RECEIVED
Republic of the Philippines DATE: ae
HOUSE OF REPRESENTATIVEB TV

Quezon City, Metro Manila
SEVENTEENTH CONGRESS
First Regular Session

BY!

RESSTR ITC
BILLS aNd ‘NOEX SE

HOUSE OF REPRESENTATIVES
House Bill No. 30€4

Introduced by Representative JORGE T. ALMONTE.

EXPLANATORY NOTE

‘The People’s Television Network, Inc. (PTNI) is the flagship government
television owned by the Philippine Government under the Presidential
Communications Operations Office (PCOO). It began operations on April 1974
as Government Television (GTV-4) and was later renamed Maharlika
Broadcasting System in 1980, when it began broadcasting in full color and
expanded nationwide

Following the People Power Revolution in 1986, the network was
renamed and rebranded as People’s Television (PTV), and thereafter functioned
under the guise of its legal framework - Republic Act 7306 — enacted in 1992.
Since then, PTV has been generating its own revenue as the law disallowed the
appropriation of funds for the network. Despite the lack of funds, nonetheless,
the network earned several awards from what it was able to broadcast sinc
then. However, like any other networks, it has to enhance its broadcasting
capabilities.

In March 2013, Republic Act 10390 revised the old Charter, stipulating
the reorganization of the network into PTNI, and infused P 5 billion to PTV to
regenerate the station.

Nevertheless, with its plans to rehabilitate PTV stations in other
provinces nationwide, and to continue its modernization program to be at par
with that of the BBC of UK, NHK of Japan, PBS of USA, amongst others, there
is an urgent need to update the existing PTV charter.

‘This bill, therefore, seeks to overhaul PTNI into the People’s
Broadcasting Corporation (PBC) and do the following: (a) include radio and 'TV
broadcasting in the charter; (b) assert the independence of the corporation; (c)
establish secondary broadcast hubs in the Visayas and Mindanao; (d) assure

HOUSE)F REPRESENTATIVES


annual appropriations for at least 10 yee
Bayan) to the corporation.

s; and (e) transfer the BBS (Radyo ng

In view of the foregoing, the immediate enactment of this measure is
carnestly sought.

\

HON. JORGE T. ALMONTE, ,
Representative "
First District, Misamis Occidental


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
SEVENTEENTH CONGRESS
First Regular Session

HOUSE OF REPRESEYAATIVES

House Bill No.

Introduced by Representative JORGE T. ALMONTE

AN ACT ESTABLISHING THE PEOPLE’S BROADCASTING
CORPORATION, ABOLISHING THE PEOPLE’S TELEVISION
NETWORK, INC., AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. - This Act shall be known as the “People’s
Broadcasting Corporation Charter”

TITLE I. INCORPORATION AND PURPOSE
SEC. 2. Declaration of Policies. ~ In recognition of the important role of

communication and information in nation building and of the broadcast
industry in it, it is hereby declared the policy of the State to:

(a) Fully develop communication structures suitable to the needs and
aspirations of the nation and in accordance with a policy that respects
the freedom of speech and of the pre

(b) Give priority to education, science and technology, arts, culture, and
sports to foster patriotism and nationalism, stimulate creativity,
ac ial progress, and promote total human liberation and
development;

(c) Develop the broadcasting industry as a medium for the development,
promotion, and advancement of Filipino nationalism, culture and
values that serve as an instrument in the struggle for Filipino identity,
national unity and integration;

(d) Harness the resources of the government and the private sector
towards a close, continuous, and balanced cooperation in order to
take advantage of technological advances in the broadcasting industry
and help deliver to the public the benefit of emerging communications



technologies and services;

c) Maintain a broadcast industry system that serves as a vital tool for
participative democracy and effective government information
dissemination through developmental communication, free from any
polit or partisan influence and directly accountable to the people;

() Encourage the development and broadcast of balanced programs
which feature, among others, educational, informational and
wholesome entertainment, culture, public affairs and sports; and

(g) Provide quality alternative programs for the benefit and moral
upliftment of the citizenry.

