Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HOUSEBiLL`No.     5053
Introduced by Representatives MANUEL JOSE M. DALIPE and
MARCELINO C. LIBANAN
EXPLANATORY NOTE
DZME  started  its  broadcast  on  June  15,   1968  when  Congress  authorized
Capitol Broadcasting Center of Jose M. Luison and Sons,  Inc. to operate an AM radio
station nationwide.
In July  16,1995,  Republic Act No.  8132 entitled:  "An Act Granting Jose M.
Luison and Sons,  Inc„ a Franchise to construct,  install, operate and maintain
for  commercial  purposes  radio  and  television  broadcasting  stations  in  the
Philippines. " was enacted thereby creating numerous possibilities for DZME's growth
and expansion.
DZME transferred to its new home at the Victory Central  Mall  in  Monumento,
Caloocan City in 2009 from its long-time former studios in Roosevelt Avenue, Quezon
City  as  part  of its  plan  to  expand  operations.  Regional  affiliates  are  likewise  being
developed to bolster its nationwide presence.
Last November 14, 2013 to January 2014, some of the programs of DZME with
the exemption of its news casts were temporarily postponed and  replaced  by music
fillers due to technical  maintenance/upgrades of the  station  and  the transfer of the
studios from Victory Central Mall to OMM-Citra Building in Ortigas Center,  Pasig City,
in  preparation of the station's major relaunch as well as launching of new programs.
After Holy Week of 2015, the Radyo Uno brand (which was in use since 2004) was
phased out and rebranded as DZME Kinse Trenta (1530 AM). During the last quarter
of 2016, DZME reverted to its all news and commentary station with the launch of new
programming.
For almost four decades now,  DZME has made account of events happening
in and around the country.   It has recorded the successes and accomplishments as
well as the adversities of known personalities, groups and the government. From the
calamities and the coups and the financial crisis of the country to fiesta celebrations,
DZME never abandoned this role of bringing news and current events to the people.


DZME continues to chronicle our passion for better life and our desire for good
governance  by  offering  balanced  programming  that  targets  all  ages  and  society
groups.   DZME likewise provides sufficient public service time for the government and
the  population  to  communicate.     More  than  enlightenment  to  issues  and  current
events,  DZME also entertains with  its steamy showbiz tidbits and  sing  along  portion
featuring timeless classic hits and music billboard topnotchers.
DZME  now sports a  state- of- the-  art,  fully- digital  Harris  stereo transmitter.
Twenty-five  thousand  watts  of crystal-clear  signal  booms  20  hours  a  day  from  its
newly-constructed tower in Obando, Bulacan. The station's high-fidelity broadcast can
be heard from up north in Batanes to down south in Tawi-Tawi. An OFW in Hong Kong,
an oil  rig worker in  Brunei,  or a  professional  in Jakarta,  based  on  listener feedback,
can catch DZME broadcasts on their radio.
And with its roster of top caliber broadcast professionals in the industry today,
DZME promises to remain a station that can entertain as well as enlighten.
Thus, the passage of this bill is fervently sought.
MANUEL JOSE
2nd  District, Zamb
Representative
4PS Partylist


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HOusEBiLLrio.      5053
Introduced by Representatives MANUEL JOSE M. DALIPE and
MARCELINO C. LIBANAN
AN ACT
RENEWING THE FRANCHISE GRANTED TO JOSE M. LulsoN AND SONS, lNC.
TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN FOR COMMERCIAL
PURPOSES RADIO AND TELEVISION BROADCAST STATIONS IN THE
PHILIPPINES UNDER R.A. 8132 FOR ANOTHER TWENTY-FIVE (25) YEARS
FROM THE DATE OF APPROVAL OF THIS ACT
Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:
SECTION 1.  Renewa/  of  Franchi.se  -Subject  to  the   provisions   of  the
Constitution and applicable laws, rules and regulations, there is hereby granted to
Jose M. Luison and Sons,  lnc., hereinafter referred to as the Grantee,  its successors
and  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  the  Philippines,  where frequencies  and/or channels are still  available for
radio   and   television   broadcasting,    including   digital   television   system,   through
microwave, satellite or whatever means, as well as the use of any new technology in
television  and   radio  systems,  with  the  corresponding  technological  auxiliaries  or
facilities,  special  broadcast  and  other  program  and  distribution  services  and  relay
stations, is hereby renewed for another twenty five (25) years from the date of approval
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  privilege 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 availability thereof.
SIC. 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 construction and operation of its stations
or 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.
In case of any violation of the provisions of this franchise, the NTC shall have
the authority to revoke or suspend, after due process, the permits or licenses it issued
pursuant to the franchise.  The NTC may recommend to Congress of the Philippines
the revocation of the franchise for any violation of the provisions of this franchise.
SEC. 4.  Responsi'bi./i.fy to the Pub/i.c -The Grantee shall provide, adequate
public service time to enable the government,  through  the  broadcasting  stations or
facilities  of the  Grantee,  to  reach  the  pertinent  populations  or  portions  thereof,  on
important  public  issues  and  relay  important  public  announcements  and  warnings
concerning  public  emergencies  and  calamities,  as  necessity,  urgency,  or law  may
require;   provide  at  all  times  sound   and   balanced   programming;   promote   public
participation;  assist in  the functions of public information  and  education;  conform  to
the  ethics  of  honest  enterprise;  promote  audience  sensibility  and  empowerment
including closed  caption;  and  not use  its stations or facilities for the  broadcasting of
obscene or indecent language, speech, act or scene, 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.
Public service time referred herein shall be equivalent to a maximum aggregate
of ten percent (10°/o) of paid commercials or advertjsements which shall be allocated
based   on   the   need   of  the   Executive   and   Legislative   branches,   the   Judiciary,
Constitutional   Commissions,    and    international    humanitarian   organizations   duly
recognized by statutes: Provt.ded, That the NTC shall increase the public service time
in case of extreme emergency or calamity. The NTC shall issue rules and regulations
for this purpose, the effectivity of which shall commence upon applicability with other
similarly situated broadcast network franchise holders.
Pursuant  to   Republic  Act   No.   8370,   otherwise   known   as  the  "Children's
Television Act of 1997", the Grantee shall allot a minimum of fifteen percent (15°/o) of
the daily total air time of each broadcasting network or station to child-friendly shows
within its regular programming.
SEC. 5.   R/.ghf of the Govrernmenf -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 that may be withdrawn any time after due process.
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 during the period when these shall be so operated.
SEC. 6.   Term of French/.se -This franchise shall be in effect for a period of
twenty-five  (25)  years  from  the  effectivity  of  this  Act,  unless  sooner  revoked  or
cancelled.  This franchise shall be deemed t.pso facto revoked in the event the Grantee
fails to operate continously for two (2) years.


