ae ON gy
“@s
/ 7 ReCEVED |

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17" CONGRESS
First Regular Session

HOUSE BILL NO. __ 4877

Introduced by REP. EVELINA G. ESCUDERO.

EXPLANATORY NOTE

This Bill seeks to renew the franchise of DZGN-FM GOODNEWS, Inc., of Sorsogon City,
to operate and maintain radio and television stations in the Bicol Region.

DZGN-FM GOODNEWS, Inc., has been previously authorized and grated authority to
operate and establish broadcasting in the Province of Sorsogon under Republic Act 8119.

GZGN-FM GOODNEWS, Inc., provides balanced broadcasting and presently operates in
the Province of Sorsogon. DZGN-FM has committed itself in providing educational, and
technological programs which uplift the various socio-economic sectors in the Province of
Sorsogon.

DZGN-FM GOODNEWS. Inc., is also in the active pursuit of diverse livelihood programs
available and applicable in the Province of Sorsogon. It sponsors various cooperative groups,
farmers, fishermen, vendors, and farmers associations in the Province of Sorsogon.

This Bill, therefore, seeks to renew the franchise of DZGN-FM GOODNEWS, INC., to
establish, operate, and maintain radio/television broadcasting stations in the Bicol Region in order
to contribute to the economic development and progress of the Province of Sorsogon and the Bicol

Region

EVELINA G. ESCUDERO


Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

17™ CONGRESS
First Regular Session

HOUSE BILL NO, A877

Introduced by REP, EVELINA G. ESCUDERO-

AN ACT
GRANTING THE GOOD NEWS SORSOGON FOUNDATION, INC., A FRANCHISE TO.
CONSTRUCT, INSTALL, OPERATE AND MAINTAIN FOR RELIGIOUS,
EDUCATIONAL AND COMMERCIAL PURPOSES, RADIO AND TELEVISION
BROADCASTING STATIONS WITHIN THE BICOL REGION AND FOR OTHER
PURPOSES

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

SECTION }. Nature and Scope of Franchise. — Subject to the provisions of the Constitution
and applicable laws, rules and regulations, there is hereby granted to Good News Sorsogon
Foundation, Inc., hereunder referred to as the grantee, its successors or assigns a franchise to
construct, install, operate and maintain for religious, educational and commercial purposes and in
the public interest, radio and television broadcasting stations within the Bicol Region with the
corresponding technological auxiliaries or facilities, special broadcast and other program
distribution services and relay stations, and to install radio communication facilities for the
grantee's private use in its broadcast services.

SEC. 2. Manner of Operation of Stations or 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 the other existing stations or 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 services and/or the availability thereof.

SEC. 3. Prior Approval of the National Telecommunications Commission. ~ The grantee
shall secure from the National Telecommunications Commission the appropriate permit and
licenses for its stations 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 authority.

SEC. 4. Responsibility to the Public. ~ The grantee shall provide reasonable public service
time to enable the government, through the said broadcasting stations, to reach the population on
important public issues: provide at all times sound and balanced programming: promote public
participation such as in community programming; 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, 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.

SEC. 5. Right of Government. ~ The President of the Philippines, in times of rebellion,
public peril, calamity, emergency, disaster or disturbance of peace and order, may temporarily take
over and operate the stations of the grantee, to temporarily suspend the operation of any station 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 during the period when they shall be so operated.

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. In the event the grantee
fails to operate continuously for (2) years, this franchise shall be deemed ipso facto revoked.

SEC. 7. Acceptance and Compliance. ~ Acceptance of this franchise shall be given in
writing within sixty (60) days after approval 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. Tax Provisions. ~ The grantee, its successors or assigns shall be liable to pay the
same taxes on their real estate, buildings and personal property, exclusive of this franchise, as other
persons of corporations are now or hereafter may be required by law to pay. In addition thereto, the
grantee, its successors or assigns shall pay a franchise tax equivalent to three percent (3%) of all
gross receipts of the radio/television business transacted under this franchise by the grantee, its
successors or assigns and the said percentage shall be in lieu of all taxes on this franchise or
earnings thereof: Provided, That the grantee, its successors or assigns shall continue to be liable for
income taxes payable under Title II of the National Internal Revenue Code pursuant to Section 2 of,
Executive Order No. 72 unless the latter enactment is amended or repealed, in which case the
amendment or repeal shall be applicable thereto.

The grantee, shall file the return with, and pay the tax due thereon to the Commissioner of
Internal Revenue or his duly authorized representative in accordance with the National Internal
Revenue Code and the return shall be subject to audit by the Bureau of Internal Revenue.

SEC. 9. Self-regulation by and Undertaking of Grantee. ~ The grantee shall not require any
previous censorship of any speech, play, act, scene or other matter to be broadcast and/or telecast
from its stations: Provided, That the grantee, during any broadcast and telecast shall cut off from
the air the speech, play, act, 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 so shall constitute a valid cause for the
cancellation of this franchise.

10. Warranty in Favor of National and Local Governments. ~ The grantee shall hold
the national, provincial and municipal governments of the Philippines harmless from all 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. 11. Sale, Lease, Transfer, Usufruct, etc. - The grantee shall not lease, transfer, grant
the usufiuct of, sell or assign this franchise or the rights and privileges acquired thereunder to any
person, firm, company, corporation or entity, nor merge with any other corporation or entity
without the prior approval of the Congress of the Philippines. Neither shall the controlling interest
of the grantee be transferred. whether as a whole or in part and whether simultaneously or
contemporaneously, to any such person, firm, company, corporation or entity without the prior



approval of the Congress of the Philippines. Any person or entity which this franchise is sold,
transferred or assigned, shall be subject to all the same conditions, terms, restrictions and
limitations of this Act.

SEC. 12. Separability Clause. ~ If any of the sections or provisions of this Act is held
invalid all the other provisions not affected thereby shall remain valid.

SEC. 13. 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. 14, Reportorial Requirement. ~ The grantee shall submit an annual report to the
Congress of the Republic of the Philippines on its compliance with the terms and conditions of the
franchise and its operations within sixty (60) days from the end of every year.

SEC. 15. Effectivity Clause. — This Act shall take effect fifteen (15) days from the date of
its publication in at least two (2) newspapers of general circulation in the Philippines

Approved,