Senate Bill No. 325 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The overwhelming presence of media in all aspects of our lives can no 
longer be underestimated. Its pervasiveness has propelled media-exposed 
personalities into positions of power, helped shaped the political agenda of both 
the government and its people, and influenced the thoughts and actions of the 
public far greater than educational institutions, the church, and even our very 
homes. 
However, despite the increasing acceptance of broadcast media - whether 
radio or television - as a powerful tool with enormous potentials to aid economic, 
social, cultural and educational development, policies still have to be put in place 
and implemented in order to create an environment suitable for an effective and 
responsive broadcasting system in our country. 
With the continuing economic crisis, there is even a more urgent need to 
utilize new and innovative approaches in the use of broadcasting for national 
development in order to help alleviate the perennial problems of lack of schools, 
qualified teachers, textbooks and learning materials. At present, broadcasting's 
potency, persuasiveness and vast audience have not been harnessed, 
developed and exploited in promoting distance learning and continuing education 
programs for adults and out-of-school youths. Neither has it been effectively 
harnessed in popularizing and propagating artistic expressions for the purpose of 
hastening cultural development. 
As such, this proposed measure calls for the establishment of a public 
broadcasting system as an alternative to the commercial system in the 
Philippines. A system that will be truly responsive to the diversified needs and 
interests of the people, with a concept of programming that caters to the 
broadcast interest of all segments of the public, to the majority as well as the 
minorities and the marginalized. An independent system that creates and 
maintains some distance between its founders or owners and its programming, 
with decentralized and self-sustaining local stations which decide suitable 
programs for their communities. A system that is not motivated by profit, but one 
mainly concerned with providing the best, high quality programs to meet and 
serve the public, help shape aititudes, mold opinions, inspire action, and 
contribute to the enhancement of national unity and development. 
Such a system, if adopted, can definitely help the government in its 
democratization efforts and in bringing about political, social and economic 
siability in the country. Most progressive countries operate public broadcasting 
systems along side private or commercial systems, thereby providing for a more 


balanced service. There is no reason why the Philippines should not take the 
opportunity to start operating such system. Doing so would be a fulfillment of the 
government's moral obligation and social responsibility of helping direct the 
devefopmenf of mass meuia along fhe lines of service and responsibility. 
In view of the foregoing, the immediate approval of this bilr is earnestry 
sought. 
U 
Senator 


FOURTEENTH CONGRESS OF THE REPUBLIC 
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7 
JLIL -2 
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OF THE PHILIPPINES 
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First Regular Session 
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S E N A T E  
Senate Bill No. 325 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
ESTABLISHING THE PHILIPPINE PUBLIC BROADCASTING SYSTEM, AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER 1 
GENERAL PROVISIONS 
SECTION I. Tit/e. This Act shall be known as the "Philippine Public 
SEC 2. Dec/amtion of Policies. In consonance with the Constitutional 
recognition of the vital role of communication and information in nation building, 
and the important aspect played by the broadcasting industry, it is hereby 
declared as the policy of the State to 
a) Seek for the full development of Filipino capabilities, the emergence of 
communication structures suitable to the needs and aspirations of the 
nation and the balanced flow of information into, out of, and across the 
country, in accordance with a policy that respects the freedom of 
speech and of the press. 
b) Make available to the people an efficient and nationwide broadcasting 
service with adequate facilities to serve the people's needs. 
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 sovereignty, 
identity, national and integration. 
d) Harness, in the most effective and least burdensome manner, the 
resouws of the government and the private sector toward a close, 
continuous and balanced cooperation in order to take advantage of 
technological advances in the broadcasting industry. 
e) Maintain a broadcasting system that shall serve as a vital link for 
democratic participation and effect the government's objective of 
Broadcasting System Act of 2007" 
L' 