SEC. 3, Creation. ~ ‘There shall be created a body corporate to be called
“People’s Broadcasting Corporation” referred to as “PBC,” which shall engage in
radio and television broadcasting in the Philippines. PBC shall be a
government-owned and controlled corporation under a Board of Directors to be
appointed by the President of the Philippines.

SEC. 4. Independence. ~ PBC shall be independent in all matters concerning
the content of its output, the times and manner in which this is supplied, and
in the management of its affairs, subject to this charter and other laws.

SEC. 5. Corporate Existence. — The legal existence of PBC shall be for a
period of fifty (50) years from the effectivity of this charter.

SEC. 6. Domicile. — PBC shall have its principal office and domicile in the
Metropolitan Manila area. It shall also have secondary broadcast hubs in the
Visayas and Mindanao. Furthermore, it may establish offices, branches and/or
stations in any part of the Philippines as its Board of Directors may see fit.

‘The President, upon the recommendation of the Department of Environment
and Natural Resources and its agencies particularly the Land Management
Bureau and the National Mapping and Resource Information Authority, shall
identify and appropriate alienable and disposable lands for PBC to establish
and build its main broadcast center, its secondary broadcast hubs, and other
stations,

TITLE II - FRANCHISE AND LICENSE TO OPERATE

SEC. 7. Franchise Grant. — Subject to the provision of the Constitution, laws,
orders, decrees not inconsistent herewith, PBC is hereby granted a franchise to
construct, maintain and operate radio and television broadcasting stations and
satellite receiving and transmitting facilities in the Philippines for a period co-
terminous with the corporate existence of the PBC.


SEC. 8. License to Operate. ~ The National ‘Telecommunications Commission
(NTC) shall forthwith cause the issuance to PBC of the corresponding license
to operate upon compliance with all its requirements.

TITLE Ill. - POWERS AND FUNCTIONS

SEC. 9. Powers of PBC. ~ PBC shall have the following powers:

(a) to sue or be sued in its corporate name;

(b) to have continuous succession in its corporate name;
(c) to adopt and use a corporate seal;

(d) to adopt by-laws not contrary to law, morals, or
amend or repeal the
existing laws;

to acquire, purchase, receive, take or grant, hold, convey, sell, lease,
pledge, mortgage, and otherwise deal with such real and personal

r public policy, and to
ame in accordance with the provisions of

all, construct

ablish, purchase, in and maintain national,
regional, provincial and community stations and facilities for radio
and television broadcasting throughout and in any part of the
country;

(g) to enter into joint ventures or partnerships with other broadcasting
authorities and stations or international agencies or private
organizations for the purpose of promoting its broadcasting services;

(h) to raise, borrow or obtain funds, from any source, private or
government, foreign or domestic and to enter into any financial or
credit arrangements in order to support and carry out its objectives
and purposes, subject to the approval of the Monetary Board of the
Bangko Sentral ng Pilipinas upon the recommendation of the
Department of Finance and to other pertinent laws governing public
debt and expenditure;

(i) to receive donations and grants from any source whether local or
foreign and avail of official development assistance and concessional
loans provided by foreign governments, foundations, or financial
institutions;

() to enter into, make, perform, and carry out contracts of any kind and
description in furtherance of the corporate purpose with any person,
firm, association or corporation;

(k} to accept corporate institutional support for developmental programs
and to determine the conditions subject to which the said programs
may be accepted for television transmission; and

(I) to exercise the general powers outlined in the Corporation Code of the
Philippines, as well as such other incidental powers as may be

ary to carry on its activities.



SECTION 10. Functions. PBC shall have the following functions:

a) to serve primarily as a vehicle for the State for purposes of education,
information, entertainment, science and technology, arts, culture, and
sports in order to foster national pride and identity and a culture of
disaster preparedness and climate change adaptation;

b) to serve as a vehicle for bringing the government closer to the people
in order to enhance their awareness of the programs, policies, thrusts,
and directions of the government;

c) to ensure that the programs to be broadcast by PBC maintain a high
general standard in all respects, and in particular, in respect to their
content and quality and proper balance of educational, news, public
affairs, information, entertainment, and sports programs;

d) to serve as an effective outlet for alternative programming;

