REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 4879

Introduced by Representative HARLIN NEIL J. ABAYON III

EXPLANATORY NOTE

This bill seeks to renew the franchise granted to Gateway
U.H.F. Broadcasting, Inc., now Gateway Television Broadcasting, Inc.
doing business under the name and style Hope Channel Philippines,
under Republic Act No. 7223 entitled, “An Act Granting Gateway
U.H.F. Television Broadcasting, Inc., a Franchise to Construct, Install,
Operate and Maintain for Commercial Purposes UHF Television
Broadcasting Stations in the Philippines, and for Other Purposes’.

The Gateway Television Broadcasting, Inc. doing business
under the name and style Hope Channel Philippines was formerly
operated for commercial purposes until certain members of the
Seventh-Day Adventist Church in the Philippines realized that the
mission of the Seventh-Day Adventist Church of sharing God’s good
news for a better life will be better spread through broadcast media
and decided to venture into television broadcasting by becoming part
of the Gateway Broadcasting Television, Inc. in July 2012

Since then, the commercial programming of Gateway
Television Broadcasting, Inc. shifted and focused on faith, health,
family, relationships and community based on the teachings of the
Seventh-Day Adventist Church and thus was able to provide quality
public service to the viewing public, with no distinction as to religious
or political affiliations.

To. formalize this departure from commercial programming,
Gateway Television Broadcasting, Inc. resolved to transform itself
from a stock to a non-stock and non-profit corporation, which the
Securities and Exchange Commission (SEC) approved on 08
December 2016


The transformation of the nature of Gateway Broadcasting
Network, Inc. from commercial to non-stock and non-profit shows its
faithful compliance and commitment to provide quality public service.

At present, the five (5) broadcast stations of Gateway
Television Broadcasting, Inc. in Bacolod, Cagayan de Oro, Cebu,
Davao and Mega Manila, offer to the viewing public a holistic concept
of life by airing television programs which supports physical, mental
and spiritual health.

Further, Gateway Broadcasting Network, Inc. answered the call
of the Philippine Government to help eradicate the drug menace by
broadcasting programs that are supportive of the rehabilitation efforts
of the government.

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

sought.
REP. HARLIN ea J. ABAYON III


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 4879

Introduced by Representative HARLIN NEIL J. ABAYON III

AN ACT RENEWING FOR ANOTHER TWENTY-
FIVE (25) YEARS AND AMENDING THE
FRANCHISE GRANTED TO GATEWAY U.H.F.
TELEVISION BROADCASTING INC. NOW
GATEWAY TELEVISION BROADCASTING, INC.
DOING BUSINESS UNDER THE NAME AND
STYLE HOPE CHANNEL PHILIPPINES, UNDER
REPUBLIC ACT NO. 7223

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

SEcTION 1. Nature and Scope of Franchise.--- Section 1 of Republic Act No.
7223 is hereby amended to read as follows:

SECTION 1. Nature and Scope of Franchise.— Subject to
the provisions of the 1987 Philippine Constitution and
applicable laws, rules and regulations, the franchise
granted to Gateway U.H.F. Television Broadcasting, Inc.
now Gateway Television Broadcasting, Inc., doing
business under the name and style Hope Channel
Philippines, hereunder referred to as the grantee, its
successors or assignees, under Republic Act No. 7223
entitled: “An Act Granting Gateway U.H.F. Television
Broadcasting, Inc., a Franchise to Construct, Install,
Operate and Maintain for Commercial Purposes UHF
Television Broadcasting Stations in the Philippines, and
for Other Purposes’, to construct, install, establish,
operate and maintain in the public interest and for
religious, educational, charitable and socio-civic
purposes, television and/or radio broadcasting stations,
including digital television system, through microwave,
satellite or whatever means, including the use of new
technologies in radio and television systems, with the
corresponding technological auxiliaries and facilities,


special broadcast and other program, and distribution
services and relay stations in the Philippines, is hereby
renewed for another twenty-five (25) years from the
effectivity of this Act.

SECTION 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 the existing stations or other stations which may be
established in accordance with law of other telecommunications services
grantees without in anyway 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.

SECTION 3. Prior Approval of the National Telecommunications Commission
(NTC).— The grantee shall secure from the 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 NTC. The
NTC, however, shall not unreasonably withhold or delay the grant of any
such authority.

SECTION 4. Responsibility to the Public— The grantee shall provide
reasonable public service time to enable the Government, through its
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, to the detriment of the public interest; or to incite,
encourage ox assist in subversive or treasonable acts.

SECTION 5. Right of Government.— A special right is hereby reserved to the
President of the Philippines, in times of rebellion, public peril, calamity,
emergency, disaster or disturbance of peace and order, to temporarily take
over and operate the stations of the grantee, to 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
agency of the Government, upon due compensation to the grantee, for use
of said stations during the period when they shall be so operated.

The radio spectrum is finite resource that is a part of the National
Patrimony and the use thereof is a privilege conferred upon the grantee by
the House of Representatives and Senate and may be withdrawn any time
after due process.

SecTION 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

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revoked or cancelled. In the event the grantee fails to operate continuously
for two (2) years from the effectivity of this franchise or anytime thereafter,
this franchise shall be deemed ipso facto revoked.

SECTION 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 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.

SECTION 8. Dispersal of Ownership.— |n 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 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, establishment of cooperatives and 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.

SECTION 9. Tax Provisions.— The grantee, its successors or assigns, shall
be subject to the payment of all taxes, duties, fees or charges and other
impositions under the National Internal Revenue Code (NIRC) of 1997, as
amended, and other applicable laws; Provided, that nothing herein shall be
construed as repealing any specific tax exemptions, incentives or privileges
granted under any relevant law; Provided, further, that all rights, privileges,
benefits and exemptions accorded to existing and future broadcasting and
telecommunications franchises shall likewise be extended to the grantee.

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

SECTION 10. 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.

SECTION 11. Self-regulations 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 and/or telecast from its stations; but if any
such speech, play, act or scene, or other matter should constitute a
violation of the law or infringement of a private right, the grantee shall be
free from any liability, civil or criminal, for such speech, play, act or scene,
or other matter; Provided, That the grantee, during any broadcast and/or

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telecast, shall cut off from the air the speech, play, act or scene, or other
matter being broadcast/telecast if the tendency thereof is to promote 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.

SECTION 12. 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.

SECTION 13. Sale, Lease, Transfer, Usufruct, etc.— The Grantee shall not
lease, transfer, grant the usufruct of, sell or assign this franchise nor the
rights and privileges acquired thereunder to any person, firm, company,
corporation or entity, nor merge with any other corporation or entity without
the prior approval of the Congress of the Philippines. Neither shall the
controlling interest in the grantee be transferred, whether as a whole or in
part and whether simultaneously or contemporaneously, to any such
private 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 validly sold, transferred or assigned shall be subject to all
the same conditions, terms, restrictions and limitations of this Act.

SECTION 14. General Broadcast Policy.— The grantee shall comply with
and be subject to the provisions of a general broadcast policy law that may
hereafter be enacted.

SECTION 15. 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 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.

SECTION 15. 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

SECTION 16. 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 required and shall not be interpreted
as an exclusive grant of the privileges herein provided for.

SECTION 17. Effectivity Clause.— This Act shall take effect fifteen (15) days
from the date of its publication in at least two (2) newspapers of general
circulation.