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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

4657

HOUSE BILL NO.

Introduced by Representative CELSO L. LOBREGAT

EXPLANATORY NOTE

Based on the provisions of the 1987 Philippine Constitution and applicable laws, rules
and regulations, Congress has the sole authority to grant a franchise to entities who have met
the legal requirements to construct, install, establish, operate and maintain for commercial
purposes and in the public interest, radio and/or television broadcasting stations throughout
the country where frequencies and/or channels are still available for radio and/or television
broadcasting. This includes digital television systems, through microwave, satellite or
whatever technology becomes available, including the use of new technologies in television
and radio systems with the corresponding technological auxiliaries and facilities, special
broadcast and other program and distribution services and relay stations.

Proper and accurate information dissemination in the present ‘so called age of
information explosion’ is crucial not only for education and entertainment purposes but
specially to curb the rise of inaccurate and false information being spread in social media.
The Citizens have the right to know the truth while government has the responsibility to keep
its citizenry well informed and guide them in distinguishing between true and false
information especially during times of crises and natural disasters.

With current technology, the radio/television spectrum is a finite resource that comprises
part of the national patrimony and the use thereof is a privilege conferred by the State through
its Legislature and may be withdrawn anytime for cause, after due proce
It cannot be denied that the speed of information is crucial for commerce, education and
social needs of Filipinos. Investments, both local and foreign, are also enticed to meet future
demands and to generate employment. In this light, this Act seeks to grant the Gold Nation
Network Inc. a franchise to construct, install, establish, operate and maintain radio and
television broadcasting stations throughout the Philippin

The grantee, Golden Nation Network Inc., shall obtain all necessary permits to operate
from the National Telecommunications Commission (NTC) and is dutifully required to
satisfy the provisions detailed herein.

In view thereof, the early passage of this measure is earnestly recommended.

Genie Hee
HON. CELSO L. LOBRI



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

4657

HOUSE BILL NO.

Introduced by Representative CELSO L. LOBREGAT

AN ACT
GRANTING THE GOLDEN NATION NETWORK INC. A FRANCHISE TO CONSTRUCT,
INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION
BROADCASTING STATIONS WITHIN THE PHILIPPINES

Be it enacted by the Senate and 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, there is hereby granted to
Golden Nation Network Inc., hereunder referred to as the grantee, its successors or
assignees, a franchise to construct, install, establish, operate and maintain for commercial
purposes and in the public interest, radio and/or television broadcasting stations throughout
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, including the use of new technologies in television and 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
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 assigned 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 (NTC). —
The grantee shall secure from the NTC the appropriate permits and licenses for the
construction and 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
teach 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.

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
se 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 Stale 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 comply with any of the following conditions:

(a) Commence operations within one (1) year from the approval of its operating permit
by the NTC;

(b) Commence operations within three (3) years from the effectivity of this Act; and

(c) 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


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sixty (60) days from the effectivity of this Act. Upon giving such acceptance, the grantee
shall exercise the privileges granted under this Act. Nonacceptance shall render the
franchise void

SEC. 8. Bond. - The grantee shall file a bond with the NTC, in the amount that the
NTC shall determine, to guarantee compliance with and fulfilment 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 the same, the bond shall be
cancelled by the Commission. Otherwise, the bond shall be forfeited in favor of the
government and the franchise ipso facto revoked.

SEC. 9. Self-regulation by and Undertaking of the 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: Provided, further, That willful failure to do so

shall constitute a valid cause for the cancellation of this franchise.

SEC. 10. Warranty in Favor of the 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. 11. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. - The
grantee shall not sell, lease, transfer, grant the usufruct of, 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 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 or
the rights 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 any person or entity to which this

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franchise is sold, transferred, or assigned, shall be subject to the same conditions, terms,
restrictions, and limitations of this Act.

SEC. 12. Dispersal of Ownership. - In accordance with the constitutional provision to
encourage public participation in public ut
least thirty per cent (30%) or a higher percentage that may hereafter be provided by law of

ies, the grantee shall offer to Filipino citizens at

its outstanding capital 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 of
shares is not applicable, other methods of encouraging public participation by citizens and
corporations operating public utilities must be implemented. Noncompliance therewith shall

render the franchise ipso facto revoked.

SEC. 13. 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. 14. Reportorial Requirement. — The grantee shall submit an annual report to
ive Franchises of the

the Congress of the Philippines, through the Committee on Legi
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 every year during the term of its franchise. The reportorial compliance certificate
issued by Congress shall be required before any application for permit or certificate is
accepted by the NTC.

SEC. 15. Penalty Clause — Failure of the grantee to submit the requisite annual
report to Congress will be penalized by a fine in the amount of Five hundred pesos
(P500.00) per working day of noncompliance. The fine will be collected by the NTC from the
delinquent franchise grantee separate from the reportorial penalties imposed by the NTC.

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.


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. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,