¢} to provide subsidized air time to legitimate people’s organizations and
non-government organizations in the promotion of their programs and
projects aligned with existing laws;

f} to serve as an effective medium for national unity and political stability
by reaching as much of the Filipino population as possible through the
effective use of modern broadcasting technology; and

g) to ensure that nothing is included in the programs broadcast by the
network which shall:

1) offend public morals, good taste, or decency;

2) offend any racial group or promote ill-will between different
races or different public groups, prescribing such programs as
would promote strictly partisan politics and propaganda;

3) offend the followers of any religious faith, sect, or order; or

4) outrage public feeling in general.

TITLE IV. - CORPORATE STRUCTURE

SEC. 11. The Board of Directors. — The corporate powers of PBC shall be
exercised, all its business conducted and all its property controlled and held by
the Board of Directors. The Board shall be composed of seven (7) members who
shall be appointed by the President of the Philippines from a shortlist prepared
by the Governance Commission for Government-owned and Controlled
Corporations (GCG). The Board shall be made up of the following:

(a) three (3) members from the government sector;

(b) three (3) members from the private sector, one (1) of whom shall have
at least ten (10) years of experience in the broadcast industry; and

(c) one (1) member from the educational sector.

The members shall elect from among themselves their Chairperson. They shall
meet at least twice a month to discuss matters of policy in order to effectively
carry out the provisions of this Act.


SEC. 12. Qualifications of the Members of the Board. ~ The members of the
Board shall be of proven and unquestionable probity, integrity, honesty,
impartiality, reputation, and with knowledge of the broadcast industry. They
shall not be, in any way, connected with any other broadcasting corporation or
hold any position that may conflict with their functions and duties as Directors
of PBC, A member who is later appointed to another government office or runs
for any elective position shall be deemed to have vacated membership in the
Board on the day of appointment or filing of candidacy, as the case maybe.

SEC. 13. Term of the Members of the Board. ~ ‘The term of office of each
director shall be for one (1) year subject to reappointment by the President.

SEC. 14, The Advisory Council. ~ Sixty (60) days from their appointment, the
Board of Directors shall prepare a list of its recommended nominees for the
members of the Advisory Council and which shall be submitted to the
Secretary of the Presidential Communications Office (PCO) for consideration
and approval. The nominees for Advisory Council shall be chosen from
associations and organizations representing various stakeholders from different
industries such as, but not limited to, cinema, culture and arts, print and
broadcast. ‘They shall serve a fixed term of one (1) year.

‘The Advisory Council shall be composed of seven (7) members with at least five
(5) years of wide experience and expertise in their respective fields of work. The
Advisory Council shall propose and recommend policies relating to the PBC’s
operation, programming, broadcasting, technical and creative production,
development and management, which shall be subject to the approval of the
Board of Directors.

The members of the Advisory Council shall e!
Chairperson,

t from among themselves a
‘The members of the Advisory Council shall render voluntary service to PBC. No
member shall be paid any honoraria, allowances and other personnel benefits.

SEC. 15. Functions and Duties of the Board of Directors. -The general
functions and duties of the Board of Directors shall be as follows

a) to carry out the provisions of this charter;

b) to exercise the corporate powers, and conduct all business of the
network;

c} to decide matters of policy; and

d) to submit to the President of the Philippines and Congress a
comprehensive annual report on the operation of PBC within the first
sixty (60) days of the fiscal year.



SEC.16. The General Manager. ~ The members of the Board shall elect from
among themselves a General Manager. He shall also be the Chief Operating
Officer of PBC, who shall be responsible for the proper administration and
management of PBC in accordance with the policies laid down by the Board
‘The General Manager shall be subject to the disciplinary powers of the Board
and may be removed by the Board for cause.

If the General Manager is absent, incapacitated by reason of illness, or for any
other cause temporarily unable to perform his duties, the Board of Directors
may designate an officer-in-charge to act in his place and stead during such
absence from duty.

