Salta

ox
Republic of the Phil @ EFiled
public of the Philippines
HOUSE OF REPRESENTATIVES [[@ RECEIVED =
Quezon City ZX DATE _May2,2023
* TIME 11:05 am *
NINETEENTH CONGRESS eS By Revi fy
First Regular Session Ko yy
q/ Ss
HOUSE BILL NO. _7910 0 invEk

Introduced by HON. JOSE S. AQUINO I

EXPLANATORY NOTE

As enshrined in the Constitution, the State recognizes the vital role of communication
and information in nation-building and the indispensable role of the private sector in building
the same.

This bill seeks the renewal of the legislative franchise granted to Northern Mindanao
Broadcasting System, Inc. (NMBS) for another 25 years.

Republic Act No. 8157 granted the NMBS a franchise to construct, install, maintain
and operate radio and television broadcasting stations in Mindanao.

Northern Mindanao Broadcasting System Inc. is a broadcasting network that operates
TV (DXNS TV7) and FM Radio Station (102.3 DXNS FM). The company started its TV
Channel 7 broadcast in the late 1990’s as a relay station of GMA 7. At the turn of the new
millennium, DXNS FM radio station started broadcasting in Butuan City that was made
possible by a partnership with Quest Broadcasting. The network’s output in news and public
affairs has resulted in its conferment of the KBP Golden Dove Awards.

Telecommunications plays an increasingly vital role in enabling the participation and
development of people in communities and nations disadvantaged by geography. Northern
Mindanao Broadcasting System, Inc. aims to achieve this as this would significantly contribute
to the modernization and economic development of the country.

‘As such, the passage of this bill is earnestly sought.

A

JOSE S. AQUINO IE

c

D


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 7910

Introduced by HON. JOSE S. AQUINO II

AN ACT
RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE
GRANTED TO NORTHERN MINDANAO BROADCASTING SYSTEM, INC.
UNDER REPUBLIC ACT NO. 8157 ENTITLED “AN ACT GRANTING THE
NORTHERN MINDANAO BROADCASTING SYSTEM, INC., A FRANCHISE TO
CONSTRUCT, INSTALL, OPERATE AND MAINTAIN FOR COMMERCIAL
PURPOSES RADIO AND TELEVISION BROADCASTING STATIONS IN THE
ISLAND OF MINDANAO, AND FOR OTHER PURPOSES”

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, the franchise granted under Republic
‘Act 8157 to Norther Mindanao Broadcasting System, Inc., it successors or assigns to
construct, install, operate and maintain for commercial purposes and in the public interest radio
and television broadcasting stations, including digital television system, through microwave,
satellite or whatever means, or the use of any new technologies in television and radio systems,
with the corresponding auxiliaries and facilities, special broadcast and other program and
distribution services and relay stations, and to install radio communication facilities for the
grantee’s private usc in its broadcast services, is hereby renewed for another twenty-five (25)

years from the effectivity of this Act

SECTION 2. Manner of Operation Stations of 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 service and/ or availability thereof.

SECTION 3. Prior Approval of the National Telecommunications Commission. — The
grantee shall secure from the National Telecommunications Commission the appropriate
permits and licenses for the construction and operation of its stations or facilities and shall not
use any frequency in the radio or television spectrum without having been authorized by the
Commission. The NTC, however, shall not unreasonably withhold or delay the grant of any
such authority

In case of any violation of the provisions of this franchise, the NTC shall have the
authority to revoke or suspend, after due process, the permits or licenses it issued pursuant to
the franchise. The NTC my recommend to Congress of the Philippines the revocation of the

franchise for any violation of the provisions of this franchise.

SECTION 4. Responsibility to the Public. -The grantee shall provide free of charge
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; promote public participation, assist in the functions of public
information and education; conform to the ethics of honest enterprise; and not use its stations
for the broadcasting of obscene and indecent language, speech, act or scene, or for the
dissemination of deliberately false information or willful misrepresentation, or to the detriment

of the public interest, or to incite, encourage, or assist in subversive or treasonable acts.

Public service time referred herein shall be equivalent to a maximum aggregate of ten
percent (10%) of paid commercials or advertisements which shall be allocated based on need
to the Executive and Legislative branches, the Judiciary, Constitutional Commissions, and
international humanitarian organizations duly recognized by statutes: Provided, That the NTC
shall increase the public service time in case of extreme emergency or calamity. The NTC shall
issue rules and regulations for this purpose, the effectivity of which shall commence upon
applicability with other similarly situated broadcast network or station to child-friendly shows
within its regular programming


Pursuant to RA No. 8370, otherwise known as the “Children’s Television Act of 1997”,
the Grantee shall allot a minimum of fifteen percent (15%) of the daily total air time of each
broadcasting network or station to child-friendly shows within its regular programming.

