be PECK)

Republic of the Philippines
HOUSE OF REPRESENTATIVE:
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO, 3713

Introduced by HON. JOY MYRA S. TAMBUNTING

EXPLANATORY NOTE

This bill which has been refiled from the 17 Congress seeks to renew ABS-CBN
Corporation's right to construct, install, establish, operate, and maintain broadcasting
stations in the Philippines. ABS-CBN Corporation, as the leading media and entertainment
organization, is primarily involved in content creation and production for television, online,
and over-the-top platforms, cable satellite, cinema, live events and radio for domestic
and international markets‘.

ABS CBN Corporation prides on producing a wide variety of world-class entertainment
and news programs both for domestic and international audiences. For the past few
decades, ABS CBN Corporation has remained true to its mission to serve the Filipino
through informing, educating and entertaining audiences through creative content for
any distribution platform—cable, satellite, online and mobile. It has strived to innovate,
diversify, and expand into different enterprises such as the network's TV Shopping service
O Shopping, the motion picture company Star Cinema, the music recording label Star
Music and the talent agency Star Magic among many others.

In recognition of ABS CBN Corporation’s tireless service delivery for the Filipino people
since its establishment and to likewise allow them to continue providing its services to
the people, the immediate renewal of its original franchise which is set to expire on March

30, 2020 is earnestly sought.

MYRA S. TAMBUNTING

1 ABS-CBN Corporation: Our Story. Retrieved from https://www.abs-cbn.com/who-we-are/our-story


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. Sem

Introduced by HON. JOY MYRA S. TAMBUNTING

AN ACT
RENEWING THE FRANCHISE GRANTED TO ABS-CBN CORPORATION
(FORMERLY ABS-CBN BROADCASTING CORPORATION) UNDER REPUBLIC
ACT NO. 7966 OR "AN ACT GRANTING ABS-CBN BROADCASTING
CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH,
OPERATE, AND MAINTAIN BROADCASTING STATIONS IN THE PHILIPPINES,
AND FOR OTHER PURPOSES" FOR TWENTY-FIVE (25) YEARS FROM THE
EFFECTIVITY OF THIS ACT

Be it enacted by the Senate and the House of Representatives of the 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, the franchise granted
to ABS-CBN Corporation (formerly ABS-CBN Broadcasting Corporation), hereunder
referred to as the grantee, its successors or assignees, to construct, install, establish,
operate and maintain for commercial purposes and in the public interest, radio and/or
television broadcasting stations in 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, or the use of any 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,
is hereby renewed for another twenty-five (25) years from the effectivity of this Act.

‘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 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 services and/or the availability
thereof.


SEC. 3. Prior Approval of the National Telecommunications Commission. - The
grantee shall secure from the National Telecommunications Commission (NTC), the
appropriate permits and licenses for the 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 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 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 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 operate continuously for two (2) years.

SEC. 7. Acceptance 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. 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: 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. 9. 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 to persons, caused by the construction or operation of the stations of the
grantee.

SEC. 10. 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 thereunder 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 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 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. 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 per centum (30%) or a higher percentage that may hereafter be provided
by law of its outstanding 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 facto
revoked.

SEC. 12. 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. 13. 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 the succeeding year. The reportorial compliance certificate issued by
Congress shall be required before any application for permit or certificate is accepted by
NTC.

SEC. 14. 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) per working day
of noncompliance. The fine shall be collected by the NTC from the delinquent franchise
grantee separate from the reportorial penalties imposed by the NTC, The collected funds
shall accrue to the monitoring fund of the NTC in line with its supervisory and regulatory
functions.

SEC. 15. 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 concerning territory covered by the franchise. the life span of the
franchise or the type of service authorized by the franchise: Provided, further, That the
foregoing shall not apply to sale, lease, transfer or grant of usufruct of legislative franchise
with prior congressional approval.

SEC. 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.

SEC. 17. Repeatability 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. 18. Publication. - This Act shall be published, through the initiative of the Grantee,
fifteen (15) days after this Act is signed by the President of the Philippines or has lapsed
into law.

SEC. 19. 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,