SEC. 17. Powers and Functions of the General Manager. - Subject to the
control and supervision of the Board, the General Manager shall have the
following, powers and function:

a) submit policy recommendations and propose measures necessary to
carry out the objectives and functions of PBC for the consideration of
the Board;

b) recommend to the Board for approval an organizational structure and
plantilla for personnel of PBC, in accordance with existing laws, rules
and regulations

©) execute, administer and implement policies and measures approved by
the Board;

d) submit to the Board an annual budget and such supplemental
budgets as may be necessary for its consideration and approval;

e} represent PBC, its dealings with other persons, entities, agencies and
institutions, whether public or private, domestic or foreign, subject to
the limitations and conditions herein provided;

f) appoint, discipline or remove for cause, officers and personnel of PBC
in accordance with the Civil Service Law, rules and regulations;
provided that, all appointments shall subject to confirmation by the
Board; and

g) perform such other functions and duties which may be assigned to
him by the Board

TITLE V. - PROGRAM STANDARDS:

SEC. 18, General Program Standards, ~ The Board of Directors is mandated
to set up a Code of Standards, inclusive of the following aspects:

{a) Presentations of News;

(b) Public Affairs Programs and Commentaries;
(c) Public Service Program:
(d) Educational Programs;
(e) Children’s Programs;



{) Agriculture and Livelihood Programs;

g) Women and Youth Issues;

h) Locally-produced and foreign produced programs;

i) Trade, service and manufacturing industry programs

(j) Disaster preparedness and climate change adaptation programs; and
(k) Programs that inspire nationalism.

SEC, 19. Use of Blocktimers. ~ The use of blocktimers shall be allowed but
limited to education, information, sports, tourism, entertainment programs,
and such programs which promote public interest, subject to quality standards
set by the Board of Directors. PBC shall assume solidary liability with each of
the individual producers, for the content of all programs shown by blocktimers.

TITLE VI. - FINANCIAL PROVISIONS

SEC. 20, Capitalization. - ‘The authorized capital stock of PBC shall be Ten
Billion Pesos (P10,000,000,000.00) divided into ten million shares with par
value of One Thousand Pesos (P1,000.00) per share, which shall be subscribed
in full by the government.

Thereafter, Congress shall annually appropriate a subsidy for PBC at an
amount not more than the PBC’s annual net earnings for the previous year,
until the year 2027.

SEC. 21. Revenue Generation. — PBC shall be allowed to generate funds from
advertising and airtime sales in accordance with the policies and rates set by
the Board of Directors subject to existing laws. All fees or other revenue:
collected or received by PBC shall be retained by it and utilized solely for its
operations and capital expenditure program

SEC. 22. Exemption from Republic Act No. 7656. ~ As provided in Republic
Act No. 7656, the President, upon the recommendation by the Secretary of
Finance, may adjust the: percentage of PBC’s annual net earnings to be
remitted to the National Treasury: Provided, That the annual remaining
unremitted net earnings be used solely for its operations and capital
expenditures.

TITLE VII - ADMINISTRATIVE PROVISIONS

SEC. 23. Record of Transactions. - PC shall keep proper accounts and
to
and

records of all its transactions and affairs, and shall do all things necess
ensure that all payments made out of its money are correctly mad
properly authorized, and that adequate control is maintained over the ass
of, or in the ody of, PBC and the expenditures incurred by PBC. PBC shall
be subject to audit by the Commission on Audit.



‘TITLE VIII - TAX EXEMPTIONS

SEC, 24, Tax Exemptions on Importations. — The importations of equipment,
apparatus and materials to be actually, directly and exclusively used in the
operation of PBC, whether purchased from or donated by any foreign
government and/or private entity shall be free from the payment of any and all
forms of taxes, license fees and customs duties that may be levied upon them.
Such equipment and apparatus shall include cameras, TV monitors and
recorders, radio and TV transmitters, electronic tubes, editing machines, and
all such necessary equipment required for radio and television broadcasting:
Provided, That the subsequent importation of the equipment, apparatus and
materials shall be subject to review by the Department of Finance: Provided,
further, That in the event the equipment, apparatus and materials are sold to
non-tax exempt persons or entities, the buyers shall be considered the
exporters and who shall then be subject to tax.