SECTION 5. Right of Government... 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 that may be withdrawn any time after due process.

A special right is hereby reserved to the President of the Philippines, in time of war.
Rebellion, public peril, calamity, emergency, disaster or serious 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 so operated

SECTION 6. Term of Franchise. — Unless sooner revoked or cancelled, this franchise
shall be in effect for a period of twenty-five (25) years from the effectivity of this Act. The
franchise shall be deemed ipso facto revoked in the event the Grantee fails to operate

continuously for two (2) years.

SECTION 7. 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, but if any such speech, play, act or scene, or other matter shoud
constitute a violation of the law or infringement of a private right, the Grantee shall be free
from any liability, civil, criminal, for such speech, play, act or scene, or other matter: Provided,
That the Grantee, during any broadcast, shall cut off the airing of speech, play, act or scene, or
other matter being broadcast if the tendency thereof is to propose or incite treason, rebeliion,
or sedition; or the language used therein or the theme thereof is indecent or immoral: Provided
further, That willful failure to do so shall constitute a valid cause for the cancellation of this
franchise.


SECTION 8. Warranty in Favor of National and Local Governments. -The grantee
shall hold the national, provincial, city and municipal governments of the Philippines free from
all claims, accounts, demands or actions arising out of accidents or injuries, whether to property
or persons, caused by the construction or operation of the stations of the Grantee.

SECTION 9. Commitment To Provide and Promote the Creation of Employment
Opportunities.- The Grantee shall create employment opportunities and accept on-the-job
trainees in the franchise operations: Provided, That priority shall be accorded to the residents
of the place where the principal office of the Grantee is located: Provided further, That the
Grantee shall comply with the applicable labor standards and allowance entitlement under

existing labor laws, rules and regulations and similar issuances.

The employment opportunities or jobs created shall be reflected in the General
Information Sheet (GIS) to be submitted to the Securities and Exchange Commission (SEC)

annually.

SECTION 10. Sale, Lease, Transfer, Grant of Usufruct or Assignment of Franchise.
— The Grantee shall not sell, lease, transfer, grant the usufruct of, not 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 simuttaneously or contemporancously, to any
person firm, company, corporation or entity without prior approval of Congress. The grantee
shall inform Congress, through the Office of the Speaker of the House of Representatives and
the Office of the Senate President, of any sale, lease, transfer, grant of usufruct, or assignment
of franchise or the rights and privileges acquired thereunder, or of the merger or transfer of the
controlling interest of the Grantee, within sixty (60) days after the completion of the said
transaction. Failure to report to Congress such change of ownership shall render the franchise
ipso facto revoked, 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.

SECTION 11. Dispersal of Ownership. — In accordance with the constitutional
provision to encourage public participation in public utilities, the Grantee shall offer to Filipino
citizens at least thirty percent (30%) of its outstanding capital stock, or a higher percentage that
may hereafter be provided by law, in any securities exchange in the Philippines within five (5)
years from the effectivity of this Act: Provided , That in cases where public offer of shares is
not applicable, other methods of encouraging public participation by citizens and corporations


operating public utilities must be implemented. Non-compliance therewith shall render the
franchise ipso facto revoked.

SECTION 12. Reportorial Requirement. - The grantee shall submit an annual report
to the Congress, 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.

The annual report shall include an update on the commencement of activities,
development, operation, and expansion of business; audited financial statements; latest GIS
officially submitted to the SEC, if applicable; certification of the NTC on the status of its
permits and operations; and an update on the dispersal of ownership undertaking, if applicable.

‘A reportorial compliance certificate issued by Congress shall be required before any
application for permit or certificate is accepted by the NTC.

SECTION 13. Fine. - Failure of the Grantee to submit the requisite annual report to
Congress shall be penalized by a fine of Five Hundred Pesos (P500.00) per working day of
non-compliance and shall be paid to the NTC. The fine shall be collected separately from the
reportorial penalties imposed by the NTC, and it shall be remitted to the Bureau of the Treasury.

SECTION 14. Equality Clause.- Any advantage, favor privilege, exemption, or
immunity granted under existing franchises, or which may hereafter be granted for radio and
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 the provisions of broadcasting
franchises concerning territorial coverage, the term, or the type of service authorized by the
franchise.

SECTION 15. Repealability and Non-Exclusivity Clause. — This franchise shall be
subject to amendment, alteration, or repeal by Congress when the public interest so requires

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

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


SECTION 17. Repealing Clause.- all laws, decrees, orders, resolutions, instructions,
rules and regulations, and other issuances or parts thereof which are inconsistent with the
provisions of this Act are hereby repealed, amended, or modified accordingly

SECTION 18. Effectivity Clause. This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation.

Approved,