Zag? RESEN

Republic of the Philippines

HOUSE OF REPRESENTATIVES S
Quezon City 1 ATHMAR_0 5 2020 t
rimes_ [Alam
EIGHTEENTH CONGRESS
‘Second Regular Session
6494
HOUSE BILL NO.

Introduced by REP. PAOLO Z. DUTERTE, REP. ERIC G. YAP & REP. SANDRO L.
GONZALEZ

EXPLANATORY NOTE

‘The Mount Apo Science Foundation College, Inc. (MASFCI), formerly Mt. Apo Science
Foundation School and Mt. Apo Science Foundation Junior College, is a private higher
educational institution founded in 1959 and specializes in the field of agriculture. It
particularly offers a CHED-recognized Diploma in Agricultural Technology (DAT)
scholarship program for qualified less-privileged undergraduate students. All students enjoy
free tuition and board at the college.

‘The Mount Apo Science Foundation College, Inc. is a non-sectarian, private non-stock, non-
profit corporation with a campus located at Eden-Bayabas, Toril, Davao City and offices at
CC. Bangoy comer Palma Gil Street, Davao City .

The Corporation is divided into two (2) divisions, the Education Division, covering the
academic programs and activities of the College, and the Broadcasting Division, which
operates its radio network to augment the finances in operating the school.

The College’s radio network operates using the trade name Mt. Apo Broadcasting System
(MBS). It is engaged in radio broadcasting by virtue of the passing of R.A. 8085 into law on
July 6, 1995.

RECEIVED


It presently operates three (3) FM stations and One (1) AM station in Mindanao:

Stations Location Frequency
FM Stations:

DXKR-FM Davao City 95.5 MHz.
DXAY-FM Digos City 92.7 MHz.
DXAZ-FM Kidapawan City 92.9 MHz.

+ An application to operate an FM station in Tagum City is pending at the
National Telecommunications Commission (NTC)

AM Station:

DXUM-AM__ Davao City 819 KHz.

Mt. Apo Broadcasting System was granted a Congressional Franchise on June 21, 1969
under Republic Act 5803 authorizing Mount Apo Science Foundation School, Inc. to
establish, maintain and operate radio broadcasting and television stations in the Island of
Mindanao. The privileges of the franchise and the establishment of radio stations, however,
were not immediately realized due to broadcast restrictions brought about by the imposition
of Martial Law in 1972. In 1975, radio operations commenced upon the transfer of DXUM-
‘AM to MBS. In 1994, MBS applied for a new franchise filed by Hon. Elias B. Lopez. Said
bill became a law on July 6, 1995 as R.A. 8085 to expire twenty five (25) years later.

Under R.A. 8085, MBSI established the following broadcasting stations, all currently in
operation:

Radio Year
Station Started Location Status

DXUM 1995 Davao City Acquired from UMBN. In Operation.


DXKR 2009 Davao City Acquired from Exodus Broadcasting
Company, Inc. in 2009. In Operation.

DXAY 2017 Digos City Granted NTC PERMIT NO. BSD-0044-
2017. In Operation.

DXAZ 2017 Kidapawan City Granted NTC PERMIT NO. BSD-0045-
2017. In Operation.

‘* Application for FM Station in Tagum City still pending at the National Telecommunications
Commission

In order to retain the broadcasting privileges of the Mount Apo Science Foundation College,
Inc., the approval of this bill is earnestly sought.

a

HON. PAOLO Z. DUTERTE
15" Distrift, Davao City

SS

HON. ERIC G. YAP HON. SANDRO L. GONZALEZ
ACT-CIS Party-List MARINO Party-List


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

6494
HOUSE BILL NO.

Introduced by REP. PAOLO Z. DUTERTE, HON. ERIC G. YAP & HON. SANDRO L.
GONZALEZ

AN ACT
RENEWING THE FRANCHISE GRANTED TO THE MOUNT APO SCIENCE
FOUNDATION SCHOOL, INC., UNDER REPUBLIC ACT NO. 8085 ENTITLED “AN
ACT GRANTING THE MOUNT APO SCIENCE FOUNDATION SCHOOL, INC., A
FRANCHISE TO ESTABLISH, MAINTAIN AND OPERATE RADIO BROADCASTING
AND TELEVISION STATION IN THE ISLAND OF MINDANAO” 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 The Mount Apo Science Foundation School, Inc., hereunder referred to as the
grantee, its successors or assignees, under Republic Act No. 8170 entitled “AN ACT
GRANTING THE MOUNT APO SCIENCE FOUNDATION SCHOOL, INC., A
FRANCHISE TO ESTABLISH, MAINTAIN AND OPERATE RADIO
BROADCASTING AND TELEVISION STATION IN THE ISLAND OF
MINDANAO?, 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.


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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

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 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.


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The radio spectrum is a finite resource that is part of the national patrimony and the use
ge conferred upon the grantee by the State and maybe withdrawn
anytime after due process.

thereof is a pri

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
‘ges granted under this Act. Non-

acceptance, the grantee shall exercise the pri
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 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
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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 after the
completion of said transaction: Provided, further, That failure to report 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
provisions 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. Non-compliance therewith
shall render the franchise ipso 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 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.


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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 the 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
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,