Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Que'/,on City
NINETEENTH CONGRESS
Scc()nd Regular Session
__.__ --,-.,-_      5980
HOUSE BILL NO.
REeEIVID
BAT EP.VJLi¥22  ffi
TIME:fiEL    „t
BYi±
1ntr{rduccd b}' Rcprcscntati\c CIRIACO a. GAT0 JR. MD. FPSO-HNS
EXPLAN ATORY NOTE
This     lcgislati\'c     mcasurc     sccks     to     grant     RSV     BROADCASTING
NETWORK  INCORPORATED a franc`hisc  to con`struct,  install,  cstablish` opcratc
and maintain radio and tclc\.ision brtndcasting stations throughout the Philippines.
In   shaping   the   countr}''s   future,   the   role   of   brtradcast   media  cannot   bc
overcmpha`si7,cd. It molds, informs and educates the sacict}' through the promoti{tn or
public  a``'arcncss,  perticipa{ion  and  encouragement  ol`  public  opinions  on  important
matters concerning the countr}J.
Thus,  in\`'cstors  should  be  encouraged  to  in`.est  in  the  radio  and  television
broadcasting  business  to  assist  and  support  the  go`'ernment  in  disseminating  `'ital
information on issues and matters of public concerns.
The  RSV  BROADCASTING NETWORK INCORPORATED is a private
corporationintcrcstcdinthetclccommunicationsbusinessfordomesticaudienccsand
other related business.  It aims to opcratc radio and  tclc\'ision stations throughout the
Philippincs   ``'ith   its   central   base   of   operations   at   San   Josc,   Malaybala}'   Cit}',
Bukidnon.
It cannot be gainsaid that the prcscncc of more radio and tclcvision cnterpriscs
in   the   area   ol`   communication   industr}'   ``ill   not   onl}'`   cnhancc   competition   but
consc`qucntl}-pro\idcmorc\'italinl`ormationas\`'cllascntcrti`inmcnttothcpublic.
This      is     the     reason     \`.h}I'      RSV      BROADCASTING      NETWORK
INCORPORATED  sccks  I.t>  olTcr  itsclr  as  one  scr`.ice  pro`idcrs  in  the  radio  and
tclc\'ision    brtndcasting    industr}'    and    thcrcrorc    \`.Ill    pal.c    the    \`'ii}'    for    more
and  tclc`'ision  scr``iccs  thcrcby  rostcring  a  hcalth}''
opportunities  and  acc`css  to  r`adio
compctilion.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quc./`on Cit,.
NINETEENTH CONGRESS
Second Regular Session
HousEBILi-No.Ei80
Intrnduccd by Rcprcscntiiti\.c CIRIAC0 8. GAT0 JR. MD. FPSO-HNS
AN ACT GRANTING THE RSV BROADCASTING NBTWORK INCORPORATED,
A FRANCHISE T0 CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND
MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS
THROUGHOUT THE PHILIPPINES
Be .u  iiia(led liv lhe Seiiale au{] H()iise of Repre.se}ilalive`s Philipi}iiies in Coiigress a.sseml2led..
Section  I.  Nature  and  Scope  Of  Franchise  -Shoject  to  the  prow.istous  Of
the  1967 Philippine Constitution and  applicable  laws, rules and  regulations,  there  is
hereby   granted   to   RSV   BROADCASTING   NETWORK   INCORPORATED
hereunder  referred  to  as  the  grantee,  its  successors  or  assignees,  a  franchise  to
construct, install, establish, operate and maintain for commercial purposes and in the
public   interest,   "   radio   and/or   television   broadcasting   stations   throughout   the
Philippines ", with its central base of operations lacatcd at Sam Jose, Malaybalay Cit}',
Bukidnon,  whcrc  frequcncics  and/or  channels  arc  still   a\.ailablc   for  radio  and/or
telc\.ision   broadcasting   including   digital   tcle\'ision   system,   through   microwa`'e,
satelliLc or whatever means,  Including  the use of new  technologies  in  television and
radio s}'stems,  ``'ilh  the corresponding technological  au`iliarics and  facililics, `special
broadcast and other program and distribution scr`'iccs and relay stations.
