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

S

Sixteenth Congress
First Regular Session

House Bill No. 1448

Introduced by REP. PANGALIAN M. BALINDONG

EXPLANATORY NOTE

This bill seeks the grant of a franchise to construct, operate and
maintain for commercial purposes, and in the greater welfare of
public interest, radio and/or television broadcasting stations in
Mindanao.

Radio and television has radically changed the global environment,
particularly in the field of communications, which has vastly
revolutionized the speed and clarity of receiving information.
Whether it be news reports, or simply information on any matter
under the sun, radio and television has made it available to all
people. Whether they are in the cities or in far-flung hinterlands,
rich or poor, schooled or street-wise, interested or lukewarm,
information is at their fingertips, or simply a remote-control gadget
away.

Thus, the importance of radio and television with regard to timely
information and global relations cannot be underestimated. Even in
the political field, the matter of receiving news of elections or
important national events in a short time has been a boon to the
national democratic processes. At the public safety and


environmental concern levels, it is the quickest way of informing the
citizens of the good or bad news that will surely impact on their
lives or livelihoods.

This bill is in consonance with the provision of Section 24, Article II
of the 1987 Constitution, which provides:

“Sec. 24. The State recognizes the vital role of communication
and information in nation-building.”

Hence, the approval of this bill is earnestly sought.

tebe
REP. PANGALIAN M. BALINDONG

2™ District, Lanao del Sur


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

sixteenth Congress
First Regular Session

1448

House Bill No.

Introduced by REP. PANGALIAN M. BALINDONG

AN ACT GRANTING THE ILLANA BAY BROADCASTING SERVICES,
INCORPORATED A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH,
OPERATE, AND MAINTAIN RADIO AND TELEVISION BROADCASTING
STATIONS IN MINDANAO,

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 the Ilana Bay Broadcasting Services, Incorporated, 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 Mindanao,
where frequencies and/or channels are still available for radio and/or television
broadcasting, including digital television system, internet protocol (IP)-related
services and IP value-added services, through microwave, satellite or whatever
means including the use of any new technology in television and radio systems,
with the corresponding technological auxiliaries and facilities, special broadcast
and other program and distribution services and relay stations.

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 existing 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.

SECTION 3. Prior Approval of the National Telecommunications Commission
(NTC). - The grantee shall secure from the 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.

SECTION 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 times 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 wilful misrepresentation, to the detriment
of the public interest, or to incite, encourage or assist in subversive or
treasonable acts.

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 or facilities of the grantee, to temporarily
suspend the operation of any station 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.

SECTION 6. Term of Franchise. - This franchise shall be in effect for a
period of twenty-five (25) years, unless sooner revoked. 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.

SECTION 7. Acceptance and Compliance. - 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 Services 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. Nonacceptance shall render the franchise void.

SECTION 8. Bond. - The grantee shall file a bond with the NTC in the
amount that it shall determine to guarantee compliance with and fulfilment of
the conditions under which this franchise is granted. If, after three (3) years
have fulfilled the conditions, 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. 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 wilful failure to do shall
constitute a valid cause for the cancellation of this franchise.

SECTION 10. Warranty in Favor of National and Local Governments. - The
grantee shall hold the national, provincial, city and municipal governments of
the Philippines harm-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.


SECTION 11. Sale, Lease, Transfer, Usufruct, Assignment. - 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 transfer the controlling interest of the grantee,
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: Provided, That
Congress shall be informed of any lease, transfer, granting the usufruct of, sale
or assignment of franchise or the rights or privileges acquired within sixty (60)
days after completion of the said transaction: Provided, further, That failure to
report to the Congress such change of ownership shall render the franchise ipso
facto revoked: Provided, finally, That any person entity to which this franchise
is sold, transferred or assigned shall be subject to the same conditions, terms,
restrictions and limitations of this Act.

SECTION 12. Dispersal and Ownership. - In accordance with the
constitutional provision encourage public participation in public utilities, the
grantee shall offer to Filipino Citizens at least thirty per centum (30%) or a
higher percentage that may hereafter be provided by law of is outstanding
capital stock in any securities exchange in the Philippines within (5) years from
the commencement of its operations. Noncompliance therewith shall render the
franchise ipso facto revoked.

SECTION 13. Equality Clause. - Any advantage, favor, privilege, exemption.
or immunity granted under other 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
immediateky and unconditionally to the herein grantee: Provide, however,That
the foregoing shall neither apply to nor affect provisions of broadcasting
franchises concerning territory covered by the franchise, the real life span of
the franchise or the type of service authorized by the franchise: Provided,
further, That the foregoing shall not apply to sale, lease, transfer, grant or
usufruct or assignment of legislative franchise with prior congressional
approval.


SECTION 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.

SECTION 15. 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 it operations on or before April 30 of the succeeding
year.

SECTION 16, Penalty Clause. - Any grantee who fails to submit the annual
report to Congress shall be fined Five hundred pesos (P500.00) per working day
of noncompliance. The fine shall be collected by the NTC from the said
delinquent franchise grantee separate from the reportorial penalties imposed
by the NTC. The collected funds shall accrue to the monitoring fund of the NTC
in line with its supervisory and regulatory functions. The reportorial
compliance certificate is accepted by the NTC.

SECTION 17. Separability Clause. - If any of the sections of provisions of
this Act is held invalid, all the other provisions not affected thereby shall
remain valid.

SECTION 18. 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.

SECTION 19. Publication. - This Act shall take effect fifteen (15) days
from the date of its publication in atleast two (2) newspapers of general
circulation in the Philippines.

Approved,