OSG: Proposed hold-over franchises illegal, unconstitutional

The Office of the Solicitor General has opposed the bills seeking to stop the expiration of franchises while their application for extension remained pending before the approving authorities.

In a statement, 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.

"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.

The measures on the amendments to the Administrative Code are sponsored in the Senate by Senate Minority Leader Franklin Drilon and in the House by Paranaque Representative Joy Tambunting.

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.

The OSG said 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 OSG said 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 is in violation of 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.

"By allowing the select few to use these privileges despite having an expired franchise limits the public to apply for these privileges. This promotes exclusivity which will run counter to the true  intention of the Constitution," it added.

The OSG asked 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 added.

In a separate statement, Tambunting welcomed OSG's concerns, which she said could improve the provisions of the bill.

"HB 7923 remains to be a mere proposal. All comments which can improve this bill, including the OSG's, are welcome. That's part of the legislative process. I thank the OSG and all the stakeholders who have made their opinion on this issue known," she said.

GMA News Online has sought Drilon for comment regarding OSG's remarks but has yet to receive any. —NB, GMA News