Sectiol.  2.  M{IIilier  or  ()peralioil  or  Stalioll.s  Of  Fa(`ilities.  -The  s"jions  or
facilities or the grantcc shall be constructed and operated in a manner as will at most,
rcsuH only in the minimum intcrfcrcncc on the \`J'a`.clcngths or I`rcqucncics ol. existing
stations  or  other  stations  u'hich   ma}'be  cstablishcd   by  law,   without   in  an}'  wa}'
diminishing  Its  o``/'n  right  to  use  its  assigned  wa`'clcngths  or  I-rcqucncics  and  the
qualit}'  ol`  transmission  or  reccpcion  thereon  as  `should  maximir/.c  rcndi[ion  ol`  the
grantcc's scr\.iccs and/or the a\t.ailabi I ity thcrcol`.
Section  3.  Prior  Api)r(]val  or  l1.e  Naliollal  Tele{`olnlmulicalon`s  Col:li.I:ission
(jv7lc)~ The  grantcc shall  secure I-rom  the NTC  the appropriate  pcrmits and  liccnscs
for the ctmslruction and operation  of iLs .stations and  facilities and  shall  not use any
frequency  in  radio/tclevision  spectrum  without  authori7,ation   from  the  NTC.  The
NTC,  howc`'er,  shall   not  unreasonable  withhold  or  delay  the  grant  of  an}'  such
authority.


Section 4.  Re`spoiisil)ilily  lo  lhe  Piiblic.  -The  gTantoe  shall  provide  aidequaLle
public  ser\.ice  time  to cnablc  the  go\'cmment,  through  the said  broadcasting  stations
or  I-acilities,  to  reach  the  population  on  important  public  issues;  pro\i'ide  at  all  time.q
`sounds  and  balanced  programming;  as.sist  in  the  I.unL`lions  o`` the  publii`  information
and             educati on ;             conform             to             the             ethics             of             holiest
cntcrprisc, find  shall  not  Llsc  its  sthti{tns and  I.acilitics  for the  brondcasling ol` ttbsccnc
and  indcccm  language,  spccch,  act or sccnc  or  l`or  the  disscminati{m  of dcliberatcly
I`alsc  inl`ormation  or  win.ul  misi-cprcscntation  to  the  dctrimcnt of the  public  intcrcst,
or to incite, cncouragc, or assist in sub\'crsi\'c or lrcasonablc acLs.
Secft.otl  5.  Rt.g/I/  t)/ (;'fjv€r7it7i€;I/.  -  A  special  right  is  hcrcby  rcscrvcd  to  the
Prcsidcnt   or   the   Philippines,    in   limes   or   ``'ar,   rcbcllion,   public   pcrl   calamit}/.,
cmcrgcnc}',  disaster or disturbance  ol` pcacc  and  order;  to  lcmprtrarily  lakc o`'cr and
operalc lhc stations or I`acilitics of lhc grantcc; lo temperari[y suspend the opcralion ol.
any station ol` l`acility in the inlcrcsl of public safety, sceurity and publi? welfare; or to
authori7.c  the temporary  use and ttpcration  lhcrcol` by an}. agcnc}' or the  govemmcnt,
upon due compensation  [o the  grantcc, for the  use ol` said stations or facilities during
the pcritrd \`'hen they shall bc operated.
The telccommunication spectrum is finite resource that is part ol` the national
patrimony and  the use  thereof is a privilege conferred  upon  the grantec  by the Stale
and may be w-ithdrawn anytime after due prcx=ess.
Secfro# 6. rcm a/Fr¢#t,`/!7..fc. -The Franchise shall be in effect for the period
of [went}' I`ive  (25)  }'ears,  unless sooner rev.okcd or cancelled.  The  franchise  shall  be
deemed  ipso  l`acto,  re\;oked  in  the e``'ent the  grantec  fails  to compl}.  with any of the
foll{)wing c{)nditions
a.) Commence operations within on one ( i) year from
the appro\r'al or its t7perating pcrmiL b}J' Lhc NTC;
b.) C{)mmencc t)pera[i{>ns ``'ilhin three (3) years from  the
ci`fecti\.ity t]`` this Act;
L`.) Opcralc conlinu{)u.sly I.or two (2) }'cars.
