the Monetary Board of the BSP, in accordance with law,
adequate and necessary funds from local or foreign sources, to finance its projects
and programs under this Act, and for that purpose, to issue bonds, promissory notes,
and other forms of securities, and to secure the same by a guarantee, pledge,
mortgage, deed of trust, or an assignment of all or part of its property or assets;

“(k) To exclusively enforce and administer the provisions of the National Building
Code of the Philippines and the Fire Code of the Philippines, as amended, within the
territorial jurisdiction of the FAB: Provided, That the AFAB shall be fully responsible
and accountable for the enforcement and administration of the National Building
Code of the Philippines and the Fire Code of the Philippines, as amended, within the
FAB.

“The AFAB administrator, or his official designate, shall function as the AFAB
building official, who shall issue all building permits and other related permits subject
to the collection by AFAB of the corresponding permit fees: Provided, That the AFAB
building official shall also be authorized to require owners of houses, buildings, or
other structures constructed without the necessary AFAB permit/s, or those that are
condemned and/or abated by the AFAB in accordance with the conditions set forth in
the National Building Code or Civil Code, as the case may be, whether constructed
on public or private lands, to remove or demolish such houses, buildings, or
structures within fifteen (15) days from receipt of notice. Upon failure of such owner
to remove or demolish such house, building, or structure within such period, the
AFAB may summarily cause its removal or demolition at the expense of the owner
and the occupants.

“The AFAB may evict any person who refuses to vacate such premises in
accordance with Republic Act No. 7279, otherwise known as the ‘Urban
Development and Housing Act of 1992’, and other existing laws. A temporary or
permanent relocation site shall be made available for qualified individuals or families;

“(l) To provide security for the FAB in coordination with the national and local
governments. For this purpose, the AFAB may establish and maintain its security
forces and firefighting capability or hire others to provide the same. In the event that
an assistance of the military force is necessary, it shall not interfere in the internal
affairs of the FAB except to provide the necessary security and defense, and their
expenses shall be borne by the National Government. To ensure the maintenance of
law and order within the boundaries of the FAB, including conducting police
investigations, arrests, search and seizure for violation of penal laws inside the FAB,
the Philippine National Police (PNP) shall establish a police substation, if necessary,
under the supervision of the PNP Provincial Director, to be manned by such number
of personnel as will allow them to effectively and efficiently pursue its mandate.

“The AFAB shall also be authorized to install control gates at strategic points of the
national roads within the FAB, through which access into and departure from the
FAB shall be fully controlled by the AFAB;

“(m) To protect, preserve, maintain and develop the forests, beaches, coral and
coral reefs, and maintain ecological balance within the FAB. For this purpose, the
rules and regulations of the Department of Environment and Natural Resources
(DENR) and other government agencies involved in the above functions shall be
implemented by the AFAB: Provided, That the issuance, enforcement and monitoring
of environmental compliance certificates (ECCs), tree cutting permits, foreshore
leases and all other related permits and clearances issued by the DENR and other
government agencies shall be under the exclusive control and jurisdiction of the
AFAB;

“(n) x x x;

“(o) x x x;

“(p) x x x;

“(q) To recommend the issuance of working-visas renewable every three (3) years
to foreign executives and foreign technicians with highly specialized skills which no
Filipino possesses, subject to the issuance of the certification and alien employment
permit by the Department of Labor and Employment (DOLE);

“(r) Subject to Republic Act No. 7653, otherwise known as ‘The New Central Bank
Act’, other issuances of the BSP, Republic Act No. 8799, otherwise known as ‘The
Securities Regulations Code’, existing applicable laws, and such other laws as may
be required that are consistent with the objectives of the AFAB, to act as an offshore
financial centre that engage in, or allow, any or all international financial and
business services, including banking, offshore fund management, collective
investment schemes, and cryptocurrency mining, and provide the necessary and
pertinent fiscal incentives as provided for under Republic Act No. 7916, as amended
by Republic Act No. 8748, also known as ‘The Special Economic Zone Act of 1995’,
and/or those provided under Executive Order No. 226, as amended, otherwise
known as ‘The Omnibus Investments Code of 1987’. Banks and financial institutions
engaged in quasi-banking functions to be established in the FAB shall be under the
supervision of the BSP., and shall be subject to existing banking laws, rules and
regulations. Other financial institutions not engaged in quasi-banking functions, and
those engaged in collective investment schemes and cryptocurrency mining within
the FAB shall be under the supervision of the Securities and Exchange Commission;

“(s) To issue special regulations for the benefit of particular industries designed to
improve ease of doing business, decrease cost of doing business, and lower
bureaucratic burdens of investing and doing business within the FAB: Provided, That
such special regulations shall not be contrary to existing laws;

“(t) To endorse Special Resident Retiree’s Visas (SRRVs) for retirees that intend to
reside in the FAB, in collaboration with the Philippine Retirement Authority
(PRA): Provided, That the PRA and the AFAB shall issue joint regulations on the
processing of SRRVs in accordance with existing laws;

“(u) To establish, operate and maintain utilities, facilities, infrastructure, services,

businesses, activities, and concessions in the FAB, pertaining to shipping and
maritime business and activities including stevedoring and port terminal services or
concessions: Provided, That the Maritime Industry Authority (MARINA) shall
continue to exercise its power to regulate and supervise the shipbuilding and ship
repair of any merchant marine vessel operated or to be operated in the domestic
trade and the domestic shipping industry within the FAB;

“(v) To establish one-stop shops for the issuance of all necessary permits,
clearances, licenses, and other similar certifications to conduct activities, to improve
the ease of doing business within the FAB, in coordination with government agencies
having jurisdiction over activities in the FAB not otherwise solely reserved to the
AFAB in this Act: Provided, That all government agencies are directed to provide and
extend utmost and full cooperation to the AFAB in the establishment of such one-
stop shops;

“(w) To exercise such powers as may be essential, necessary or incidental to the

powers granted to it hereunder as well as those that shall enable it to carry out,
implement and accomplish the purposes, objectives and policies of this Act; and

“(x) To be vested with other powers enjoyed or exercised by other freeport zone
authorities.”

SECTION 6. Section 14 of Republic Act No. 9728 is hereby amended to read as

follows:

“SEC. 14. Board of Directors of the FAB.— The powers of the AFAB shall be

vested in and exercised by a Board of Directors, hereinafter referred to as the Board,
which shall be composed of the following:

“(a) The chairman and the vice chairman, both of whom shall be elected from
among the members of the Board;

“(b) The administrator, who shall in no case be, at the same time, the chairman or
vice chairman;

“(c) Members consisting of:

 “(1) Two (2) representatives from the National Government;

“(2) One (1) representative from the Province of Bataan;

“(3) One (1) representative from the district covering the site of the FAB;

“(4) One (1) representative from the Municipality of Mariveles, Province of Bataan;

“(5) One (1) representative from the AFAB-registered domestic investors;

“(6) One (1) representative from the AFAB-registered foreign investors; and

“(7) One (1) representative from the workers working in the FAB

“Provided, That all members of the Board shall be Filipino citizens.

“The administrator and the members of the Board, shall be appointed by the
President of the Philippines to serve for a term of six (6) years, unless sooner
separated from service due to death, voluntary resignation or removal for cause. In
case of death, resignation or removal for cause, the replacement shall serve only the
unused portion of the term.

“No person shall be appointed by the President of the Philippines as a member of

the Board unless he is a Filipino citizen, of good moral character, of proven probity
and integrity, and a degree holder in any of the following fields: economics, business,
public administration, law, management or their equivalent, and with at least ten (10)
years relevant working experience preferably from the field of management or public
administration.

“The members of the Board shall each receive per diem at rates to be determined
by the Department of Budget and Management (DBM) in accordance with existing
rules and regulations: Provided, however, That the total per diem collected each
month shall not exceed the equivalent per diem for four (4) meetings.”

SECTION 7. Section 15 of Republic Act No. 9728 is hereby amended to read as

follows:

“SEC. 15. Powers and Duties of the Administrator.— The administrator shall have

the following powers and duties:

“(a) To direct and manage the affairs of the AFAB in accordance with the policies
of the Board;

“(b) To establish the internal organization of the AFAB under such conditions that
the Board may prescribe;

“(c) To submit an annual budget and necessary supplemental budget to the Board
for its approval;
 “(d) To submit within thirty (30) days after the close of each fiscal year an annual
report to the Board and such other reports as may be required;

“(e) To submit to the Board for its approval policies, systems, procedures, rules
and regulations that are essential to the operation of the AFAB;

“(f) To create a mechanism in coordination with relevant agencies for the

promotion of industrial peace, the protection of the environment, and the
advancement of the quality of life in the FAB; and

“(g) To perform such other duties as may be assigned to him by the Board or which
are necessary or incidental to his office.”

SECTION 8. Section 16 of Republic Actt No. 9728 is hereby amended to read as

follows:

“SEC. 16. Organization and Personnel.— The AFAB Board of Directors shall

provide for an organizational structure and appoint employees, subject to the Civil
Service Law. Upon the recommendation of the administrator, the Board shall appoint
and fix the remuneration and other emoluments of its officers and employees in
accordance with existing laws on compensation and position classification: Provided,
That the salary and other compensation of the administrator shall be comparable
with the president and chief executive officer of Clark Development
Corporation: Provided, further, That the Board shall exercise administrative
supervision on their employees.

“The officers and employees of the AFAB, including all members of the Board,
shall not engage directly or indirectly in partisan activities nor take part in any
election, except to vote.

“No officer or employee of the AFAB, subject to civil service laws and regulations,
shall be removed or suspended except for cause, as provided by law.”

SECTION 9. Section 17 of Republic Act No. 9728 is hereby amended to read as

follows:

“SEC. 17. Labor Center, Health and Housing Facilities.— (a) A labor center shall be
established within the FAB. This center shall be responsible for studying and
amicably settling professional and labor relations and disputes, interpretation of
employment contracts, and monitoring work, hygiene 'and safety standards within
the FAB. The labor center shall comprise a labor office, an industrial health and
safety office, and an inspection and disputes office.

