Republic of the Philippines
HOUSE OF REPRESENTATIVES 5)
Quezon City, Metro Manila

Sixteenth Congress
First Regular Session

House BILLNO, 4074

Tntroduced by Representatives Frederick F. Abueg, Franz E. Alvarez and
Douglas S. Hagedorn

EXPLANATORY NOTE

The proposed bill was originally introduced as House Bill No. 4264 by then
Representatives Victorino Dennis M. Socrates, Antonio C. Alvarez and Ponciano Dz
Payuyo all of Palawan, during the 15th Congress where it was referred to the
Committee on Legislative Franchises.

This bill secks to grant the Truth in Governance thru Media (TGM)
Broadcasting Network a franchise to construct, install, establish, operate and maintain
radio and television broadcasting stations in the city of Puerto Princesa and the
province of Palawan.

Through radio and television communications, data are transmitted and
disseminated to as wide a national and global audience in a short time possible. The
essence of these channels is truly significant in maintaining the citizens abreast with
the latest news and vital information happening within and outside the country.

TGM intends to fulfill its responsibility to the public by providing the residents
of Palawan with adequate information service. Palawan emerges to be one of the
fastest growing provinces in the country today. There is a great need to maintain well-

informed constituency on proper conservation while coping with growth and progress


at hand, Through media coverage, TGM Broadcasting Network is significant in
meeting the public interest of quality communication development in Palawan.

This bill is recommended for approval, consistent with Article II Section 24 of
the 1987 Constitution which mandates that, “the State recognizes the vital role of
communication and information in nation-building.”

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

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ERICK F, ABUEG DOUGLAS S. HAGEDORN
istrict of Palawan 3" District of Palawan

FRANZ E. ALVAREZ
1" District of Palawan Pig


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

Sixteenth Congress
First Regular Session

HOUSE BILLNO. _40'74

Introduced by Representatives Frederick F. Abueg, Franz E. Alvarez and
Douglas $. Hagedorn

AN ACT
GRANTING THE TRUTH IN GOVERNANCE THRU MEDIA (TGM)

BROADCASTING NETWORK A FRANCHISE TO CONSTRUCT, INSTALL,
ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION
BROADCASTING STATIONS IN PUERTO PRINCESA CITY, AND IN THE

PROVINCE OF PALAWAN

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 Constitution and applicable laws, rules and regulations, there is hereby granted to
TGM Broadcasting Network, herein 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, radio and television broadcasting
stations in Puerto Princesa City, Palawan, where frequencies and channels are still

available for radio and television broadcasting, with the corresponding technological


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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 selected wavelengths or frequencies and the
quality of transmission or reception thereon as should maximize rendition of the

grantee’s services and availability thereof.

SEC. 3. Prior Approval of the National Telecommunications Commission
(NTO). ~ 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 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. 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 willful misrepresentation,


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to the detriment of 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 use of said stations or facilities during

the period when they shall be operated.

The radio spectrum is a finite source that is a 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 NTC;
b.) Operate continuously for two (2) years; and

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


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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 acceptance, 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 NTC, the grantee shall have fulfilled the
same, the bond shall be cancelled by the NTC, Otherwise, the bond shall be forfeited

in favor of the government and the franchise ipso facto revoked.

SEC. 9. Tax Provisions. — The grantee, its successors or assigns, shall be liable
to pay the same taxes on their real estate, buildings and personal property, 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, 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 television business transaction under this
franchise: Provided, That the grantee, its successors or assigns, shall be liable for

income taxes payable under Title II of the National Revenue Code, as amended.

The 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.


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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, 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 or incite treason, rebellion or sedition; or the

language used therein or the theme thereof is indecent or immoral, and Provided,

further, That 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 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, Usufruct. - 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 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.


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SEC. 13. Dispersal of Ownership. — In 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 may be provided by law in any securities 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) or more radio and television stations, 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, ~ If, for any reason, any provision or part of this
Act is declared invalid or unconstitutional, the remaining parts or provisions not

affected thereby shall remain full force and effect.

SEC. 16, Repeatability 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. 17. 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.


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SEC, 18. Effectivity. — This Act shall take effect fifteen (15) days after
publication in the Official Gazette or in two (2) national newspapers of general

circulation.

Approved,