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Republic of the Philippines [® oarel 5. NOY 2016

HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bi. No.4380

Introduced by Representative JORGE T. ALMONTE

EXPLANATORY NOTE

This legislative measure seeks to grant MALINDANG BROADCASTING
NETWORK CORPORATION a franchise to construct, install, establish, operate and
maintain radio and television broadcasting stations throughout the Philippines.

In shaping the country’s future, the role of broadcast media cannot be
overemphasized. It molds, informs and educates the society through the promotion of
public awareness, participation and encouragement of public opinions ‘on important
matters conceming the country.

Thus, investors should be encouraged to invest in the radio and television
broadcasting business to assist and support the government in disseminating important
information on Issues and matters of public concems.

The MALINDANG BROADCASTING NETWORK CORPORATION is a
private corporation interested in the telecommunications business for domestic
audiences and other related business. It desires to operate radio and television stations
throughout the Philippines with its central base of operations at Oroquieta City, Misamis
Occidental

It cannot be gainsaid that the presence of more radio and television
enterprises in the area of communication industry will not only enhance competition but
consequently make available more information as well as entertainment to the public.

This is the reason why MALINDANG BROADCASTING NETWORK
CORPORATION seeks to offer itself as one service providers in the radio and television


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broadcasting industry and therefore open the way for opportunities for more access to
radio and television services by fostering a healthy competition. |

UA Sank
oh Sees Tx ALMONTE

1°7, District, Misamis Occidental


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No._2380

Introduced by HON. JORGE T. ALMONTE

AN ACT GRANTING THE MALINDANG BROADCASTING NETWORK
CORPORATION, A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH,
OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING
STATIONS THROUGHOUT THE PHILIPPINES

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

Section 1. Nature and Scope of Franchise. Subject to the provisions of
the 1987 Philippine Constitution and applicable laws, rules and regulations, there
is hereby granted to MALINDANG BROADCASTING NETWORK
CORPORATION 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 throughout the Philippines’, with its central base of
operations located at Oroquieta City, Misamis Occidental, 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 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


Section 2. Manner of Operation of 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 maybe 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.

Section 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 its stations and
facilities and shall not use any frequency in radio/television spectrum without
authorization from the NTC. The NTC, however, shall not unreasonable withhold
or delay the grant of any such authority

Section 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 sounds and balanced programming; assist in the
functions of the public information and education ; conform to the ethics of honest
enterprise; and shall 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.

Section 5. Right of Govenrment.- 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 of 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 goverment, upon due compensation to the grantee, for the use of
said stations or facilities during the period when they shall be operated.

The telecommunication spectrum is 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,


Section 6.Term of Franchise.- The Franchise shall be in effect for the
period of twenty five (25) years, unless sooner revoked or cancelled. The franchise shall
be deemed ipso facto, revoked in the event in the event the grantee fails to comply with
any of the following conditions

a.) Commence operations within on 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;

.) Operate continuously for two (2) years.

Section 7.Acceptance and Compliance.- Acceptance of this franchise shall be
given in the 17 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 shalll render the franchise void

Section 8. Bond.- The grantee shall file a bond with the NTC in the amount that
the NTC shall determine, to guarantee compliance with and fulfillment of the conditions
under which this franchise is granted. If after three (3) years from the date of approval of
its permit by the Commission, 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,

Section 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 station; 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.


Section 10. Warranty in Favor of National and Local Goverments.- 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 the accidents or injuries,
whether to property or to persons , caused by the construction or operation of the
stations of the grantee.

Section 11. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of
Franchise.- The grantee shall not sell, lease, transfer, grant the usufruct of, or assign
this Franchise and privileges acquired thereunder to any person, firm, company,
corporation of other commercial legal entity, nor merge with any other corporation or
entity nor shall transfer to controlling interest of the grantee. Whether as a whole or in
part, and whether simultaneously or contemporaneously , to any such person, frim,
company, corporation, entity without the prior approval of the Congress of the
Philippines; Provided, The Congress shalll be informed of any sale, lease, transfer, grant
of usufruct, or assignment franchise or the rights or privileges acquired thereunder, or
merger or transfer of the grantee within sixty (60) days after the completion of said
transaction; Provided further, That the failure to report to Congress such change of
‘ownership shall render the franchise ipso facto revoked; Provided finally, That any
person or entity which this franchise is sold, transferred or assigned, shall be subject to
the said conditions, terms, restrictions and limitations of this Act.

Section 12. Dispersal of Ownership.- In accordance with the constitutional
provision to encourage public participation in public utilities, the grantee’ shall offer
Filipino citizen at least thirty per cent (30%) or as higher percentage that may hereafter
be provided by law of its outstanding capital stock in any securities exchange in the
Philippines within five years from the commencement of its operation. Provided, That in
cases where put-offer of shares is not applicable, establishment of cooperatives and
other methods encouraging public participation by citizens and corporations operating
public utilities may be implemented. Non-compliance therewith shall render the
franchise ipso facto revoked

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

Section 14.Reportorial Requirement.- The grantee shall submit an annual report
to the Congress of the Philippines, through the Committee in Legislative Franchises of
the House of Representatives and the Committee on Public Services of the Senate, in
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 any
application for permit certificate is accepted by the NTC.

Section 15. Penalty Clause.- Failure of the grantee to submit the requisite
annual report to Congress shall be penalized by a fine of Five Hundred Pesos
(P500,00) for every working day of noncompliance. The fine shall be collected by the
BTC from the delinquent franchise grantee separate from the reportorial penalties
imposed by the NTC.

Section 16. 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 the
provisions of broadcasting franchises conceming territory covered by the franchise, the
life span of the franchise and the type of service authorized by the franchise.

Section 17.- 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 18. Repealability and Nonexclusively Clause.- This franchise shall be
subject to amendment, alteration, or repeal by the Congress of the Philippines when
public interest so requires and shall not be interpreted as an exclusive grant of the
privileges herein provided for.

Section 19. Effectivity- This Act shall take effect fifteen (15) days after its
publications in the Official Gazette or in a newspaper of general circulation.

Approved,