Republic of the Philippines
HOUSE OF REPRESENTATIVE
Quezon city
NINETEENTH CONGRESS
Second Regular Session
HoUSEBILLNo.          9426
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RECEIVED
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Introduced by HON. MANUEL JOSE M.  DALIPE and
HON.  MARCELINO C.  LIBANAN
EXPLANATORY NOTE
JOSE M. LUISON & SONS, lNC., including its flagship station DZME 1530 AM,
started  its  broadcast  on  June  15,  1968  in  Roosevelt Avenue,  Quezon  City,  Metro
Manila,  when  Congress  authorized  it to  operate  radio  and  television  broadcasting
stations jn the Philippines.
On July 16,1995, the corporation secured a renewal of its legislative franchise,
Republic Act No. 8132, entitled: ``AN ACT GRANTING JOSE M. LUISON & SONS,
INC., A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN FOR
COMMERCIAL     PURPOSES     RADIO    AND     TELEVISION     BROADCASTING
STATIONS IN THE PHILIPPINES."
ln 2009, as part of its expansion, the corporation transferred to its new office
and studio at the 5th Floor, Victory Central Mall, Monumento, Caloocan City.  There, it
started  to  establish  a  nationwide  operations  and  presence.  Due  to  its  expanding
market and  operations,  it  relocated  to  1802  0MM  Citra  Building  in  Ortigas  Center,
Pasig City, on November 14, 2013.
The corporation  has covered  significant events  in  Philippine  history,  from the
EDSA Revolution in 1986, the impeachment of President Joseph Ejercito Estrada and
the eventual installation of Gloria Macapagal-Arroyo as the new President on January
20,  2001  to various other political events that proved that democracy is alive in the
Philippines.  It has documented the rise of world-class Filipinos like Manny Pacquiao,
Lydia de Vega, Efren ``Bata" Reyes, EJ Obiena, Carlos Yulo and the first Olympic Gold
Medalist in Weightlifting Hidilyn Diaz in different sports events and from Gloria Diaz in
1969,  Margie  Moran  in  1973,  Pia Wurtzbach  in 2015 and  Catriona Gray in  2018 as
grand  winners  in  Miss  Universe  Pageant.  Likewise,  it  has  covered  the  landmark
calamities  that  hit the  Philippines,  including  Typhcon  Ondoy  in  2009  and  Typhoon
Yolanda in 2013.


As  of  June  2019,   JOSE   M.   LUISON   &  SONS,   lNC.   has   established   13
operational stations nationwide and  has  14 pending  applications before the  National
Telecommunications Commission,  waiting for the  issuance of Provisional Authorities
and Certificates of Public Convenience.   The  13 operational stations have generated
jobs in each respective areas of operation, ranging from regular on -air, technical and
support staff,  casuals  and  per-project talents to  media volunteers who are  likewise
given financial support.
A total of 27 station across the nation will be up and running by the end of 2023
up to the first quarter of 2024  based  on  roll-out  projection  to expand  the  network's
news gathering workforce, on top of the widening reach of public service.
We are certain that Jose M.  Luison & Sons,  lnc., will live up to its commitment
to  be  a  team  of  broadcast journalist  and  entertainers  that  upholds  the  broadcast
standards while leveling  up the  playing field  in the broadcast industry,  as its sterling
record has shown and continues to show.
Thus, the passage of this bill is fervently sought.
HON.
2ND  D|STRICT,  ZAMBOAN
MAJORITY FLOOR LEADER
4PS PARTY LIST
MINORITY FLOOR LEADER


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Second Regular Session
HOUSEBiLLNo.9426
Introduced by HON. MANUEL JOSE M.  DALIPE and
HON.  MARCELINO C.  LIBANAN
AN ACT
GRANTING    THE    JOSE    M.    LUISON    &    SONS,    lNC.,    A    FRANCHISE    TO
CONSTRUCT,  INSTALL,  ESTABLISH,  OPERATE  AND  MAINTAIN    RADIO  AND
TELEVISION STATIONS IN THE PHILIPPINES"
Be  it  enacted  by  the  Senate  and  House  of  Representatives  of the  Philippines  in
Congress assembled..
SECTION 1. Wafune and Scope of French/.se. - Subject to the provisions of
the Constitution and applicable laws, rules and regulations, there is hereby granted to
the Jose M. Luison & Sons, Inc., hereunder referred to as the Grantee, its successors
or  assignees,  a  franchise  to  construct,  install,  establish,  operate  and  maintain  for
commercial  purposes and  in  the  public interest,  radio  and  television  stations  in  the
Philippines, where frequencies and channels are still available for radio and television
broadcasting,   including  digital   radio  and  television  systems,   through   microwave,
satellite or whatever means, as well as the use of any new technology in  radio and
television  systems  with  the  corresponding  technological  auxiliaries  and  facilities,
special broadcast and other program and distribution services and relay stations.
SIC. 2. Manner Of Operation Of Stations or Facilities. - The sta[hons 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.


