Republic of the Philippines
ENTATIVES,
Hills, Quezon C

SENTH CONGRE!
First Regular Ses

HO!

Introduced by: Representative and

XPLANATORY NOTE

Section 24, Anticte Ho the 1987 ¢

ion provides:

“SACL The State
information in nation-building.

seognices the vital rate of communication ann

The essence of rudio and television communications to the national democratic process
xd wlobal rehttions cannot be overemphasized. lata are transtnitted and
disseminated to as wide a national and plo ‘ible,

pal audience in a short time pos

With more private entities in the commu
imate for more tac tities and

ications industry, the government creates a
the country a viable member of the ylobal

ves What will mn:
Communicstions Family
& The Erith in Governance thra Media CGN) intends to fulfill its responsibility 10 the
public hy providing the residents of Palawan with adequate information service, Palawan is the
country’s last fronticr in terms of its vast wildlife and nls, He emerges as one of
To maximize returns from its natural resources anil
iced for a more informed constituency on proper
12 Network can heljy meet the public

anal endow

the fastest yroswing provinces in the countr
losses, th
conservation. ‘Through medi:

interest for a qu

nize cnviromne!

ive commu

in view of the forey

PONCIANO D. PAYUYO
Repres
APEC, Pa


Republic of the Philippines
{OF REPRESENTATIY
n Hills, Quezon City

4264

Intoduced by: Representatives C, Alvarez and

TWORTK

GRANTIN: TH
FRANCHISE TO CONS
AND MAINTAIN RADIO AND
STATIONS IN PUERTO PRINCES. > AND
PROVINCE OF PALAWAN

M

\

IN

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

SECTION f Nature and Scope of Franchise, ~ Subject to the

provisions of the Constitution and applicable laws, rules and regulations.

there is hereby granted to TGM Broadcasting Network, herein referred to as

ns, a franchise to construct, install,

the grantee, its successors or
establish, operate and maintain for commercial purposes and in the public
interest, radio and television broadcasting stations in Puerto Princesa City,

Palawan, where frequencies and channels are still available for radio and

television broadeasting, with the corresponding technological auviliaries and


facilities, special broadcast and other program and distribution services and
relay stations

or Facilities. ~ Vhe

SEC. 2.

Fanner of Operation of Stations

stations or facilities of the grantee shall be constructed and operated in a

nee on the

manner as will, at most, result only in the minimum interfe

ations which may

wavelengths or frequencies of existing stations or other

be established by law, without in any way diminishing its own right to use

and the quality of transmission or

its selected wavelengths or frequencie:

Feception thereon as should maximize rendition of the grantee’s services and

availability thereot!

SEC.3. Prior Approval of the National Teleconmunications
Commission (NTC). ‘Vhe grantee shall secure from the NVC the

Jor the construction and operation of its

appropriate permits and licens

stations and facilities and shall not use any frequency in the radio or

television spectrum without having been authorized by the NTC. The NTC.

however, shall not unreasonably withhold or delay the grant of any such

authority

SEC,

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

ities for the

ations and

of honest enterprise; and not use its si

hy act or scene: or for

broadcasting of obscene and indecent languag

Spee

se information or — willful

fh

the dissemination of

misrepresentation, to the detriment of the public interest, or to incite,

encour Lin subversive or (reasonable acts,

SECS. Right of Government. — A. special right is hereby

of

reserved to the President of the Philippines, in times ar, rebellion, public

nd order, to

ter or dis

peril, calamity, emergeney, di turbance of p

nlee, 10

temporarily take over and operate the stations or facilities of the gr

jon of

temporarily suspend the ope ny station or facility in the interest of
public safety, security and public wellare, or to authorize the temporary use

and operation thereof by any ageney of the government, upon duc

s durin

compensation to the grantee, for the use of said stations or faciliti

ted.

the period when they shall be so oper

is a fin

the radio spectrum e resource that is a part of the national

se thereof is

patrimony and the red upon the grantee by

a privilege conf

the State and may be withdrawn anytime, alter due proce:


This franchise shall be for a term

SEC. 6. Term of Franchise.
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 NTC;

by Operate continuously for two (2) years; and

©) Commence operations within three (3) years trem the

effectivity of this Act

SECT feceptance and Compliance. — Acceptance of this

Mianchise shall be ivity

ven in writing within sixty (60) days trom the ©

of this Act. Upon giving such acceptance, the grantee shall exercise the

privileges granted under this Act. Non-acceptance shall render the franchise

void.

