OSG, NTC oppose De Lima’s proposal to revive ‘holdover’ franchise

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THE Office of the Solicitor General (OSG) and the National Telecommunications Commission (NTC) are opposing fresh calls seeking the approval of legislative measures that would allow holders of expired franchise to continue to operate while their renewal applications are still pending with Congress.

The two government agencies maintained that such move, which is now being pushed by Sen. Leila de Lima, is in violation of the Constitution and lacks legal basis.

According to the OSG, the two bills — Senate Bill No. 1530, authored by Senate Minority Leader Franklin Drilon, and House Bill No. 7923 filed by Parañaque City Rep. Joy Myra Tambunting — are both unconstitutional and highly illegal.

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In the OSG’s view, “the proposed bills disregard the legislative nature and origin of a franchise in contravention of the Constitution.”

In a position paper it submitted to Congress that was supported by the NTC, the OSG said: “Also 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 two bills seek to amend the law that the final determination of the fate of the franchise will only be made once the franchise applicant has received a written notice of approval or disapproval from Congress.

“Article XII, Section 10 of the Constitution provides that no such franchise certificates are exclusive,” the OSG said. “This is to support and encourage equity participation in public utilities by the general public also provided in Section 11. By allowing the select few to use these privileges despite having expired franchise limit the public to apply for these privileges. This promotes exclusivity which will run counter to the true intention of the Constitution.”

The OSG warned that should these bills be passed into law, it will bring it to the Supreme Court to question its legality and constitutionality.

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