FIFTEENTH CONGRESS OF n-m ) 
REPUBLIC OF THE PlULlPPlNES 
) 
SECOND REGULAR SESSION 
) 
SENATE 
S. B. No. 30 'i 0 
, ' 
~ ) 
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.Z\tfH~ ..'r Lp' ':.' , 
NOV 23 
[)1 
, , 
lntroduced by Senator TEOFISTO "TG" GUINGONA HI 
EXPLANATORY NOTE 
" rL:H';! 
:44 
The People's Television Network Inc. (PTNT) IS the flagsbip television network owned 
by the Philippine Government. PTNl began operations in 1974 as Government Television (GTV-
4) and was the broadcast ann of the National Media Production Center (NMPC). In 1980, GTV-
4 evolved into the Maharlika Broadcastmg System (MUS). Following the People Power 
Revolution in 1986, MBS was renamed People's Television (PTV). 
In 1992, the network became a government-owned and controlled corporation known as 
People's Television Network, Inc. (PTNI) by viltue of Republic Act No. 7306 which was signed 
by President Corazon C. Aquino. 
On July 16,2001, FTN} adopted the name National Broadcasting Network (NBN) as its 
call name, m recognition of the need to develop a new image in lme with its new programming 
thrusts. 
Since 1992, PTm has been operating on revenues It generates on its own. It generates Its 
revenue through airtime sales, commercial spots co-productions, inter-agency collaborattve 
programs and equipment rental. In July 2001, the Network stopped airing commercial 
advertisements, as stipulated in its Charter. To augment its operational requirements, PTNI has 
received government subsidies released as needed based on requests made by the Network hom 
the National Government 
Thus, there is an urgent need to regenerate and improve the information mechanisms of 
government. Under its Charter, the Network does not receive annual appropriation for 
operations. After 2001, PTNIiNBN by express provIsion of law, specifically, section 19 of Title 
VII ofRA 7306, cannot engage in commercial advertising which has made it difficult to meet its 
daily operational expenses. Currently, PTNlINBN is under financial rehabilitation and is in 
serious need of capital infusion to be able move towards it being self-sufficient and 
commercially viable once again. 


This bill seeks to amend the PTV Charter to do the following. (a) to allow the network to 
generate funds from advertising and airtime sales and the same shall be utilized by PTV solely 
for its operations and capital expenditure; (b) for government to approve a capital infusion to 
jumps tart the rehabilitation of the network, and (c) for the network to adopt other measures that 
will help restore the viability of the network operations. 
In view of tbe foregoing, the immediate enactment of this mea""s_r,....-
G" GUlNGONA III 


FlFTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PI-llLIPPINES ) 
SECOND REGULAR SESSION 
) 
'11 
ijOV 23 n :44 
SENATE 
\, 
S. B. No. 3070 
Introduced by Senato., TEOJ<1:STO "TG" GUlNGONA III 
AN ACT 
AMENDING REPUBLIC ACT NO. 7306-
AN ACT PROVIDING FOR THE ESTABLISHMENT OF THE PEOPLE'S 
TELEVISION NETWORK, INCORPORATED, DEFINING ITS POWERS AND 
FUNCTIONS, PROVIDING J<'OR ITS SOURCES OF FUNDING AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
TITLE 1 -
GENERAL PROVISIONS 
SECTION I. 
Title. -
This Act shall be lmown as the "Amended Charter of tlte People's 
Television Nehvork, Incorporatell", 
SECTION 2. 
Declaration 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) 
Fully develop communication structures suitable to the needs and aspirations of the nation 
and in accordance with a policy that respects the fieedom of speech and of the press; 
b) 
Give priority to education, science and technology, arts, culture, and sports to foster 
patriotism and nationalism, accelerate social 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 selve as an lllstrument 10 the 
struggle for Filipino sovereignty, 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; 
e) 
Maintam a broadcast industry system that serves as a vital link for participative democracy 
and effective government information dissemmation through developmental commulllcation, 
free from any political or partisan influence and held accountable directly to the people; 
t) 
Encourage the development and broadcast of balanced programs which feature, among 
others, educational, wholesome entertainment, cultural, public affairs and sports; and 
g) 
ICNSURE THAT THE GOVERNMENT TELEVISION SHALL NOT UNDULY 
COMPETE Wffn THE PIUVATE TELEVISION SECTOR FOR ADVERTISING AND 
COMMERCIAL INTEREST AS FAR AS PRACTICABLE; 
b) 
PROVIDE QUALITY ALTERNATIVE PROGRAMS FOR THE BENEFIT AND 
MOUAL UPLIFTMENf 01' THE CITIZENUY. 
TITLE If - CREATION AND DOMICILE 
SECTION 3. 
Creation. -
There shall be created a body corporate to be called "The "People's 
Television Network, Incorporated," hereinafter referred to as the "Network," which shall engage 
in television broadcasting in the Philippines. The Network shall be government-owned and 
controlled corporation under a Board of Directors to be appointed by the President of the 
Philippines. 
SECTION 4. 
Corporate Existence. -
The legal existence of the Network shall be for a period 
of fifty (50) years from the effectivity of RA 7306, NOTHWUITSTANDTNG, ANY 
PROVISION OF LAW TO THE CONTRARY: PROVIDED, HOWEVER, THAT AT THE 
END 01, THE SAID PERIOD, THE NETWORK SHALL AUTOMATICALL V 
CONTINUE TO EXIST FOR ANOTHER FIFTY (50) VEARS, UNLESS OnillRWISE 
PROVlDED BY LAW. 
SECTION 5. 
Domicile. -
The Network shall have its prinCipal office and domicile m the 
Metropolitan Manila area. It may also establish offices, branches andlor stations in any part of 
the Philippines as its Board of Directors may see fit. 
SECTION 5-A. -
THE GOVERNMENT OF THE PHIUPPINES, THROUGH THE 
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES AND THE 
BUREAU OF LANDS, SHALL IDENTIFY AND APPROPRIATE ALiENABLE 
GOVERNMENT LAND FOR THE NETWOru< TO ESTABLISH AND BUILD ITS 
MAIN BUOADCAST CENTER AND MAJOR PROVINCIAL STATIONS, FOR 
POSSIBLE EXPANSION. 
TITLE lIT -
FRANCHISE AND LICENSE TO OPERATE 
SECTION 6. 
Franchise Grant. -
Subject to the provision of the ConstitutIOn, laws, orders, 


decrees not inconsistent herewith, the network is hereby granted a franchise to construct, 
maintain and operate television broadcasting stations and satellite receiving and transmitting 
facilities in the Philippines for a period co-temlinus with the corporate existence of the Network. 
SECTION 7. 
License to Operate. -~ The National Telecommunications Commission (NTC) 
shall forthwith cause the issuance to the Network of the corresponding license to operate upon 
compliance with all its requirements. 
TITLE IV. --- POWERS AND FUNCTIONS 
SECTION 8. 
Powers afthe Network. -- The Network 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 public policy, and to amend or repeal 
the same in accordance with the provisions of existing laws; 
d) to ACQUlRE, purchase, receive, talee or grant, hold, convey, sell, lease, pledge, 
mortgage and otherwise deal with such real and personal property; 
e) to establish, purchase, install, construct, use and maintam national, regional, provincial 
community stations and facilities for television broadcasting throughout and in any part 
of the countly; 
g) 
to enter into joint ventures or partnerships with other broadcasting authorittes and 
stations or international agencies or private organizations for the purpose of pmmoting its 
broadcasting services; 
h) 
to raise, borrow or obtain funds, from any source, pnvate 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 pertinent laws governing public debt and 
expenditure; 
i) 
to receive donations and grants from any source whether local or foreign and aVall of 
official development assistance and concessional loans provided by foreign governments, 
foundations or financial institutions; 
j) 
to enter IlltO, make, pelfoml and carry out contracts of any kind and description III 
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 Philippmes, as 
well as such other incidental powers as may be necessary to carryon Its actJvlties. 
SECTION 9. 
Flmelions of the NelWork -
The Network shall have the following functions: 
a) 
to serve primarily as a vehicle for the State for purposes of education, science and 
technology, arts, culture, and spol1s in order to foster national pride and identity; 
b) 
to serve as a vehicle for bringmg 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 broadcast by the Network 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, entertainment, and sports programs; 
d) 
to serve as an effecttve outlet for alternative programming; 
e) 
TO PROVlJ)E AIRTIME TO LEGITIlHATIE PEOPLE'S ORGANIZATIONS AND 
NON GOVIERNMENT ORGANIZATIONS IN THE PROMOTION OF THEIR 
PROGRAMS AND PROJECTS; 
t) 
TO SERVE AS A CHANNEL FOR LEGITIMATE PEOPLE'S ORGANIZATIONS 
AND 
NON 
GOVIERNMENT 
ORGANIZA nONS 
TO 
PROVIDE 
THEIR 
RECOMMENDATIONS 
AND 
PROPOSALS 
FOR THE 
JMPROVIEMENT 
OF 
GOVERNMENT SERVICES; 
g) to serve as an effective medium for national unity and polrtical stability by reachmg as much 
of the Filipino population as possible through the effective use of modem broadcasting 
technology; and 
h) to ensure that nothing is included in the programs broadcast by the Network which shall: 
1) otfend 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 feelings in genera1. 