“Except as otherwise provided in this Act, labor and management relations in the
FAB shall be governed by applicable rules and regulations under the Labor Code of
the Philippines, as amended. Employees and personnel in the registered enterprises
shall receive salaries and benefits, and shall enjoy working conditions provided
under the Labor Code and other relevant laws and issuances of the Philippine
Government and the DOLE. The AFAB shall allow the visitorial power of the
Secretary of the DOLE or his duly authorized representative, and/ or may assign its
personnel to join the DOLE Regional Office III in the conduct of labor inspection.

“(b) The Department of Health shall establish, fund, operate and maintain a tertiary
hospital in the FAB

“(c) The National Housing Authority, pursuant to its mandate, shall undertake
vertical and horizontal housing development for the marginalized informal settlers
and low income earners within the FAB, and shall source the necessary funds
thereof through National Government subsidy.”

SECTION 10. Section 19 of Republic Act No. 9728 is hereby amended to read as

follows:

“SEC. 19. Remittances.— In the case of foreign investments, a registered

enterprise in the FAB shall have the right to remit earnings from the investment in
favor of the investor and/or intended beneficiary, subject to the provisions of
Republic Act No. 7653, otherwise known as the ‘New Central Bank Act’, the manual
of regulations on foreign exchange transactions, as well as other relevant rules and
regulations.”

SECTION 11. Section 21 of Republic Act No. 9728 is hereby amended to read as

follows:

“SEC. 21. Capitalization.— The capital stock to be contributed by the government,

shall be (a) Two billion five hundred million pesos (₱2,500,000,000.00) with option to
increase capitalization upon the discretion of the AFAB, (b) all lands embraced and
covered by the FAB, including those properties conveyed to the Government Service
Insurance System (GSIS) and/or the Social Security System (SSS) under
Proclamation No. 740, as amended by Proclamation No. 900, as well as permanent
improvements and fixtures upon proper inventory not otherwise alienated, conveyed
or transferred to another government agency, and (c) all other assets which the
President may transfer to the AFAB as part of the equity contribution of the
government.”

SECTION 12. A new provision is inserted in the Act as Section 30 and the
succeeding provisions are renumbered accordingly and amended as follows:

“SEC. 30. Non-Impairment of Contracts/Permits/Licenses.— All existing contracts,

permits and licenses duly granted by the AFAB before the date of effectivity of this
Act shall remain valid, and unimpaired, and shall be recognized by the government.”

SECTION 13. Transitory Provision.— The incumbent chairman and administrator of

the AFAB shall continue to serve as administrator of the AFAB for the remaining
term of his appointment without prejudice to his reappointment to the same position
upon the expiration of his term at the discretion of the appointing authority.

SECTION 14. Separability Clause.— Any portion or provision of this Act that may be

declared unconstitutional shall not have the effect of nullifying other portions or
provisions hereof as such remaining provisions can still subsist and be given effect.

SECTION 15. Repealing Clause.— Proclamation No. 740, as amended by

Proclamation No. 900 and Presidential Decree No. 545, insofar as these laws
convey the balance of the public land mentioned therein in favor of the GSIS and the
SSS. and mandate said agencies to develop the land for construction of housing
units and/or condominium houses, are hereby repealed. All other laws, decrees,
executive orders, rules and regulations or parts thereof, inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SECTION 16. Effectivity.— This Act shall take effect after fifteen (15) days following
its complete publication in the Official Gazette or in two (2) newspapers of general
circulation whichever is earlier.

An Act Providing for the Regulation and Organization of Islamic Banks

Republic Act No. 11439
Congress of the Philippines
22 August 2019
H. No. 8281

Republic of the Philippines

Congress of the Philippines
Metro Manila

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
thousand eighteen.

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled:

SECTION 1. Declaration of Policy.— The State recognizes the vital role of Islamic

banking and finance in creating opportunities for greater financial inclusion especially
for the underserved Muslim population, in expanding the funding base for small and
medium-sized enterprises as well as large government infrastructure through
financial arrangements with risk sharing as their core element, and in contributing to
financial stability through the use of financial contracts and services that are founded
on risk sharing rather than speculation in compliance with Shari’ah principles.

SECTION 2. Definition of Terms.—

(а) As used in this Act:

(1)  Shari’ah refers to the practical divine law deduced from its legitimate sources:
the Qur’an, Sunnah, consensus of Muslim scholars, analogical deduction and other
approved sources of Islamic law;

(2)  Current account refers to the total deposits at an Islamic bank which are
repayable on demand and compliant with Shari’ah principles

(3) Investment account refers to the total funds placed by an investor with an

Islamic bank for a fixed period of time under an agreement to share the profits and
losses on the investment of such funds in accordance with the principles of Shari’ah;

(4) Islamic hanking business refers to a banking business with objectives and

operations that do not involve interest (riba) as prohibited by the Shari’ah and which
conducts its business transactions in accordance with Shari’ah principles;

(5)  Islamic banking unit refers to a division, department, office or branch of a

conventional bank that conducts business in accordance with the principles of
the Shari’ah;

(6) Participation refers to any agreement or arrangement under which the mode

of joint investments or specific transactions shall not involve the element of interest
charge other than as percentage share in profits and losses of business and which is
conducted in accordance with the principles of the Shari’ah;

(7)  Riba has the meaning assigned to it by Islamic law and jurisprudence as

expounded by authoritative sources; in the context of banking business, the term
refers to the receipt and payment of interest, including in the various types of lending
and borrowing and in the exchange of currencies on forward basis; and

(8)  Savings account refers to an account reflecting the total deposits at an

Islamic bank which normally require the presentation of passbooks or in lieu thereof,
such other legally acceptable documents approved by the Bangko Sentral ng
Pilipinas (Bangko Sentral) for deposit or withdrawal of money.

(9) (b) The Monetary Board may, by regulation, further define or clarify the terms
used in this Act or commonly used in Islamic banking transactions, consistent with
the declared State policy and taking into consideration the peculiar characteristics of
Islamic banking.

SECTION 3. Establishment of Islamic Banks.—

A. The Monetary Board may authorize the establishment of Islamic banks. It may
also authorize conventional banks to engage in Islamic banking arrangements,
including structures and transactions, through a designated Islamic banking unit
within the bank: Provided, That the bank shall have a system for segregating the
transactions of the Islamic banking unit from its conventional banking business.

B. The Monetary Board may, under such rules and regulations as it may prescribe,
authorize foreign Islamic banks to establish Islamic banking operations in the
Philippines under any of the modes of entry provided for under Republic Act No.
7721, as amended, otherwise known as The Liberalization of Entry and Operations
of Foreign Banks. The Monetary Board may regulate the number of participants in
the Islamic banking system taking into account the requirements of the economy, the
preservation of the stability of the system, and the maintenance of healthy
competition.

C. For purposes of this Act, the Al-Amanah Islamic Investment Bank of the
Philippines, other Islamic banks, designated Islamic banking units of conventional
banks, and foreign banks that are authorized to conduct business in accordance with
the principles of Shari’ah shall be referred to collectively as ‘Islamic Banks” or
“Islamic banking system”.

SECTION 4. Supervision and Regulation by the Bangko Sentral.— The Bangko

Sentral shall exercise regulatory powers and supervision over the operations of
Islamic banks. The Bangko Sentral shall issue the implementing rules and
regulations on Islamic banking.

SECTION 5. Shari’ah Advisory Councils.— It shall be the responsibility of an Islamic

bank to comply with Shari’ah principles. For this purpose, it shall constitute
a Shari’ah advisory council composed of persons who are qualified in Shari’ah or
who have knowledge or experience in Shari’ah and in banking, finance, law or such
other related disciplines. The council shall render advice and review applications
of Shari’ah principles, but it shall not involve itself directly in the operations of the
Islamic bank or engage in any activity which may give rise to conflict of interest.
Nothing contained herein precludes the establishment of a
centralized Shari’ah Supervisory Board to ensure that the Islamic banking
transactions and products comply with Shari’ah principles.

SECTION 6. Powers of Islamic Banks.—

(a) In addition to the general powers granted to corporations, Islamic banks shall
have such powers as shall be necessary and prudent to carry out the business of a
bank in accordance with Shari’ah principles.

(b) Islamic banks may perform the following banking services:

(1) Accept or create current accounts;

(2) Accept savings accounts for safekeeping or custody with no participation in

profit and loss except unless otherwise authorized by the account holders to be
invested;

(3) Accept investment accounts;

(4) Accept foreign currency deposits;

(5) Act as correspondent of banks and institutions to handle remittances or any

fund transfers;

(6) Accept drafts and issue letters of credit or letters of guarantee, negotiate notes
and bills of exchange and other evidence of indebtedness: Provided, That such
financial instruments are in accordance with the principles of Shari’ah;

(7) Act as collection agent insofar as payment orders, bills of exchange or other
commercial documents covering Shari’ah compliant transactions;

(8) Provide Shari’ah compliant financing contracts and structures;

(9) Handle storage operations for goods or commodity financing secured by

warehouse receipts presented to the Islamic bank;

(10) Issue shares for the account of institutions and companies assisted by the
Islamic bank in meeting subscription calls or augmenting their capital and/or fund
requirements as may be allowed by law;

(11) Undertake various investments in all transactions allowed

by Shari’ah principles; and

(12) Such other banking services as may be authorized by the Monetary Board.
 (c) With prior Monetary Board approval, Islamic banks may issue investment
participation certificates, sukuk, and other Shari’ah compliant funding instruments to
be used by the Islamic banks in its operations or capital needs.

(d) Islamic banks may carry out financing and joint investment operations by way
of mudarabah partnership, musharakah joint venture or by decreasing
participation, murabahah purchasing on a cost-plus financing arrangement,
lease (ijara) arrangements, construction and manufacture (istisna’a) arrangements,
and other Shari’ah compliant contracts and structures, and to invest funds directly in
various projects or through the use of funds whose owners desire to invest jointly
with other resources available to the Islamic bank on a joint mudarabah basis in
accordance with the foregoing arrangements, contracts and structures.

