“UUSE OF REPRESENTATL VES

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| RECENED
{ pare: 24 AUG 2016

Republic of the Philippines Te, om

HOUSE OF REPRESENTATIVES
Quezon City

RECISTR ATION UIT
BULLS AND Wai X SERVICE

Seventeenth Congress
First Regular Session

HOUSE BILL NO. 8243

Introduced by Representative JOEY SARTE SALCEDA

AN ACT EXTENDING THE FRANCHISE GRANTED TO JORGE BAYONA UNDER
REPUBLIC ACT NUMBERED 8158, ASSIGNING IN FAVOR FOR PBN BROADCASTING.
INC. AND RENEWING THE TERM FOR ANOTHER TWENTY-FIVE (25) YEARS FROM
THE DATE OF THE EFFECTIVITY OF THIS ACT

EXPLANATORY NOTE

PBN started its operation in 1958 as a cable-type station fondly called “Radyo Balagon” under
the banner of Bicol Wire Broadcasting System (BWBS). It was established by Mr. Jorge D.
Bayona when Legazpi City and the whole Province of Albay has no radio station. With the initial
success of “Radyo Balagon”, it established DZGB-am, an air cast radio station in 1960. Thus,
PBN pioneered local broadcasting in the Province of Albay.

Sometime in 1961, JORGE D. BAYONA, a Filipino citizen and a businessman from Legazpi
City, was granted, by virtue of Republic Act No 2937, a franchise to. operate a radio
broadcasting station in the Province of Albay.

On May 21, 1969, the Sixth Congress of the Republic of the Philippines enacted and approved an
amendatory law, otherwise known as Republic Act 5789, expanding its territorial area of
coverage from Albay Province to the entire Bicol Region and Southem Luzon, and enlarging its
area of operation to include television stations thereof for a period of twenty-five years from date
of operation of said stations, or until 1994,

DZGB-am proved to be the first in a string of AM stations. A music station was created and
subsequently named DZGB-am. In September of 1972, the late President Ferdinand E, Marcos
declared Martial Law. It was one of the darkest moments in broadcast history when all radio
stations and TV stations nationwide were shut down. PBN however emerged unscathed as
DZGB-am was immediately reopened after a day of closure followed by DZMD-am two days
later and DZMS-am after a week. This was an affirmation of PBN’s status as the most credible
network in the Bicol Region.

In 1987 DWGB-fm in Legazpi City was launched, operating side by side with DZGB-am, on
June 1995, PBN TV 6 was also formally launched. Inspired by the huge success of DWGB-fm in


Legazpi City, PBN decided to open another FM station in a more competitive market—Naga
City, on July 3, 1995.

On the same year, People’s Broadcasting Network has changed its corporate name to PBN
Broadcasting Network, Inc. with three (3) AM stations, two (2) FM stations and two (2)
television stations strategically positioned in the key cities and provinces in the region and
practically covers the entire Bicolandia

On September 23, 1995, the 10" Congress under RA 8158 granted Jorge Bayona and extension
of another twenty five (25) years to operate the PBN Broadcasting Network Inc, which sets to
expire on September 2020,

The grantee, for almost fifty years, has consistently demonstrated their unqualified and
uunstinted support to the ideals and policies of good government and has managed to maintain a
well-balanced radio programming in the advocacy of truth, honesty and integrity. With its
standard of excellence, the station never stops improving, innovating and keeping its pace in
terms of program development and quality broadcasting. Since time of its operation, PBN
remains loyal to its audience as it tirelessly hears out and responds to their concems, pains,
stories and giving its audience the latest news in real time and interesting features that is well
appreciated by most Bicolano Family. The station is the active partner of the Province of Albay
in all its activities, like disaster preparedness, climate change advocacy, tourism promotion,
health and social awareness, to name a few. It is_a recipient of different awards in broadcasting
and public service. These awards would speak clearly of its excellence public service the station
has shown throughout the years.

AWARDS & RECOGNITIONS ]

KAP Lifetime Achievement Award 2005
Mr. Jorge Bayona-Founding chalreer

BP best AM Station Nationwide (Provincial Category Yesrs 2000 8 2017

‘car Achlevemant Award 1900 * Constant Mo. # Al Station in Alby

‘10th KBP Golden Dove Awerd Finalist (Best Ft State)
Mine west Cormnerchaliy Produced OevCors Plu 2004



There is no doubt, therefore, that given the necessary incentive to grow and extension to operate,
the grantee would always be a partner of the government.

requested,

In view of the foregoing consideration, approval of the proposed Bill is

SARTE SALCEDA


Republic of the Philippines
HOUSE OF REPRESENTATIVES,

Quezon City

Seventeenth Congress
First Regular Session

HOUSE BILL NO. 3243

Introduced by Representative JOEY SARTE SALCEDA,

AN ACT EXTENDING THE FRANCHISE GRANTED TO JORGE BAYONA UNDER
REPUBLIC ACT NUMBERED 8158, ASSIGNING IN FAVOR FOR PBN BROADCASTING.
INC. AND RENEWING THE TERM FOR ANOTHER TWENTY-FIVE (25) YEARS FROM
THE DATE OF THE EFFECTIVITY OF THIS ACT

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. The term of the franchise granted to Jorge D. Bayona under Republic Act Numbered
8158 is hereby renewed to another twenty-five (25) years and is assigned to PBN Broadcasting
Network, Inc.

SECTION 2. Subject to applicable rules and regulations of the National Telecommunications
Commission, the grantee is hereby authorized to construct, maintain, establish, and operate radio
broadcasting and television stations in the Philippines, as well as fixed point-to-point and land-
based to sea mobile radio stations for the reception and transmission of radio communications
within the Philippines at such places as herein grantee may select.

SECTION 3. The President of the Philippines, in times of rebellion, public peril, calamity,
emergency, disaster or disturbance of peace and order, may temporarily take over and operate the
stations of the grantee, temporarily suspend the operation of any station in the interest of the public
safety, security and public welfare, or 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 they shall be so operated

SECTION 4. 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 which 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 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 II of the National Intemal 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 Intemal Revenue Code and the return shall be subject to audit by the Bureau of
Internal Revenue.

SECTION 5. The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise
or the rights and privileges acquired there under to any person, firm, company, corporation or
entity, nor merge with any other corporation or entity without the prior approval of the Congress
of the Philippines. Neither shall the controlling interest in the grantee be transferred, whether as a
whole or in parts and whether simultaneously or contemporaneously, to any such private person,
firm, company, corporation or entity without the prior approval of the Congress of the Philippines,
except when the transfer is done

(a) through a stock exchange transaction;
(b) for purposes of qualifying persons for election to the board; and
(c) to a corporation that is controlled by the same stockholders as that of the grantee
Any person or entity to which this franchise is validly sold, transferred or assigned shall be subject
to all the same conditions, terms, restrictions and limitations of this Act.

SECTION 6, The franchise hereby granted 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 7. In the event of any competing individual, partnership, or corporation receiving from
Congress a similar franchise in which there shall be any term or terms more favorable than those
herein granted or tending to place the herein grantee at any disadvantage, then such term or terms
shall ipso facto become part of the terms hereof and shall operate equally in favor of the grantee
as in the case of said competing individual, partnership or corporation

SECTION 8. 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 9. This Act shall take effect fifteen (15) days from the day of its publication in at least
two (2) newspapers of general circulation in the Philippines.

Approved,