SEC. 25. Gifts and donations of real and personal properties of all kinds to
PBC shall be exempt from donor’s tax and the same shall b considered as an
allowable deduction from the gross income of the donor in accordance with the
provisions of the National Internal Revenue Code of 1997, as amended:
Provided, That the allowable deduction shall be equivalent to one hundred
percent (100%) of the value of such donation: Provided, further, That the said
donation shall be used exclusively for the production of educational, cultural
and historical films and documentaries.

Valuation of assistance, other than the money, shall be based on the
acquisition cost of the property. Such valuation shall take into consideration
the depreciated value of property in case said property has been used.

TITLE IX. - EMPLOYEES OF THE NETWORK

SEC. 26. Civil Service Law Coverage for Employees. — The hiring,
appointment, employment, promotion, disciplinary control, and other terms
and conditions of the service of all employees of PC, and such other matt
affecting its employees shall be consistent with the provisions of the Civil
Service law, rules and regulations: Provided, however, That positions
considered as creative and artistic in nature shall be exempted from the
qualification standards and civil service eligibility requirements

SEC. 27. Salary Scale for Officials and Employees. - Pursuant to the
provisions of Republic Act No. 10149, the GCG shall develop a compensation
and position classification system which shall apply to all officers and
employees of PBC, subject to the approval of the President of the Philippines.



SEC. 28. GSIS Coverage for Employees. - All employees hired by PBC shall
be deemed members of the Government Service Insurance System (GSIS) for
the purpose of employee benefits.

TITLE X. - TERMINATION OF PTNI CHARTER AND ABSORPTION OF BBS
SEC. 29. The charter creating the People’s Television Network Inc. (PTN1) is

hereby terminated. Republic Act No. 7306, as amended by Republic Act No:
10390, is hereby repealed.

SEC. 30. The Bureau of Broadcast Services (Radyo ng Bayan)
Executive Order No. 297, series of 1987 is to be absorbed by PBC.

ted by

SEC. 31, Transition Clause. ~ All the powers, functions, assets and liabilities,
capital, accounts, contracts, and facilities pertaining to the People’s Television
Network Inc. (PTNI) and the Bureau of Broadcast Services, and all equipment
relating to radio and television broadcasting owned by the government shall be
transferred to the PBC.

SEC. 32. Organization of PBC. — Ninety (90) days from the approval of this
Act, the Board of Directors OF PBC is hereby empowered to reorganize the
former PTNI. For this purpose, the Board may abolish or create offices, transfer
functions, equipment, properties, records, and personnel, institute cost-cutting
and other related measures to carry out the said objectives, subject to the
provisions of Republic Act No. 10149, otherwise known as the “GOCC
Governance Act of 2011”: Provided, That any official or employee of the PTNI
who may be affected by reason of the reorganization authorized herein shall be
entitled to such benefits.

SEC. 33, Separation and Retirement Benefits. - In the event an employee is
separated by reason of reorganization, abolition, or creation of offices, or
institution of cost-cutting and other similar measures, the employee shall be
entitled to a separation benefit equivalent to one (1) month salary for every year
of service in the government: Provided, That the separated or displai
employee has rendered at least one (1) year of service at the time of the
effectivity of this CHARTER.

TITLE XI. - MISCELLANEOUS PROVISIONS

SEC. 34. Implementing Rules and Regulations. - Within ninety (90) days
from the effectivity of this Act, the Presidential Communications Office (PCO)
shall draft, the implementing rules and regulations of this charter in
consultation with the various stakeholders from government, and_ private
sectors.



SEC, 35, Separability Clause. ~ If any provision or part of this Act is declared
invalid or unconstitutional, the remainder shall not be affected thereby and
shall continue to be in full force and effect.

SEC, 36. Repealing Clause. ~ Republic Act No. 7306, as amended by Republic
Act No. 10390, and all laws, decrees, executive orders, administrative orders,
rules and regulations and other issuances or parts thereof inconsistent
herewith are hereby repealed, amended or modified accordingly.

fifteen (15) days after
circulation.

SEC, 37. Effectivity Clause. ~ This Act shall take e
its publication in two (2) national newspapers of general

Approved,