Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
1st Regular Session

HOUSE BILL NO. 431

Introduced by Rep. JOHNNY PIMENTEL

EXPLANATORY NOTE

The ABS — CBN Corporation has been a key leader in television
and radio programming for both domestic and international
audiences since its inception in the last century. It has entered
many Filipino homes in delivering media content to report news
from around the Philippines and across the globe. In the major
events and turning points in Philippine history, ABS-CBN public
affairs has ceaselessly apprised the Filipino nation of the news
that it needed to know.

The news and public affairs program of ABS-CBN serve as the
only avenue for crucial and relevant information for a great
number of our countrymen. It is the source of information in the
most far-flung areas of our country, keeping its far-reaches up-
to-date with the relevant happenings.

It should be noted by Congress that the cessation of the ABS-
CBN broadcast operation has caused particular hardship and
distraught due to the lack of accessible information in warning
the Filipino people. This was true in the case of Typhoon Odette
in late 2021. This is also true for our people during the other
previous typhoons and emergencies that occurred where lack of
immediate accessible information was the circumstance. The
circulation of important information in times of calamity
prevents fatalities and saves lives. Those areas of the Philippines
which rely only on broadcast signal were left without needed
news; effectively cut-off from critical information.

The past two years we were ushered in a “new normal” state.
Today, we stand in the cross roads in the normalization of the
state of affairs living. For many of our countrymen, a weather of
uncertainty beckons. More than ever, the Filipinos need to be
apprised with the current situation. The cessation of a


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broadcasting network that has been one in keeping the public
informed is surely a disservice to the Filipino people.

A functioning and effective democracy is based on an informed
citizenry unbridled by silence. Let us stand to ensure that the
Filipino people, even in the farthest of locations, are always kept
informed of the news and occurrences that directly affects their
way of life.

The passage of this Bill is earnestly sought.

REP. JOHNNY


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
1st Regular Session

HOUSE BILL NO. 431

Introduced by Rep. JOHNNY PIMENTEL

“AN ACT
GRANTING THE ABS-CBN CORPORATION
A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND
MAINTAIN TELEVISION AND RADIO BROADCASTING
STATIONS IN THE PHILIPPINES AND FOR OTHER
PURPOSES”

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

SECTION 1. Subject to the provisions of the 1987 Philippine
Constitution and applicable laws, rules and regulations, the ABS-
CBN Corporation (formerly ABS-CBN Broadcasting Corporation),
herein after referred to as grantee, its successors or assignees, is
hereby granted 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 and/or television broadcasting, including digital
television system, through microwave, satellite or whatever
means, or the use of any new technologies in television and in
radio systems, with the corresponding technological auxiliaries
and facilities, special broadcast and other program and
distribution services and relay stations.

Sec. 2. The stations or facilities of 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 the availability thereof.


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Sec. 3. The grantee shall secure from the National
Telecommunications Commission (NTC) the appropriate permits
and licenses for its stations and shall not use any frequency in
the television or radio spectrum without having been authorized
by NTC. The NT C, however, shall not unreasonably withhold or
delay the grant of any such authority.

Sec. 4. The grantee shall provide adequate public service time
which is reasonable and sufficient to enable the government,
through the aid broadcasting stations, to reach the pertinent
populations or portions thereof, on important public issues and
relay important public announcements and warnings concerning
public emergencies and calamities, as necessity, urgency or law
may require; provided at all times sound and balanced
programming; promote public participation; assist in the
functions of public information and education; conform to the
ethics of honest enterprise; promote audience sensibility and
empowerment including closed captioning; and not use its
stations for the broadcasting of obscene and indecent language,
speech, act or scene; of for the dissemination of deliberately false
information or willful misrepresentation, to detriment of public
interest, or to incite, encourage or assist in subversive or
treasonable acts.

Sec. S. A special right is hereby reserved to the President of the
Republic of the Philippines, in times or 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 the 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 anytime after due
process.

Sec. 6. 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 operate continuously for a period of two (2) years.

Sec. 7. Acceptance of this franchise shall be given in writing to
the Congress of the Philippines, through the Committee on
Legislative Franchises of the House of Representatives and the
Committee on Public Service of the Senate within sixty (60) days
from the effectivity of this Act. Upon giving such acceptance, the


grantee shall exercise the privileges granted under this Act. No
acceptance shall render the franchise void.

