Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3458

Introduced by
REPRESENTATIVES PANTALEON D. ALVAREZ AND ALAN R. DUJALI

AN ACT
GRANTING THE PROVINCIAL GOVERNMENT OF DAVAO DEL
NORTE A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH,
OPERATE, AND MAINTAIN COMMERCIAL FM AND AM RADIO
AND TELEVISION BROADCASTING STATIONS IN MINDANAO

EXPLANATORY NOTE

Article II, Section 24 of the 1987 Constitution declares that “The State
recognizes the vital role of communication and information in nation building.”
After all, communication and information are the means through which
the people are able to communicate with each other, with society, and
with their governments. Thus, the State recognizes its importance in a
democratic republic like the Philippines.

Despite the express recognition by no less than the Philippine
Constitution, however, effective and efficient communication and
dissemination of information has not been fully realized throughout the
nation, especially in areas that are far away from Metro Manila. One such
place is Davao Del Norte.

Presently, the Provincial Government of Davao Del Norte, in order
to legally operate and maintain its broadcasting capabilities - especially
in regard to public participation, disaster prevention and relief, education,
and all other concerns which greatly benefit from a dependable broadcast


medium that is accessible to every citizen - must have a legislative
franchise of its own. Unfortunately, as of date, it has none.

Thus, this bill seeks to grant the Provincial Government of Davao
del Norte a franchise to construct, install, establish, operate, and maintain,
for commercial FM and AM radio and television broadcasting stations,
including digital television system for the province of Davao del Norte.

Once passed and enacted into law, the franchise will provide the
Provincial Government, and its people, with more autonomy to chart
their own destinies through economic and efficient communication of
vital information without which delivery of services to the people shall be
compromised.

Given the foregoing, the approval of this bill is hereby earnestly

Cay. QO

PANTALEON /D. ALVAREZ ALAN R. DUJALI



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

3458
HOUSE BILL NO.

Introduced by
REPRESENTATIVES PANTALEON D. ALVAREZ AND ALAN R. DUJALI

AN ACT
GRANTING THE PROVINCIAL GOVERNMENT OF DAVAO DEL
NORTE A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH,
OPERATE, AND MAINTAIN COMMERCIAL FM AND AM RADIO
AND TELEVISION BROADCASTING STATIONS IN MINDANAO

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 the Provincial Government of Davao Del Norte,
hereunder referred to as the grantee, its successors or assignees, a
franchise to construct, install, establish, operate, and maintain, for
commercial FM and AM radio and television broadcasting stations,
including digital television system, through microwave, satellite,
terrestrial or whatever means, including the use of any 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 in the Province of Davao Del Norte
and the entire Mindanao area.

SEC. 2. Manner of Operation of Facilities. - The stations or facilities of
the grantee shall be constructed and operated in a manner as will, at most,

Page 1 of 5


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
wavelength or frequencies and the quality of transmission or reception
thereon as should maximize rendition of the grantee’s service and/or
availability thereof.

SEC. 3. Prior Approval of the National Telecommunications Commission.
- The grantee shall secure from the National Telecommunications
Commission (the “Commission”) 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 section without having been
authorized by the Commission. The Commission, however, shall not
unreasonably withhold or delay the grant of any such authority.

SEC. 4. Responsibility to the Public. - The grantee shall provide, free
of charge, adequate public service time which is reasonable and sufficient
to enable the government, through the broadcasting stations or facilities
of the grantee, to reach the pertinent population/s or portions thereof on
important public issues and relay important public announcements and
warnings concerning public emergencies and calamities, as necessity,
urgency or law may require; provide at all times sound and balanced
programming; promote public participation; assist in the functions of
public information and education; conform to the ethics of honest
enterprise; promote audience sensibility and empowerment through, but
not limited to, closed captioning; and not use its stations or facilities for
the broadcasting of obscene or indecent language, speech, act or scene; or
for the dissemination of deliberately false information or willful
misrepresentation, 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 also be operated.

Page 2 of 5


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 State and may be withdrawn anytime fetter 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 Commission;

b. Operate continuously for two (2) years; and

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

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
Commission, which shall determine the amount, to the 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 Commission, the grantee shall have fulfilled the same,
the bond shall be cancelled. 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 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 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; and willful failure to
do shall constitute a valid cause for the cancellation of this franchise.

Page 3 of 5


SEC. 10. 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 shall transfer the controlling interest of
the grantee, whether as a whole or in part, and whether simultaneously
or contemporaneously, to any person, firm, company, corporation, or
entity without the prior approval of the Congress of the Philippines and
compliance with legal requirements stipulated in other statutes.

SEC. 11. Renewal, Extension, or Revocation of Franchise. - The grantee
shall apply for the renewal or extension of its franchise five (5) years
before its expiration date which shall be reckoned fifteen (15) days after
the publication of the franchise in the Official Gazette or in a newspaper
of general circulation, whichever comes earlier.

This franchise may be revoked by Congress when the public
interest so requires or when the grantee fails to reasonably comply with
regulatory standards.

SEC. 12. Commitment to Provide and Promote the Creation of
Employment Opportunities. - The grantee shall create employment
opportunities and shall allow on-the-job trainings in their franchise
operation: Provided, That priority shall be accorded to the residents where
their principal office is located: Provided, finally, That the grantee shall
follow applicable Civil Service rules and regulation and similar
issuances.

SEC. 13. Reportorial Requirement. - The grantee shall submit an
annual report 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, on its compliance with the
terms and conditions of the franchise and on its operations on or before
April 30 of the succeeding year.

SEC. 14. Applicability of Existing Laws. - The grantee shall comply

with and be subject to the provisions of Commonwealth Act No. 146, or
the “Public Service Act”, as amended.

Page 4 of 5


SEC. 16. 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. 17. Separability Clause. - If any of the sections or provision of
this Act is held invalid, all other provision not affected thereby shall
remain valid.

SEC. 18. Repealing Clause. - All laws, decrees, orders, resolutions,
instructions, and rules and regulations or parts thereof, which are
inconsistent with this Act, are hereby deemed repealed or modified
accordingly.

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,

Page 5 of 5