SEC.  7.   Acceptance and Camp/i.ance - Acceptance of this new 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.  Tar Proyi.si.ons - 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 or 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 and/or 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: Prov/.ded, That the Grantee, its successors or assigns,
shall  continue  to  be  liable  for  income  taxes  payable  under  Title  11  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   representatives,   in
accordance with the National Internal Revenue Code, and the return shall be subject
to audit by the Bureau of Internal Revenue.
SEC. 9.  Pub/i.a Ownershi.p -ln compliance with the constitutional mandate to
democratize  ownership  of  public  utilities,   the   herein  Grantee,   its  successors  or
assigns, shall continue to maintain its status as a publicly-held corporation.
SEC.10.   SelfLRegulation by and undertaking of Grantee -The Granlee
shall not require any previous censorship of any speech, play, act or scene, or other
matter to be broadcast from its stations, but if any speech, play, act or scene, or other
matter should  constitute  a violation  of the  law or infringement of a  private  right,  the
Grantee shall be free from any liability, civil or criminal, for such speech,  play,  act or
scene, or other matter: Prov/.ded, that the Grantee, during any broadcast, shall cut off
the airing speech, play, act or scene, or other matter being broadcast if the tendency
thereof is  to  propose  or  incite  treason,  rebellion,  or sedition;  or the  language  used
therein  or the  theme  thereof is  indecent  or  immoral:  Prov/.ded,  fL7rfher,    That willful
failure to do so shall constitute a valid cause for the cancellation of this franchise.
SEC.11.   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, liabilities, 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. 12.  Saparabi-/i.fy C/arse -  lf any of the sections or provisions of this Act
is held invalid, all other provisions not affected thereby shall remain valid.


SEC. 13.   Sale, Lease, Transfer. 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 the controlling  interest of the Grantee  be transferred,
simultaneously or contemporaneously, to any person,  firm,  company, corporation or
entity without the prior approval of the Congress of the Philippines.  The Grantee shall
inform Congress, through the Office of the Speaker of the House of Representatives
and  Office of the Senate President, of any sale,  lease, transfer, grant of usufruct, or
assignment of franchise  or the  rights and  privileges  acquired  thereunder,  or of the
merger or transfer of the controlling interest of the Grantee, within sixty (60) days after
the completion of the said transaction.  Failure to report to Congress such change of
ownership shall render the franchise i.pso facto revoked. 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.  14.   Reporfori'a/ Requi'remenf -The  Grantee shall  submit an  annual
report  on  its  compliance  with  the  terms  and  conditions  of the  franchise  and  on  its
operations 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 or before April 30 of every year during the term of its franchise.
The annual report shall include an update on the commencement of activities,
development,  operation,  and  expansion  of  business;  audited  financial  statements;
latest GIS officially submitted to the SEC,  if applicable; certificatjon of the NTC on the
status  of its  permits  and  operations;  and  an  update  on  the  dispersal  of ownership
undertaking,  if applicable.
The  reportorial  compliance  certificate  issued  by  Congress  shall  be  required
before any application for permit or certificate is accepted by the NTC.
SEC. 15.  Fi.ne -The failure of the Grantee to submit the requisite annual report
to  Congress  shall  be  penalized  by a  fine  of  Five  Hundred  Pesos  (Php500.00)  per
working day of noncompliance to the NTC. The fine shall be collected separately from
the reportorial penalties imposed by the NTC, and its shall be remitted to the Bureau
of Treasury.
SEC.16.   Equa//.fy C/ause -Any advantage,  favor,  privilege,  exemption,  or
immunity granted  under existing  franchises,  or which  may  hereafter be granted  for
radio and television broadcasting,  upon prior review and approval of Congress, shall
become part of this franchise and shall be accorded immediately and unconditionally
to herein  Grantee:  Prov/.ded,  That the foregoing  shall  neither apply to nor affect the
provisions of broadcasting franchises concerning territorial coverage, the term, or the
type of service authorized by the franchise.
SEC. 17.  Genera/ Broadeast Po/i.cy Law -The Grantee shall comply and be
subject  to  the  provisions  of  a  general  broadcast  policy  law  which  Congress  may
hereinafter enact.


SEC.18.   Repealability and Non-Exclusivity clauses -Th`is franch.ise 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.
SEC.  19.    Effectfvfty -    This  Act  shall  take  effect  fifteen  days  following  its
complete publication in at least two (2) newspapers of general circulation.
Approved,