The Office of the Solicitor General (OSG) has objected to the legislative measures seeking to stop the expiration of franchises, while their application for extension or renewal remained pending before the approving authorities, including Congress.
In a position paper submitted to the House Committee on Legislative Franchises chaired by Rep. Franz E. Alvarez, the OSG said Senate Bill No. 1530, which the Senate passed in December, and House Bill No. 7923 were “unconstitutional and illegal” should they pass in Congress.
“By institutionalizing the system of ‘hold- over franchise’ in the broadcasting industry, the proposed bills violate the settled rule that the privilege to operate a broadcasting station requires a legislative franchise in the form of a law,” the OSG said in a statement.
Senate Bill No. 1530 authored by Senate Minority Leader Franklin Drilon and House Bill No. 7923 authored by Paranaque Rep. Joy Tambunting both seek amendments to the Administrative Code.
The proposed amendment to the law stated that there should only be a “final determination” when an applicant had already been given a written notice of approval or denial of the franchise renewal.
According to Solicitor General Jose Calida, the practice of holding over a franchise would pose a danger of “allowing broadcasting entity with an expired franchise to continue using its assigned frequency without a definitive legislative finding that it remains qualified to retain such privilege.”
The chief state lawyer, acting as counsel for National Telecommunications Commission, stressed that the policy would be open to abuse because it would delay the impending denial of their application for franchise renewal.
It also cited that allowing expired franchises to continue operations is promoting exclusivity which violates the Constitution.
“Article XII, Section 10 of the Constitution provides that no such franchise certificates are exclusive. This is to support and encourage equity participation in public utilities by the general public also provided in Section 11,” the OSG said.
“Allowing the select few to use these privileges despite having an expired franchise limit the public to apply for these privileges. This promotes exclusivity which will run counter to the true intention of the Constitution,” it added.
The chief state lawyer appealed to the legislators to further study the bills that it said would pose issues constitutionally.
“Should the bills be passed into law, the OSG stands ready to raise the constitutionality of the law passed before the Highest Court of the land,” it emphasized.