Republic of the Philippines

Hanse of Representatives

Quezon City, Metro Manila

16th Congress
Second Regular Session

‘House Bill No. 5320

Introduced by HON. EDGARDO ‘ERM’ RAMA MASONGSONG.

EXPLANATORY NOTE

AN ACT GRANTING THE ZAMBOANGA DEL NORT! STRIC
COOPERATIVE, INC, (ZANECO) A FRANCHISE TO CONSTRUCT, INSTALL,
ESTABLISH, OPERATE AND MAINTAIN RADIO BROADCASTING

STATIONS IN MINDANAO
‘This proposed bill intends to further enhance the information capability of the
Electric Cooperatives for the benefit of its thousands of members-owners-consumers,

When the electric cooperatives were formed in the early seventies, gathering of
members in a meeting or important occasion were not a problem, ‘The medium in
disseminating information has been done through the bayanihan spirit or word of mouth,
However, through the years, the members of an electric cooperative grew in thousands
fold. Reaching out to the members of cooperatives on important and urgent issues
especially during assemblies and gatherings has already become a big problem for both
the management and owners-consumers. Thus, to muster a large number of attendees in
their annual assemblies has then become a common problem among cooperatives,

‘The Zamboanga del Norte Electric Cooperative, Inc., (ZANECO) is one of the
growing corporate entity among the electric cooperatives in Mindanao that has been
experiencing difficulty in reaching-out to its members-consumers. To remedy the
situation, ZANECO endeavors to maximize the opportunity of using technology, such as
the installation and operation of a radio station, to communicate immediately with the
electric consumers in and outside its franchise area. ‘Through the radio station, it will
also be able to conveniently promote programs and services that would further improve
the social, economic, political and cultural conditions of the people.

Lastly, the installation and operation of the Radio Station that focused on electric
consumers’ issues not only shall boost ZANECO's service efficiency to its thousands of
‘member-owner-consumers but likewise promote cooperativism in Mindanao.

| therefore urge my colleagues for the early passage of this bill

EDGARDO ‘ERM’ RA\ |ASONGSONG.


Republic of the Philippines

House of Representatives

Quezon City, Metro Manila

16" Congress
Second Regular Session

House Bill No. 5320

AN ACT GRANTING THE ZAMBOANGA DE! RCTRIC
COOPERATIVE, INC. (ZANECO) A FRANCHIS| , INSTALL,
ESTABLISH, OPERATE AND MAINTAIN RADIO BROADCASTING
STATIONS IN MINDANAO.

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, there is hereby granted to the
Zamboanga del Norte Electric Cooperative, Inc, (ZANECO), hereunder referred to as the
grantee, its successors or assigns a franchise to construct, install, operate and maintain
for commercial purposes and in the public interest radio broadcasting stations in the
Philippines with the corresponding technological auxiliaries or facilities, special
broadcast and other program, distribution services and relay stations, and to install radio
communication facilities for the grantee's private use in its broadcast services

Section 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 right
to use its selected wavelengths or frequencies and the quality of transmission or
reception thereon as should maximize rendition of the grantee’s services and/or
availability thereof. In no way shall the operator of the grantee nor the radiated power of
its stations or facilities exceed that required to cover the area where it is allowed to
operate,

Seetion 3. Prior Approval of the National Telecommunications Commission (NTC).
The grantee shall secure from the 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 spectrum without having been authorized by the Commission. The
Commission, however, shall not unreasonably withhold or delay the grant of any such
authority

Section 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
reasonable acts.

Section 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 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 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 may be withdrawn
anytime after due process.

Section 6. Term of Franchise. ~ This franchise shall be for a term of twenty-five (25)
years from the date of effectivity of this Act, unless sooner revoked or cancelled. This
franchise shall be deemed ipso facto revoked in the event the grantee fails to comply
with any of the following conditions

(a) Commence operations within one (1) year from the approval of its operating
permit by the NTC;

(b) Operate continuously for two (2) years; and
(c) Commence operations within three (3) years from the effectivity of this Act,

Section 7. Acceptance and Compliance. ~ Acceptance of this franchise shall be given in
writing within sixty (60) days from the effectivity of this Act. Upon giving such
acceptance, the grantee shall exercise the privileges granted under this Act.
Nonacceptance shall render the franchise void.

Section 8. Bond. ~ The grantee shall file a bond issued in favor of the NTC which shall
determine the amount, to guarantee the compliance with and fulfillment of the conditions
under which this franchise is granted, If, after three (3) years from the date of the
approval of its permit by the Commission, the grantee shall have fulfilled the same, the
bond shall be cancelled by the Commission, Otherwise, the bond shail be forfeited in
favor of the government and the franchise ipso facto revoked.

Section 9. Seiregulation by and Undertaking of the 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; and willful failure to do so shall
constitute a valid cause for the cancellation of this franchise.


Section 10, Obligation of the Grantee, — Any person aggrieved by any remark, report,
statement, commentary or the like by a broadcaster using the same facilities of the
‘grantee shall have the right to reply in the same program or any other program the
aggrieved party may choose.

Section 11, Warranty in lavor of National and Local Governments, The grantee shall
not hold the national, provincial, city and municipal governments of the Philippines
liable from all claims, accounts, demands or actions arising out of accidents or injuries,
whether to property of to persons, caused by the construction or operation of the stations
of the grantee,

Section 12. Nontransferability of Franchise, ~ The grantee shall not lease, transfer,
grant the usuffuct 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 the controlling interest of
the grantee be transferred, whether as a whole or in parts and whether simultaneously or
contemporaneously, to any such 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 the same conditions, terms,
restrictions and limitations of this Act

Section 13. Equality Clause, ~ Any advantage, favor, privilege, exemption or immunity
granted under existing franchise, or which may hereafter be granted for radio and
television broadcasting, shall ipso facto become part of this franchise and shall be
accorded immediately and unconditionally to the herein grantee: Provided, however, That
the foregoing shall neither apply to nor affect 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.

Section 14, General Broadcast Policy Law. ~The grantee shall comply with and be
subject to the provisions of a general broadcast policy law, which Congress may
hereafter enact.

Section 15. Reportorial Requirement, ~ The grantee shall submit, an annual report to the
Congress of the Philippines on its compliance with the terms and conditions of the
franchise and on its operations within sixty (60) days from the end of every year.

Section 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.

Section 17. Repeatability 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

Section 18. Hffectivity Clause, ~ This Act shall take effect fifteen (15) days from the
date of its publication, upon the initiative of the grantee, in at least two (2) newspapers of
general circulation in the Philippines

Approved,