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

NINETEENTH CONGRESS
First Regular Session

House Bill No. 429 0

Introduced by Representative Gabriel H. Bordado, Jr.

EXPLANATORY NOTE

In the age of social media and other platforms that offer a quick and alternate
source of information and entertainment, it is easy to overlook the importance of
established news outlets or the mainstream media. Free press is the cornerstone of
democracy. Through fair and reputable media outlets, we empower and encourage an
informed citizenry. And their presence allows for diverse viewpoints that could provide
a better understanding and context to events. More importantly, the presence of the
media ensures that the government will remain accountable and transparent.

Therefore, a decision to limit and hinder media available to the people is not
only an affront to free press and our democracy. It is also the reason why
misinformation, deception, and falsification of data continue to propagate, rendering
our citizens close-minded and easy to mislead.

In the decades of its operations, the biggest broadcasting company in the
Philippines, ABS-CBN, played a pivotal role in the lives of Filipino people and in
upholding free press. It was a haven of both news and entertainment for millions of
Filipinos and a staple for their everyday lives. More than once, the network had been
an expeditious avenue for both news and information as well as help during calamitous
events. Most importantly, it was a witness to the history of Filipinos for decades,
opening an avenue for numerous voices, opinions, and appeals to be heard, therefore
empowering the Filipino people.

Its closure was a detriment to our goal of having an informed citizenry. It has
since limited the avenues where the Filipino people can gather pertinent data and
news to help them make informed decisions, make coordinated action and efforts of
rescue during extreme events based on timely updates, or amplify voices that might
otherwise go unheard.

The important role that the network plays in improving the lives of millions of
Filipinos cannot be denied. Therefore, this bill seeks to grant ABS-CBN franchise to
operate for 25 years.



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

NINETEENTH CONGRESS
First Regular Session

4290

House Bill No.

Introduced by Representative Gabriel H. Bordado, J

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. Title. - This Act shall be known as the “ABS-CBN Franchise Act of 2022”

SEC. 2. Declaration of State Policy. — Sec. 24, Art. Il of the 1987 Constitution
provides that “The State recognizes the vital role of communication and information in
nation building”

Communication plays an important part in building and developing connections and
relationships of human beings within a society. The quality and the availability of these
communication channels allow for easier access of information vital to everyday
decision making, education, process improvement, and preparedness of a nation. Not
only that, communication and information become a strong cornerstone of a
successful democracy

As communication avenues expand through media, print, and other platforms continue
to broaden and improve, it opens up more opportunities in education, livelihood,
entertainment, and other areas that truly empowers our citizens.

Limiting the availability of communication and information channels that the people
can access could allow exclusivity, misinformation, and false information to propagate.
It would only serve to slow down our progress as a nation and restrict opportunities for
the country and its people.

SEC.3. 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. 4. 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. 5. 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.

SEC. 6. 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
concerning 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. 7. 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. Provided,
due process has been accorded and observed.

SEC. 8. Term. — This franchise shall be in effect for a period of twenty five (25) years,
and may be renewed for another twenty five (25) years. 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. 9. 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. 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 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
further, that the willful failure to do so shall constitute a valid cause for the cancellation
of this franchise.

SEC. 11. 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. 12. 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. 13. 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. 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
hereinafter enact.

SEC. 15. 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 certificate issued
by Congress shall be required before any application for permit or certificate is
accepted by the NTC.

SEC. 16. 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. 17. 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. 18. 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. 19. 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. 20. 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. 21. 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,