Secfr.om 7. At`t`ap/"ijt`c' ¢;tc/ C{7;tip/f.ojit`€. -Acccptflncc or this I`ranchisc shall  bc
gi\.en  in  lhc  17th   Cttngrcss of the  Philippines, through  the C{immittcc ttn  Legislati\'c
Franchises ol` the H{}usc or Rcprescntati`''cs and  the Ct)mmiltcc on  Public  Scrviccs t)l`
the  Scnatc,  within  sixt}'  (60)  da}/'s  from  the  cl.fccli\.i[}'  of  this  Act  upon  gi\'.ing  such
acccptancc  .  the  grantcc  shall  e`cri`isc  the  privilcgcs  granlcd  under  this  Act,  Ntin-
acccpthnL`c shall  rcndcr the I-ranchisc vt)id.
Sccfr.a/I 6. J3o;id.  -The  grantec  shall  file a bond  with  the  NTC  in  the amt)unt
that  the  NTC  shall  dctcrminc,  to  guarantcc  ct)mpliancc  with  and  I`ulrillmcnl  ttl`  1hc
conditions  under w'hich this franchise is granted.  Ir al-tor three (3)  }J.cars  fr{)in the da[c
ol` approval of its permit by the Commission, the granlcc shall  hat-'c fulfilled the same,
the bond shall be canccllcd by the Commission. Otherwise, lhc bt)nd shall bc fort.eitcd
in favor of the govemmenl and the 1`ranchise ipso facto revoked.


Section 9. Self-regulation  lJy  alid  Uliderlaking  Of the  Granlee.  -The glimfuce
shall  not require any prc\J.ious censorship ol` any speech,  play, act or sccnc  , or other
matter  tti  pc  broadcast  I.ram   its  station;  Pro\.idcd,  That  the   grantec,  during  an}.
broedc.ast,  shall  cut  ttlT  l`rom  the  air  the  speech,  play,  ai`t  or scene,  or other  matter
being broadcast if the tcndcncy lhcreol. is to propose and/or incite treason. rcbcllion or
sedition;  or  the  language  used  thcrcin  or  the  thcmc  thcreor  is  indecent  or  immoral;
Pro\.idcd  further, That  \`'illful  failure  to  do  so  shall  constitu[c  a  \'alid  cause  for  the
cancellation of this franchise.
Section  10.  Warrailly  in   Favor  tlf  Nali(}ii{]l  aiid  IDi.al  Goveriiiiielils.  -The,
griintcc  shall  httld  the  natittml,  pr{t\i.incial,  city  iind  muniL`iprl  govcmmcnts  ol`  the
Philippines   (`rcc  I-rom  all   claims,  acc()iints,  demands,  or  ai`tions  arising  {)ut  ol`  the
acc`idcnLs or injuries, whcthcr to property {)r t{) pcrsttns, caused  b}. the construction t)r
t)pcraLion or the stations o1` lhc granLce.
Section   11.   Sale.   I,easel  Traiisfer,  Gralll   or   Usiifru(l`   or   AJssignfnelll   of
/J.r¢iir/?/.L.'c. -The granlcc `shall  n{)I sell,  ]casc,  transfer, grant [hc  usul`ruct of`, or asLsisn
this  Franchise  and  pri\'ilcgcs  acquired  thercundcr  to  any  person,  rim,  company,
corporatittn ol. olhcr commercial  lcga] cnlity, nor merge with an}' t)thcr c{)rporati{m or
entity nor shall transfer to controlling interest of the grantee. Whether as a whole or in
part,  and  whether  simultaneously  or contemporaneously,  to  any  such  person,  frim,
company,  corporation,  entity  without  the  prior  approval  of  the  Congress  of  the
Philippines;  Provided,  The  Congress  shall  be  informed  of any  sale,  lease,  transfer,
grant   of   usufruct,   {)r  assignment   franchise   or   the   rights   or   privileges   acquired
thcrcundcr,  or  merger  or  transrcr  or  lhc  grantee  within  sixty  (60)  da}J's  al.ter  the
completion or said transaction, Provided l`urther, That the failure to rep{]rt to Congress
such  change  ol.  o\`/'ncrship  shall  render  lhc  franchise  ipso  I-acto  revoked,  Pro\''idcd
finall}J., That any person or entity which this l`ranchisc is sold, transferred or assigned,
shall be subject to the said condititins, (crms, restrictions and imitations ol` this Act.