information dissemination through developmental communication 
which is free from any political or partisan influence and held 
accountable directly to the people. 
9 Encourage the production and broadcast of programs of a high general 
standard in all respects particularly regarding their content and quality; 
and the proper balance of educational, entertainment, news, cultural, 
public affairs and sports program, discussing wide range of subject 
matter. 
SEC 3. Creafion of fhe Philippine Public Broadcasting System. There is 
hereby created the Philippine Public Broadcasting System, hereinafter referred to 
as the PPBS, an attached agency to the Office of the President, and shall be 
governed by the provisions of this Act. The PPBS is hereby mandated to 
exercise fiscal and administrative autonomy in the pursuit of its objectives and 
purposes. 
The principal office of the PPBS shall be located within the 
Metropolitan Manila area. 
SEC 4. Sfafemenf of Objecfives and Purposes. The PPBS shall provide 
television and radio broadcasting services for the dissemination of information, 
education, and entertainment to the general public and the development of 
critical thinking among citizenry. 
It shall serve as an independent and 
autonomous vehicle of government in order to bring it closer to the people and 
enhance the awareness of the general public on the programs, policies, and 
direction of the government. 
To this end, it shall work towards a national allocation of its broadcast 
resource in order to develop, disseminate and preserve Filipino culture by 
fostering a sense of national integrity and pride. 
SEC 5. Duties of the PPBS. It shall be the duty of the PPBS: 
a) To ensure that it will exercise the highest standard of independence 
and autonomy in handling issues and views expressed in all broadcast 
stations. 
b) To ensure that the programs broadcast shall contain and maintain 
a high standard of excellence in their content and quality, including the 
proper balance of education, entertainment, news, public affairs and 
sports programs, with a wide range of subject matter. 
c) To ensure that nothing is included in the programs broadcast by the 
PPBS which shall: (1) offend against morals, good taste, or decency; 
2) offend any raciallethnic group or may promote ill between different 
public groups; (3) offend the followers of any religious faiths, sects, or 
orders; andlor (4) may outrage public feelings in general. 
d) To include and encourage the participation of the widest number of 
Filipino talents or artist from all sectors or society ensuring the widest 
dissemination of Filipino cultural artistic works. 
CHAPTER II 
POWERS AND STRUCTURE 


SEC 6. Powers of the PPBS. In order 
to accomplish the foregoing 
purposes and duties, the PPBS shall be vested with the following powers: 
a) To establish, install, use, and maintain national, regional, provincial 
and community-stations for television and radio broadcasting 
throughout and any part of the country; 
b) To provide, equip, and maintain studios and other premises for 
television and radio production and broadcasting purposes; 
c) To accept advertising materials for television and radio broadcasting 
upon payment of such charges as may be determined from time to 
time by the PPBS, and to determine the conditions subject to which the 
said advertisements may be accepted for transmission; 
d) 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; 
e) To utilize all its properties in such manner as it may demand proper 
including the raising of loans by mortgaging such property; 
9 To receive gifts, subsidies, donations and contributions from 
corporations, trusts, foundations, associations and other private source 
and from any government agency or corporation; 
g) 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 or carry out objectives and 
purposes, subject to the pertinent laws governing debt and 
expenditure; 
h) To enter into, make, perform and carry out contracts of every kind and 
description in furtherance of its purposes with any person, firm, 
association or corporations; 
i) To acquire, hold, mortgage and alienate personal and real property in 
the Philippines; 
j) To purchase, hold, mortgage, pledge or otherwise dispose of its assets 
or any bond, security of other corporations or associations, and while 
the owner of said stock, to exercise all the rights of ownership, 
including the rights of ownership, including the right to vote thereon; 
and: 
k) To exercise such other powers as may be necessary to carry-out the 
purpose for which the PPBS was established or which from time to 
time may be declared by the Board of Directors to be necessary, 
useful, incidental or auxiliary to accomplish such purposes. 
SEC. 7. The Board of Directors. 
a) The affairs and business of the as created under this Act shall be 
directed by a Board of Directors to be composed of seven members; 


b) All members of the Board shall be appointed by the President of the 
Republic of the Philippines, chosen from among the nominees of 
associations and organizations representing various sectors in the 
broadcasting industry, and shall serve on a full-time basis, with a fixed 
term of six years without reappointment. Each member shall be taken 
from the private sector of proven and unquestionable probity, integrity, 
honesty and reputation, and preferably with at least five (5) years 
experience in broadcasting media or its related fields. 
c) The following sectors shall be assured of representation in the Board 
of Directors: 
(1) the Academe; 
(2) labor, as involved in the Broadcasting Industry; and 
(3) the viewer and consumer sector; 
Philippines shall have the following terms; 
d) The initial appointees of the President of the Republic of the 
(1) The Chairman of the Board, and one (1) director for six (6) 
(2) Two (2) directors for four (4) years; 
(3) Two (2) directors for two (2) years; 
(4) The Network General Manager for three (3) years; 
All the subsequent appointees shall have the term of six (6) years. 
However, the employee’s representative shall have a term of only one (1) 
year. 
e) All members of the Board shall not hold any other elective or 
appointive government position. If a member shall be appointed to 
another government office or runs for any elective position, he shall be 
deemed to have vacated membership to the Board. Neither may each 
Director, in any way, directly or indirectly, be connected with any other 
broadcasting corporation. These prohibitions shall apply to all 
directors, except the director representing the employees of the 
Corporation. 
9 The Board shall meet at least once a month to discuss matters of 
policy in order to effectively carry out provisions of this act. 
g) The Board of Directors shall, likewise, submit a comprehensive annual 
report to the President of the Republic of the Philippines and to both 
Houses of Congress on the operations of the PPBS, which shall 
include the annual financial statement, within sixty (60) days of the 
fiscal year. 
years; 
SEC 8. 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 Act; 
b) The Board shall appoint and fix the salaries of all executive officers, 
inclusive of the Board, and other officials and employees as may be 
necessary for the management and internal administration of the 