(e) With prior Monetary Board approval, Mamie banks may invest in equities
of Shari’ah compliant undertakings that directly support the delivery of Islamic
banking and financing services.

(f) Islamic-banks may exercise the general powers of a universal bank that are
consistent with the principles of Shari’ah.

SECTION 7. Ownership and Legal Existence.— Islamic banks to be created under

this Act shall comply with pertinent laws, rules and regulations applicable to a private
corporation engaged in banking, such as “The Corporation Code of the Philippines”
(Batas Pambansa Big. 68), as amended, and the requirements of the respective
regulatory agencies. Islamic banking units shall be operated and managed pursuant
to a management and organizational structure which should be properly disclosed
and segregated from the operations of the parent bank.

The capitalization requirements of an Islamic bank shall be equal to that prescribed

by the Bangko Sentral for a universal bank. Islamic banks may take the necessary
steps to have their shares of stock listed in any duly registered stock exchange.

SECTION 8. Transfer and Acquisition of Substantial Shareholdings.— No person

shall acquire shares in an Islamic bank that will result in ownership or control, directly
or indirectly, of more than ten percent (10%) of the voting stock of such Islamic bank,
without obtaining the prior approval of the Monetary Board. Prior to the Monetary
Board approval, no such transfer or acquisition of shares shall have legal effect nor
shall the same be recognized in the stock and transfer books of the Islamic bank or
in the records of any government agency.

SECTION 9. Fit and Proper Rule.— In order to maintain the quality of bank
management and afford better protection to depositors, investors and the public in
general, the Monetary Board shall prescribe, pass upon and review the qualifications
of persons who are elected or appointed as directors or officers of Islamic banks and
disqualify those found unfit. The Monetary Board shall prescribe the qualifications of
bank directors and officers for purposes of this Act.

SECTION 10. Regulatory Standards.— Islamic banks shall be licensed and

regulated in the same manner as a universal bank. The Bangko Sentral shall
prescribe prudential regulations and standards of conduct to promote the sound
financial position of Islamic banks find to ensure integrity, professionalism and
expertise in the conduct of their business, affairs and activities. These standards
shall take into consideration international best practices and principles relating to, but
not limited to:

(a) capital adequacy;

(b) liquidity;

(c) corporate governance;

(d) risk management;

(e) related party transactions;

(f) maintenance of reserve funds;

(g) prudential reporting;

(h) investment ceilings and limitations;

(i) prevention of an institution from being used, intentionally or unintentionally, for

unlawful activities; and

(j) consumer protection.

SECTION 11. Current Accounts of Islamic Banks.— The Bangko Sentral is

authorized to open current accounts for Islamic banks for settlement and other
purposes under such rules and regulations as the Monetary Board may prescribe.
The Bangko Sentral may charge administrative and other fees for the maintenance
of such facilities as may be allowed under Shari’ah principles.

SECTION 12. Financial Facilities for Islamic Banks. — The Bangko Sentral may,

taking into consideration the peculiar characteristics of Islamic banking, formulate
rules and regulations for the extension of financial facilities to Islamic banks for
purposes provided under Chapter IV, Articles IV and V of Republic Act No. 7653, as
amended, otherwise known as the New Central Bank Act.

Subject to the availability of budgetary support and other funding sources, the
Philippine Deposit Insurance Corporation (PDIC) may extend financial assistance to
an Islamic bank determined by the Monetary Board to be in danger of closing in
order to prevent such closing, or when it is determined by the Monetary Board and
the PDIC Board of Directors that the continued operation of such Islamic bank is
essential to the stability of the economy.

SECTION 13. Monetary Stabilization Policy and Tools.— The Bangko Sentral,

pursuant to the authority of the Monetary Board under Section 61 of Republic Act
No. 7653, to constantly assess price developments and outlook, and based on its
analysis and evaluation of inflationary pressures, and its policy instruments to attain
and maintain price stability, and taking into consideration the peculiar characteristics
of Islamic banking, may require Islamic banks to maintain reserves against their
deposit accounts and funds held in trust or under investment accounts. The
Monetary Board may further identify and authorize the issuance by the Bangko
Sentral of other appropriate instruments and measures necessary to implement its
monetary policy, including instances of abnormal movements in the price level,
taking into account the peculiar characteristics of Islamic banking.

SECTION 14. Tax Neutrality.— The Government shall endeavor to achieve neutral

tax treatment between Islamic banking transactions and equivalent conventional
banking transactions within the provisions of the National Internal Revenue Code of
1997 (Republic Act No. 8424), as amended.

SECTION 15. Sanctions.— Any director, officer, employee., auditor, or agent of an

Islamic bank who is found guilty of any act or omission in violation of any provision of
this Act and its implementing rules and regulations shall be subject to the sanctions
and penalties under Sections 34, 35, 36 and 37 of Republic Act No. 7653, and shall
be punished by a fine not exceeding One million pesos (₱1,000,000.00) or by
imprisonment of not more than five (5) years, or both, at the discretion of the court,
without prejudice to administrative and criminal sanctions that may be imposed
pursuant to existing banking laws and regulations.

SECTION 16. Consumer Awareness and Capacity Building Program.— The

Government shall provide programs for increased consumer awareness and
capacity building required by the expanded Islamic banking system.

SECTION 17. Nonapplicability of Selected Acts.— In order to achieve the

international and domestic objectives of Islamic banking, the provisions of the
following laws shall not apply to Islamic banks to the extent as herein rendered
inoperative:

(a) The provisions of Republic Act No. 7653, and Republic Act No. 8791, otherwise
known as “The General Banking Law of 2000”, with particular reference to the
determination of bank interest rates, loans and discounts, and interest-bearing
instruments or charge: Provided, That nothing contained herein shall be construed to
impair the powers of the Bangko Sentral to supervise and regulate the activities of
Islamic banks and the Islamic banking system;

(b) The provisions of Presidential Decree No. 1445, otherwise known as the
“Government Auditing Code of the Philippines” and other enactments thereon
inconsistent with this Act: Provided, however, That nothing contained herein shall
preclude the development of an appropriate framework for the auditing of Islamic
banks and the Islamic banking system; and

(c) The provisions of Republic Act No. 3591, as amended, known as the Philippine
Deposit Insurance Corporation (PDIC) Charter, and all laws regulating insurance
companies: Provided, however, That nothing contained herein shall preclude Islamic
banks from the establishment of contemporary Islamic takaful (solidarity services)
free of riba, premiums or interests.

SECTION 18. Separability Clause.— If any provision or section of this Act or the

application thereof to any person, association, or circumstances is held invalid, the
other provisions or sections and their application to such person, association, or
circumstances shall not be affected thereby.

SECTION 19. Repealing Clause.— All laws, orders, issuances, rules and regulations

or parts thereof inconsistent with this Act are hereby repealed or modified
accordingly.

SECTION 20. Effectivity.— This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

An Act Renewing for Another Twenty Five (25) Years the Franchise Granted to
Swara Sug Media Corporation Under Republic Act No. 8122, Entitled “An Act
Granting the Swara Sug Media Corporation of the Philippines a Franchise to
Construct, Install, Operate and Maintain for Commercial Purposes Radio and
Television Broadcasting Stations in the Philippines and for Other Purposes”
Republic Act No. 11422
Congress of the Philippines
22 August 2019
H. No. 8670

Republic of the Philippines

Congress of the Philippines
Metro Manila

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
thousand eighteen.

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, the franchise granted under
Republic Act No. 8122 to Swara Sug Media Corporation, hereunder referred to as
the grantee, its successors or assignees to construct, install, establish, operate, and
maintain for commercial purposes and in the public interest, radio and/or television
broadcasting stations where frequencies or channels are still available for radio and
television broadcasting, including digital television system, through microwave,
satellite or whatever means, including the use of any new technology in radio and
television systems, with the corresponding technological auxiliaries and facilities,
special broadcast and other program and distribution services and relay stations in
the Philippines, is hereby renewed for another twenty-five (25) years.

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 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 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 or
facilities and shall not use any frequency in the radio and 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, 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 populations or portions thereof, on important public issues and relay
important public announcements and warnings concerning public emergencies and
calamities, 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 including closed captioning; and not use its
stations or facilities for the broadcasting of obscene or 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 a maximum aggregate of

ten percent (10%) of the paid commercials or advertisements which shall be
allocated based on the need of the Executive and Legislative branches, the
Judiciary, Constitutional Commissions and international humanitarian organizations
duly recognized by statutes: Provided, That the NTC shall increase the public service
time in case of extreme 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.

SECTION 5. Right of the Government.— 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.

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; 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, upon due compensation to the
grantee, for the use of said stations or facilities during the period when these shall be
so operated.

SECTION 6. Term of Franchise.— This franchise shall be in effect for a period of

twenty-five (25) years from the 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. Self-regulation by and Undertaking of the 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 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 8. Warranty in Favor of the National and Local Governments.— The

grantee shall hold the national, provincial, city, and municipal governments of the
Philippines free from all claims, liabilities, demands, or actions arising out of
accidents causing injury to persons or damage to properties, during the construction
or operation of the stations of the grantee.
 SECTION 9. Commitment to Provide and Promote the Creation of Employment
Opportunities.— The grantee shall create employment opportunities and shall allow
on-the-job trainings in their franchise operation: Provided, That priority shall be
accorded to the residents in areas where any of its offices is
located: Provided, further, That the grantee shall comply with the applicable labor
standards and allowance entitlement under existing labor laws, rules and regulations
and similar issuances: Provided, finally, That the employment opportunities or jobs
created shall be reflected in the General Information Sheet to be submitted to fhe
Securities and Exchange Commission (SEC) annually.

SECTION 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.

— The grantee shall nbt 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 transfer the controlling interest of the grantee,
simultaneously or contemporaneously, to any person, firm, company, corporation, or
entity without the prior approval of the Congress of the Philippines. Congress shall
be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise
or the rights and privileges acquired thereunder, or of the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after the completion of the
said transaction. Failure to report to Congress such change of ownership shall
render the franchise ipso facto revoked. Any person or entity to which this franchise
is sold, transferred, or assigned shall be subject to 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%) of its outstanding stock, or a higher
percentage thereof that may hereafter be provided by law, in any securities
exchange in the Philippines: 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.