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
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 the revocation  of
the franchise for any violation of the provisions of this franchise.
SEC. 4.  Responsibility to the Public. - The Grantee shall prov.ide, +Tee Of
charge, adequate public service time which is reasonable and sufficient 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  captioning;  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 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%) of paid commercials or advertisements which shall be allocated
based on need to the Executive and Legislative branches, the Judiciary, Constitutional
Commissions,   and   international   humanitarian   organizations   duly   recognized   by
statutes:  Prov7.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%) of
the daily total  air time of each  broadcasting  network to child-friendly show within  its
regular programming.
SEC. 5. Rf.ghf of the Goyernmenf. - 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 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 these shall be so operated.


SEC. 6.  Term of Franchi.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 i.pso facfo revoked in the event the Grantee
fails to operate continuously for two (2) years.
SEC. i . 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,  but if any such 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: Provt.ded, That the Grantee, during any broadcast, shall cut off
the airing of 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  js  indecent  or  immoral:  Prov7.ded,  fuirfhe/  That  willful
failure to do so shall constitute a valid cause for the cancellation of this franchise.
SEC. 8. Warranty in Favor of the 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
causing injury to persons or damage to properties, during the construction or operation
of the stations of the Grantee.
SIC. 9. Commitment to Provide and Promote the Creation of Employment
Opporfunj-ti-es,  -  The  Grantee  shall  create  employment  opportunities  as  well  as
accept on-the-job trainees in the franchise operations:  Prow/.ded, That priority shall be
accorded  to  the  residents  of the  place  where  the  principal  office  of the  grantee  is
located:  Prov7.ded  fL7rfher,  That  the  Grantee  shall  comply  with  the  applicable  labor
standards and allowance entitlement under existing  labor laws,  rules and regulations
and  similar  issuances:  Provi.ded,  r7.na//y,  That the  employment  opportunities  or jobs
created  shall  be  reflected  in the General  Information  Sheet (GIS) to  be submitted to
Securities and Exchange Commission (SEC) annually.
SEC.  10.  Non-transferrabilify  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.   Provt.ded,  That  the  foregoing
limitation  shall  not  apply  to:  (a)  any  transfer or  issuance  of shares  to  any  investor
pursuant to or in connection with any increase in the grantee's authorized capital stock
which  shall  result  in  the  dilution  of the  stockholdings  of the  grantee's  then  existing
stockholders; (b) any transfer or sale of shares of stock to an investor or investors; (c)
any  sale,  transfer  or  assignment  by  the  stockholders  of the  grantee  in  favor  of  a
holding company whose stockholders are identical to the stockholders of the grantee;
(d) any combination thereof where such transfer, sale or issuance is effected in order
to enable the grantee to raise the necessary capital or financing for the provision of


any services authorized by this Act and/or carry out any of the purposes for which the
grantee  has  been  incorporated  or  organized.  Any  person  or  entity  to  which  this
franchise  is  validly  sold,   transferred   or  assigned,   shall   be  subject  to  the  same
conditions, terms,  restrictions and limitations of this Act.
SEC.11.  D/-spersa/  of OvmersAi.p.  -ln  accordance  with  the  constitutional
provision to encourage public participation in public utilities, the Grantee shall offer to
Filipino  citizens  at  least  thirty  pereent  (30%)  of  its  outstanding  capital  stocks,  or a
higher percentage that may hereafter be provided by law,  in any securities exchange
in the Philippines within five (5) years from the effectivity of this Act:  Prov/.ded,  That in
cases where public offer of shares  is  not applicable,  other methods of encouraging
public  participation  by  citizens  and  corporations  operating  public  utilities  must  be
implemented.  Noncompliance therewith shall render the franchise i.pso facfo revoked.
SEC.  12.  Raportori-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;  certification 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.13. Fine. -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 and the
same shall be remitted to the Bureau of the Treasury.
SEC.  14.  Equa//.fy C/ause.  -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: Provi.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.15. Repealability and Non-exclusivity clause. -This franch.ise 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. 16. Saparab/.//.fy C/ause. -lf any of the sections or provisions of this Act
is held invalid,  all other provisions not affected thereby shall remain valid.


SEC.    17.   Rapea//'ng   C/ause.   -All   laws,   decrees,   orders,    resolutions,
instructions,  rules  and  regulations,  and  other  issuances  or  parts  thereof which  are
inconsistent with the provisions of this Act are hereby repealed, amended, or modified
accordingly.
SEC.18. Effecfi.y7-fy. -This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.
Approved,