Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 5632

Introduced by REPS. KARLO A. B. NOGRALES and JERICHO JONAS B. NOGRALES

EXPLANATORY NOTE

The University of Mindanao, formerly the Mindaneo Colleges, was established on
July 26, 1946. by a group of businessmen led by the iate Atty Guillermo E. Torres. It
was authorized by the Secretary of Education to offer courses in Commerce, Liberal
Arts, Education, Radio, Law, Engineering, High School and complete primary
grades. The Mindanao Colleges attained its University status on December 21,
1965 where it was renamed the University of Mindanao. ¥

The University of Mindanao is a non-sectarian, private stock corporation operating in
Davao City, with eight (8) branches and campuses in Davao City and the provinces
of Davao del Sur and Davao del Norte. The University corporation is divided into two
(2) divisions, the Education Division covering the academic programs and activities
of the University and the Broadcasting Division which operates its radio network.

The University of Mindanao is one of the leading private Higher Education Institution
(HE!) in Mindanao. It has one of the largest student population for a private HEI in
the country. It is recognized by the Commission on Higher Education (CHED) as an
Autonomous institution and was awarded three (3) Centers of Excellence (COE) and
Seven (7) Centers of Development (COD). UM is committed to Quality Assurance
achieving the most number of Academic Programs accredited by the PACU-COA,
next to the University of Santo Tomas. It was also granted an ISO 9001:2015
certification by the SGS.

The University’s radio network operates using its trade name the University of
Mindanao Broadcasting Network (UMBN). It is one of the pioneering radio
companies in Mindanao and in the country, starting radio broadcasting with DXMC-
AM in 1950 by virtue of RA 514 dated June 10, 1950.

It presently operates twelve (12) AM and FM radio stations in the Visayas and
Mindanao:

Stations Location Frequency
FM Stations:

DXBB-FM Butuan City 98.5 MHz.
DYCD-FM Cebu City 103.5 MHz.

DXWT-FM Davao City 92.3 MHz.


DXW2Z-FM Cagayan de Oro City 94.3 MHz.

DXRT-FM Gen. Santos City 99.1 MHz.
DYWT-FM lloilo City 105.9 MHz...
DXIL-FM lligan City 103.1 MHz.
DXWB-FM Valencia, Bukidnon 92.9 MHz.
AM Stations:

DXDS-AM Digos, Davao ei Sur 1161 khz.
DXCM-AM Kidapawan City 1089 khz.
DXDN-AM Tagum, Davao del Norte 801 khz.
DXMV-AM Valencia, Bukidnon 1134 khz.

UMBN pioneered and commenced radio operation in 1950 after it was granted a
Congressional Franchise under Republic Act 514 dated June 10, 1950 authorizing
the establishment of DXMC-AM radio station in Davao for commercial and
educational purposes. It was the first radio station in Davao City.

R.A. 514 was amended by R.A. 18320n June 22, 1957 authorizing the
establishment of radio broadcasting stations*in the Philippines for commercial and
educational purposes. R.A. 1832 established UMBN as a radio network and
expanded its radio stations in various key cities in the island of Mindanao in the
1950s and 60s..

In 1987, under the new Philippine Constitution, UMBN applied for a new franchise
filed by Hon. Jesus G. Dureza.~ Said bill beoame a law September 25, 1995 as RA.
8170 to expire twenty five (25) years later.

Under R.A. 514, 1832 and 8170, UMBN established the following radio broadcasting
Stations:

Radio Year

Station Started —_Location Status

DxMc 1950 Davao City Converted into FM station DXWT-
FM. In Operation.

DXUM 1957 Davao City Closed during Martial Law. Sold to
MASFI in 1975

DXCM 1959 Cotabato City Transferred to Kidapawan City in
2009. In Operation.

DXMV 1960 Cotabato City Transferred to Valencia, Bukidnon in
1987. In Operation.

DXMM 1963 Davao City Closed during Martial Law. Never
reopened.

DXMZ 1964 Gen. Santos City Converted into FM station DXRT-FM
In 1992. In Operation

DXRZ 1964 Zamboanga City Sold to Radio Mindanao Network in

1992


DXMO 1965

DXRC 1965

DXMI 1966 lligan City
DXDS 1967

DXDN 1967

DYCD-FM 2000 Cebu City
DYWT-FM 2001 lloilo City

Cagayan de Oro

Malaybalay, Bukidnon

Digos, Davao de! Sur
‘Tagum, Davao del Norte

Converted into FM station DXWZ-FM
In 1991. In Operation.