Bond, — Vhe grantee shall file a bond issued in favor of
the NIC, which shall determine the amount, to guarantee the compliance
fi

with and fulfillment of the conditions under which thi

nchise is granted.

If, after three (3) years from the date of the approval of its permit by the

5


NTC, the grantee shall have fullilled the same, the bond shall be cancelled

the bond shall be forfeited in favor of the

by the NIC. Otherwis

government and the franchise ipso facto revoked.

SEC. 9. Vax Provisions. ~ Vhe grantee, its successors or assigns,

ate, buildings and

shall be fiable to pay the same taxes on their real e:

personal property, as other persons or corporations are now-or hereafier may
be required by law to pay. In addition thereto, the grantee, its successors oF
assigns, shall pay, in lieu of the franchise tax, the value-added tax under
Section 3 of Republic Act No. 7716 as amended, on all gross receipts of the
radio or (clevision business transaction under this franchise: Provided, That

the grantee, its successors or assigns, shall be liable for income taxes

al Revenue Code, as amended,

payable under Title Hof the National Inter

he grantee shall file the return with, and pay the taxes 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.

elf-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

6


grantee, during any broadeast, shall cut off trom the air the speech, play. act
or scene, or other matter being breadeast if the tendency thereof is to
propose or incite treason, rebellion or sedition; or the language used therein

That

or the theme thereof is indecent or immoral; and Provided, further
Willful failure to do so shall constitute a valid cause for the cancellation of

this franchise.

SEC. UL. Warranty in Favor of National and Local Governments

~ The grantee shall hold the nationa

|, provincial and municipal governments

ing

‘om all claims, accounts, demands or actions

of the Philippines free

out of accidents or injuries, whether to property or to persons, caused by the

construction or operation of the s\

SEC.12. Sale, Lease, Transfer, Usufruct. ~The grantee shall not
lease, transfer, grant the usulruet of, sell 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 of entity, nor shall the controlling interest of the grantee be

multancous!

transferred, whether as a whole or in parts and whether s ly or

contemporaneously, to any such person, firm, company, corporation or

entity without the prior approval of the Congress of the Philippines. Any

franchise is

person or entity to which this sold, transferred or assigned, shall


be subject to the same conditions, terms, restrictions and limitations of this

Act

SEC.13. Dispersal of Ownership. — An accordance with the
constitutional provision to encourage public participation in public utilities.
the grantee shall offer at least thirty per centum (30%) of its outstanding
capital stock or a higher percentage that may hereafter be provided by law in

any sccuritics 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 three (3) ot

more radio and television s

ions. Non-compliance therewith shall render

the franchise ipso facto revoked.

SEC. 14, General Broadcast Policy Law, ~ The grantee shall
comply with a general broadcast policy law, which Congress may hereafter
enact.

SEC. 15. Separability Clause. ~ Mf, lor any reason, any provision

or part of this Act is declared invalid or unconstitutional, the remaining parts

or provisions not affected thereby shall remain in full force and effect

SE!

*.16. Repeatability and Non-exclusivity Clause. — ‘this

franchise shall be subject to amendment, alteration or repeal by the Congr



of the Philippines when the public interest so requires and shall not be

interpreted as an exclusive grant of the privileges herein provided lor

SECL17.— Reportorial Requirement. —‘Vhe 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

SEC.18. — Effeetivity. — Vhis Act shall take eflect fifleen (15) days

after publication in the Offic!

jal Gazette or in two (2) national newspapers of

general circulation

Approved,

9