Republic of the Philippines LS pepe '
HOUSE OF REPRESENTATIVES i 3 REOn ED
Quezon City OAIE:
SEVENTEENTH CONGRESS

Second Regular Session
House sit no,_6097

Introduced by: REP. PROSPERO A. PICHAY, JR.

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 purp radio and television broadcasting stations in the
Philippines. " was granted 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.

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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.

PRO; A. PICHAY, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House BiLLNo. _6097

Introduced by: REP. PROSPERO A. PICHAY, JR.

AN ACT
RENEWING THE FRANCHISE GRANTED TO JOSE M. LUISON AND SONS, INC.
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. Renewal of Franchise — The franchise of Jose M. Luison and
Sons, Inc., its successors and assignees, hereinafter referred to as the grantee, to
construct, install, establish, operate and maintain for commercial purposes, radio and
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, or the use of any
new technologies in television and radio systems, with the technological auxiliaries
and facilities, special broadcast and other program and distribution services and
telay 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.

SEC. 3. Prior Approval of the National Telecommunications
Commission — The grantee shall secure from the National Telecommunications
Commission the appropriate permit and license for its stations and shall not use any
frequency in the radio/television spectrum without having been authorized by the
Commission. The Commission, 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,
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 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 the 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 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 Franchise — This franchise shall be in effect for a period of
twenty-five (25) years from the approval of this 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 shall render the franchise void.

SEC. 8. Tax Provisions — 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/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: Provided, That the grantee, its
successors or assigns, shall continue to be liable for income taxes payable under
Title Il 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. Public Ownership — \n 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. 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/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 this franchise.

SEC. 11. Warranty in Favor of National and Local Governments — The
grantee shall hold the national, provincial, city and municipal government 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. 12. Separability Clause- If any of the sections or provisions of this Act
us 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 lease, transfer, grant the usufruct of, sell or assign this
franchise or the rights and privileges acquired thereunder to any person, firm,
company, corporation or other commercial or legal entity, nor shall the controlling
interest of the grantee be transferred to any such private person, firm, company,
corporation or entity without the prior approval of the Congress of the Philippines.
Any person or entity to which this franchise is sold, transferred or assigned shall be
subject to all the same conditions, terms, restrictions and limitation of this Act.

SEC. 14. General Broadcast Policy Law - The grantee shall comply and be
subject to the provisions of a general broadcast policy law which Congress may
hereinafter enact.

SEC. 15. Repealability and Non-Exclusivity Clauses — 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 or privileges herein provided for.

SEC. 16. Effectivity - This Act shall take effect fifteen days following its
complete publication in at least two (2) newspapers of general circulation.

Approved,