Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. $379

Introduced by HON. ROMERO “MIRO” S. QUIMBO and HON. XAVIER
JESUS D. ROMUALDO

EXPLANATORY NOTE

This bill proposes the renewal of the congressional franchise granted
under R.A. 7831 to TVS Network Inc. (formerly known as ABC Development
Corporation, under the business name of “Associated Broadcasting Company”)
in order that it can continue its operations as a broadcasting company.

Since the commencement of its operations and approval of its
congressional franchise, TV5 Network Inc. has successfully provided its
viewers nationwide with a well-balanced array of programming consisting of
accurate news, wholesome entertainment, inspiring sports programs and
other informative and relevant services, which has immensely contributed to
the social, cultural and economic well-being of Filipinos all over the country.

Today, more than ever, the Philippines needs access to news,
entertainment, sports and information that will result in a more progressive,
well-informed and inspired citizenship. TVS Network Inc. remains committed
in its quest to continue providing such programming to our countrymen, as
broadcasting services are critical in nation-building.

Through its program offerings the franchise grantee has brought our
countrymen all across the Philippines closer to the economic and
mainstream, if not closer to the global arena. If granted the renewal sought,
the franchise grantee intends to take advantage of new technologies as well as
equipment available to provide for superior informative, entertaining and
educational programs to its nationwide viewers.

In view of the foregoing, immediate approval of this bill is earnestly

sought.


Gr
ROMERO “MIRO” S. QUIMBO
Representative
Second District, Marikina City

D. ROMUALDO
Representative
Lone District, Camiguin


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Republic of the Philippines
HOUSE OF A’
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. 8379

Introduced by HON. ROMERO “MIRO” S. QUIMBO and HON. XAVIER
JESUS D. ROMUALDO

AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE
FRANCHISE GRANTED TO ABC DEVELOPMENT CORPORATION,
PRESENTLY KNOWN AS TVS NETWORK, INC., AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 7831 ENTITLED, “AN ACT GRANTING ABC
DEVELOPMENT CORPORATION, UNDER BUSINESS NAME 'ASSOCIATED
BROADCASTING COMPANY,’ A FRANCHISE TO CONSTRUCT, INSTALL,
OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING
STATIONS IN THE PHILIPPINES”

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 Constitution and applicable laws, rules and regulations,
[there is hereby granted to the Associated Broadcasting Company, its
successors or assigns and hereunder referred to as the grantee,} THE
FRANCHISE GRANTED TO ABC DEVELOPMENT CORPORATION,
PRESENTLY KNOWN AS TVS NETWORK, INC., HEREUNDER REFERRED
TO AS THE GRANTEE, ITS SUCCESSORS OR ASSIGNEES, UNDER
REPUBLIC ACT NO. 7831, to construct, install, operate and maintain for
commercial purposes and in the public interest radio and television
broadcasting stations in the Philippines with the corresponding
technological auxiliary or facilities, special broadcast and other broadcast
distribution services and relay stations, IS HEREBY RENEWED FOR
ANOTHER TWENTY FIVE (25) YEARS FROM THE EFFECTIVITY OF THIS
ACT.

SEC. 2. Manner of Operation of Stations or Facilities. - The
facilities stations or facilities of the grantee shall be constructed and
operated in a manner as will avoid interference on the wavelengths or
frequencies of authorized users, whether for broadcasting or
telecommunications purposes without in any way diminishing its own right
to use its selected wavelengths or frequencies and the quality of
transmission or reception of signals.


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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
radio/television spectrum without having been authorized by the
[Commission] NTC.

SEC. 4. Responsibility to the Public. - The grantee shall provide
reasonable public service time to enable the government, through the said
broadcasting stations, to reach the population on important public issues;
provide at all times sound and balanced programming; promote public
participation such as in community programming; assist in the functions of
public information and education; conform to the ethics of honest
enterprise; and not use its stations for the broadcasting of obscene and
indecent language, speech, act, 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. - The President of the Philippines, in
times of rebellion, public peril, calamity, emergency, disaster or disturbance
of peace and order, may temporarily take over and operate the stations of
the grantee, temporarily suspend the operation of any station in the interest
of public safety, security and public welfare, or to authorize the temporary
use and operation thereof by any department of the government, upon due
compensation to the grantee, for the use of said stations during the period
when they shall be so operated.

