Republic of the Philippines
HOUSE OF REPRESENTATIVES Te ‘
» RECEIVED

Quezon Giy © sg, O5 SEP 2017

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO®334

Introduced by Representative Manuel Jose M. Dalipe

EXPLANATORY NOTE

The DXZB-TV 13 Cooperative for Service of Zamboanga, is a service
cooperative officially sanctioned by the Cooperative Development Authority (CDA)
Region IX, and presently engaged in the business of radio and television broadcasting
‘on commercial purposes with operational authority issued by the National
Telecommunication Commission (NTC). Its members are all Filipino citizens of
proven experience, competence and integrity in the field of radio and television
broadcasting.

The Cooperative's development program advances the principle of service to
the people. Consequently, its vision and program basically seeks to be informative,
strengthening positive Filipino values, and supportive of national programs in the
homes of Zamboanguefios and Basilefios thereby gaining a strong foothold with the
listening and viewing public.

The public good and development of the Philippines broadcasting industry will
be better served by the approval of this measure granting DXZB-TV 13 Cooperative
for Service of Zamboanga a legislative franchise to establish, maintain and operate
radio and TV station.

This bill is a refiled bill under House Bill Nos. 6106 and 5664 of the Fifteenth
and Eleventh Congress, respectively.

Be:

MANUEL JOSE [PE
2nd District, ZampgangA City



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SEVENTEENTH CONGRESS
‘Second Regular Session

HOUSE BILL No. 6334

Introduced by: Representative Manuel Jose M. Dalipe

AN ACT
GRANTING THE DXZB-TV 13 COOPERATIVE FOR SERVICE OF ZAMBOANGA A
FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, MAINTAIN AND OPERATE
RADIO AND TELEVISION STATIONS IN WESTERN MINDANAO, REGION IX, AND
FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines
in the 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
DXZB-TV 13 Cooperative for Service of Zamboanga, its successors, or assignees, a
franchise to construct, install, establish, operate and maintain for commercial
purposes and in the public interest, radio and television broadcasting stations in
Western Mindanao, Region IX including digital television system through microwave,
satellite or whatever means, or the use of any new technologies in television and radio
system, with the corresponding auxiliary, special broadcast and other program and
distribution services and relay stations, and to install radio communication facilities
for the grantee’s private use in its broadcast services for a period of twenty-five (25)
years from the 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 (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/or television spectrum


without authorization from the NTC. The NTC, however, shall not unreasonably
withhold or delay the grant of any such authority.

The grantee shall not dispose nor lease its facilities except to entities with
radio or television franchise: Provided, That the grantee shall inform and secure
written authorization to proceed from the NTC, and report the transaction to the NTC
within sixty (60) days after its completion: Provided, further, That the NTC shall
determine the corresponding sanction for any violation of this provision.

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; promote public participation such as in
community programming; assist in the functions of public information and education;
conform to the ethics of honest enterprise; and not use its stations or facilities for the
broadcasting of obscene and indecent language, speech, act or scene or for the
dissemination of deliberately false information or willful misrepresentation, or 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 serious 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 the stations or
facilities 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, 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) Commence operations within three (3) hears from the effectivity of this
Act; and

(©) Operate continuously for two (2) years.

SEC. 7. Bond. - The grantee shall file a bond with the NTC, in the amount that
the NTC shall determine, to guarantee 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 NTC, the grantee shall have fulfilled the same,
the bond shall be cancelled by the Commission. Otherwise, the bond shall be forfeited
in favor of the government and the franchise ipso facto revoked.



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, 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 assignees and the said percentage shall be in lieu of all taxes on this
franchise or earnings thereof: Provided, That the grantee, its successors or assignees
shall continue to be liable for income taxes payable under Title II 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 representative in
accordance with the National Internal Revenue Code and the return shall be subject
to audit by the Bureau of Internal Revenue.

SEC. 9. Self-regulation 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 and/or telecast from its stations; but if any 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 from its stations: Provided, That the grantee during any
broadcast and/or telecast, shall cut off the airing of speech, play, act or scene or other
matter being broadcast and/or telecast 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. 10. Warranty in Favor of the National and Local Government.- 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 accident or injuries,
whether to property or to persons, caused by the construction or operation of the
stations of the grantee.

SEC. 11. Sale, Lease, Transfer, Grant of Usufruct or Assignment 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 or 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 part, and whether simultaneously or contemporaneously ,
to any such private person, firm, company, corporation or entity without the approval
of the Congress of the Philippines: Provided, That any person or entity to which this
franchise is sold, transferred or assigned shall be subject to all the same conditions,
terms, restrictions, and limitations of this Act.

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 operation
on or before April 30 of every year during the term of the franchise.

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 separately by the NTC
distinct from the penalties it imposes for non-compliance of its reportorial
requirements.

SEC. 14, Equality Clause. - Except for taxes and customs duties, any advantage,
favor, privilege, exemption, or immunity granted under existing franchise, 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 not apply to nor affect provisions of broadcasting franchises concerning
territory covered by the franchise or the type of service authorized by the franchise.

SEC. 15. 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. 16. Separability Clause. - If any of the sections or provisions of this Act is
held invalid, all the other provisions not affected thereby shall remain valid.

SEC. 17. Repealing Clause. - All laws, decrees, orders, resolutions, instructions,
rules and regulations, and other issuances, or parts thereof which are inconsistent
with the provisions of this Actare hereby repealed, amended, or modified accordingly.

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.