Closed during Martial Law.
Equipment were donated to AFP
Southern Command in 1973 as
DXSC, Zamboanga City

Converted into FM station DXIL-FM
In 1992. In Operation

in Operation

In Operation

In Operation

In Operation

Presently, UMBN owns and operates the following radio stations:

Stations Location Frequency
FM Stations:

DXBB-FM Butuan City 98.5 MHz.
DYCD-FM Cebu City 103.5 MHz.
DXWT-FM Davao City 92.3 MHz. ss
DXWZ-FM Cagayan de Oro City 94.3 MHz.
DXRT-FM Gen. Santos City 99.1 MHz.
DYWT-FM lloilo City 105.9 MHz..
DXIL-FM lligan City 103.1 MHz.
DXWB-FM Valencia, Bukidnon 92.9 MHz.
AM Stations:

DXDS-AM Digos, Davao el Sur 1161 khz.
DXCM-AM Kidapawan City 1089 khz.
DXDN-AM Tagum, Davao del Norte 801 khz.
DXMV-AM Valencia, Bukidnon 1134 khz.

In order to retain the broadcasting privileges of the University of Mindanao, the

approval of this bill is earnestly sought.

KARLO A. B. NOGRALES.

JERICHO Ji NOGRALES


©eNaneawne

REBERES

16
7

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 5632

-]SS ss

Introduced by REPS. KARLO A. B. NOGRALES and JERICHO JONAS B.
NOGRALES

AN ACT
RENEWING THE FRANCHISE GRANTED TO UNIVERSITY OF MINDANAO UNDER
REPUBLIC ACT NO. 8170 ENTITLED “AN ACT GRANTING THE UNIVERSITY OF
MINDANAO A FRANCHISE TO CONSTRUCT, ESTABLISH, MAINTAIN AND
OPERATE RADIO BROADCASTING STATIONS IN THE PHILIPPINES AND FOR
OTHER PURPOSES” FOR ANOTHER TWENTY-FIVE (25) YEARS FROM THE
EFFECTIVITY OF THIS ACT

Be it enacted by the Senate and 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 University of Mindanao, hereunder referred to as the grantee, its successors
or assignees, under Republic Act No. 8170 entitied “AN ACT GRANTING THE
UNIVERSITY OF MINDANAO A FRANCHISE TO CONSTRUCT, ESTABLISH,
MAINTAIN AND OPERATE RADIO BROADCASTING STATIONS IN THE
PHILIPPINES AND FOR OTHER PURPOSES", to construct, install, establish, operate,
and maintain for commercial purposes and in the public interest, radio and/or television
broadcasting stations, 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 any technologies in television and
radio systems with the corresponding technological auxiliaries and facilities special
broadcast and other program and distribution services and relay stations in the
PHILIPPINES, 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 or operated in a manner as will, at most, result only


onewne

~

10
u
12

13
14
15
16
17
18
19
20
2

22
23
24
25
26
27
28
29

31
32

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 on Privilege
to use its assigned wavelengths or frequencies and the quality of transmission or
reception thereon 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 Commissions (NTC) the
appropriate permits and licenses for the construction and operation of its station and
facilities and shall not use any frequency in the radio/television spectrum without
authorization from the NTC. The NTC, however, shall not unreasonably 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 station or
facilities, to reach the population on important issues; provides at all times sound and
balanced programming; assist in the functions of public information and education;
conformed 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 and 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 its 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 maybe
withdrawn anytime after due process.


Bwne

eoorva]an

10

n
12
13
14
15
16
17
18

19
20
21
22
23

24
25
26
27
28
29
30
31
32
33

SEC. 6. Term of Franchise. ~ This franchise shall be in effect for a period of
twenty-five (25) years from the effectivity of the Act, 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 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 shalll 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 to be 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 these
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 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 lease, transfer, grant the usufruct of, sell 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 of the grantee, whether as a whole or parts,
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 the
usufruct of, or assignment of franchise or the rights or privileges acquired under, or the
merger, or the transfer of the controlling interest of the grantee, within sixty (60) days

3


weuwne

Caorua

10
1
12
13
4

15
16
7

19
20
21
22
23
24

25
26
27

29

30

31
32

after the completion of said transaction: Provided, further, That failure to report
Congress such change of ownership shall render the franchise jpso 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
Provisions to encourage public participation in public utlities, the grantee shall offer to
Filipino citizens at least thirty 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
shalll render the franchise jpso facto revoked.

SEC. 12, General Broadcast Policy Law. — The grantee shall comply with and
this 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 Franchise of
the House of Representative 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 ofits franchise. The reportorial compliance
certificate issued by Congress shall be required before any application for permit or
certificate is accepted by the NTC.

SEC. 14. 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
(P500.00) per working day of noncompliance. The fine will be collected by the NTC from
{he delinquent franchise grantee separate from the reportorial penalties imposed by the
NTC.

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

4


ewne

10

11
12

123
14

15

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

Approved,