Senate approves bill clarifying process of franchise, license application

The Senate, with a vote of 21-0-0, approved on third and final reading a bill that clarifies the process of franchise or license application, including the non-expiration of franchise and license where an applicant has made timely and sufficient application for its renewal.

Senate Bill No. 1530, which seeks to amend Section 18, Book VII, Chapter 3 of Executive Order No. 292 or the Administrative Code of the Philippines, was approved before the Senate adjourns for the Christmas break Thursday, December 16, 2021.

Sen. Francis "Kiko" Pangilinan, chairperson of the Committee on Constitutional Amendments and Revision of Codes and sponsor of the measure, said the bill seeks to "rectify a small omission that has been corrected in practice but not in law."

Under the proposed amendments, "existing license or franchise shall not expire until the application shall have been finally determined by the agency, department, or branch of government authorized to grant or renew the license or franchise. There is final determination when an applicant is given written notice of approval or denial of its application for renewal."

The bill also seeks an amendment to clarify that an application or a renewal of a legislative franchise is considered denied when a Congress adjourns sine die without having approved the application.

A new transitory provision was also proposed to read: "the provisions of this act shall apply to all applications of renewal of legislative franchises filed with the Congress on or after July 1, 2019, which have not been approved or denied by the Congress as of the date of the effectivity of the act."

Minority Leader Franklin Drilon, principal author of SBN 1530, said the bill amends an existing provision under the Revised Administrative Code to include franchises, making "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 proposed amendments would clarify that franchises shall not be barred from operating while the Congress hears the application for its renewal. This is a fair and equitable measure, because it is not the fault of the franchise applicant that Congress could not find the time to hear the application for renewal which is filed on time," Drilon said in his co-sponsorship speech of the measure.