EPRES,
ee ON
RECEIVED

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

EIGHTEENTH CONGRESS
2 Regular Session

8333

House Bill No.

Introduced by Representative Gabriel H. Bordado, Jr.

EXPLANATORY NOTE

Since its first television broadcast on October 23, 1953, the ABS-CBN
Corporation had played an undeniably important role in the everyday lives of the
Filipino people. The network had 80 television channels under its belt with a reach
stretching far and wide across the Philippine archipelago. And in its service spanning
almost seven decades, it had been a staple in Filipino homes, providing
entertainment through its different shows, broadcasting timely and pertinent
information and news, and truly taking part in Philippine history. However, it all came
to an abrupt stop last May 2020 when the broadcasting network was denied the
‘opportunity to renew its franchise to operate.

At this stage, we have been feeling the varying impacts of ABS-CBN's
closure. About 11,000 employees lost their source of income and countless others in
the industry have been directly and indirectly affected by the shutdown, right in the
middle of a pandemic that has negatively impacted the economy of the whole world.
We also stopped having possible avenues for quick and accessible information
dissemination during a time when the landscape and the conduct of education are
being forced to change due to the limitations brought about by the pandemic. And,
as we had seen during the back-to-back onslaught of typhoons in 2020, the
shutdown did prove to be a debilitating blow in providing and relaying updates,
warnings, and calls for assistance to families devastated by these extreme events.

This bill, therefore, seeks to grant ABS-CBN franchise to operate for 25 years. ~~ 7

/
BORDADO, JR,

Camarines Sur

GABRIEL H
3° Distri

AN 18 2021


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

EIGHTEENTH CONGRESS
2 Regular Session

House Bill No. 8333

Introduced by Representative Gabriel H. Bordado, Jr.

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 the House of Representatives of the
Philippines in Congress assembled:

SECTION 1. Nature and Scope of Franchise. — 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. Manner of Operation of Stations or Facilities. — 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.

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 its stations and shall not use any frequency in
the television or radio spectrum without having been authorized by NTC. The NTC,
however, shall not unreasonably withhold or delay the grant of any such authority.


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Sec. 4. Responsibility to the Public. - 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
concerming 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. 5. Right of Government. — 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. Term of Franchise. — 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 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 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. Non-
acceptance shall render the franchise void.

Sec. 8. 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 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


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further, that the willful failure to do so shall constitute a valid cause for the
cancellation of this franchise.

Sec. 9. 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. 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.
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. Dispersal of Ownership. — 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.

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
hereinafter enact.

Sec. 13. Reportorial Requirements. — 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


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certificate issued by Congress shall be required before any application for permit or
certificate is accepted by the NTC.

Sec. 14, Provisional Authority to Continue Operations. — 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. Penalty Clause. — 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. Equality Clause. — 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. Separability Clause. — If any of the sections or provisions of this Act is held
invalid, all other provisions no affected thereby shall remain valid.

Sec. 18. Repealing and Non-exclusivity Clause. — This franchise shall be subject
to amendment, alteration, or repeal by Congress when public interest so requires
and shall not be interpreted as an exclusive grant of privileges herein provided for.

Sec, 19. Effectivity Clause. — 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,