TiTLE V. -
CORPORATE STRUCTURE 
SECTION 10. 
The Board of Directors. -
The corporate powers of the Network shall be 
exercised, all its business co~ducted and all its property controlled and held by the Board of 
Directors. It shall be composed of five (5) members who shall be appointed by the President of 
the Philippines. The Board shall be made up of the following. 
a) 
two (2) members from the Government sector; 
b) 
two (2) members from the private sector, one (1) of whom shall have at least ten (10) years 
of experience in the broadcast indus tty; and 
c) 
one (1) member from the educational sector. 
SECTION lO-A. 
The Ad"isory Board. -
THE PRESIDENT OF THE PHILIPPINES 
SHALL APPOINT SEVEN (7) SECTORAL MEMBERS WITH WIDE EXPERIENCE 
AND EXPERTISE IN THEIR RESPECTIVE FIELDS OF WORK TO CONSTITUfE 
TIlE ADVISORY BOARD. 
THE MEMBERS OF THE ADVISORY BOARD MAY BE CHOSEN FROM AMONG 
NOMINEES 
OF 
ASSOCIATIONS 
AND 
ORGANIZATIONS 
REPRESENTING 
VARIOUS STAKEHOLDERS IN TIlE BROADCAST INDUSTRY AND THEY SHALL 
SERVE WITH A FIXED TERM OF ONE (1) YEAR. 
THE ADVISORY BOARD SHALL SERVE AS THE STRATEGIC AND POLICY 
IVlAKING BODY THAT WILL FORMULATE POLICIES TO GOVERN THE 
NETWORK THE CHAIRMAN OF THE BOARD OF DIRECTORS SHALL BE AN EX-
Oli'FICIO MEMBER OF THE ADVISORY BOARD. 
IN ADDTrION, THE ADVISORY BOARD SHALL BE CONSULTED ON ALL 
RELEVANT PROPOSALS OF THE BOARD OF DIRECTORS AND SllALL ALSO BE 
CONFERRED WITH REGARDING THE NETWORK'S PERFORMANCE IN 
PROMOTING THE PUBLIC PURPOSES AS ENUMERATED IN ITS FUNCTIONS. 
SECTION 11. 
Qualifications of the Members of the Board. -
The members of the Board shall 
be of proven and unquestionable probity, integrity, honesty, Impartiality, reputation, and 
knowledgeable of the broadcast industry. They shall not be, in any way, connected with any 
other broadcastlllg corporation or hold any positJOn that may conflict with thel[ functions and 
duties as Directors of the Network. 
If a member shall be appointed to another government office or runs for any elective position, he 
shall be deemed to have vacated mernbe1"shlp in the Board on the day of his appointment or filing 
of his candidacy as the case may be. 


