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Drilon files bill on non-expiration of legislative franchises while applications for renewal are pending in Congress

Published May 13, 2020 12:00 am
By Vanne Terrazola Senate Minority Leader Franklin Drilon filed on Wednesday a bill calling for the non-expiration of legislative franchises when applications for their renewal are still pending in Congress. Drilon pushed for the approval of Senate Bill No. 1530 amid the franchise woes involving broadcasting network ABS-CBN which was forced to go off the air after its congressional permit expired last week. Senator Franklin Drilon (Senate of the Philippines / MANILA BULLETIN) Senator Franklin Drilon (Senate of the Philippines / MANILA BULLETIN) The bill seeks to expand Section 18, Book 7, Chapter 3, of the Revised Administrative Code which states that when a licensee has filed a timely and sufficient application for renewal, the existing license shall not expire until the application has finally been determined by the agency. The amendment would include franchises granted by Congress. "While it is recognized that a franchise, license, or certificate is not a privilege, this rule must be tempered with considerations of equity, fairness, due process, and equal protection, particularly when the service being provided has been so woven into everyday life that its abrupt cessation could give rise to devastating consequences," Drilon explained in the bill, citing the case of ABS-CBN. "We should prevent similar incidents from happening again in the future. We cannot afford to wake up one day without water, electricity or public transportation, only because an agency, a department, or a branch of government failed to act on the renewal before the lapse of the license or franchise," he added. The proposed amendment also states that "there is final determination when an applicant is given written notice of approval or denial of its application for renewal." "Inaction on a pending application shall not be considered a denial thereof," it added. "This makes it incumbent upon the issuing authority to act on an application and avoid situations where silence or inaction could effectively bar the operations of an enterprise," the Senate minority leader said. Drilon, a former justice secretary, assured that the bill will not violate Congress' constitutional authority with regard to franchises. "The bill does not diminish the Congress’ power to grant franchises as it merely addresses the situation in the interim period. It places in the statute what has been a common practice in the past when it comes to renewal of an expiring franchise, which is to allow it to operate, provided that an application for renewal has been filed within the same Congress," he said. "The amendment we propose is merely an instruction to the concerned agency or branch of government to act decisively on an application for renewal, and to express its decision in clear, unmistakable terms, to ensure that the applicant is not punished for the authority’s indecision or inaction," he added. He also pointed out that he does not propose to discontinue franchise requirements. Drilon also noted that the Supreme Court, in Albano v. Reyes, ruled that while the Constitution reserves to Congress the right to amend, alter, or repeal a franchise, "franchises issued by Congress are not required before each and every public utility may operate." He added that the high court, in the case of Associated Communications and Wireless Services against the National Telecommunications Commission (NTC), had recognized existing statutes which delegate to agencies the power to issue a franchise, certificate, or authorization for certain classes of public utilities. Last May 5, the NTC issued a cease and desist order which compelled ABS-CBN to stop its broadcast. The network's franchise expired on May 4. Bills seeking to renew ABS-CBN's franchise, however, have been filed in the House of Representatives as early as 2016. House leaders have yet to act on the application for the network's franchise renewal.
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