Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Congress

HousE BILL No, 4600

Introduced by Representative Jerry P. Trefias

EXPLANATORY NOTE,

the policy of the State, as provided for in Section 24, Article 2 of the Constitution,
-«.] recognizes the vital role of communications and information in nation building.”

Iis in this context that DEUS AMOR EST. BROADCASTING, INC., a wholly-owned
Filipino domestic corporation, has materialized the idea of providing a means of communication
to the far-flung rural areas in order to disseminate educational, religious, socio-cultural, and
commercial resources which will surely contribute to nation building.

‘The incorporators have set corporate strategies aimed at contributing in the social
development of all sectors of society through public information dissemination; especially the
far-flung barangays in the outskirts of the highly urbanized cities, which can be reached
effectively by utilizing broadcasting as a medium.

In this age of advancement in technology and communications, national issues and socio-
economic development can be communicated to a wider range and coverage through digital data,
information, and news. This aim can be best achieved by the grant of a congressional franchise to
install, operate, and maintain radio and television broadcast stations in the Philippines.

In this view, the approval of its franchise for a period of Twenty-Five (25) years to
render efficient and outstanding service to the public, is, therefore, eamestly sought.

JERRY\P. TRENAS


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Congress

Housk BILL No, 4600

Introduced by Representative Jerry P. Trefias

AN AC
GRANTING THE DEUS AMOR EST, BROADCASTING, INC, A FRA’

NCHISE TO

CONSTRUCT, ESTABLISH, INSTALL, MAINTAIN AND OPERATE FOR COMMERC
PURPOSES AND IN THE PUBLIC INTEREST, RADIO AND TELEVISION BROAD‘

STATIONS IN THE PHILIPPINES.

Be it enacted by the Senate and House of Representative of the Philippines in Congress
assembl

SECTION I, Nature and Scope of Franchise ~ Subject to the provisions of the 1987
Constitution and applicable laws, rules and regulations, there is hereby granted to Deus Amor
Est, Broadcasting, Inc,, hereunder referred to as the grantee, its successors or assigns, a
franchise to construct, establish, install, maintain and operate for commercial purposes and in the
public interest, radio and television broadcast stations in the Philippines, utilizing the
technological advances or innovations in the future; to originate, distribute, transmit, and receive
through said systems, news, and documentaries, entertainment, informational and educational
radio and television programs, both live and recorded; and to establish, construct, maintain and
operate such other systems as are essential as convenient to carry out the purpose of this
franchise

SECTION 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 the 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

SECTION 3. Authority of the National Telecommunications Commission. - The
grantee shall secure from the National Telecommunications Commission (NTC), hereinafter
referred to as the Commission, a certificate of public convenience and or the appropriate permits,
and licenses for the location, construction, installation and operation of its broadcast stations. In


issuing the certificate, the Commission shall have the power to impose such conditions relative
to the construction, operation, maintenance or service level of the broadcast stations, The
Commission shall have the authority to regulate the construction and operation of the said
broadcast stations. The grantee shall not use any frequency in the radio spectrum without having
been authorized by the Commission. Such certificate shall state the areas covered and date the
grantee shall commence the service. The Commission, however, shall not unreasonably
withhold or delay the grant of any such authority, permits or license.

SECTION 4. Responsibility to the Public. — The grantee shall provide adequate public
service line to enable the government through the said radio and television stations, to reach the
population on important public issues; provide at all times sound and balanced programming,
promote public participation such as in community programming, assist in the functions of
public information and education; conform to the ethics of honest enterprise and shall not use its
stations for the transmission of obscene or 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 assists in subversive or treasonable acts,

The grantee shall operate and maintain all its broadcast stations, and equipment for the
transmission and reception of messages, signals and pulses in a satisfactory manner at all times,
and as far as economical and practicable, modify, improve or change such operating equipment
and facilities to keep abreast with the advances in science and technology,

SECTION 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, transmitters,
facilities or equipment of the grantee, to temporarily suspend the operation of any station,
transmitter, facility or equipment 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 the
compensation to the grantee for the use of said stations, transmitters, facilities or equipment
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.

SECTION 6. Term of Franchise. ~ This franchise shall be for a term of twenty-five
(25) years from the date of effectivity of this Act, 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 i
operating permit or provisional authority by the NTC;
(b) Operate continuously for two (2) years; and
(c) Commence operations within three (3) years from the effectivity of
this Act



SECTION 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. Non-acceptance
shall render the franchise void.

SECTION 8. Bond. ~ The grantee shall file a bond issued in favor of the National
Telecommunications Commission, which shall determine the amount, to guarantee the
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

SECTION 9. Tax Provisions, — The grantee, its successors or assigns, shall be subject to
the payment of taxes, duties, fees or charges and other impositions under the National Internal
Revenue Code (NIRC) of 1997, as amended and other applicable laws: Provided, that nothing
herein shall be construed as repealing any specific tax exemptions, incentives or privileges,
benefits and exemptions accorded to existing and future broadcasting station franchises shall
likewise be extended to the grantee

‘The grantee shall file the return with the province were its facility is located, and pay the
taxes due thereon to the Commissioner of Internal Revenue or his duly authorized
representatives in accordance with the NIRC and the return shall subject to audit by the Bureau
of Internal Revenue

SECTION 10. 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
from its station. 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 use therein or the theme thereof is
indecent or immoral and willful failure to do shall constitute a valid cause for the cancellation of
this franchise

SECTION 11, 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.

SECTION 12. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.
= The grantee shall not lease, transfer, grant the usufruct of, sell nor assign this franchise or the
rights and privileges acquired there under to any person, firm, company, corporation or other
commercial or legal entity, nor merge with any corporation or entity, nor shall the controlling
interest in the grantee be transferred, 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. Any person or entity to which this franchise is sold


transferred or assigned, shall be subject to the same conditions, terms, restrictions and limitation
of this Act.

SECTION 13. Dispersal of Ownership. — In accordance with the constitutional
provisions to encourage public participation in the public utilities, the grantee shall offer at least
thirty per centum (30%) of its outstanding capital stock or a higher percentage that may hereafter
be provided by law in any securities exchange in the Philippines within five (5) years from the
time it has achieve 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,
Non-compliance therewith shall render the franchise ipso facto revoked.

ECTION 14, Equality Clause. — Any advantages, favor, privileges, exemptions or
immunity granted under existing franchises, or which maybe hereunder be granted for radio
and/or television broadcasting, shall be 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 the provisions of the broadcasting franchises
concerning territory covered by the franchise, the lifespan of the franchise or the type of service
authorized by the franchise

SECTION 15. General Broadeast Policy. ~ The grantee shall comply with and be
subject to the provisions of a general broadcast policy law, which Congress may hereafter enact.

SECTION 16. 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
every year during the term of its franchise, The reportorial compliance certificate issued by
Congress shall be required before any application for permit or certificate is accepted by the
NTC

SECTION 17. Penalty Clause ~ Failure of the grantee to submit the requisite annual
report to Congress will be penalized by a fine in the amount of Five hundred pesos (PS00.00) per
working day of noncompliance. The fine will be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC

SECTION 18. - 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

SECTION 19. Separability Clause. — If any of the sections or provisions of this Act is
held invalid, all the other provisions not affected thereby, shall remain valid

SECTION 20. 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 for


SECTION 21. Effectivity Clause. — This act shall take effect fifteen (15) days from the
date of its publication in at least two (2) newspapers of general circulation

Approved.