SECTION 12. Reportorial Requirement.— During the term of its franchise, 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.

The annual-report shall include an update on the roll-out, development, operation,

or expansion of business; audited financial statements; latest General Information
Sheet officially submitted to SEC (if applicable); certification of the NTC on the status
of its permits and operations; and an update on the dispersal of ownership
undertaking, if applicable.

The reportorial compliance certificate issued by Congress shall be required before

an application for permit, certificate, or any equivalent thereof, is accepted by the
NTC.
 SECTION 13. Fine.— Failure of the grantee to submit the requisite annual report to
Congress shall be penalized by a fine of Five hundred pesos (₱500.00) per working
day of noncompliance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC and
the same shall be remitted to the National Treasury.

SECTION 14. Equality Clause.— Except for taxes and customs duties, any

advantage, favor, privilege, exemption, or immunity granted under existing
franchises, or which may hereafter be granted for radio and 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 provisions of broadcasting
franchises concerning territorial coverage, the term, or the type of service authorized
by the franchise.

SECTION 15. 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.

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. Repealing Clause.— All laws, decrees, orders, resolutions,

instructions, rules and regulations, and other issuances or parts thereof which are
inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly.

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

An Act Renewing for Another Twenty Five (25) Years the Franchise Granted to
VIMCONTU Broadcasting Corporation, Under Republic Act No. 8116, Entitled
“An Act Granting the VIMCONTU Broadcasting Corporation a Franchise to
Construct, Install, Operate and Maintain Radio and Television Broadcasting
Stations Within the Philippines, and for Other Purposes”
Republic Act No. 11421
Congress of the Philippines
22 August 2019

H. No. 8668
 Republic of the Philippines
Congress of the Philippines
Metro Manila

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
thousand eighteen.

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, the franchise granted under
Republic Act No. 8116 to VIMCONTU Broadcasting Corporation, hereunder referred
to as the grantee, its successors or assignees, to construct, install, establish,
operate, and maintain for commercial purposes and in the public interest, radio
and/or television broadcasting stations, including digital television system, through
microwave, satellite, terrestrial or whatever means, as well as the use of any new
technology in television and radio systems, with the corresponding technological
auxiliaries and facilities, special broadcast and other program and distribution
services and relay stations in the Philippines is hereby renewed for another twenty-
five (25) years.

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 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 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 or
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, 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 populations or portions thereof, on important public issues and relay
important public announcements and warnings concerning public emergencies and
calamities, 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 including closed captioning; and not use its
stations or facilities for the broadcasting of obscene or indecent language, speech,
act, or scene; or for the dissemination of dehberately 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 a maximum aggregate of

ten percent (10%) of the paid commercials or advertisements which shall be
allocated based on need to the Executive and Legislative branches, the Judiciary,
Constitutional Commissions and international humanitarian organizations duly
recognized by statutes: Provided, That the NTC shall increase the public service
time in case of extreme 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.

SECTION 5. Right of the Government.— 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.

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
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 these shall be
so operated.

SECTION 6. Term of Franchise.— This franchise shall be in effect for a period of

twenty-five (25) years from the 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. Self-regulation by and Undertaking of the 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 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 8. Warranty in Favor of the National and Local Governments.— The

grantee shall hold the national, provincial, city, and municipal governments of the
Philippines free from all claims, liabilities, demands, or actions arising out of
accidents causing injury to persons or damage to properties, during the construction
or operation of the stations of the grantee.

SECTION 9. Commitment to Provide and Promote the Creation of Employment

Opportunities.— The grantee shall create employment opportunities and shall allow
on-the-job trainings in their franchise operation: Provided, That priority shall be
accorded to the residents in areas where any of its offices is
located: Provided, further, That the grantee shall comply with the applicable labor
standards and allowance entitlement under existing labor laws, rules and regulations
and similar issuances: Provided, finally, That the employment opportunities or jobs
created shall be reflected in the General Information Sheet (GIS) to be submitted to
the Securities and Exchange Commission (SEC) annually.

SECTION 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.

— 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, firrp.,
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,
simultaneously or contemporaneously, to any person, firm, company, corporation, or
entity without the prior approval of the Congress of the Philippines. Congress shall
be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise
or the rights and privileges acquired thereunder, or of the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after the completion of the
said transaction. Failure to report to Congress such change of ownership shall
render the franchise ipso facto revoked. Any person or entity to which this franchise
is sold, transferred, or assigned shall be subject to 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%) of its outstanding capital stock, or a
higher percentage thereof that may hereafter be provided by law 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.

SECTION 12. Reportorial Requirement.— During the term of its franchise, 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.

The annual report shall include an update on the roll-out, development, operation,
or expansion of business; audited financial statements; latest GIS officially submitted
to the SEC (if applicable); certification of the NTC on the status of its permits and
operations; and an update on the dispersal of ownership undertaking, if applicable.

The reportorial compliance certificate issued by Congress shall be required before

an application for permit, certificate, or any equivalent thereof, is accepted by the
NTC.

SECTION 13. Fine.— Failure of the grantee to submit the requisite annual report to

Congress shall be penalized by a fine of Five hundred pesos (₱500.00) per working
day of noncompliance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC and
the same shall be remitted to the National Treasury.

SECTION 14. Equality Clause.— Except for taxes and customs duties, 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 provisions of
broadcasting franchises concerning territorial coverage, the term, or the type of
service authorized under this franchise.

SECTION 15. 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.

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. Repealing Clause.— All laws, decrees, orders, resolutions,

instructions, rules and regulations, and other issuances or parts thereof which are
inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly.

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

An Act Granting The Bases Conversion and Development Authority a

Franchise to Construct, Install, Establish, Operate, Lease, Own, Manage and
Maintain Distribution Systems for the Conveyance of Electric Power to End
Users in Selected Areas Covered Under Republic Act No. 7227, as Amended,
Otherwise Known as the “Bases Conversion and Development Act of 1992”
Republic Act No. 11420
Congress of the Philippines
22 August 2019
H. No. 8667

Republic of the Philippines

Congress of the Philippines
Metro Manila

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
thousand eighteen.

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 Bases Conversion and Development Authority (BCDA), a government entity
created pursuant to Republic Act No. 7227, as amended, otherwise known as the
“Bases Conversion and Development Act of 1992”, and hereunder referred to as the
grantee, its successors or assignees, a franchise to construct, install, establish,
operate, lease, own, manage and maintain for commercial purposes and in the
public interest, distribution systems for the conveyance of electric power to end users
in selected areas covered by the grantee pursuant to Republic Act No. 7227, as
amended.

Specifically, the areas covered by this franchise are the following:

(a) John Hay Station (Baguio City);

(b) Wallace Air Station (Poro Point, La Union);

(c) O’Donnell Transmitter Station (Capas, Tarlac);

(d) Capas Relay Station (Capas, Tarlac); and

(e) Portion of the Clark Special Economic Zone (CSEZ)' covering the new Clark
City (Tarlac).

SECTION 2. Manner of Operation of Facilities.— All electric distribution facilities,

lines, and systems for electric services owned, maintained, operated, or managed by
the grantee, its successors or assignees, shall be operated and maintained at all
times in the best manner. It shall be the duty of the grantee, its successors or
assignees, whenever required to do so by the Energy Regulatory Commission (ERC)
or its legal successor, or the Department of Energy (DOE) or its legal successor, or
any other government agency concerned, to modify, improve and change such
facilities or systems in such manner and to such extent as the progress in science
and improvements in the electric power service industry may render reasonable and
proper.
 Whenever practicable and for purposes of maintaining order, safety and aesthetics
along highways, roads, streets, alleys, or easements, the grantee may allow the use
of its poles, facilities, or easements by interested parties upon reasonable
compensation. The ERC shall resolve cases of dispute or disagreement between
parties.

SECTION 3. Authority of the Energy Regulatory Commission (ERC).— The grantee

shall secure from the ERC the necessary-certificate of public convenience and
necessity and other appropriate permits and licenses for the construction and
operation of its electric distribution system.

SECTION 4. Excavation and Restoration Works.— For the purpose of erecting and

maintaining poles and other supports for wires or other conductors for the laying and
maintaining of underground wires, cables, pipes or other conductors, the grantee, its
successors or assignees, is authorized to make excavations or lay conduits in any of
the public places, roads, highways, streets, lanes, alleys, avenues, sidewalks, or
bridges of said province, cities and/or municipalities, subject to prior approval of the
Department of Public Works and Highways (DPWH) or the local government unit
(LGU) concerned: Provided, however, That any public place, road, highway, street,
lane, alley, avenue, sidewalk, or bridge disturbed, altered, or changed by reason of
erection of poles or other supports or the underground laying of wires, other
conductors or conduits, shall be repaired or replaced in workmanlike manner at the
expense of the grantee, its successors or assignees, in accordance with the
standards set by the DPWH or the LGU concerned. Should the grantee, its
successors or assignees, after the ten (10)-day notice from the said authority, fail,
refuse, or neglect to repair or replace any part of a public place, road, highway,
street, lane, alley, avenue, sidewalk, or bridge that has been disturbed, altered, or
changed by the said grantee, its successors or assignees, then the DPWH or the
LGU concerned shall have the right to have the same repaired or replaced in good
order and condition and charge the grantee, its successors or assignees at double
the amount of the cost and expenses for such repair or replacement.

SECTION 5. Responsibility to the Public.— The grantee shall supply electricity to its

captive market in the urban and rural portions of its franchise area in the least costly
manner. In the interest of the public good, as far as feasible and whenever required
by the ERC, the grantee shall modify, improve, or change its facilities, poles, lines,
systems, and equipment for the purpose of providing efficient and reliable service
and reduced electricity costs. The grantee shall charge reasonable and just power
rates for its services to all types of consumers within its franchise areas.