SECTION 12. 
Term of the Members of Board. ~ The initial appointees of the President of the 
PhiJippmes shall have the following terms: 
a) 
Three (3) directors, one from each sector, for two (2) years, and 
b) 
The other two (2) directors, one (1) each from the government and pnvate sector, for four 
(4) years. 
Subsequent appointees shall serve a term of ONE (1) YEAR TERM SUBJECT TO 
REAPPOINTMENT BY THE PRESEIDENT. Appomtment to any vacancy in the Board shall 
be for the unexpired portion of the term of the predecessor. THE MEMBERS SHALL ELECT 
AMONG THEMSELVES ONE WHO WILL SERVE AS CHAJRMAN OF TIfE BOARD. 
THE BOARD SHALL MEET AT LEAST TWICE A MONTH TO DISCUSS MATTERS 
OF POLlCY IN ORDER TO EFFECTIWL Y CARRY OUT THE PROViSIONS OF 
nnSACT. 
SECTION 13. 
Functions and Duties of the Board ofD/rectors. -
The general functions and 
duties of the Board of Directors shall be as follows: 
a) 
to cany out the provisions of this Act, 
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 the Congress a comprehensive annual 
report on the operation of the Network within the first sixty (60) days of the fiscal year. 
SECTION 14. 
The Network General Manager. -
The Network General Manager shall be 
elected by the Board, of which he need not be a member. In the latter case, he shall serve as as 
ex-officio member of the Board. He shall also be the Chief operating Officer of the Network, 
who shall be responsible for the proper administration and management of the Network in 
accordance with the policies laid down by the Board. 
If the Network General Manager is absent, or is 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 and stead during such absence from duty. 
SECTION 15. 
POH'ers and Fimctiol1s of the Network 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 Network for the consideration of the Board; 


b) 
recommend to the Board for approval an organizational structure and plantilla for personnel 
of the Network, 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 Network, its dealings with other persons, entitles, agencies and institutiOns, 
whether public or private, domestic or foreign, subject to the limitations and conditions herein 
provided; 
f) 
appoint, subject to the confirmation by the Board, discipline or remove for cause, officer and 
personnel of the Network in accordance with the Civil Service Law, JUles and regulations; and 
g) 
perform such other functions and duties which may be assigned to him by the Board, 
TITLE VI -
PROGRAM STANDARDS 
SECTION 16, 
General Program Srandard~, -
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 Programs 
d) 
Edncational Programs 
e) 
Children's Programs 
t) 
Agriculture and Li velihood Programs 
g) 
Women and Youth Issues 
h) Locally-produced and foreign produced programs, 
SECTlON 17. 
w,'E OF Bl.OCKTlMERS. -
THE USE OF BIJOCKTIMERS SHALL BE 
ALLOWED 
BUT 
LIMITED 
TO 
EDUCATION, 
SPORTS, 
QUALITY 
ENTERTAINMENT PROGRAMS, AND SUCH PROGRAMS WHICH PROMOTE 
NATIONAL INTEREST, SUBJECT TO QUALITY STANDARDS SET BY THE BOARD 
OF nIRECTORS. THE NETWORK SHALL ASSUME SOLIDARY LIABfi,ITY WITH 
EACH OF THE INDIVIDUAL PROnUCERS, FOR THE CONTENT OF ALL 
PROGRAMS SHOWN BY BLOCKTIMERS. 


