EPRES,
ls oy
OR Ec 5 iveo 2

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

EIGHTEENTH CONGRESS
First Regular Session

House Bill No, _ 6732

INTRODUCED BY REPRESENTATIVES ALAN PETER “COMPANERO” S. CAYETANO,
NEPTALI "BOYET” M. GONZALES, RANEO E. ABU, ROBERTO “ROBBIE” V. PUNO, DAN S.
FERNANDEZ, LUIS RAYMUND “LRAY” F. VILLAFUERTE JR., FERDINAND MARTIN G.
ROMUALDEZ, AND JOSE ANTONIO “KUYA” R. SY-ALVARADO-

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

EXPLANATORY NOTE,

Our World is Changing. The COVID-19 pandemic is forcing all of us to take a long, hard look
at our society to see how we can Adapt, Innovate, and Manage our way into this “New
Normal.”

As the House of Representatives and the whole government grapple with these new and
emerging challenges, one key factor to our eventual success as a nation is the ability to access
accurate and timely information. In any crisis, knowing what to do, how to do it, and when it
has to be done means the difference between life and death.

The first ten months of the 18" Congress has been one of the most eventful in recent memory.
After the swift passage of the 2020 General Appropriations Act and several key legislation,
we were unexpectedly forced to deal with the aftermath of the eruption of Taal Volcano. And
even while we were in the midst of one disaster, a bigger emergency was looming on the
horizon.

Recognizing the need for sufficient time to tackle other important matters, in particular the
controversial franchise renewal application of ABS-CBN, the Congressional leadership
sought consensus with the Executive Department, through the DOJ and the NTC, which
would allow us to perform our duties in a manner consistent with our mandates.

After securing this guarantee, Congress buckled down to work even as the pandemic put the
whole country on lockdown. During the two-month Congressional break our members, stood
side-by-side with the administration in trying to mitigate the worst effects of the virus.

‘As Congress prepared to return to regular session, with the scope and severity of the effects
of COVID-19 on Public Health and the Economy just being understood, our members were


also gearing up for the fight; confident that we will be able to devote all our energies in
Defeating COVID-19.

‘The sudden turn-around by the NTC was both unexpected and unconscionable. It not only
disrupted the essential work of Congress, and sowed intrigue and disunity among the
different branches of government and our people - it was also done during this period of
crisis.

The untimely shutdown of ABS-CBN affects the efforts of the government in fighting the
pandemic by depriving tens of millions of Filipinos access to potentially life saving
information. It creates a gap in our most important defense against the virus - our ability to
tell the population to stay home and save lives.

‘Through this measure, we hope to strike a balance between the immediate needs of the
people amid this crisis and the duty of Congress to ensure accountability to our present laws.
Providing ABS-CBN with a provisional franchise valid until 31 October 2020 will give both
the House of Representatives and the Senate to hear the issues being raised for and against
the renewal, and assess, with complete impartiality and fairness, whether or not the network
shall be granted a franchise for another twenty-five (25) years. We cannot, in good
conscience, sweep the accusations under the rug.

In view of the foregoing, the passage of this measure is earnestly sought.

DAN S. FERNAND!

enon hd (ce

JOSE ANTONJO“KUYA” R. SY-ALVARADO

JALDEZ



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

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 8732

INTRODUCED BY REPRESENTATIVES ALAN PETER “COMPANERO" S. CAYETANO,
NEPTALI “BOYET" M. GONZALES, RANEO E. ABU, ROBERTO “ROBBIE” V. PUNO, DAN S.
FERNANDEZ, LUIS RAYMUND “LRAY” F. VILLAFUERTE JR., FERDINAND MARTIN G.
ROMUALDEZ, AND JOSE ANTONIO “KUYA” R. SY-ALVARADO

AN ACT

GRANTING THE ABS-CBN CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL,

OPERATE AND MAINTAIN RADIO AND TELEVISION 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. Nature and Scope of Franchise. ~ Subject to the provisions of the 1987
Constitution and applicable laws, rules and regulations, the ABS-CBN Corporation, formerly
known as ABS-CBN Broadcasting Corporation, hereunder referred to as the grantee, its
successors or assignees, is hereby granted a franchise to construct, install, operate and
maintain for commercial purposes and in the public interest, television and radio
broadcasting, including digital television system, through microwave, satellite or whatever
means, or the use of any new technologies in television and 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 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 other 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.

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 operation of its stations and facilities and shall not


use any frequency in the radio /television spectrum without authorization from the NTC. The
NTC, however, shall not unreasonably withhold or delay the grant of such authority.

Sec. 4. Responsibility to the Public - The grantee shall provide free of charge,
adequate public service time which is reasonable and sufficient to enable the government,
through the broadcasting stations or facilities of the grantee, to reach the pertinent
population/s or portions thereof on important public issues and relay important public
announcements and warnings concerning public emergencies and calamities as necessity,
urgency or law require; provide 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 through,
but not limited to, closed captioning; and not use its stations or 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.

Public service time referred herein shall be equivalent to ten percent (10%) of the
paid commercials or advertisements which shall be allocated based on need to the executive,
legislative, judiciary, constitutional commissions and international humanitarian
organizations duly recognized by statutes; Provided, That the NTC shall increase the public
service time in case of emergency or calamity. The NTC shall issue rules and regulations for
this purpose, the effectivity of which shall commence upon applicability with other similarly
situated broadcast network franchise holders.

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
anytime after due process.

Sec. 6. Term of Franchise. ~ This franchise shall be in effect until 31 October 2020,
unless sooner revoked or cancelled.

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


Sec.8, Tax Provisions. —The grantee, its successors or assignees shall continue to
be subject to all applicable taxes, duties, fees or charges and other impositions under
Republic Act No. 8424, otherwise known as “The National Internal Revenue Code of 1997", as
amended, Republic Act No. 7160, otherwise known as ‘The Local Government Code of 1991’,
as amended, and other applicable laws.

Sec. 9. Self-regulation by and Undertaking of Grantee. - The grantee shall not
require any previous censorship of any speech, play, act or scene, or other matter to be
broadcast and/or telecast from its stations: Provided, That the grantee, during any broadcast
and/or telecast, shall cut off from the air the speech, play, act or scene, or other matter being
broadcast and/or telecast if the tendency thereof is to propose and/or incite treason,
rebellion or seditio

or the language used therein or the theme thereof is indecent or
immoral, and 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 free 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. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. - The
grantee shall not sell, lease, transfer, grant the usufruct of, nor assign this franchise or the
rights and privileges acquired thereunder to any person, firm, company, corporation or other
commercial or legal entity, without the prior approval of the Congress of the Philippines.
Provided, Any person or entity to which this franchise is sold, transferred or assigned, shall
be subject to the same condition, terms, restrictions and limitations of this Act.

Sec. 12. 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. 13. Reportorial Requirement. - 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 Services 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 calendar year. The reportorial compliance certificate issued by Congress shall
be required before any application for permit or certificate is accepted by NTC.

Sec. 14, Separability Clause. - If any of the sections or provisions of this Act is held
invalid, all other provisions not affected thereby shall remain valid.

Sec. 15. Repealability and Non-exclusivity 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,
Sec. 16, Effectivity. — This Act shall take effect fifteen (15) days after its publication

in the Official Gazette or in a newspaper of general circulation.

Approved,