The grantee shall have the obligation to provide open and nondiscriminatory
access to its distribution system and services for any end user within its franchise
area consistent with Republic Act No. 9136, otherwise known as the “Electric Power
Industry Reform Act of 2001”. The grantee shall not engage in any activity that will
constitute an abuse of market power such as unfair trade practices, monopolistic
schemes, and other activities that will hinder competitiveness of businesses and
industries.
 The exercise of the rights granted herein shall not result to stranded assets and
stranded contract costs of existing and operating distribution utilities nor to
unreasonable increases in costs to consumers.

SECTION 6. Rates for Services.— The retail rates and charges for the distribution of
electric power by the grantee to its end users shall be regulated by and be subject to
the approval of the ERC or its legal successor.

The grantee shall identify and itemize in the statement, of account it issues to end
users the components of the retail rate charged pursuant to Republic Act No. 9136.
Such rates charged by the grantee shall be made public and transparent. The
grantee shall implement a lifeline rate to marginalized end users as mandated under
Republic Act No. 9136.

SECTION 7. Protection of Consumer Interests.— The herein grantee shall establish

a consumer desk that will handle consumer complaints and ensure adequate
protection of consumer interests. The grantee shall act with dispatch on all
complaints brought before it.

SECTION 8. Right of the 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 distribution system 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 said distribution
system during the period when these shall be so operated.

SECTION 9. Right of Eminent Domain.— Subject to the limitations and procedures

prescribed by law, the grantee is authorized to exercise the right of eminent domain
insofar as it may be reasonably necessary for the efficient maintenance and
operation of services. The grantee is authorized to install and maintain its poles,
wires, and other facilities over and across public property, including streets,
highways, forest reserves, and other similar property of the Government of the
Philippines, its branches, or any of its instrumentalities. The grantee may acquire
such private property as is actually necessary for the realization of the purposes for
which this franchise is granted: Provided, That proper condemnation proceedings
shall have been instituted and just compensation paid.

SECTION 10. Term of Franchise.— This franchise shall be in effect for a period of

twenty-five (25) years from the date of the effectivity of this Act, unless sooner
cancelled. This franchise shall be deemed ipso 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 ERC;

(b) Commence operations within three (3) years from the effectivity of this Act; and
 (c) Operate continuously for two (2) years.

SECTION 11. Renewal or Extension of Franchise.— The grantee shall apply for the

renewal or extension of its franchise five (5) years before its expiration date which
shall be reckoned fifteen (15) days after the publication of the franchise in the Official
Gazette or in a newspaper of general circulation.

SECTION 12. Warranty in Favor of the National and Local Governments.— The

grantee shall hold the national, provincial, city, and municipal governments of the
Philippines free from all claims, liabilities, demands, or actions arising out of
accidents that cause injury to persons and damage to properties, during the
construction, installation, operation, and maintenance of the distribution system of
the grantee.

SECTION 13. Liability for Damages.— The grantee shall be liable for any injury to
persons and damage to property arising from or caused by any accident arising from
any defective construction of any infrastructure built pursuant to the operation of its
business under this franchise, or by any neglect or failure to keep its poles and wires
in safe condition.

SECTION 14. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.

— 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 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. For purposes of this Act, the rights and privileges
hereby granted to the grantee shall be enjoyed by the joint venture corporation to be
established by the grantee and the consortium of Manila Electric Company,
Marubeni Corporation, Kansai Electric Power Co., Inc., and Chubu Electric Power
Co., Inc., pursuant to the Joint Venture Agreement dated 3 April 2019 which was
awarded after the conduct of a competitive selection process. Said joint venture
corporation established by the grantee shall be subject to the same conditions,
terms, restrictions, and limitations of this Act.

SECTION 15. Commitment to Provide and Promote the Creation of Employment

Opportunities.— The grantee shall create employment opportunities and shall allow
on-the-job trainings in their franchise operation: Provided, That priority shall be
accorded to the residents in areas where any of its offices is
located: Provided, further, That the grantee shall comply with the applicable labor
standards and allowance entitlement under existing labor laws, rules and regulations
and similar issuances: Provided, finally, That the employment opportunities or jobs
created shall be reflected in the Government Corporation Information Sheet (GCIS)
to be submitted to the Securities and Exchange Commission (SEC) annually.

SECTION 16. Reportorial Requirement.— During the term of its franchise, 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 the
succeeding year.

The annual report shall include an update on the roll-out, development, operation
and/or expansion of business; audited financial statements; latest GCIS officially
submitted to the SEC (if applicable); certification of the ERC on the status of its
permits and operations; and an update on the dispersal of ownership undertaking, if
applicable.

A reportorial compliance certificate issued by Congress shall be required before

any application for permit or certificate is accepted by the ERC.

SECTION 17. Fine.— Failure of the grantee to submit the requisite annual report to

Congress shall be penalized by a fine of Five hundred pesos (₱500.00) per working
day of noncompliance. The fine shall be collected by the ERC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the ERC and
the same shall be remitted to the National Treasury.

SECTION 18. Equality Clause.— Any advantage, favor, privilege, exemption, or

immunity granted under existing franchises, or which may hereinafter be granted to
power distribution franchises, 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, however, That the foregoing shall neither apply to
nor affect provisions concerning the territory covered, term, or type of service
authorized by the franchise.

SECTION 19. Applicability of Existing Laws.— The grantee shall comply with and be

subject to the provisions of Commonwealth Act No. 146, or the “Public Service Act”,
as amended, and Republic Act No. 9136.

SECTION 20. 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 21. 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 22. Repealing Clause.— All laws, decrees, orders, resolutions,

instructions, and rules and regulations or parts thereof, which are inconsistent with
this Act are hereby deemed repealed or modified accordingly.

SECTION 23. Effectivity.— This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

An Act Granting The Cadiz Radio and Television Network, Inc. a Franchise to
 Construct, Install, Establish, Operate and Maintain Radio and Television
Broadcasting Stations in the Western Visayas Area
Republic Act No. 11419
Congress of the Philippines
22 August 2019

H. No. 8634

Republic of the Philippines

Congress of the Philippines
Metro Manila

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
thousand eighteen.

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
Cadiz Radio and Television Network, Inc., hereunder referred to as the grantee, its
successors or assignees, 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 Western Visayas area, where frequencies and/or
channels are still available for radio and/or television broadcasting. The franchise
shall include digital television system, through microwave, satellite, terrestrial or
whatever means, as well as the use of any new technology in television and radio
systems, with the corresponding technological auxiliaries or facilities, special
broadcast and other programs, and distribution services and relay stations.

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 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 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 or
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, 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 populations or portions thereof, on important public issues and relay
important public announcements and warnings concerning public emergencies and
calamities, 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 including closed captioning; and not use its
stations or facilities for the broadcasting of obscene or indecent language, speech,
act, or scene; or for the dissemination of deliberately false information or willful
misrepresentation, to the detriment of public interest; or to incite, encourage, or
assist in subversive or treasonable acts.

Public service time referred herein shall be equivalent to a maximum aggregate of

ten percent (10%) of paid commercials or advertisements which shall be allocated
based on need, to the Executive and Legislative branches, the Judiciary,
Constitutional Commissions and international humanitarian organizations duly
recognized by statutes: Provided, That the NTC shall increase the public service
time in case of extreme 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.

SECTION 5. Right of the Government.— 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.

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
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 these shall be
so operated.

SECTION 6. Term of Franchise.— This franchise shall be in effect for a period of

twenty-five (25) years, unless sooner revoked or cancelled. This franchise shall be
deemed ipso 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 NTC;

B. Commence operations within three (3) years from the effectivity of this Act; and

C. Operate continuously for two (2) years.

 SECTION 7. Renewal or Extension of Franchise.— The grantee shall apply for the
renewal or extension of its franchise five (5) years before its expiration date which
shall be reckoned fifteen (15) days after the publication of the franchise in the Official
Gazette or in a newspaper of general circulation.

SECTION 8. Self-regulation by and Undertaking of the 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 the National and Local Governments.— The

grantee shall hold the national, provincial, city, and municipal governments of the
Philippines free from all claims, liabilities, demands, or actions arising out of
accidents causing injury to persons or damage to properties during the construction
or operation of the stations of the grantee.

SECTION 10. Commitment to Provide and Promote the Creation of Employment

Opportunities.— The grantee shall create employment opportunities and shall allow
on-the-job trainings in their franchise operation: Provided, That priority shall be
accorded to the residents in areas where any of its offices is
located: Provided, further, That the grantee shall follow the applicable labor
standards and allowance entitlement under existing labor laws, rules and regulations
and similar issuances: Provided, finally, That the employment opportunities or jobs
created shall be reflected in the General Information Sheet to be submitted to the
Securities and Exchange Commission (SEC) annually.

SECTION 11. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.

— 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 transfer the controlling interest of the grantee,
simultaneously or contemporaneously, to any person, firm, company, corporation, or
entity without the prior approval of the Congress of the Philippines. Congress shall
be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise
or the rights and privileges acquired thereunder, or of the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after the completion of the
said transaction. Failure to report to Congress such change of ownership shall
render the franchise ipso facto revoked. Any person or entity to which this franchise
is sold, transferred, or assigned shall be subject to the same conditions, terms,
restrictions, and limitations of this Act.

SECTION 12. 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.

SECTION 13. Reportorial Requirement.— During the term of its franchise, 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.

The annual report shall include an update on the roll-out, development, operation,
or expansion of business; audited financial statements; latest General Information
Sheet officially submitted to SEC (if applicable); certification of the NTC on the status
of its permits and operations; and an update on the dispersal of ownership
undertaking, if applicable.

The reportorial compliance certificate issued by Congress shall be required before

an application for permit, certificate, or any equivalent thereof, is accepted by the
NTC.

SECTION 14. Fine.— Failure of the grantee to submit the requisite annual report to

Congress shall be penalized by a fine of Five hundred pesos (₱500.00) per working
day of noncomphance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC and
the same shall be remitted to the National Treasury.

SECTION 15. Equality Clause.— Except for taxes and customs duties, 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 territorial coverage, the term, or the type of
service authorized under the franchise.