Sccfr.om  /2.  D7..s.pc.r5`o/  a/ Owjlers/!i.p.  -  In  accordance  with  the  constitutioniil
pro\'isit]n  to  cnc{iuragc  public.  prrlic`ipati{)n  in  public  utilities,  Lhc  granLcc  shall  ol`I`cr
Filipino  citi7,cn  at  least  thirty'   per  cent  (3(y%,j)   tir  as   higher   percentage   thiit  miiy
hcrcal`[cr be pro\idcd by law of its ouLstanding capital stor`k in any sccurcs e.`changc
in   the   Philippines   \`/'ithin   l`i\.c   years   (-rom   the   commcnccmcnt   ol-   its   operati(tn,
Pro`idcd, That  in caLscs  \`'hcrc  put{irrer or shares  is  not applicable,  cstablishmcnt or
ctxtpcrati\-cs   and  ttthcr  mc[hnds   cncttumging   public   participrtitm   b}'  ci[i7.ens  iind
corprratit)ns opcraling public utililics miiy bc jmplcmcntcd Non-compliance thcrc\\,'ith
shall render [hc rranchisc ipso racto rev.okcd.
Section  13.  (;€iicr"/ Brot7c/t.¢L`./  J'o/i.t`.v /.ow.  -The  grantcc  shall  c`omply ``,'ith
subject  lo  the  proviLsions  or  a  gcncral  broadcast  polic},'  law,  which  Congress  may.
hercartcr cnac{.


Sccfr.a/I  J4.  R€por/or/.a/  R€qJtJ.re/He/I/.  -  The  grantee  shall  submit  an  annual
report  to  the  Congress  ol.  the  Philippines,   thrt)ugh   the  Committcc  in  Legisldti\.c
Franchises or the House ol-Reprcsentati\'cs and  the Committee on Public Scr`J'iccs of
the  Scnalc,  in  compliance  with  the  lcrms  and  conditions  ol` the  fuinchisc and  ()n  its
ttperiitit)ns on or bcl`t)rc April  3() or e\`.cr}' }`.cur diiring the term ol` its I`ranchisc.
The rcpollolial c()mpliancc ccrti``iL`nte iLssued b}' C{)ngrcss shall  bc required bcforc an}'
applicati{m I.{tr pcrmil ccrtiriczitc is acccptcd b};' the NTC.
Secfro"  /5.  J'fji¢//}J  C/a#"  -  Failure  ol`  the  gr:antcc  lo  submit  the  rcquisitc
annual   rcpr)rt  to  Congress  shall   bc   pcnali7.cd   b}'   a  l`inc  ol'  Fi`''c   Hundred   Pesos
(P5(X),(X))  for c\`'cry working dtl}' ol` noni`ompliancc. The line shall  bc cttllcctcd b}' the
BTC  l`r{]m  [hc  dclinqucnt  l`ranchisc  granlcc  scprratc  from  the  rcporlorial  pemiltics
imposed by the NTC.
sac".o" /6. /i`c/7I#/7./.v C'/fl7f.`'c. -Any ad\'antngc,  `.a\'ttr,  privilcgc, cxcmpti{in, or
immunity  granted  under c`isting  l`ranchiscs,  ttr  \`'hich  may  hcrcal`lcr  be  granted  l`or
radio and/or tclcvisi{>n brondc`asting upon prior review and approval of Congress shall
bccomc  part ol' this rranchisc and shall  be accorded immcdiatcly and unconditionall}'
[o the herein grantec; Provided, That the foregoing shall neither apply to nor all.cct the
provisions  or broadcasting  franchises concerning  territory covered  by  the  franchise,
the life span of the franchise and the type of service authorized by the franchise.
Sectio# J7. Scparabi./!.ty C'drIAfc.  -If an}' of the sections or provisions of this
Act is held invalid, all other provisions not affected thereby shall remain valid.
Section 18. Repealal)ility aiid Noliexclusively Claiuse. -This [r.anchise shall bc
subject to amendment,  alteration, or repeal  b}'  the  C(]ngress or the  Philippines  ``.hen
public  intcrcst  so  requires  and  shall  not  be  interpreted  as  an  cxclusi\r.c  grant  tir the
pri\'ilcgcs herein provided for.
Section  19.  J`,LT€r/f.vf./`v.  -This  Act  shall  take  effect  firtccn  ( 15)  days after  its
publications in the Ofricial Gay,ette or in a newspaper oI. general circulatittn.
Approved,