Corporation, except that the appointing power may be delegated by the 
Board to the management of the corporation; 
c) The board shall establish the Television and Radio Division and such 
other divisions and or departments in the corporation as may be 
necessary for the accomplishment of its corporate purpose; 
d) The Board shall prescribe the compensation payable to its personnel 
employed and no person so employed shall be paid otherwise than in 
accordance with such rates. The Board shall see to it that such rate of 
compensation is competitive with the salaries of persons employed in 
the private sector engaged in the same kind of business. 
e) The PPBS shall be subject to all applicable auditing procedures and 
rules of the Commission on Audit; Provided that, the Board of Directors 
shall appoint a Comptroller for purposes of pre-auditing. 
SEC 9. The Network General Manager. The Network General Manager 
shall be nominated and elected by the Board of Directors. He shall be the Chief 
Executive Officer of the Corporation and shall be responsible for the proper 
administration and management of the PPBS in accordance with the policies laid 
down by the Board. He shall have a term of office of three (3) years. 
If the Network General Manager is temporarily absent, or is temporarily 
incapacitated by reason of illness, or for any other cause is temporarily unable to 
perform his duties, the Board of Directors may designate an officer-in-charge to 
act in his place during any such absence from duty. 
SEC 10. Powers and Functions of the General Manager. Subject to the 
control and supervision of the Board, the Network General Manager shall have 
the following powers and functions: 
a) Submit policy recommendations and 
propose measures necessary 
to carry out the objectives and functions of the PPBS for the 
considerations of the Board; 
b) Recommend to the Board for approval an organization structure and 
plantilla for personnel of the PPBS, in accordance with existing laws, 
rules and regulations; 
c) 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 the PPBS, make dealings with other persons, entities, 
agencies and institutions, whether public or private, domestic or 
foreign, subject to the limitations and conditions herein provided; 
9 Appoint, subject to the confirmation by the Board, discipline or remove 
for cause officers and personnel of the PPBS, in accordance with the 
Civil Service Law, rules and regulations. 


g) Perform such functions and duties which are purely managerial or 
routinary by nature, and those which may be assigned to him by the 
Board or other competent authority. 
SEC 11. Deputy General Managers. There shall be a Deputy General 
Manager for Television and a Deputy Manager for Radio who shall be appointed 
by the Board of Directors, upon the recommendation of the Network General 
Manager. They shall be persons known and respected in their respective field of 
expertise. 
CHAPTER Ill 
PROGRAMS STANDARDS 
SEC 12. General Program Standards. An Ad-Hoc Consultative Body 
shall be created by the Board of Directors and shall be mandated to set up a 
Code of Standards applicable for the PPBS. The Consultative Body shall be 
composed of two members coming from the artistic sector, two representatives 
from the management of the PPBS, two representatives from the rank and file, 
two representatives from the consumer sector, two individuals of good standing 
in the community and of proven moral integrity, and a member of the Board of 
Directors, to be designated by the board, who shall be Chairman of the said body 
and have no voting right, except in case ties. Said body shall formulate subject to 
the approval of the Board of Directors, and within ninety (90) days from its 
constitution, the Code of Standards, inclusive of the following aspects: 
a) Presentation of News 
b) Educational Programs 
c) Agriculture and Livelihood Programs 
d) Promotion of Women and Youth Issues 
e) Children's Program 
9 Promotion of Filipino Talents, and 
g) Public Affairs Programs, Services and Announcements 
The Code shall apply for three years and shall automatically be renewable 
upon expiration by the constitution of the new Consultative Body following the 
above procedures. 
SEC 13. Paid Announcements. All broadcasts on any broadcast station 
belonging to PPBS for which monetary or any valuable consideration is directly 
or indirectly given, paid-for, provided or charge by the station shall the time the 
same is so broadcast, be announced as paid for or furnished, as the case may 
be, by the person requesting the broadcasts. Nothing in this section shall 
preclude the PBBS from requiring that an appropriate announcement be made at 
the broadcast in the case of any political program or that which involves the 
discussion of any controversial issue, for which any film, record, transcription, 
talent, script, or other material service of any kind has been furnished, with or 
without the payment of a nominal charge as an inducement to the broadcast of 
such program. 
SEC 14. Locally-produced Programs. The PPBS shall encourage the 
local production of programs shown in broadcasting stations. In this regard, a 
majority of all shows are to be locally produced specifically for the purpose. For 


