Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS

First Regular Session

__ 4428

HOUSE BILL NO.

Introduced by Hon. Niel “Junjun” C. Tupas, Jr.

This proposed measure seeks to renew the franchise granted to Progressive
Broadcasting Corporation

Republic Act No. 7163, as amended, granted the Progressive Broadcasting
Corporation a franchise to construct, install, establish, operate and maintain for
commercial purposes and in the public interest, radio and/or television broadcasting
stations in the Philippines. Under the law, Progressive Broadcasting Corporation was
given a period of twenty-five (25) years to operate starting in 1991 and ending in 2016

Progressive Broadcasting Corporation is a network that is known to adhere to the
principles of public service in its endeavors through the media. Through its efforts, it
makes people aware of government initiatives to advance progress. Truly, Progressive
\dcasting Corporation is a vehicle for the dissemination of relevant information to the
ino public.

As mentioned in the 1987 Philippine Constitution," [t]he State recognizes the vital
role of communication and information in nation building." Progressive Broadcasting
Corporation has lived up to this constitutional role. The renewal of its franchise is
necessary for it to continue its service to the people.

In view of the foregoing, the approval of this bill is earnestly sought.

) Ay- fr.

HON. NIEY“JSUNJUN"C. TUPS, JR.
Congressman, 5" District of floilo


Republic of the Philippines
Congress of the Philippines
Metro Manila
‘ixteenth Congress
First Regular Session

4428

HOUSE BILL NO.

Introduced by Representative NIEL “JUNJUN” C. TUPAS, JR.

AN ACT
RENEWING THE FRANCHISE GRANTED TO PROGRESSIVE BROADCASTING
CORPORATION FOR ANOTHER TWENTY-FIVE (25) YEARS, AMENDING FOR
‘THE PURPOSE REPUBLIC ACT NO. 7163, AS AMENDED BY REPUBLIC ACT NO,
8162

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Nature and Scope of Franchise. ~ Subject to the provisions of the Constitution and
applicable laws, rules and regulations, there is hereby granted to Progressive Broadcasting
Corporation, hereunder referred to as the grantee, its successors or assigns, a franchise to
construct, install, establish, operate and maintain for commercial purposes and in the public
interest, radio and/or television broadcasting stations in the Philippines, where frequencies
and/or channels are still available for radio broadcasting, through microwave, satellite or
whatever means, including the use of any new technologies in radio systems, with the
corresponding technological auxiliaries and facilities, special broadcast and other program and
distribution services and relay stations.

SEC. 2. Manner of Operation of Stations or Facilities. ~The stations or facilities of the grantee
shall be constructed and operated in a manner as will at most, result only in the minimum
interference on the wavelengths or frequencies of existing stations or other stations which may
be established by law, without in any way diminishing its own right to use its selected
wavelengths or frequencies and the quality of transmission or reception thereon as should
maximize rendition of the grantee’s services and/or availability thereof.

SEC. 3, Prior Approval of the National Telecommunications Commission. ~ ‘The grantee shall
secure from the National Telecommunications Commission (NTC) the appropriate permits and
licenses for the construction and operation of its stations and facilities and shall not use any
frequency in the radio/television spectrum without having been authorized by the Commission.
The Commission, however, shall not unreasonably withhold or delay the grant of any such
authority.

SEC. 4. Responsibility to the Public. ~ The grantee shall provide adequate public service time to
enable the government through the said broadcasting stations or facilities, to reach the
population on important public issues; provide at all tames sound and balanced programming;
assist in the functions of public information and education; conform to the ethics of honest
enterprise; and not use its stations and facilities for the broadcasting of obscene and indecent
language, speech, act or scene; or for the dissemination of deliberately false information or
willful misrepresentation, to the detriment of the public interest, or to incite, encourage or assist
in subversive or treasonable acts.


SEC. 5. Right of Government. — A special right is hereby reserved to the President of the
Philippines, in times of war, rebellion, public peril, calamity, emergency, disaster or disturbance
of peace and order, to temporarily take over and operate the stations or facilities of the grantee,
to temporarily suspend the operation of any station or facility in the interest of public safety,
security and public welfare, or to authorize the temporary use and operation thereof by any
agency of the government, upon due compensation to the grantee, for the use of said stations or
facilities during the period when they shall be so operated.

The radio spectrum is a finite resource that is part of the national patrimony and the use thereof
is a privilege conferred upon the grantee by the State and may be withdrawn any time after due
process.