Sec. 8. 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, The grantee, during any broadcast,
shall cut 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, sedition, rebellion or sedition; or the
language used therein or the theme thereof is indecent or
immoral: Provided further, that the willful failure to do so shall
constitute a valid cause for the cancellation of this franchise.

Sec. 9. The grantee shall hold the national, provincial, city and
municipal governments of the Philippines free from all claims,
accounts, demands or actions arising out of accidents or 83
injuries, whether to property or to persons, caused by the
construction or operation 84 of the stations of the grantee.

Sec. 10. The grantee shall not sell, lease, transfer, grant usufruct
of, nor assign this franchise or the right 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 transfer the controlling interest of the grantee,
whether as a whole or in part and whether simultaneously or
contemporaneously, to any such person, firm, company,
corporation or entity without the prior approval of the Congress
of the Philippines: Provided, that Congress shall be informed of
any sale, lease, transfer, grant of usufruct, or assignment of
franchise of the right or privileges acquired thereunder, or the
merger or transfer of the controlling interest of the grantee, within
sixty (60) days after the completion of said transaction: Provided
further, that failure to report to Congress such change of
ownership shall render the franchise ipso facto revoked:
Provided, finally, that the person or entity to which this franchise
is sold, transferred or assigned, shall be subject to the same
conditions, terms, restrictions and limitations of this Act.

Sec. 11. In accordance with the constitutional provision to
encourage public participation in public utilities, the grantee
shall offer to Filipino citizens at least thirty percent (30%) or a
higher percentage that may hereafter be provided by law of its
outstanding stock in any securities exchange in the Philippines
within five (5) years from the commencement of its operations:
Provided, that in cases where public offer or shares is not
applicable, establishment of cooperatives and other methods of
encouraging public participation by citizens and corporations
operating public utilities must be implemented. Non-compliance
therewith shall render the franchise ipso facto revoked.


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Sec. 12, The grantee shall comply with and be subject to the
provisions of a general broadcast policy law, which Congress may
hereinafter enact.

Sec. 13. The grantee shall submit an annual report to the
Congress of the Philippines, through the Committee on
Legislative Franchises of the House of Representatives and the
Committee on Public Service of the Senate, on its compliance with
the terms and conditions of the franchise and on its operations
on or before April 30 of the succeeding year. The reportorial
compliance certificate issued by Congress shall be required
before any application for permit or certificate is accepted by the
NTC.

Sec. 14. In the event that the franchise granted under this Act
expires, the grantee is automatically given a Provisional Authority
to continue its operations: Provided, that a bill is already filed in
Congress renewing its franchise before expiration: Provided
further, that the said Provisional Authority to continue its
operations shall only be valid until its franchise is renewed,
rejected or until the term of Congress when the bill for renewal
was filed ends.

Sec. 15. Failure of the grantee to submit the requisite annual
report to Congress shall be penalized by a fine of five hundred
pesos (P500.00) per working day of non-compliance. The said
penalty shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed
by the commission. The collected funds shall accrue to the
monitoring fund of the NTC in line with its supervisory and
regulatory functions.

Sec. 16. Any advantage, favor, privilege, exemption, or immunity
granted under existing franchises, or which may hereafter be
granted for radio and/or television broadcasting, upon prior
review and approval of Congress, shall become part of this
franchise and shall be accorded immediately and unconditionally
to the herein grantee: Provided, that the foregoing shall neither
apply to nor affect the 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:
Provided further, the foregoing shall not apply to sale, lease,
transfer or grant of usufruct of legislative franchise without prior
approval by Congress.

Sec. 17. If any of the sections or provisions of this Act is held
invalid, all other provisions no affected thereby shall remain
valid.

Sec. 18. This franchise shall be subject to amendment, alteration,
or repeal by Congress when public interest so requires and shall


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not be interpreted as an exclusive grant of privileges herein
provided for.

Sec. 19. This Act shall take effect after fifteen (15) days from
complete publication either in the Official Gazette or in a
newspaper of general circulation.

Approved,