SECTION 16. 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 17. 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 18. Repealing Clause.— All laws, decrees, orders, resolutions,

instructions, rules and regulations, and other issuances or parts thereof which are
inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly.
 SECTION 19. Effectivity.— This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

An Act Renewing for Another Twenty Five (25) Years the Franchise Granted to
Ultimate Entertainment, Inc., Under Republic Act No. 8102, Entitled “An Act
Granting The Ultimate Entertainment, Inc., a Franchise to Construct, Install,
Maintain and Operate Radio Broadcasting Stations Within the Philippines”
Republic Act No. 11418
Congress of the Philippines
22 August 2019
H. No. 8633

Republic of the Philippines

Congress of the Philippines
Metro Manila

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
thousand eighteen.

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, the franchise granted to
Ultimate Entertainment, Inc., its successors or assignees, under Republic Act No.
8102, to construct, install, establish, operate, and maintain for commercial purposes
and in the public interest, radio broadcasting stations where frequencies and/or
channels are still available for radio broadcasting, through microwave, satellite or
whatever means, including the use of any new technology in radio systems, with the
corresponding technological auxiliaries and facilities, special broadcast and other
program and distribution services and relay stations in the Philippines, 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 existing
stations or other stations w’hich 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 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 or
facilities and shall not use any frequency in the radio 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, 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 populations or portions thereof, on important public issues and relay
important public announcements and warnings concerning public emergencies and
calamities, 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 including closed captioning; and not use its
stations or facilities for the broadcasting of obscene or 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 a maximum aggregate of

ten percent (10%) of the paid commercials or advertisements which shall be
allocated based on need of the Executive and Legislative branches, the Judiciary,
Constitutional Commissions and international humanitarian organizations duly
recognized by statutes: Provided, That the NTC shall increase the public service
time in case of extreme 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.

SECTION 5. Right of the Government.— 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.

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
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 these shall be
so operated.

SECTION 6. Term of Franchise.— This franchise shall be in effect for a period of

twenty-five (25) years from the 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. Self-regulation by and Undertaking of the 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 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 8. Warranty in Favor of the National and Local Governments.— The

grantee shall hold the national, provincial, city, and municipal governments of the
Philippines free from all claims, liabilities, demands, or actions arising out of
accidents causing injury to persons or damage to properties, during the construction
or operation of the stations of the grantee.
 SECTION 9. Commitment to Provide and Promote the Creation of Employment
Opportunities.— The grantee shall create employment opportunities and shall allow
on-the-job trainings in their franchise operation: Provided, That priority shall be
accorded to the residents in areas where any of its offices is
located: Provided, further, That the grantee shall comply with the applicable labor
standards and allowance entitlement under existing labor laws, rules and regulations
and similar issuances: Provided, finally, That the employment opportunities or jobs
created shall be reflected in the General Information Sheet to be submitted to the
Securities and Exchange Commission (SEC) annually.

SECTION 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.

— 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 transfer the controlling interest of the grantee,
simultaneously or contemporaneously, to any person, firm, company, corporation, or
entity without the prior approval of the Congress of the Philippines. Congress shall
be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise
or the rights and privileges acquired thereunder, or of the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after the completion of the
said transaction. Failure to report to Congress such change of ownership shall
render the franchise ipso facto revoked. Any person or entity to which this franchise
is sold, transferred, or assigned shall be subject to 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
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.

SECTION 12. 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 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 its franchise.

The annual report shall include an update on the roll-out, development, operation,
or expansion of business; audited financial statements; latest General Information
Sheet officially submitted to the SEC (if applicable); certification of the NTC on the
status of its permits and operations: and an update on the dispersal of ownership
undertaking, if applicable.

The reportorial compliance certificate issued by Congress shall be required before

an application for permit, certificate, or any equivalent thereof, is accepted by the
NTC.
 SECTION 13. Fine.— Failure of the grantee to submit the requisite annual report to
Congress shall be penalized by a fine of Five hundred pesos (₱500.00) per working
day of noncompliance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC and
the same shall be remitted to the National Treasury.

SECTION 14. Equality Clause.— Except for taxes and customs duties, any

advantage, favor, privilege, exemption, or immunity granted under existing
franchises, or which may hereafter be granted for radio 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 provisions of broadcasting franchises
concerning territorial coverage, the term, or the type of service authorized by the
franchise.

SECTION 15. 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.

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. Repealing Clause.— All laws, decrees, orders, resolutions,

instructions, rules and regulations, and other issuances or parts thereof which are
inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly.

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

An Act Renewing for Another Twenty Five (25) Years the Franchise Granted
to RT Broadcast Specialist Phil. Inc. Under Republic Act No. 8126, Entitled
“An Act Granting The R.T. Broadcast Specialist Philippines a Franchise to
Construct, Establish, Operate and Maintain Radio and Television
Broadcasting Stations in Mindanao”
Republic Act No. 11417
Congress of the Philippines
22 August 2019
H. No. 8632

Republic of the Philippines

Congress of the Philippines
Metro Manila

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
thousand eighteen.

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, the franchise granted under
Republic Act No. 8126, to RT Broadcast Specialist Phil. Inc., hereunder referred to
as the grantee, its successors or assignees, to construct, install, establish, operate
and maintain for commercial purposes and in the public interest, radio and/or
television broadcasting stations, where frequencies and/or channels are still
available for radio and television broadcasting, through microwave, satellite or
whatever means, including the use of any new technology in television and radio
system, with the corresponding technological auxiliaries and facilities, special
broadcast and other programs and distribution services and relay stations in the
Philippines, 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 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 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 or
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, 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 populations or portions thereof, on important public issues and relay
important public announcements and warnings concerning public emergencies and
calamities, 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 including closed captioning; and not use its
stations or facilities for the broadcasting of obscene or indecent language, speech,
act, or scene; or for the dissemination of deliberately false information or willful
misrepresentation, to the detriment of public interest; or to incite, encourage or assist
in subversive or treasonable acts.

Public service time referred herein shall be equivalent to a maximum aggregate of

ten percent (10%) of the paid commercials or advertisements which shall be
allocated based on need, to the Executive and Legislative branches, the Judiciary,
Constitutional Commissions and international humanitarian organizations duly
recognized by statutes: Provided, That the NTC shall increase the public service
time in case of extreme 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.

SECTION 5. Right of the Government.— 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.

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
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 these shall be
so operated.

SECTION 6. Term of Franchise.— This franchise shall be in effect for a period of

twenty-five (25) years from the effectivity of this Act, unless sooner revoked and
cancelled. This franchise shall be deemed ipso facto revoked in the event the
grantee fails to operate continuously for two (2) years.

SECTION 7. Renewal or Extension of Franchise.— The grantee shall apply for the

renewal or extension of its franchise five (5) years before its expiration date which
shall be reckoned fifteen (15) days after the publication of the franchise in the Official
Gazette or in a newspaper of general circulation.

SECTION 8. Self-regulation by and Undertaking of the 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 the National and Local-Governments.— The
grantee shall hold the national, provincial, city, and municipal governments of the
Philippines free from all claims, liabilities, demands, or actions arising out of
accidents causing injury to persons or damage to properties during the construction
or operation of the stations of the grantee.

SECTION 10. Commitment to Provide and Promote the Creation of Employment

Opportunities.— The grantee shall create employment opportunities and shall allow
on-the-job trainings in their franchise operation: Provided, That priority shall be
accorded to the residents in areas where any of its offices is
located: Provided, further, That the grantee shall follow the applicable labor
standards and allowance entitlement under existing labor laws, rules and regulations
and similar issuances: Provided, finally, That the employment opportunities or jobs
created shall be reflected in the General Information Sheet to be submitted to the
Securities and Exchange Commission (SEC) annually.

SECTION 11. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.

— 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 transfer the controlling interest of the grantee,
simultaneously or contemporaneously, to any person, firm, company, corporation, or
entity without the prior approval of the Congress of the Philippines. Congress shall
be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise
or the rights and privileges acquired thereunder, or of the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after the completion of the
said transaction. Failure to report to Congress such change of ownership shall
render the franchise ipso facto revoked. Any person or entity to which this franchise
is sold, transferred, or assigned shall be subject to the same conditions, terms,
restrictions, and limitations of this Act.

SECTION 12. 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.

SECTION 13. Reportorial Requirement.— During the term of its franchise, 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.

The annual report shall include an update on the roll-out, development, operation,
or expansion of business; audited financial statements; latest General Information
Sheet officially submitted to the SEC (if applicable); certification of the NTC on the
status of its permits and operations; and an update on the dispersal of ownership
undertaking, if applicable.

The reportorial compliance certificate issued by Congress shall be required before

an application for permit, certificate, or any equivalent thereof, is accepted by the
NTC.

SECTION 14. Fine.— Failure of the grantee to submit the requisite annual report to

Congress shall be penalized by a fine of Five hundred pesos (₱500.00) per working
day of noncompliance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC and
the same shall be remitted to the National Treasury.

SECTION 15. Equality Clause.— Except for taxes and customs duties, 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 territorial coverage, the term, or the type of
service authorized by this franchise.

SECTION 16. 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 17. 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 18. Repealing Clause.— All laws, decrees, orders, resolutions,

instructions, rules and regulations, and other issuances or parts thereof which are
inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly.

SECTION 19. Effectivity.— This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

An Act Renewing for Another Twenty Five (25) Years the Franchise Granted to
Philippine Radio Corporation Under Republic Act No. 8032, Entitled “An Act
Granting The Philippine Radio Corporation a Franchise to Construct, Install,
Establish, Operate and Maintain Commercial Radio Stations in the Philippines”
Republic Act No. 11416
Congress of the Philippines
22 August 2019

H. No. 8269
 Republic of the Philippines
Congress of the Philippines
Metro Manila

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
thousand eighteen.