SEC. 6, Term of Franchise. ~ This franchise shall be in effect for a period of twenty-five (25)
years, unless sooner revoked or cancelled. This franchise shall be deemed ipso facto revoked in
the event the grantee fails to comply with any of the following conditions:

(a) Commence operations within one (1) year from the approval of its operating permit by
the NTC;

(b) Operate continuously for two (2) years: and

(c) Commence operations within three (3) years from the effectivity of this Act.

SEC. 7. Acceptance and Compliance. ~ Acceptance of this franchise shall be given in writing
within sixty (60) days from the effectivity of this Act. Upon giving such acceptance, the grantee
shall exercise the privileges granted under this Act. Nonacceptance shall render the franchise
void.

SEC. 8. Bond. ~ The grantee shall file a bond with the NTC in the amount that the NTC shall
determine to guarantee compliance with and fulfillment of the conditions under which this
franchise is granted. If after three (3) years from the date of the approval of its permit by the
Commission, the grantee shall have fulfilled the same, the bond shall be cancelled by the
Commission. Otherwise, the bond shall be forfeited in favor of the government and the franchise
ipso facto revoked,

SEC. 9. Self-regulation by and Undertaking of the Grantee. ~ The grantee shall not require any
previous censorship of any speech, play, act or scene, or other matter to be broadcast, from its
stations: Provided, That the grantee, during any broadcast shall cut off from the air the speech,
play, act or scene, or other matter being broadcast if the tendency thereof is to propose and/or
incite treason, rebellion or sedition; or the language used therein or the theme thereof is
indecent or immoral: Provided, further, That willful failure to do so shall constitute a valid cause
for the cancellation of this franchise.

SEC. 10. Warranty in Favor of National and Local Governments. — The grantee shall hold the
national, provincial, city and municipal governments of the Philippines harmless from all
claims, accounts, demands or actions arising out of accidents or injuries, whether to property or
to persons, caused by the construction or operation of the stations of the grantee.

SEC. 11. Nontransferability of Franchise. — ‘The grantee shall not lease, transfer, grant the
usufruct of, sell nor assign this franchise or the rights and privileges acquired thereunder to any
person, firm, company, corporation or other commercial or legal entity, nor merge with any
other corporation or entity, nor shall the controlling interest of the grantee be transferred,
whether as a whole or in parts and whether simultaneously or contemporaneously, to any such
person, firm, company, corporation or entity without the prior approval of the Congress of the
Philippines. The conditions, terms, restrictions and limitations set by this Act shall be imposed
on any person or entity to which this franchise is sold, transferred or assigned.



SEC. 12. Dispersal of Ownership. — In accordance with the constitutional provision to encourage
public participation in public utilities, the grantee shall offer at least, thirty per centum (30%) or
a higher percentage that may hereafter be provided by law of its outstanding capital stock in any
securities exchange in the Philippines within five (5) years from the time it has achieved the
status of a national broadcasting network. A “national broadcasting network” is hereby defined
as one that operates three (3) or more radio and/or television stations. Noncompliance
therewith shall render the franchise ipso facto revoked.

SEC. 13. Equality Clause, — Any advantage, favor, privilege, exemption or immunity granted
under existing franchise, or which may hereafter be granted for radio and/or television
broadcasting, shall ipso facto become part of this franchise and shall be accorded immediately
and unconditionally to the herein grantee: Provided, however, That the foregoing shall neither
apply to nor affect provisions of broadcasting franchises concerning territory covered by the
franchise, the life span of the franchise or the type of service authorized by the franchise.

SEC. 14, General Broadcast Policy Law. ~ ‘The grantee shall comply with and be subject to the
provisions of a general broadcast policy law, which Congress may hereafter enact.

SEC. 15. Reportorial Requirement. ~ ‘The grantee shall submit an annual report to the Congress
of the Philippines on its compliance with the terms and conditions of the franchise and on its
operations within sixty (60) days from the end of every year.

SEC. 16. Separability Clause. - If any of the sections or provisions of this Act is held invalid, all
other provisions not affected thereby shall remain vali

SEC. 17. Repealability and Nonexclusivity Clause. — ‘This franchise shall be subject to
amendment, alteration or repeal by the Congress of the Philippines when the public interest so
requires and shall not be interpreted as an exclusive grant of the privileges herein provided for.

SEC. 18. Effectivity Clause. ~ This Act shall take effect fifteen (15) days after its publication,
upon the initiative of the grantee, in at least two (2) newspapers of general circulation in the
Philippines.

Approved,