TITLE Vll -
FINANCIAL PROVISlONS 
S'EC110N 18. 
CAPITALIZATION. -THE ADDUIONAL AUTHORIZED CAPITAL 
STOCK OF THE NETWORK SHALL BE SUBJECT TO API'ROPRIATION IN THE 
GENERAL APPROPRIATIONS ACT. 
SECTION 19.REVENUE GENERATION. -THE NETWORK 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 REVENUES 
COLLECTED OR RECEIVED BY THE NETWORK SHALL BE RETAINED BY IT 
AND UTILIZED SOLELY FOR ITS OPERATIONS AND CAPITAL EXPENDITURES. 
SECTION 19-A. EXEMPTION FROM RA No. 7656. - THE NETWORK SHALL Bl~ 
EXEMPT FROM REMITTING FIFTY PERCENT (50%) OF ITS ANNUAL NET 
EARNINGS AS PROVIDED BY RA No. 7656, SUBJECT TO TIlE APPROVAL OF THE 
DEPARTMENT OF FINANCE, AND PROVIDED, THAT THE ANNUAL NET 
EARNINGS 
BE USED 
SOLELY FOR ITS 
OPERATIONS 
AND 
CAPITAL 
EXPENDITURES. 
TITLE Vlll -
ADMlNISTRATIVE PROVISIONS 
SECTION 20. Record of Transactions. -
The Network 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 Network and the expenditures incurred by 
the Network. The Network shall be subject to audit by the Commission on Audit. 
TffLE IX. -
T AX EXEMPTIONS 
SECI10N 2i. 
Tax Exemptions On importations. -
The importations of equipment, apparatus 
and materials to be actually, directly and exclusively used in the operation of the Network, 
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 equipmeJ.t and apparatus shall include cameras, TV monitors and 
recorders, TV transmitters, elec cronic tubes, editing machines, and all such necessary equipment 
required for television broadcasting: provided, that the subsequent importation of the equipment, 
apparatus and materials shall be subject to review by the Departulent 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 who shall then be subject to tax. 
SECTION 2l-A. EXEMPTION FROM REAL PROPERTY TAX. -
SUBJECT TO 
THEPROVISIONS OF THE LOCAL GOVERNMENT CODE AND THE NATIONAL 
INTERNAL REVENUE CODE, THE NETWORK SHALL BE EXEMPT FROM REAL 


PROPERTY TAX PROVIDED THAT SAVINGS FROM REAL pnOPEnTY TAX 
EXEMPTION WILL BE USED TO FUND CAPITAL EXPENDITURES AND 
OPERATIONS Fon THE NETWORK. 
TITLE X. -
EMPLOYEES OF THE NETWORK 
SECTION 22. 
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 the Network, and such other matters 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. 
SECTION 23. 
Salmy Scale for Officials and Employees. -
The rates of compensation and 
classes of positions in the Network shall not be covered by Republic Act 6758 and the 
Compensation and Positions Classification Board (CPCB) 
SECTION 24. 
GSIS Coverage for Employees. -
All employees hired by the Network shall be 
deemed members of the Governments Service Insurance System (GSIS) for the purpose of 
employee benefits. 
TITLE Xl -
MISCELLANEOUS PROVISIONS 
SECTION 25. 
Transition Clause. -
All the powers, functions, assets and liabilities, capilal, 
accounts, contracts, and facilities pertaining to the People's Television (PTV), and all equlpments 
relating to television broadcasting owned by the government shall be transferred to the Network. 
SECTION 26. 
Tral1sitOlY Provision. -
The Network General Manager shall recommend to the 
Board of Directors a corporate plan that includes programming direction, budget, organizational 
plan and structure, a staffing pattern and compensation plan within ninety (90) 21 days from the 
effectivity of this Act. Said corporate structure shall be implemented by the Network General 
Manager within thirty (30) days after its approval by the Board of Directors: provided, that the 
current and incumbent employees of the People's Television (PTV) shall be absorbed and 
accommodated by the Network. 
SECTION 26-A. REORGANIZATION OF THE NETWORK. - NINETY (90) DAYS l?ROM 
THE APPROVAL OF THIS ACT, THE BOARD OF DffiECTORS IS HEREBY 
EMPOWERED TO REORGANIZE THE NETWORK TO MAKE IT MORE 
EFFECTIVE AND INNOVATIVE. 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 ODJECTIVES. PROVIDED, 
THAT ANY OFFICIAL OR EMPJ~OYEE OF THE NETWORK WHO MAY BE 
PHASED OUT BY REASON OF THE REORGANIZATION AUTHORIZED HEREIN 


SHALL BE ENTITLED TO SUCH BENEFITS AS MAYBE DETERMINED BY 
EXISTING LAWS. 
SECTION 27. Amendments. -
The provisions of this Act shall be subject to amendments, 
alteration or repeal by the Congress ofthe Philippines, when puhlic interest so requires. 
SECTION 28. 
Separability Clause. -
If any provision or palt of this Act is declared invalid or 
unconstitutional, the remainder shaH not be affected thereby and shall continue to be in full force 
and effect. 
SECTION 29. 
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. 
SECTION 30. 
Effectivity Clause. -
This Act shall take effect fifteen (15) days after its 
publication in two (2) national newspapers of general circulation. 
Approved,