Central Mindanao University (Franchise)

- ; Deltate TWENTIETH CONGRESS OF THE Office of the stretary } REPUBLIC OF THE PHILIPPINES First Regular Session } 25 NOV 19 P1:32 SENATE RECEIVED BY: S.B. No. 1544 Introduced by Senator Juan Miguel "Migz" F. Zubiri AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO CENTRAL MINDANAO UNIVERSITY UNDER REPUBLIC ACT NO. 9044, ENTITLED "AN ACT GRANTING THE CENTRAL MINDANAO UNIVERSITY A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN FOR EDUCATIONAL AND NONCOMMERCIAL PURPOSES RADIO AND TELEVISION BROADCASTING STATIONS IN CENTRAL MINDANAO UNIVERSITY, MUNICIPALITY OF MARAMAG, PROVINCE OF BUKIDNON" EXPLANATORY NOTE The Central Mindanao University (CMU) was granted a congressional franchise under Republic Act No. 9044 in March 2001, authorizing it to operate and maintain radio and television broadcasting stations for educational and non-commercial purposes. Since then, CMU has been duly licensed by the National Telecommunications Commission (NTC) to operate 5-kilowatt (5KW) AM and FM radio stations, serving listeners in the Province of Bukidnon and parts of the neighboring provinces of North Cotabato, Lanao del Sur, and Davao del Norte. Beyond its public service, news, and entertainment programs, CMU's broadcasting operations function as an effective educational platform for delivering instructional content and conducting training activities in collaboration with government agencies and local government units (LGUs). Among its flagship initiatives is the "School-on-the-Air Program," spearheaded by experts from CMU's College of Agriculture in partnership with the Department of Agriculture, which addresses the learning needs of farmers throughout the station's coverage areas. Given the persistent challenges of poor internet connectivity in certain communities within the region, CMU's television broadcasting also serves as a vital complement to its Distance Learning Education (DLE) programs. This medium ensures that high-quality instructional materials remain accessible to an unlimited number of participants, particularly in remote and underserved communities, without the need for internet access and at no cost to the public. This measure likewise reinforces the State's commitment to Article III, Section 7 of the 1987 Philippine Constitution, which guarantees the people's right to information on

matters of public concern. Through its broadcast services, CMU continues to uphold this right by providing accurate, relevant, and educational content that informs and empowers the public. As CMU's current franchise is set to expire in March 2026, this bill seeks to renew its congressional franchise for another twenty-five (25) years. The renewal will enable the university to sustain and further strengthen its educational and public service broadcasting, supporting the government's vision of inclusive education, informed citizenship, and national development. In view of the foregoing, the immediate passage of this measure is respectfully and earnestly sought. JUAN MIGUEL "MIGZ" F. ZUBIRI Senator

Senate TWENTIETH CONGRESS OF THE } ifice of the secretary REPUBLIC OF THE PHILIPPINES First Regular Session 25 NOV 19 P1:32 SENATE S.B. No. 1544 mamon. IV Introduced by Senator Juan Miguel "Migz" F. Zubiri AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO CENTRAL MINDANAO UNIVERSITY UNDER REPUBLIC ACT NO. 9044, ENTITLED "AN ACT GRANTING THE CENTRAL MINDANAO UNIVERSITY A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN FOR EDUCATIONAL AND NONCOMMERCIAL PURPOSES RADIO AND TELEVISION BROADCASTING STATIONS IN CENTRAL MINDANAO UNIVERSITY, MUNICIPALITY OF MARAMAG, PROVINCE OF BUKIDNON" 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

2 Constitution and applicable laws, rules and regulations, the franchise granted to Central Mindanao University, hereunder referred to as the Grantee, its successors or assigns, under Republic Act No. 9004, to construct, install, establish, operate and maintain for educational and noncommercial purposes and in the public interest, radio and television 6 broadcasting stations in Central Mindanao University, Municipality of Maramag, Province 7 of Bukidnon, where frequencies and/or channels are still available for radio and television broadcasting stations through microwave, satellite or whatever means, including the use of any new technologies in television and radio systems, with the corresponding technological auxiliaries and facilities, special broadcast and other program and distribution services and relay stations, is hereby renewed for another twenty-five (25) 12 years.

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

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.

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/television spectrum without having been authorized by the Commission. The Commission, however, shall not unreasonably 9 withhold or delay the grant of any such authority. In case of violation of the provisions of the franchise, the NTC shall have the 11 authority to revoke or suspend, after due process the permits or licenses it issued 12 pursuant to the franchise for any violation of the provisions of this franchise.

SEC. 4. Responsibility to the Public. - The Grantee shall provide, free of charge,

adequate public service time which is reasonable and sufficient to enable the government, through the said broadcasting stations or facilities, 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; assist in the function 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, to the detriment of the 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: Provided, 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 or station to child-friendly shows within its regular programming.

SEC. 5. Right of Government. - 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 10 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.

SEC. 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 operate continuously for two (2) years.

SEC. 7. 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 broadcasted from its stations, but if any such speech, play, act or scene, or other matter: Provided, That the Grantee, during any broadcast, shall cut off airing of the speech, play, act or scene, or other matter being broadcasted if the tendency thereof is to propose or incite treason, rebellion, or sedition; or other 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 the 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 damages to properties, during the construction or operation of the stations of the Grantee.

SEC. 9. Commitment to Provide and Promote the Creation of Employment

2 Opportunities. - 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 shall be forfeited in 7 favor of the government and the franchise ipso facto revoked.

SEC. 10. Sale, Lease, Transfer, Usufruct, or Assignment of Franchise. - The

9 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 such person, firm, company, corporation or entity without the prior approval of the Congress of the Philippines. The Grantee shall inform Congress, through the Office of the Speaker of the House of Representatives and the Office of the Senate President, of any sale, lease, transfer, grant of usufruct, or assignment of franchise of the rights and privileges acquired thereunder, or of the merger or transfer of the controlling interest of the Grantee, within sixty (60) days after the completion of the said transaction. Failure to report to Congress such change of ownership shall render the franchise ipso facto revoked. Any person or entity to which such 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 Obligation of Grantee. - In accordance with the

24 constitutional provision to encourage public participation in public utilities, the Grantee shall offer to Filipino citizens at least thirty percent (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: Provided, That in cases where public offer of shares is not applicable, other methods encouraging public 29 participation by citizens and corporations operating public utilities must be implemented. 30 Non-compliance therewith shall render the franchise ipso facto revoked.

SEC. 12. Reportorial Requirement. - 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 2 before April 30 of every year during the term of its franchise. The annual report shall include an update on the commencement of the 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 the Congress shall be required 9 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 One Hundred Pesos (Php100.00) per working day of non-compliance to the NTC. The fine shall be collected separately from the reportorial penalties imposed by the NTC, and it shall be remitted to the Bureau of Treasury.

SEC. 14. Equality Clause. - Any advantage, favor, privilege, exemption, or

immunity granted under existing franchises, or may hereafter be granted, shall ipso facto become part of previously granted telecommunications franchises and shall be accorded immediately and unconditionally to the grantees of such franchises: Provided, however, That the foregoing shall neither apply to nor affect provisions of telecommunications franchises concerning territory covered by the franchise, the life- span of 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

27 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 30 the provisions of this Act are hereby repealed, amended, or modified accordingly.

SEC. 18. Effectivity. - 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,