Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO.__5227

Introduced by REPS, FELICIANO BELMONTE, JR.,
NEPTALI M, GONZALES Il and MARCELINO R. TEODORO

EXPLANATORY NOTE

Eagle Broadcasting Corporation (EBC), in its almost half a century of
existence, recognizes and upholds the state policy that information and
communication are vital in nation-building, Being such, EBC has been true to its
legislative franchise granted under Republic Act No. 4916, and renewed under
Republic Act No. 7299 the validity of which is until November 2, 2018.

‘This measure recognizes EBC’s faithful compliance to its mandate of
providing quality public service to the Filipino society it serves through broadcasts
with quality multifaceted content. EBC has been protective of the right of the public
to information on matters that are of public concern as well as balanced news and
content that uphold the morals and public policy of the society. Further, EBC has been
proactive in environment, social and humanitarian concerns, promotion of historical
and cultural heritages, promotion of original Filipino values and artistic creation and
communitarianism, EBC’s broadcasting expansion abroad through international
bureaus and correspondents have opened up windows to the world for the Filipino
society.

Having proven its responsibleness in using its franchise, the renewal or
extension of EBC’s legislative franchise is most warranted (o help it pursue and
achieve its honorable broadcasting objectives.

‘The earliest passage, therefore, of this bill is earnestly sought.

REP. MARCELINO R. TEODORO
Representative
1" District, Marikina City Lone District-Mandaluyong City

REP. FELICIANO BELMONTE, JR
Representative

4" District, Quezon City

AM. GONZALES IT



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 5227

Introduced by REPS. FELICIANO BELMONTE, JR.,
NEPTALI M. GONZALES II and MARCELINO R. TEODORO

AN ACT
RENEWING THE FRANCHISE GRANTED TO EAGLE BROADCASTING
CORPORATION FOR ANOTHER TWENTY-FIVE (25) YEARS, AMENDING
FOR THE PURPOSE REPUBLIC ACT NO. 4196, AS AMENDED BY REPUBLIC
ACT NO, 7299

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

SECTION 1. Section 1 of Republic Act No. 4196 is amended to read as
follows:

“SECTION 1. NATURE AND SCOPE OF FRANCHISE. - SUBJECT TO THE
PROVISIONS OF THE 1987 PHILIPPINE CONSTITUTION AND APPLICABLE
LAWS, RULES, AND REGULATIONS, THE FRANCHISE GRANTED TO EAGLE
BROADCASTING CORPORATION HEREUNDER REFERRED TO AS GRANTEE,
AND/OR ITS SUCCESSORS AND ASSIGNS, 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 OR ARE ASSIGNED FOR RADIO AND/OR TELEVISION
BROADCASTING, INCLUDING DIGITAL TELEVISION AND/OR RADIO
SYSTEMS, THROUGH MICROWAVE, SATELLITE, OR THE USE OF ANY NEW
TECHNOLOGIES IN TELEVISION AND RADIO SYSTEMS, WITH THE
CORRESPONDING TECHNOLOGICAL AUXILIARIES AND/OR FACILITIES,

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SPECIAL BROADCAST, AND OTHER PROGRAM AND DISTRIBUTION
SERVICES AND RELAY STATIONS, IS HEREBY RENEWED FOR ANOTHER
TWENTY-FIVE (25) YEARS FROM NOVEMBER 3, 2018.”

SEC. 2. Manner of Operation of Stations of 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/or

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 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 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.

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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 for a period
of twenty-five (25) years, beginning on November 3, 2018, unless sooner
cancelled. This franchise shall be deemed ipso facto revoked in the event the
grantee fails to operate continuously for 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 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. 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, 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

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incite treason, rebellion or sedition; or the language used therein or the theme
thereof is indecent or immoral: Provided, further, That 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, Usufruct, or Assignment of Franchise. -
‘The grantee shall not lease, transfer, grant the usufruct of, sell nor assign this
franchise or the rights and privilege 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
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 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 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. 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 ten per centum (10%) of its
outstanding capital stock or a higher percentage that may hereafter be

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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 broadcasting
network. A national broadcasting network is hereby defined as one that
operates at least three (3) radio/television stations, Noncompliance 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 hereafter enact.

SEC. 13. Parity Clause. - Any advantage, favor, privilege, exemption, or
immunity granted under existing franchise, 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 however, That
the foregoing shall neither apply to nor affect 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,
That the foregoing shall not apply to sale, lease, transfer, grant of usufruct or
assignment of legislative franchise with prior Congressional approval.

SEC. 14. 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 succeeding year.
SEC. 15. Penalty Clause. - Any grantee who fails to submit the Annual

Report to Congress will be fined five hundred pesos (P500.00) per working day

of non-compliance, Said fine will be collected by NTC from said delinquent

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franchise grantee separate from the reportorial penalties imposed by 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
issued by Congress shall be required before any application for permit or
certificate is accepted by NTC.

SEC. 16. 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. 17. 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.

SEC. 18. Publication. This Act shall be published, through the initiative

of the grantee, fifteen (15) days after this Act is signed by the President of the
Philippines or after it has lapsed into law.

SEC 19, Bffectivity Clause. - This Act shall take effect after its

publication in at least two (2) newspapers of general circulation in the

Philippines.

Approved,

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