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, the franchise granted under
Republic Act No. 8032 to Philippine Radio Corporation, hereunder referred to as the
grantee, its successors or assignees, to construct, install, establish, operate, and
maintain for commercial purposes and in the public interest, radio broadcasting
stations, through microwave, satellite or whatever means, as well as the use of any
new technology in radio systems, with the corresponding technological auxiliaries
and facilities, special broadcast and other program and distribution services and
relay stations in the Philippines, 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 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 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 or
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, 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 populations or portions thereof, on important public issues and relay
important public announcements and warnings concerning public emergencies and
calamities, 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 including closed captioning; and not use its
stations or facilities for the broadcasting of obscene or 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 a maximum aggregate of

ten percent (10%) of paid commercials or advertisements which shall be allocated
based on need of the executive and legislative branches, the judiciary, constitutional
commissions and international humanitarian organizations duly recognized by
statutes: Provided, That the NTC shall increase the public service time in case of
extreme 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.

SECTION 5. Right of the Government.— 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.

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
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 these shall be
so operated.

SECTION 6. Term of Franchise.— This franchise shall be in effect for a period of

twenty-five (25) years from the 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. Self-regulation by and Undertaking of the 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 anchor 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 8. Warranty in Favor of the National and Local Governments.— The

grantee shall hold the national,-provincial, city, and municipal governments of the
Philippines free from all claims, liabilities, demands, or actions arising out of
accidents causing injury to persons or damage to properties, during the construction
or operation of the stations of the grantee.

SECTION 9. Commitment to Provide and Promote the Creation of Employment

Opportunities.— The grantee shall create employment opportunities and shall allow
on-the-job trainings in their franchise operation: Provided, That priority shall be
accorded to the residents in areas whejre any of its offices is
located: Provided, further, That the grantee shall follow the applicable labor
standards and allowance entitlement under existing labor laws, rules and regulations
and similar issuances: Provided, finally, That the employment opportunities or jobs
created shall be reflected in the General Information Sheet to be submitted to the
Securities and Exchange Commission annually.

SECTION 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.

— 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 transfer the controlling interest of the grantee,
simultaneously or contemporaneously, to any person, firm, company, corporation, or
entity without the prior approval of l the Congress of the Philippines. Congress shall
be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise
or the rights and privileges acquired thereunder, or the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after the completion of the
said transaction. Failure to report to Congress such change of ownership shall
render the franchise ipso facto revoked. Any person or entity to which this franchise
is sold, transferred, or assigned shall be subject to 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
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.

SECTION 12. 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 Representatives and the Committee on Public Services of the
Philippine 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 13. Fine.— Failure of the grantee to submit the requisite annual report to

Congress shall be penalized by a fine of Five hundred pesos (₱500.00) per working
day of noncompliance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC and
the same shall be remitted to the National Treasury.

SECTION 14. Equality Clause.— Except for taxes and customs duties, 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 provisions of
broadcasting franchises concerning territorial coverage, the term, or the type of
service authorized by the franchise.

SECTION 15. Repealability and Nonexclusivity Clause.— This franchise shall be

subject to amendment, alteration, or repeal by the Congress of the Philippines when
the public i interest so requires and shall not be interpreted as an exclusive grant of
the privileges herein provided for.

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. Repealing Clause.— All laws, decrees, orders, resolutions,

instructions, rules and regulations, and other issuances or parts thereof which are
inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly.

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

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”
Republic Act No. 11415
Congress of the Philippines
22 August 2019
H. No. 8264

Republic of the Philippines

Congress of the Philippines
Metro Manila

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
thousand eighteen.

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, the franchise granted under
Republic Act No. 8145 to Radyo Filipino Corporation, hereunder referred to as the
grantee, its successors or assignees, to construct, install, establish, operate, and
maintain for commercial purposes and in the public interest, radio and/or television
broadcasting stations, including digital television system, through microwave,
satellite or whatever means, as well as the use of any new technology in television
and radio systems, with the corresponding technological auxiliaries and facilities,
special broadcast and other program and distribution services and relay stations in
the Philippines, 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 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 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 or
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, 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 populations or portions thereof, on important public issues and relay
important public announcements and warnings concerning public emergencies and
calamities, 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 including closed captioning; and not use its
stations or facilities for the broadcasting of obscene or 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 a maximum aggregate of

ten percent (10%) of 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 extreme 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.

SECTION 5. Right of the Government.— 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.

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
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 these shall be
so operated.

SECTION 6. Term, of Franchise).— This franchise shall be in effect for a period of

twenty-five (25) years from, the 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. Self-regulation by and Undertaking of the 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 8. Warranty in Favor of the National and Local Governments.— The

grantee shall hold the national, provincial, city, and municipal governments of the
Philippines free from all claims, liabilities, demands, or actions arising out of
accidents causing injury to persons or damage to properties, during the construction
or operation of the stations of the grantee.
 SECTION 9. Commitment to Provide and Promote the Creation of Employment
Opportunities.— The grantee shall create employment opportunities and shall allow
on-the-job trainings in their franchise operation: Provided, That priority shall be
accorded to the residents in areas where any of its offices is
located: Provided, further, That the grantee shall follow the applicable labor
standards and allowance entitlement under existing labor laws, rules and regulations
and similar issuances: Provided, finally, That the employment opportunities or jobs
created shall be reflected in the General Information Sheet to be submitted to the
Securities and Exchange Commission annually.

SECTION 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.

— 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 transfer the controlling interest of the grantee,
simultaneously or contemporaneously, to any person, firm, company, corporation, or
entity without the prior approval of the Congress of the Philippines. Congress shall
be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise
or the rights and privileges acquired thereunder, or of the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after the completion of the
said transaction. Failure to report to Congress such change of ownership shall
render the franchise ipso facto revoked. Any person or entity to which this franchise
is sold, transferred, or assigned shall be subject to 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
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.

SECTION 12. 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 Representatives and the Committee on Public Services of the
Philippine 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 13. Fine.— Failure of the grantee to submit the requisite annual report to

Congress shall be penalized by a fine of Five hundred pesos (₱500.00) per working
day of noncompliance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC and
the same shall be remitted to the National Treasury.
 SECTION 14. Equality Clause.— Except for taxes and customs duties, 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 provisions of
broadcasting franchises concerning territorial coverage, the term, or the type of
service authorized by the franchise.

SECTION 15. 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 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. Repealing Clause.— All laws, decrees, orders, resolutions,

instructions, rules and regulations, and other issuances or parts thereof which are
inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly.

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

An Act Renewing for Another Twenty Five (25) Years the Franchise Granted to
Rajah Broadcasting Network, Inc. to Construct, Install, Establish, Operate and
Maintain Radio and Television Broadcasting Stations in the Philippines Under
Republic Act Numbered Forty Five Hundred and Five, as Amended by Republic
Act Numbered Eighty One Hundred and Four
Republic Act No. 11414
Congress of the Philippines
22 August 2019
H. No. 8177

Republic of the Philippines

Congress of the Philippines
Metro Manila

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
thousand eighteen.

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, the franchise granted to
Rajah Broadcasting Network, Inc. hereunder referred to as the grantee, its
successors or assignees, under Republic Act No. 8104, to construct, install,
establish, operate, and maintain for commercial purposes and in the public interest,
radio and/or television broadcasting stations, including digital television system,
through microwave, satellite" or whatever means, as well as the use of any new
technology in television and radio systems, with the corresponding technological
auxiliaries and facilities, special broadcast and other program and distribution
services and relay stations in the Philippines, 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 existing
stations or other stations which may be estabhshed 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 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 or
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, 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 populations or portions thereof, on important public issues and relay
important public announcements and warnings concerning public emergencies and
calamities, 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 including closed captioning; and not use its
stations or facilities for the broadcasting of obscene or 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 a maximum aggregate of

ten percent (10%) of 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 extreme 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.

SECTION 5. Right of the Government.— 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.

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
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 these shall be
so operated.

SECTION 6. Term of Franchise.— This franchise shall be in effect for a period of

twenty-five (25) years from the 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. Self-regulation by and Undertaking of the 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 8. Warranty in Favor of the National and Local Governments.— The

grantee shall hold the national, provincial, city, and municipal governments of the
Philippines free from all claims, liabilities, demands, or actions arising out of
accidents causing injury to persons or damage to properties, during the construction
or operation of the stations of the grantee.
 SECTION 9. Commitment to Provide and Promote the Creation of Employment
Opportunities.— The grantee shall create employment opportunities and shall allow
on-the-job trainings in their franchise operation: Provided, That priority shall be
accorded to the residents in areas where any of its offices is
located: Provided, further, That the grantee shall follow the applicable labor
standards and allowance entitlement under existing labor laws, rules and regulations
and similar issuances: Provided, finally, That the employment opportunities or jobs
created shall be reflected in the General Information Sheet to be submitted to the
Securities and Exchange Commission annually.

SECTION 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.

— 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 transfer the controlling interest of the grantee,
simultaneously or contemporaneously, to any person, firm, company, corporation, or
entity without the prior approval of the Congress of the Philippines. Congress shall
be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise
or the rights and privileges acquired thereunder, or of the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after the completion of the
said transaction. Failure to report to Congress such change of ownership shall
render the franchise ipso facto revoked. Any person or entity to which this franchise
is sold, transferred, or assigned shall be subject to 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
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.

SECTION 12. 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 Representatives and the Committee on Public Services of the
Philippine 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 13. Fine.— Failure of the grantee to submit the requisite annual report to

Congress shall be penalized by a fine of Five hundred pesos (₱500.00) per working
day of noncompliance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC and
the same shall be remitted to the National Treasury.
 SECTION 14. Equality Clause.— Except for taxes and customs duties, 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 provisions of
broadcasting franchises concerning territorial coverage, the term, or the type of
service authorized by the franchise.

SECTION 15. 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 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. Repealing Clause.— All laws, decrees, orders, resolutions,

instructions, rules and regulations, and other issuances or parts thereof which are
inconsistent with the provisions of this Act are hereb} 7' repealed, amended, or
modified accordingly.

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

An Act Extending for Another Twenty Five (25) Years the Franchise Granted to
Pacific Broadcasting System, Inc. Under Republic Act No. 7967, Entitled “An
Act Granting Pacific Broadcasting System, Inc., a Franchise to Construct,
Install, Operate and Maintain Radio and Television Broadcasting Stations
Within the Philippines, and for Other Purposes”
Republic Act No. 11413
Congress of the Philippines
22 August 2019
H. No. 6168

Republic of the Philippines

Congress of the Philippines
Metro Manila

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
thousand eighteen.