SEC. 6. Term of Franchise. — This franchise shall be in effect for a
period of twenty-five (25) years from the effectivity of this Act, unless sooner
revoked or cancelled. In the event the grantee fails to operate continuously
for two (2) years [or within two (2) years from the approval of its permit by
the National Telecommunications Commission], this franchise shall be
deemed ipso facto revoked.

SEC. 7. Acceptance and Compliance. - Acceptance of this franchise
shall be given in writing to the [Secretary of’ Transportation and
Communications] CONGRESS OF THE PHILIPPINES, THROUGH THE
COMMITTEE ON LEGISLATIVE FRANCHISES OF THE HOUSE OF
REPRESENTATIVES AND THE COMMITTEE ON PUBLIC SERVICES OF THE
SENATE, [with a copy furnished to the Chairman of the National
Telecommunications Commission] within sixty (60) days after the approval
of this Act. Upon giving such acceptance, the grantee shall exercise the
privileges granted under this Act.

SEC. 8. Tax Provisions. - The grantee, its successors or assigns shall
be liable to pay the same taxes on their real estate, buildings and personal
property, exclusive of this franchise, as other persons or corporations are
now or hereafter may be required by law to pay. In addition thereto, the


grantee, its successors or assigns shall pay a franchise tax equivalent to
three percent (3%) of all gross receipts of the radio/television business
transacted under this franchise by the grantee, its successors or assigns
shall continue to be liable for income taxes payable under Title II of the
National Internal Revenue Code pursuant to Section 2 of Executive Order
No. 72 unless the latter enactment is amended or repealed, in which case
the amendment or repeal shall be applicable thereto.

‘The grantee shall file the return with and pay the tax due thereon to
the Commissioner of Internal Revenue or his duly authorized representative
in accordance with the National Internal Revenue Code and the return shall
be subject to audit by the Bureau of Internal Revenue.

SEC. 9. Self-regulation by and Undertaking of Grantee. -The
grantee shall not require any previous censorship of any speech, play, act,
scene, or other matter to be broadcast and/or telecast from its stations:
Provided, That the grantee, during any broadcast and/or telecast, shall cut
off from the air such speech, play, act, scene, or other matter being
broadcast and/or telecast 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. Warranty in Favor of National and Local Governments.
~The grantee shall hold the national, provincial and municipal governments
of the Philippines harmless 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, Usufruct, etc. - The grantee shall
not lease, transfer, grant the usufruct of, sell nor assign this franchise or
the rights and privileges acquired thereunder to any person, firm, company,
corporation or entity not otherwise enfranchised for broadcasting services
without the prior approval of the Congress of the Philippines. The controlling
interest in the grantee shall not be transferred, assigned nor sold whether as
a whole or in parts and whether simultaneously or contemporaneously
within five (5) years from the date of the effectivity of this Act. Any person or
entity to which this franchise is sold, transferred or assigned shall be
subject to all the same conditions, terms, restrictions, and limitations of this
Act.

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 be enacted.

SEC. 13. Equality 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, THAT THE FOREGOING SHALL NOT
APPLY TO NOT AFFECT PROVISIONS OF BROADCASTING FRANCHISES
CONCERNING TERRITORY COVERED BY THE FRANCHISE, THE LIFESPAN
OF THE FRANCHISE OR THE TYPE OF SERVICE AUTHORIZED BY THE
FRANCHISE.

SEC. 14. Separability Clause. - If any of the sections or provisions
of this Act is held invalid, all the other provisions not affected thereby shall
remain valid.

SEC. 15. 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. 16. Effectivity Clause. — This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in a newspaper of general
circulation.

Approved.