Republic of the Philippines
HOUSE OF REPRESENTATIVES i 2

Quezon City, Metro Manila * DATE
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30, SeP zai

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Seventeenth Congress %
First Regular Session \

3903 ‘\

HOUSE BILL NO!

Introduced by Hon. Frederick F. Abueg

EXPLANATORY NOTE

The proposed bill was originally introduced as House Bill No, 4264 by then
Representatives Victorino Dennis M. Socrates, Antonio C, Alvarez and Ponciano D. Payuyo all
of Palawan, during the 15th Congress where it was referred to the Committee on Legislative
Franchises.

This bill seeks to grant the Truth in Governance thru Media (TGM) Broadcasting
Network a franchise to construct, install, establish, operate and maintain radio and television
broadcasting stations in the city of Puerto Princesa and the province of Palawan,

‘Through radio and television communications, data are transmitted and disseminated to
as wide a national and global audience in a short time possible, The essence of these channels is
truly significant in maintaining the citizens abreast with the latest news and vital information
happening within and outside the country

lity 10 the public by providing the residents of

stest growing

‘TGM intends to fulfill its respor
Palawan with adequate information service. Palawan emerges to be one of the f
provinces in the country today. There is a great need to maintain well informed constituency on
proper conservation while coping with growth and progress at hand. Through media coverage,
‘TGM Broadcasting Network is significant in meeting the public interest of quality
communication development in Palawan.

‘This bill is recommended for approval, consistent with Article II Section 24 of the 1987
Constitution which mandates that, “the State recognizes the vital role of communication and
information in nation-building,

This is a re-filed bill during the 16" Congress authored by this representation. It has
passed Second Reading in the plenary

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



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Republic of the Philippines
HOUSE OF
Quezon City, Metro Manila

Seventeenth Congr
First Regular Se

ion,

08.

a
11.0.3"

HOUS

Introduced by Hon, Frederick F. Abueg

AN ACT
GRANTING THE TRUTH IN GOVERNANCE THRU MEDIA (TGM)
BROADCASTING NETWORK A FRANCHISE TO CONSTRUCT, INSTALL,
ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION
BROADCASTING STATIONS IN PUERTO PRINCESA CITY, AND IN THE
PROVINCE OF PALAWAN

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

SE

TION 1. Nature and Scope of Franchise. — Subject to the provisions of the
Constitution and applicable laws, rules and regulations, there is hereby granted to TGM
Broadcasting Network, herein 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 television broadcasting stations in Puerto Princesa City, Palawan, where

frequencies and channels are still available for radio and television broadcasting, 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 availability thereof.
SEC. 3. Prior Approval of the National Telecommunications Commission (NTC). — 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


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use any frequency in the radio or television spectrum without having been authorized by the
NIC, The NTC, 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 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

languag

speech, act or scene; or for the dissemination of deliberately false information or
willful misrepresentation, to the detriment of 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 agent

y of the government, upon due compensation to the grantee, for the use of said stations

or facilities during the period when they shall be operated.

‘The radio spectrum is a finite source that is a 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 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 its operating permit by

the National Telecommunications Commission (NTC);
b.) Operate continuously for two (2) years: and

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


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es

eptance 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

SEC. 8. Bond, ~ The grantee shall file a bond issued in favor of the NTC, 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 NTC, the grantee shall have fulfilled the same, the bond shall be cancelled by the NTC.

Otherwise, the bond shall be forfeited in favor of the government and the

anchise ipso facto

revoked.

SEC.

. Tax Provisions, ~ The grantee, its successors or assign

all be liable to pay the
same taxes on their real estate, buildings and personal property, as other persons or corporations

are now or hereafter may be required by law to pay. In addition thereto, the grantee, its

successors or assigns, shall pay, in lieu of the franchise tax, the value-added tax under Section 3
of Republic Act No. 7716 as amended, on all gross receipts of the radio or television business

transaction under this franchise: Provided, That the grantee, its successors or

igns, shall be

liable for income taxes payable under Title II of the National Revenue Code, as amended.
The grantee shall file the return with, and pay the taxes due thereon to the

Commissioner of Internal Revenue or his duly authorized representative in accordance with the
National Internal Revenue Code and the return shall be subject to audit by the Bureau of Internal

Revenue.

SEC. 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 broadeast from its
stations: Provided, That the grantee, during any broadcast, shall cut off from the air the speech,
play, act or scene, ot other matter being broadcast if the tendency thereof is to propose or incite
treason, rebellion or sedition; or the language used therein or the theme thereof is indecent or
immoral; and Provided further, That willful failure to do so shall constitute a valid cause for the
cancellation of this franchise.

SE

. 11, Warranty in Favor of National and Local Governments, ~ The grantee shall

hold the

ional, provincial 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


Car oanan

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persons, caused by the construction or operation of the stations of the grantee.

SEC. 12. Sale, Lease, Transfer, Usufruet ~The grantee shall not lease, transfer, grant the
usuffuct 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 contemporancously, 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 limitations of this Act.

SEC. 13. 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%) of its outstanding capital stock or a higher percentage that may hereafter may be provided

by law in any securities exchange in the Philippines within five (5) years from the time it has

achieved the status of a national broade:

ting network. A “national broadcasting network” is

hereby defined as one that operates three (3) or more radio and television stations. Non-
compliance therewith shall render the franchise ipso facto revoked.
SEC. 14. General Broadcast Policy Law. ~ The grantee shall comply with a general

broadcast policy law, which Congress may hereafter enact.

SEC. 18. Separability Clause. ~ If, for any reason, any provision or part of this Act is
declared invalid or unconstitutional, the remaining parts or provisions not affected thereby shall

remain full force and effect,

SEC. 16, Repeatability and Non-exclusivity Clause. — This franchise shall be subject to

amendment, alteration or repeal by the Congress of the Philippin

when the public interest so

requires and shall not be interpreted as an exclusive grant of the pri

lepes herein provided for.

SI

1. 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, 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. 18. Effectivity. — This Act shall take effect fifteen (15) days after publication in the
Official Gazette or in two (2) national newspapers of general circulation.

Approved,