be approved In substitution of House Bill No 4028 with Reps Jesus Crispin Remuua
and Mareellno
"Marcy" R. Teodoro
as authors thereof.
Respectfully submitted.
~f;f~
~Y-~--
MAI~CELlNO"MARCY'
R. TEODORO
Chairman
Committee
on Legislative
Francnises
THE HONORABLE
THE SPEAKER
HOUSE OF REPRESENTATIVES
QUEZON
CITY
Page 2 of 2
Commutee
Repol1
Ri:: House Blil No
4021J Franchise
teriewe!
applicatIOn
of SBS Radio Netwol k ltu:
Aurholt::d by
Hon Jesus Cnsptn Remulla




quality
of transmission
or reception
thereon
as should
maximize
rendition
of the
"2
grantee's
services
and/or availability
thereof.
3
5
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 the construction
and operation
of its stations
and facilities
and shall not use any frequency
in the radio/television
spectrum
without
having
been
authorized
by the: Commission.
The Commission,
however,
shall
not
unreasonably
withhold
or delay the grant of any such authonty.
7
8
l)
10
II
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
01' 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
or
assist in subversive
or treasonable
acts.
12
13
14
\7
1~
2()
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 pubhc 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 sai d stations
or
tacumes during the period when they shall be so operated
21
23
27
The radio spectrum
is a finite resource
that is part of the national
patrimony
and the use thereof
is a privilege
conferred
upon the qrantee
by the State and may
be withdrawn
anytime after due process.
2X
2')




, ,.:.'1
'11
,')
:I
i
SEC.
10.
Warranty
in Favor
of National
and
Local
Governments.
- The
,
grantee
shall
hold the national,
provincial,
city and municipal
governments
of the
3
Philippines
harmless
from all claims,
accounts,
demands
or actions
arising
out of
4
accidents
or injuries, whether
to property
or to persons,
caused
by the construction
5
or operation
of the stations of the grant1ae; .
6
SEC.
11.
Non-transferability
I of Franchise.
- The
grantee
shall
not lease,
7
transfer,
grant the usufruct ot.selt
nor assign this franchise
or the rights and privilege
8
acquired
thereunder
to any person,
firm, company,
corporation
or other commercial
9
or lega\ entity, nor merge with any other.corporation
or entity, nor shall the controlling
10
interest
of the grantee
be transferred,
whether
as a whole
or in parts
and whether
11
simultaneously
or
contemporaneously,
to,
any
such
person,
firm,
company,
12
corporation
or entity without
the prior approval
of the Congress
of the Philippines.
13
The conditions,
terms, restrictions.and
limitations
SE~tby this Act shall be imposed
on
14
any person or entity to which this franchise
is sold, transferred
or assigned.
,
1
,
15
SEC.
12. Dispersal
of Ownership,
-,
In accordance
with the constitutional
provision
to encourage
public participauon inpublic utilities, the grante€i shall offer at
least thirty per centum
(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
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/or
television
stations.
Non-compliance
therewith
shall render the franchise
ipso facto revoked.
16
17
18
19
20
21
22
23
SEC.
13. Equality
Clause.
- Any advantage,
favor,
privilege,
exemption,
or
,
\ ~::.,
,
;.
immunity
granted
under
existing
franchise,
,or which
rnay hereafter
be granted
for
i t··i I.
:J"
!
radio and/or television
broadcasting;
shall ipso facto become
part of this franchise
and
shall
be
accorded
immedia~~IY ahd:unconditionally
to
the
herein
grantee:
!
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,.;.
.
Provided,
however,
That the foregoing
,Shell!:neither apply to nor affect provisions
of
broadcasting
franchises
concemirid
te~tmy
covered
by the franchise,
the life span
~ i'
~
i:
.
of the franchise
or the type of service authorized
by the franchise.
I;
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11: .
11
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24
25
26
27
28
29
30
,
1
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!
.