Republic of the Philippines }
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS.
First Regular Session

HOUSE BILL NO. __ 2987

Introduced by REP. GREG G. GASATAYA.

EXPLANATORY NOTE.

The Five K Broadcasting Network Inc. is a corporation duly registered with the
Securities and Exchange Commission since 2017. The reputable corporation has involved itself
in the past in meaningful activities such as social action and community service that have
helped thousands of residents of its communities including Bacolod City most evident in the
time of pandemic. The said corporation has also been operating radio stations in Antique.
Bacolod, Negros Oriental, and Roxas City temporarily as a community and affiliate broadcast
station assisting the areas through dependable information dissemination and entertainment
throughout the pandemic. Furthermore, the corporation has expressed its intent, commitment,
and ability to extend the scope of their activities and services to other parts of the country.

Information dissemination plays a vital role in nation building and addressing issues of
both national and local concern, Broadcasting surpasses geographical boundaries which gives
the state the opportunity to inform, provide entertainment. and reach out to its constituents even
in far-flung areas of the country. With every home at this day and age having a television or a
radio. the recent closure of a nationwide broadcasting station, and a global pandemic amidst, it
is imperative for the state to assure that information reaches Filipinos in every comer of the
country

The enactment of this bill will not only pave the way for furthering the efficiency and
effectiveness of information dissemination in the country. but also bring livelihood to those
who have lost their employment due to the pandemic and the recent closure of a nationwide
broadcasting station

In view of the foregoing, approval of this bill is eamestly sought

Bsn?

HON. GREG G. GASATAY
Lone District of Bacolod City



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

2987

HOUSE BILL NO.

Introduced by REP. GREG G. GASATAYA.

AN ACT

GRANTING THE FIVE K BROADCASTING NETWORK INC. A FRANCHISE

CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND.
TELEVISION BROADCASTING STATIONS IN THE PHILIPPINES

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

SECTION 1. Nanure and Scope of Franchise. - Subject to the provisions of the 1987
Philippine Constitution and applicable laws. rules and regulations. there is hereby granted to
Five K Broadcasting Ine., hereunder referred to as the grantee, ils successors or assignees, a
franchise to construct, install, establish, operate and maintain for commercial purposes and in
the public interest, radio andor television broadcasting stations throughout the Philippines,
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.

SEC. 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 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.


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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 its 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 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 ethies 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 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

‘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.

SEC. 6, Term of Franchise. ~ This franchise shall be in effect for 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 fails to comply with any of the following conditions:

(a) Commence operations within 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


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(c) Operate continuously for two (2) years.

SEC. 7. Acceptance und Conipliunce. ~ Acceptance of this franchise shall be given in

writ

ng 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, Nonacceptance shall render the franchise void.

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 the 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.

SEC. 9. Selfregulation 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 the 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 to persons, caused by the construction or operation of the stations of the grantee.

SEC. 11. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. - The
grantee shall not sell, lease. transfer, grant the usuftuct of, nor assign this franchise or the rights
and privileges acquired thereunder to any person. firm, company, corporation or other

commercial or legal ze 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

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entity without the prior approval of the Congress of the Philippines: Provided, That Congress
shall be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise or
the rights or privileges acquired thereunder, or 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 ipsa
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

SFC. 12. Dispersal of Ownership. - In accordance with the constitutional provision to

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encourage public participation in public utilities, the grantee shall offer to Filipino citizen
least thiny 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. establishment of cooperatives and other methods of encouraging public
participation by citizens and corporations operating public utilities must be implemented.

Noncompliance therewith shall render the franchise ipso fucto revoked

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 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 any 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 (500.00) per
working day of noncompliance. The fine will be collected by the NTC from the delinquent

posed by the NTC.

franchise grantee separate from the reportorial penalties


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SEC. 16, Lqualin: Clause, - Any advantage, favor. privilege, exemption, or immunity
granted under existing franchises, or which may hereafier 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. Separubility Clause. — [any of the sections or provisions of this Act is held

invalid. all other provisions not affected thereby shall remain valid,
SEC. 18. Repeatability 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. 19. Lffectiviry. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazente or in a newspaper of general circulation,

Approved.