the purpose of this section, “locally produced” shall mean majority of the 
performers are to be Filipinos and the materials used for production are to be 
acquired locally. 
SEC 15. Foreign-Produced Programs. All produced programs shown by 
the PPBS area to be subject to the Code of Standards as formulated by the 
Consultative Body. The PPBS shall assume responsibility for the contents of 
such programs shown in the station. 
SEC 16. Use of Block-Timers. The PPBS shall assume joint and several 
responsibility with each of the authorized producers, for the content of all 
programs shown by the blocktimers. In this regard, blocktimers are to mean 
producers who purchase and make use of airtime from broadcasting stations. 
SEC 17. Time Standards for Non-Program Materials. The Consultative 
Body shall likewise formulate policies and guidelines for time standards for non- 
program materials. 
CHAPTER IV 
RADIO AND TELEVISION NETWORKING 
SEC 18. 
National Radio and Television Stations. There shall be 
established separate National Radio and Television Stations to be situated within 
the Metro Manila Area. They shall serve as the sole national vehicle for the 
PPBS to fulfill its purposes and objectives as mandated of this Act. It shall also 
serve as the base station for the different regional and provincial radio and 
television stations. 
SEC 19. 
Regional Radio and Television Stations. There shall be 
established separate regional Radio and Television stations, to be situated within 
the regional center as determined by the PPBS. They shall serve as the sole 
regional vehicle for the PPBS to fulfill its purposes and objectives as mandated 
in this Act. For the purposes of this section, the National Radio and Television 
Stations shall serve as the Regional Radio and Television Stations of the 
Metropolitan Manila Area. 
SEC 20. 
Provincial Radio Stations. 
There shall be established a 
Provincial Radio Station, to be situated within the provincial capital area. It shall 
serve as the sole provincial vehicle for the PPBS to fulfil) its purposes and 
objectives as mandated in this Act. 
SEC 21. Rationalization of Existing Broadcasting Stations. Upon approval 
of this Act, the PPBS shall rationalize and reorganize existing government-owned 
or controlled broadcasting stations to fulfill the mandate of this Act. 
CHAPTER V 
INCENTIVES TO THE BROADCASTING INDUSTRY 


SEC 22. 
Producfion of Governmenf Programs. 
All departments, 
agencies, or instrumentalities of the national government, including government- 
owned or controlled corporations with or without original charters, shall 
appropriate an amount not exceeding two (2%) percent of its total budget for the 
production of educational, civic and community service programs by the PPBS 
which will promote the thrusts and objectives of the said government body. This 
shall be subject to the following guidelines: 
(a) That the broadcast shall be limited to 
the educational, civic 
or community service programs for particular town, community or 
province; 
(b) That broadcasts made shall not promote the individual welfare or 
Personality belonging to the said government body. 
(c) That the government body shall submit to the Commission on Audit on 
itemized explanation of the expenses made for the production of said 
program. 
SEC 23. Producfion Grants. The PPBS shall set aside ten percent (10%) 
of its annual budget for the grants to be given to programs produced by any local 
broadcasting company, firm or corporation that have shown over-all artistic 
excellence and projected true Filipino values. Towards this end, a Committee of 
Five composed of two respected members of the Artistic community, the General 
Manager of the PPBS, a representative from the academe shall decide on the 
standards and the recipients of said grants. 
SEC 24. 
Donations. 
Gifts and donation to the Philippine Public 
Broadcasting System which are intended to improve the technical quality of 
broadcast programs shall be exempted from any tax, import duty or post: 
Provided that, the PPBS shall distribute at least thirty-five (35%) of the total 
yearly gifts or donations to deserving private broadcasting stations rendering 
public or community service, as determined by the Committee created in the 
previous section; Provided further that, any imposition made by any individual or 
agency shall be allowed only once every two years; Provided finally, that the 
PPBS shall issue the necessary rules and guidelines in consultation with all 
concerned parties. 
CHAPTER VI 
GENERAL PROVISIONS 
SEC 25. Transfer of Functions and Assets. All the powers, functions, 
assets, capital, accounts, contracts, and facilities under the People's Television 
(PTV) 4, and the various radio stations under the auspices of the Bureau of 
Broadcasts are hereby transferred to the PPBS. 
The PPBS shall exercise all the necessary powers and duties in 
accordance with the provisions of this Act, and shall administer, dispose of, 
handle and execute said funds, properties, capital, assets, accounts, contracts 
andlor agreements in the manner the PPBS shall determine in the interest of the 
funds concerned, and the PPBS shall assume all liabilities of the above- 


