Republic of The Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS

SECOND REGULAR SESSION

COMMITTEE REPORT NO. 1514

Submitted by the Committee on Legislative Franchises on
Re : House BillNo. __ 5 4{19 , prepared by the Committee;
Recommending its approval, in substitution of House Bill No. 1886.

Sponsors: Representatives Marcelino “Marcy” R. Teodoro and Amado S.
Bagatsing

MR. SPEAKER:

The Committee on Legislative Franchises to which was referred House Bill
No. 1886, introduced by Rep. Amado S. Bagatsing, entitled:

“AN ACT GRANTING TV MARIA FOUNDATION PHILIPPINES,
INCORPORATED A FRANCHISE TO CONSTRUCT, INSTALL,
ESTABLISH, OPERATE AND MAINTAIN BROADCAST AS WELL AS
COMMUNICATIONS STATIONS USING MODERN SATELLITE AND
TRRESTIAL FACILITIES IN THE PHILIPPINES”

has considered the same and recommends that the attached House Bill No.
2. entitled:

“AN ACT GRANTING TV MARIA FOUNDATION PHILIPPINES,
INCORPORATED A FRANCHISE TO CONSTRUCT. INSTALL,
ESTABLISH, OPERATE AND MAINTAIN TELEVISION BROADCASTING
STATIONS IN THE PHILIPPINES”

be approved in substitution of House Bill No. 1885 with Reps. Amado S.
Bagatsing and Marcelino “Marcy” R. Teodoro as authors thereof.


Respegtfully submitted:
OTS 7 > A
MARCELINO “MARCY” R. TEODORO

Chairman
Committee on Legislative Franchises

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES
QUEZON CITY


Republic of the Philippines
HOUSE OF REPRESENTATIVES
(Quezon City
FIFTEENTH CONGRESS

‘Second Regular Session

Introduced by Reps. Bagatsing and Teodoro

AN ACT
GRANTING TV MARIA FOUNDATION PHILIPPINES, INCORPORATED A
FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND
MAINTAIN TELEVISION BROADCASTING STATIONS IN THE
PHILIPPINES

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

‘SEC. 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 TV Maria Foundation Philippines, 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
television broadcasting stations in the Philippines where frequencies and
channels are still available for television broadcasting, including digital television
system, Internet Protocol-related services and Internet Protocol-value-added-
‘services, through microwave, satellite, or whatever means, inclucing the use of
any new technology that may hereafter or in the future be developed in the field
of television broadcasting, with the corresponding technological auxiliaries and
facilities, special broadcast and other program and distribution services and relay
stations


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SEC. 2. Manner of Operation of Stations on Facilities. - The stations or
facilities of the grantee shail 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 andlor availability thereof. In no way shall the operator
of the grantee nor the radiated power of its station or facilities exceed that
required to cover the area where it is allowed to operate

SEC. 3. Prior Approval of the National Telecommunications Commission
(NTC). - The grantee shall secure from NTC the appropriate permits and
licenses for the construction and operation of its stations and facilities and shall
Mot 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.

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 wiliful misrepresentation, to the detriment of the 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 grantes, 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


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agency of the goverment, 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 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;

(b) Operate continuously for two (2) years; and

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

SEC. 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 accaptance, 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 Commission, the grantee
‘shall have fulfilled tne same, the bond shall be cancelled by the Commission.
Otherwise, the bond shall be forfeited in favor of the government and the


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SEC. 9. Self-Reguiation 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 incite
treason, rebellion or sedition; or the language used therein or the theme thereof
is indecent or immoral, and willful failure to do so shall constitute a valid cause
for the cancellation of this franchise.

SEC.10. Obligation of Grantee. Any person aggrieved by any remark,
report, statement, commentary or the like by broadcaster using the same
facilities by the grantee shall have the right to reply in the same program or any

other program the aggrieved party may choose.

‘SEC. 11. Warranty in Favor of National and Local Governments. - The
grantee shall not hold the national, provincial, city and municipal governments of
the Philippines liable from ail 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 of the stations of the grantee.

SEC. 12. Nontransferability 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. 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. Equality Clause. - Any advantage, favor, privilege, exemption, or
immunity granted under existing franchise, or which may hereafter be granted for


television broadcasting, shall ipso fecto 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 conoeming territory covered by the franchise, the life
‘span of the franchise or the type of service authorized by the franchise.

SEC. 15. 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. 16. 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.

SEC. 17. 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. 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.

SEC. 19. Effectivity Clause. - This Act shall take effect fifteen (15) days
from the date of its publication, upon the initiative of the grantee, in at least two
(2) newspapers of general circulation in the Philippines.

Approved


FACT SHEET

House Bill No.
(In substitution of House Bill No. 1886 as approved on August 17, 2011)

“AN ACT GRANTING TV MARIA FOUNDATION PHILIPPINES,
INCORPORATED A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH,
OPERATE AND MAINTAIN BROADCAST AS WELL AS COMMUNICATIONS
STATIONS USING MODERN SATELLITE AND TERRESTIAL FACILITIES IN
THE PHILIPPINES”

Introduced by’ HON. AMADO S. BAGATSING

Committee Referral: LEGISLATIVE FRANCHISES
Committee Chairperson: HON. MARCELINO R. “MARCY” TEODORO

OBJECTIVE:

* To provide a Filipino Catholic Television channel to cater to Roman
Catholic Filipinos for the foundation's work of evangelization of the
Catholic faith.

KEY PROVISIONS:

« Grant the TV Maria Foundation Philippines, incorporated a franchise to
construct, install, establish, operate and maintain television
broadcasting stations in the Philippines.

+ Requires the grantee to secure from the National Telecommunications
Commission the appropriate permits and licenses for the construction
and operation of its stations and not use any frequency in the radio
spectrum without having been authorized by the Commission.

+ Requires the grantee to provide the government adequate public
service time to enable it to reach the population on important public
issues and assist in the functions of public information and education
and not to use its stations for the broadcasting of obscene and
indecent language, speech. act or scene or for the dissemination of
deliberately faise information of willful misrepresentation.

* Grants a franchise term of twenty-five (25) years.

* Reserves a right for the President of the Philippines, in times of war,
rebellion, public peril, calamity, emergency, disaster or disturbance of


peace and order or 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, saotaty are pate
welfare, or to authorize the temporary use and operation thereof by
any agency of the government

* Prohibits the grantee from leasing, transferring, selling or assigning the
franchise or the controlling interest thereof without the prior approval of
the Congress of the Philippines.

RELATED LAW:

= Republic Act No. 3846 —- “AN ACT PROVIDING FOR THE
REGULATION OF RADIO STATIONS AND RADIO
COMMUNICATIONS IN THE PHILIPPINE ISLANDS, AND FOR
OTHER PURPOSES”