MOUSE OF REPRESENTATIVES
RECEIVED

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

ATION UNIT
BILLS AND NX SE eVICE

House Bill No. #143

INTRODUCED BY CONGRESSMAN ALFRED VARGAS

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 since 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 P5billion 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 annual appropriations for at
least 10 years; and (e) transfer the BBS (Radyo ng Bayan) to the corporation.

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

ALFRED VARGAS


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session
2443
House Bill No.

INTRODUCED BY CONGRESSMAN ALFRED VARGAS

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 press;

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

(©) 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;

(e) 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 political or partisan
influence and directly accountable to the people;

(f) Encourage the development and broadcast of balanced programs which

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feature, among others, educational, informational and wholesome
Entertainment, culture, public affairs and sports; and

(8) Provide quality alternative Programs for the benefit and moral upliftment of
the citizenry,

SEC. 3. Creation. - There shall be created 2 Pody corporate to be called “People's
Broadcasting Corporation” referred Yo 38 "PBC." which shall engage in radic 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
‘ity (50) years from the effectivity of thin 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 Daulish offices, branches and/or stations i, any
Partof the Philippines as its Board of Director: 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

re wving and transmitting facilities in the Philippines for a period co-terminous with
the corporate existence of the PBC.

TITLE Il, - 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;


or repeal the same in accordance with the provisions of existing laws;

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

(8) to establish, purchase, install, construct, use 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 necessary 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;

e) 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

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Bn


or repeal the same in accordance with the Provisions of existing laws;
(¢) to acquire, purchase, receive, take on Brant, hold, convey, sell, lease, pledge,
mortgage, and otherwise deal with such real and personal property;

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

(1) to exercise the general powers Outlined in the Corporation Code of the
Philippines, as well as such other incidental powers as may be necessary 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 Tespect 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;

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

8) to ensure that nothing is included in the Programs broadcast by the network

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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
Bon ec all its business conducted and all ite Property controlled and held by the
Board of Directors. The Board shall be pabosed 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:

{@) three (3) members from the government sector;

(©) 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

(0) one (1) member from the educational seer

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,
Feputation, and with knowledge of the broadcast industry. They shall not be, in any way,
conten vith any other broadcasting corporation oF hola any position that may
conflict with their functions and duties as Directors ot 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
(S) years of wide experience and expertise in thee respective fields of work. The
Advisory Council shall propose and recommend Policies relating to the PBC's operation,

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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 elect from among themselves a
Chairperson.

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;

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

©) to decide matters of policy; and

4) 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
Pane 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

regulations;

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

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

®) 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;

1) 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 Programs;

(d) Educational Programs;

(e) Children’s Programs;

(8) 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
(j) 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 revenues 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. - PBC 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 money are correctly made and properly authorized, and that
adequate control is maintained over the assets of, or in the custody 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 be 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 PBC, 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.

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.

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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. (PTNI) 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) created by
Executive Order No. 297, series of 1987 is to be absorbed by PBC.

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 displaced 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
“epealed, amended or modified accordingly.

SEC. 37. Effectivity Clause, -

This Act shall take effect fifteen (15) days after its
Publication in two (2) national newspapers of general circulation,

Approved,