Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS.
First Regular Session

HOUSE BILLNO._ 5166

Introduced by Honorable Rodolfo T. Albano III, Hon, Napoleon S$. Dy, Hon.Ana
Cristina S. Go, Hon. Ma. Lourdes R. Aggabao and Hon, Jose T. Panganiban, Jr.

EXPLANATORY NOTE

Northeastern Broadcasting Services, Incorporated (NBSI) serves as an important
instrument in information dissemination that will redound to increase public awareness, It
also help to educate the public especially in the far flung areas,

The Northeastern Broadcasting Services, Incorporated (NBSI) has been serving the
Isabela Province and a greater part of Region 2 for decades

On the 12" Congress, a similar bill (HBSO71) was filed, It was approved by the
Committee on Legislative Franchises and reported back to the House as a substitute bill
(HBS259), Based on this substitute bill, HB 2684 was filed on the 13" Congress, and
thereafter referred to the Committee on Legislative Franchises where it remained pending
until the end of the 13" Congress.

House Bill 2811 was filed on the 15" Congress and was considered also by the
Committee on Legislative Franchises whereby Committee Report Number2031 recommends
approval of HB6030 in substitution of HB2811. The House approved the bill on third
reading and transmitted the same to the Senate where it remained pending until the end of the
15" Congress,



House Bill 4157 was filed on the 16" Congress and was considered also by the
Committee on Legislative Franchises. The House approved the bill on third reading and
transmitted the same to the Senate where it remained pending until the end of the 16”
Congress.

In view of the urgent need of the Isabelinos, the immediate approval of this bill is
earnestly requested

Le Hh

HON. RODOLFO T, ALBANO IIL HON, NAPOLI

HON. ANA CRISTINA S. GO HON. MA. LOU.

CH: ‘opnelooantsns, JR.

R. AGGABAO



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. — 5166

Introduced by Honorable Rodolfo T. Albano Il, Hon. Napoleon S. Dy, Hon. Ana
‘istina S. Go, Hon. Ma. Lourdes R. Aggabao and Hon. Jose T. Panganiban, Jr.

AN ACT
iG NORTHEASTERN BROADCAS
TO CONSTRUCT, I ESTABLISH, OPERATE AND
MAINTAIN RADIO 4 VISION BROADCASTING STATIONS IN ISABELA
PROVINCE AND IN REGION TWO.

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

ION 1, Nature and Scope of Franchise ~ Subject to the provisions of the
Philippine Constitution and applicable laws, rules and regulations, there is hereby granted to
Northeastern Broadcasting Services, Incorporated, hereunder referred to as the grantee, its
successors or assignees, a franchise to construct, install, establish, operate and maintain for
commercial purposes and in the public interest, radio and/or television broadcasting stations
in Isabela Province and in Region Two, where frequencies and /or channels are still available
for radio and/or television broadcasting, including digital television system, through
microwave, satellite or whatever means, including the use of any new technology in
television and radio system, with the corresponding technological auxiliaries and facilities,

special broadcast, and other program and distribution services and relay stations


SEC. 2. Manner of Operatior: of Stations or Facilities. — The stations or facilities of

the grantee shall be constructed and operated ina 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
assigned 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.

SEC. 3. Prior Approval of the National Telecommunications Commission (NTC). The
grantee shall secure from the NTC the appropriate permits and licenses for the construction
and operation of it’s stations and facilities and shall not use any frequency in the
radio/television spectrum without authorization from 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

s

rvice 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 funetions 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, 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 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

‘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 after due process


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SEC. 6 Term of Franchise.-This franchise shall be in effect of a period of twenty five
(25) years, unless sooner revoked or cancelled. This franchise shall be deemed ipso facto
revoked in the event the grantee fail: to comply with any of the following conditions
(a) Commence operations with one (1) year from the approval of its operating permit by
the NTC;
(b) Commence operations within three (3) years from the effectivity of this Act, and

(©) Operate continuously for two (2) years

SEC 7. Accepiance 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,

SEC. 8. Bond.-The grantee shall file a bond with the NTC, in the amount that the
NIC shall determine, to guarantee compliance with the 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 Commission. 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 the 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 and/or incite treason, rebellion 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.

SEC. 10. 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


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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. II. 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 there under to any person, firm, company, corporation or other
commercial or legal entity, nor merge with any other corporation or entity, nor shall transfer
the controlling interest of the grantee, whether as a whole or in part, and whether
simultaneously or contemporaneously, to any such person, firm, company, corporation or
entity without the prior approyal of the Congress of the Philippines: Provided, That Congress
shall be informed of any sale, lease, transfer, grant or usuffuct or assignment of franchise or
the rights or privileges acquired thereunder, or of the merger or transfer of the controlling
interest of the grantee, within sixty (60) days after the completion of said transaction
Provided, further, That failure to report to Congress such change of ownership shall render
the franchise ipso facto revoked : Provided, finally, That 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,

SEC. 12. Dispersal of Ownership.~ In accordance with the constitutional provision to

encourage public participation in public participation in public utilities, the grantee shall
offer to Filipino citizens at least thirty per cent (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, other methods of encouraging public
participation by citizens and corporations operating public utilities must be implemented

Non compliance therewith shall render the franchise ipso factorevoked

SEC. 13, General Broadcast Policy Law.- ‘The grantee shall comply with and be
subject to the provisions of a general broadcast policy law, which Congress may hereafter

enact

SEC. 14, Reportorial Requirement. ~ The grantee shall submit an annual report to the
Congress of the Philippines, through the Committee on Legislative Franchises of the House


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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
every year during the term of its franchise, The reportorial compliance certificate issued by
congress shall be required before ary application for permit or certificate is accepted by the
NTC.

SEC. 15, Penalty Clause, Failure of the grantee to submit the requisite annual report
to Congress will be penalized by a fine in the amount of five hundred pesos (P500.00) per
working day of noncompliance, ‘The fine will be collected by the NTC from the delinquent

franchise grantee separate from the reportorial penalties imposed by the NTC

SEC. 16, Kquality 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 the 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.

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

SEC. 18 .Repealabilty 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. 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,