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

Philippine Constitution and. applicable laws, rules and regulations, the franchise
granted to Pacific Broadcasting System, Inc., hereunder referred to as the grantee,
its successors or assignees, under Republic Act No. 7967, to construct, install,
establish, operate, and maintain for commercial purposes and in the public interest,
radio and/or television broadcasting stations, including digital television system,
through microwave, satellite or whatever means, as well as the use of any new
technology in television and radio systems, with the corresponding technological
auxiliaries and facilities, special broadcast and other program and distribution
services and relay stations in the Philippines, is hereby extended 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 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 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 or
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.

The grantee shall not dispose nor lease its facilities except to entities with radio or
television franchise: Provided, That the grantee shall inform and secure written
authorization to , proceed from the NTC, and report the transaction to the NTC within
sixty (60) days after its completion: Provided, further, That the NTC shall determine
the corresponding sanction for any violation of this provision.
 SECTION 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 pei'tinent populations or portions thereof, on important public issues and relay
important public announcements and warnings concerning public emergencies and
calamities, 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 including closed captioning; and not use its
stations or facilities for the broadcasting of obscene or 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 a maximum aggregate of

ten percent (10%) of paid commercials or advertisements which shall be allocated
based on need to the Executive and Legislative branches, the Judiciary,
Constitutional Commissions and international humanitarian organizations duly
recognized by statutes: Provided, That the NTC shall increase the public service
time in case of extreme 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.

SECTION 5. Right of the Government.— 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.

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
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 these shall be
so operated.

SECTION 6. Term of Franchise.— This franchise shall be in effect for a period of

twenty-five (25) years from the approval 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. 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, but if any such 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 speech, play, act or
scene, or other matter: Provided, That the grantee, during any broadcast, shall cut
off the airing of 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 revocation or
cancellation of this franchise.

SECTION 8. Warranty in Favor of the National and Local Governments.— The

grantee shall hold the national, provincial, city, and municipal governments of the
Philippines free from all claims, liabilities, demands, or actions arising out of
accidents, causing injury to persons or damage to properties, during the construction
or operation of the stations of the grantee.

SECTION 9. Commitment to Provide and Promote the Creation of Employment

Opportunities.— The grantee shall create employment opportunities and shall allow
on-the-job trainings in their franchise operation: Provided, That priority shall be
accorded to the residents where their prihcipal office is located: Provided, further,
That the grantee shall follow the applicable labor standards and allowance
entitlement under existing labor laws, rules and regulations and similar
issuances: Provided, finally, That the employment opportunities or jobs created shall
be reflected in the General Information Sheet (GIS) to be submitted to Securities and
Exchange Commission (SEC) annually.

SECTION 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.

— 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 the controlling interest of the grantee be transferred,
simultaneously or contemporaneously, to any such person, firm, company,
corporation or entity without the prior approval of the Congress of the Philippines.
Congress shall be informed of any sale, lease, transfer, grant of usufruct, or
assignment of franchise or the rights and privileges acquired thereunder, or of the
merger or transfer of the controlling interest of the grantee, within sixty (60) days
after the completion of the said transaction. Failure to report to Congress such
change of ownership shall render the franchise ipso facto revoked. Any person or
entity to which this franchise is sold, transferred, or assigned shall be subject to 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
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.

SECTION 12. 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 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 its franchise.
 The annual report shall include an update on the roll-out, development, operation
and/or expansion of business; audited financial statements; latest GIS officially
submitted to the SEC, if applicable; certification of the NTC on the status of its
permits and operations; and an update on the dispersal of ownership undertaking, if
applicable.

The reportorial compliance certificate issued by Congress shall be required before

any application for permit or certificate is accepted by the NTC.

SECTION 13. Fine.— Failure of the grantee to submit the requisite annual report to

Congress shall be penalized by a fine of Five hundred pesos (₱500.00) per working
day of noncompliance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC and
the same shall be remitted to the National Treasury.

SECTION 14. Equality Clause.— Except for taxes and customs duties, 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 territorial coverage, the term, or the type of
service authorized by the franchise.

SECTION 15. Repealability and Nonexclusivity Clause.— This franchise shall be

subject to amendment, alteration, or repfeal 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 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. Repealing Clause.— All laws, decrees, orders, resolutions,

instructions, rules and regulations, and other issuances or parts thereof which are
inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly.

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

An Act Granting the Golden Nation Network Inc. a Franchise to Construct,

Install, Establish, Operate and Maintain Radio and Television Broadcasting
Stations Within the Philippines
Republic Act No. 11412
Congress of the Philippines
22 August 2019

H. No. 5558
 Republic of the Philippines
Congress of the Philippines
Metro Manila

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
thousand eighteen.

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
Golden Nation Network Inc., hereunder referred to as the grantee, its successors or
assignees, a franchise to construct, install, establish, operate and maintain for
commercial purposes and in the public interest radio and/or television broadcasting
stations throughout the Philippines, where frequencies and/or channels are still
available for radio and/or television broadcasting, including digital television system,
through microwave, satellite or whatever means, including the use of any new
technology in television and radio systems, with the corresponding technological
auxiliaries and facilities, special broadcast and other program and distribution
services and relay stations.

SECTION 2. Mariner 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 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 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 or
facilities and shall not use any frequency in the radio/ielevision spectrum without
authorization from the NTC. The NTC, however, shall not unreasonably withhold or
delay the grant of any such authority.

The grantee shall nor dispose or lease its facilities except to entities with radio or
television broadcasting franchise: Provided, That the grantee shall inform and secure
written authorization to proceed from the NTC, and report the transaction to the NTC
within sixty (60) days after its completion: Provided, further That the NTC shall
determine the corresponding sanction for any violation of this provision.

SECTION 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 populations or portions thereof, on important public issues and relay
important public announcements and warnings concerning public emergencies and
calamities, 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 including closed captioning; and not use its
stations or facilities for the broadcasting of obscene or 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 a maximum aggregate of

ten percent (10%) of paid commercials or advertisements which shall be allocated
based on need to the Executive and Legislative branches, the Judiciary,
Constitutional Commissions and international humanitarian organizations duly
recognized by statutes: Provided, That the NTC shall increase the public service
time in case of extreme 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.

SECTION 5. Right of the Government.— 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.

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
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 stations or facilities during the period when these shall be
so operated.

SECTION 6. Term of Franchise.— This franchise shall be in effect for a period of

twenty-five (25) years, unless sooner revoked or cancelled. This franchise shall be
deemed ipso 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 NTC;

(b) Commence operations within three (3) years from the effectivity of this Act; and

(c) Operate continuously for two (2) years.

SECTION 7. Bond.— The grantee shall file a bond with the NTC, in the amount that
the NTC shall determine, to guarantee compliance with and fulfillment of the
conditions under which this franchise is granted, if, after three (3) years from the date
of the approval of its permit by the NTC, the grantee shall have fulfilled the same, the
bond shall be released by the NTC. Otherwise, the bond shall be forfeited in favor of
the government and the franchise ipso facto revoked.

SECTION 8. Self-regulation by and. Undertaking of the 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, but if any such 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 speech,
play, act or scene, or other matter: Provided, That the grantee, during any broadcast,
shall cut off the airing of 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 revocation or
cancellation of this franchise.

SECTION 9. Warranty in Favor of the National and Local Governments.— The

grantee shall hold the, national, provincial, city, and municipal governments of the
Philippines free from all claims, liabilities, demands, or actions arising out of
accidents causing injury to persons or damage to properties during the construction
or operation of the stations of the grantee.

SECTION 10. Commitment to Provide and Promote the Creation of Employment

Opportunities.— The grantee shall create employment opportunities and shall allow
on-the-job trainings in their franchise operation: Provided, That priority shall be
accorded to the residents where their principal office is located: Provided, further,
That the grantee shall follow the applicable labor standards and allowance
entitlement under existing labor laws, rules and regulations and. similar
issuances: Provided, finally, That the employment opportunities or jobs created shall
be reflected in the General Information Sheet (GiS)-to be submitted to the Securities
and Exchange Commission (SEC) annually.

SECTION 11. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.

— 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 the controlling interest of the grantee be transferred,
simultaneously or contemporaneously, to any such person, firm, company,
corporation, or entity without the prior approval of the Congress of the Philippines.
Congress shall be informed of any sale, lease, transfer, grant of usufruct, or
assignment of franchise or the rights and privileges acquired thereunder, or of the
merger or transfer of the controlling interest of the grantee, within sixty (60) days
after the completion of the said transaction. Failure to report to Congress such
change of ownership shall render the franchise ipso facto revoked. Any person or
entity to which this franchise is sold, transferred, or assigned shall be subject to the
same conditions, terms, restrictions, and limitations of this Act.

SECTION 12. 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 incases 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.

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 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 its franchise.

The annual report shall include an update on the roll-out, development, operation
and/or expansion of business; audited financial statements; latest GIS officially
submitted to the SEC, if applicable: certification of the NTC on the status of its
permits and operations; and an update on the dispersal of ownership undertaking, if
applicable.

The reportorial compliance certificate issued by Congress shall be required before

any application for permit or certificate is accepted by the NTC.

SECTION 14. Fine.— Failure of the grantee to .submit the requisite annual report to

Congress shall be penalized by a fine of Five hundred pesos (₱500.00) per working
day of noncompliance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC and
the same shall be remitted to the National Treasury.

SECTION 15. Equality Clause.— Except for taxes and customs duties, 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 territorial coverage, the term, or the type of
service authorized by the franchise.

SECTION 16. Separability Clause.— If any of the sections or provisions of this Act

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

SECTION 17. 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.

SECTION 18. Repealing Clause.— All laws, decrees, executive orders, rules and

regulations or parts or provisions thereof which are not consistent with this Act are
hereby repealed, amended or modified accordingly.

SECTION 19. Effectivity.— This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.