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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

5602

House Bill No.*

Introduced by TUCP Party-List
Rep. RAYMOND DEMOCRITO C. MENDOZA

EXPLANATORY NOTE

The Visayas Mindanao Confederation of Trade Union (VIMCONTU) is the only
broadcasting company in the country that is owned and managed by workers and
workers-union under the Associated Labor Unions - Trade Union Congress of the
Philippines. (ALU-TUCP). Its main function is to give voice to the Filipino workers
and establish communication avenue for issues affecting labor, workers’ rights and
other significant events that directly affect the lives of ordinary workers and ‘heir
families.

vINCONTU Operated its first radio station on September 21, 1967 by virtue of its first
franchise under Republic Act (R.A.) No. 4198. In 1995, VIMCONTU was again
granted a new and expanded franchise under RA 8116 to construct, install, operate
and maintain radio and television broadcasting stations within the Philippines.

VIMCONTU's track record of being committed to national development is
unquestionable. It has since established developmental communications in the
country. Its flagship station, DYLA, has been regarded as one of the most influential
media outlets and has won numerous news and public affairs awards including the
prestigious Cebu Archdiocesan Mass Media Award. In living its thrust as a news
and public affairs radio station, it has consistently provided reliable news and other
information to its listeners, especially in the Visayas and Mindanao. It likewise
operates a broadcast production training center that serves as a non-profit training
institution for mass communications and developmental communications interns.


The renewal of the franchise of VIMCONTU for another twenty-five (25) years will
ensure not only the continuation of the excellent news and public service it provides
but also the sustained empowerment of the workers.

In view of the foregoing, approval of this bill is earnestly sought.

DEMOCRITOT. MENDOZA


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 5602

Introduced by TUCP Party-List
Rep. RAYMOND DEMOCRITO C. MENDOZA

AN ACT
RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE
GRANTED TO VIMCONTU BROADCASTING CORPORATION UNDER
REPUBLIC ACT NO. 8116, ENTITLED “AN ACT GRANTING THE VIMCONTU
BROADCASTING CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL,
OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING
STATIONS WITHIN THE PHILIPPINES, AND FOR OTHER PURPOSES”

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
Constitution and applicable laws, rules and regulations, the franchise granted to
VIMCONTU Broadcasting Corporation, hereunder referred to as the grantee, its
successors or assignees, under Republic Act No. 8116, entitled “An Act Granting the
VIMCONTU Broadcasting Corporation a Franchise to Construct, Install, Operate and
Maintain Radio and Television Broadcasting Stations Within the Philippines, and For
Other Purposes’ to construct, install, establish, operate and maintain for commercial
Purposes and in the public interest, radio and television broadcasting stations,
including digital television system, through microwave, satellite or whatever means,
including the use of any new technology 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.


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SEC. 2. Manner of Operation of Stations or Facilities. — The existing and future
Stations or facilities of the grantee shall be constructed and operated in a manner
that will 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 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 construction and operation of its stations
and facilities and shall not use any frequency in the radio and 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 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. - 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. 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 national
security, public safety, and public welfare; or to authorize the temporary use and
Operation thereof by any agency of the government, upon due compensation to the

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grantee, for the use of said stations or facilities during the period when they shall be
So operated.

SEC. 6. Term of Franchise. — 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 jpso 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 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 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, 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

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or entity, nor 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. In case of sale, lease, transfer, grant of usufruct of, or
assignment of franchise or the rights or privileges acquired thereunder, or of the
merger or transfer of the controlling interest of the grantee, the Congress shall be
informed thereof within sixty (60) days after the completion of said transaction.
Failure to report to Congress such change of ownership shall render the franchise
ipso 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. 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 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 with this section shall render the franchise ipso facto revoked.

SEC. 12. 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. 13. Fine. - 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 the

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delinquent franchise grantee separate from the reportorial penalties imposed by the
NTC.

SEC. 14. Equality Clause. - Any advantage, favor, privilege, exemption, or
immunity which may hereafter be granted for radio and television broadcasting 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. 15. 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. 16. 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. 17. Effectivity. - This Act shall take effect fifteen (15) days after its
Publication in the Official Gazette or in a newspaper of general circulation.

Approved,