mentioned agencies as such, or as trustees, as the case may be. The Agencies 
concerned shall stand abolished on the date the PPBS shall begin its operations. 
SEC 26. Appropriations. A parcel of alienable public land located within 
Metro Manila with an area sufficient to cover required areas for studios and a 
transmitting antenna is hereby transferred in ownership to the PPBS. 
An initial appropriation of Two Hundred Million Pesos (P200,000,000) shall 
be released from funds in the National Treasury not otherwise appropriated as 
initial funding of the PPBS; Provided that, the sum of Five Hundred Million Pesos 
(P500,000,000.00) shall be allocated from the National Budget of the year 
following the approval of this Act as revolving trust fund for the maintenance and 
operation of the PPBS; Provided, further, that the current fiscal appropriation for 
the Bureau of Broadcast Services absorbed by the Public Broadcasting System 
in accordance with Section 33 herein shall be maintained, until the PPBS set up 
hereunder becomes operational and has raised tip funds necessary for 
operational purposes of the System. All fees and other revenues collected or 
received by the PPBS shall be retained by it to finance its annual budget 
requirements. 
SEC 27. Government Accounts. The PPBS address primarily the need of 
all government-owned and-controlled corporations and other agencies which 
need advertising services. Said Broadcasting System shall have the right to 
refuse to accept such accounts, and only then will the said Government 
Corporation be able to place their advertising requirements with private entities. 
SEC 28. Additional Sources of Funding. Funding for the PPBS shall also 
be derived from the following: 
a) revenue derived from tax on all television sets sold in the Philippines to 
be computed at fifty pesos (P50.00) for monochromatic television sets, 
and Two hundred pesos (P200) for colored television sets. 
b) revenue derived from a tax on all radio sets sold in the Philippines to 
be computed at Ten (PlO.00) for transistor radios, Thirty pesos 
(P30.00) for cassette players, and One Hundred Pesos (P100.00) for 
standard stereo systems. 
SEC 29. Record of Transactions. The PPBS shall keep proper accounts 
and records of all its transactions and affairs, and shall do all things necessary to 
ensure that all payments made out of its moneys are correctly made and properly 
authorized, and that adequate control is maintained over the assets of, or in the 
custody of the PPBS and over the expenditures incurred by the PPBS. The 
PPBS shall be subject to audit by the Commission on Audit. 
SEC 30. Tax Exemptions. All the importation of equipment and materials 
in pursuing the objectives of this Act, whether purchased from or donated by any 
foreign government andlor 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 shall include, but not limited to, cameras, n/ monitors 
and records, radio and transmitters, electronic tubes, editing machines, and the 
like. 


SEC 31. 
Staffing Pattern. The PPBS, through the Network General 
Manager or his authorized representative, may make such rules not inconsistent 
with the provisions of this Charter, concerning the hiring, appointment, 
employment, promotion, disciplinary control, and other terms and conditions of 
the service of all employed by the PPBS, and other such matters affecting its 
employees. 
SEC 32. 
Salary Scale. The PPBS shall prescribe the rates of 
remuneration payable to the various classes of personnel employed by it, and no 
person so employed shall be paid otherwise than in accordance with such rates. 
The PPBS shall see to it that such rates or remuneration shall be competitive 
with the salaries of persons employed in the private sector engaged in the same 
kind of business. 
SEC 33. Exemption from Government Staffing Pattern. The salaries and 
position classification of the officers, and employees of the PPBS shall not be 
subject to the rules and regulations emanating from the Office of the 
Compensation and Position Classification, owing to the special nature of the 
broadcasting industry. 
SEC 34. Separability Clause. If any provision or part of this Act is 
declared invalid or unconstitutional, the reminder shall not be affected thereby 
and shall continue to be in full force and effect. 
SEC 35. 
Repealing Clause. 
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. 
SEC 36. Effectivity Clause. This Act shall take effect within fifteen (15) 
days from the date of publication in two newspapers of general circulation. 
Approved,