FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
'11 
OCT -5 i' 6 :13 
SENATE 
S.B.No. 2985 
m:r '.~, .:;: i'\'j2.-_ 
o 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
The People's Television Network Inc. (PTNI) is the flagship television network owned by the 
Philippine Government. PTNI began operations in 1974 as Government Television (GTV-4) and was 
the broadcast arm of the National Media Production Center (NMPC). In 1980, GTV-4 evolved into the 
Maharlika Broadcasting System (MBS). 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 virtue of Republic Act No. 7306 which was signed by 
President Corazon C. Aquino. 
On July 16, 2001, PTNI adopted the name National Broadcasting Network (NBN) as its call 
name, in recognition of the need to develop a new image in line with its new progral11l11ing thrusts. 
Since 1992, PTNI has been operating on revenues it generates on its own. It generates its 
revenue through airtime sales, cOl11l11ercial spots co-productions, inter-agency collaborative 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 from 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, PTNI/NBN by express provision of law, specifically, section 19 of Title VII of RA 7306, 
calmot engage in commercial advertising which has made it difficult to meet its daily operational 
expenses. Currently, PTNI/NBN is under financial rehabilitation and is in serious need of capital 
infusion to be able move towards it being self-sufficient and cOl11l11ercially 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 jumpstart 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 the foregoing, the immediate passage of the bill is earnestly sought. 
'-:::::~~ ~------:> 
~:~-::::::::":;WRE-[\JLEGARDA 
Senator 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
S.B. No. 2985 
Introduced by Senator Loren Legarda 
AN ACT 
'11 
OCT -5 ? 6 :13 
AMENDING REPUBLIC ACT NO. 7306, OTHERWISE KNOWN AS 
AN ACT PROVIDING FOR THE ESTABLISHMENT OF THE PEOPLE'S TELEVISION 
NETWORK, INCORPORATED, DEFINING ITS POWERS AND FUNCTIONS, 
PROVIDING FOR 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 I. - GENERAL PROVISIONS 
1 
SECTION 1. 
Title. -
This Act shall be. known as the "Amended Charter of the 
2 
People's Television Network, Incorporated". 
3 
SECTION 2. 
Declaration of Policies. -
In consonance with the Constitutional 
4 
recognition of the vital role of communication and information in nation-building, and the 
5 
important aspect played by the broadcasting industry, it is hereby declared as the policy of the 
6 
State to: 
7 
a. Fully develop communication structures suitable to the needs and aspirations of the 
8 
nation and in accordance with a policy that respects the freedom of speech and of the 
9 
press; 
lOb. Give priority to education, science and technology, arts, culture, and sports to foster 
II 
patriotism and nationalism, accelerate social progress, and promote total human 
12 
liberation and development; 
13 
c. Develop the broadcasting industry as a medium for the development, promotion and 
14 
advancement of Filipino nationalism, culture and values that serve as an instrument in 
IS 
the struggle for Filipino sovereignty, identity, national unity and integration; 
16 
d. Harness the resources of the government and the private sector towards a close, 
17 
continuous and balanced cooperation in order to take advantage of technological 
18 
advances in the broadcasting industry; 
19 
e. Maintain a broadcast industry system that serves as a vital link for participative 
20 
democracy 
and 
effective 
government 
information 
dissemination 
through 
21 
developmental communication, free from any political or partisan influence and held 
22 
accountable directly to the people; 
23 
f. 
Encourage the development and broadcast of balanced programs which feature, among 
24 
others, educational, wholesome entertainment, cultural, public affairs and sports; and 


1 
g. ENSURE THAT THE GOVERNMENT TELEVISION SHALL NOT UNDULY 
2 
COMPETE WITH THE PRIVATE TELEVISION SECTOR FOR ADVERTISING 
3 
AND COMMERCIAL INTEREST AS FAR AS PRACTICABLE; 
4 
h. PROVIDE QUALITY ALTERNATIVE PROGRAMS FOR THE BENEFIT AND 
5 
MORAL UPLIFTMENT OF THE CITIZENRY. 
6 
TITLE II. - CREATION AND DOMICILE 
7 
SECTION 3. 
Creation. -
There shall be created a body corporate to be called "The 
8 
"People's Television Network, Incorporated," hereinafter referred to as the "Network," which 
9 
shall engage in television broadcasting in the Philippines. The Network shall be government-
10 
owned and controlled corporation under a Board of Directors to be appointed by the President 
11 
of the Philippines. 
12 
SECTION 4. 
Corporate Existence. - The legal existence of the Network shall be for a 
13 
period of fifty (50) years from the effectivity of RA 7306, NOTHWIHTSTANDING, ANY 
14 
PROVISION OF LAW TO THE CONTRARY: PROVIDED, HOWEVER, THAT AT THE 
15 
END OF THE SAID PERIOD, THE NETWORK SHALL AUTOMATICALLY CONTINUE 
16 
TO EXIST FOR ANOTHER FIFTY (50) YEARS, UNLESS OTHERWISE PROVIDED BY 
17 
LAW. 
18 
SECTION 5. 
Domicile. -
The Network shall have its principal office and domicile in 
19 
the Metropolitan Manila area. It may also establish offices, branches and! or stations in any 
20 
part of the Philippines as its Board of Directors may see fit. 
21 
SECTION 5-A. - THE GOVERNMENT OF THE PHILIPPINES, THROUGH THE 
22 
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES AND THE LAND 
23 
MANAGEMENT BUREAU, SHALL IDENTIFY AND APPROPRIATE ALIENABLE 
24 
GOVERNMENT LAND FOR THE NETWORK TO ESTABLISH AND BUILD ITS MAIN 
25 
BROADCAST CENTER AND MAJOR PROVINCIAL STATIONS, FOR POSSIBLE 
26 
EXPANSION. 
27 
TITLE Ill. -
FRANCHISE AND LICENSE TO OPERATE 
28 
SECTION 6. 
Franchise Grant. -
Subject to the provision of the Constitution, laws, 
29 
orders, decrees not inconsistent herewith, the network is hereby granted a franchise to 
30 
construct, maintain and operate television broadcasting stations and satellite receiving and 
31 
transmitting facilities in the Philippines for a period co-terminus with the corporate existence 
32 
of the Network. 
33 
SECTION 7. 
License to Operate. -
The National Telecommunications Commission 
34 
(NTC) shall forthwith cause the issuance to the Network of the corresponding license to 
35 
operate upon compliance with all its requirements. 
36 
TITLE IV. -
POWERS AND FUNCTIONS 
37 
SECTION 8. 
Powers of the Network. - The Network shall have the following powers: 
38 
a) to sue or be sued in its corporate name; 
39 
b) to have continuous succession in its corporate name; 
40 
c) 
to adopt and use a corporate seal; 


1 
d) to adopt by-laws not contrary to law, morals, or public policy, and to amend or repeal 
2 
the same in accordance with the provisions of existing laws; 
3 
e) 
to ACQUIRE, purchase, receive, take or grant, hold, convey, sell, lease, pledge, 
4 
mortgage and otherwise deal with such real and personal property; 
5 
f) 
to establish, purchase, install, construct, use and maintain national, regional, provincial 
6 
community stations and facilities for television broadcasting throughout and in any 
7 
part of the country; 
8 
g) to enter into joint ventures or partnerships with other broadcasting authorities and 
9 
stations or international agencies or private organizations for the purpose of promoting 
10 
its broadcasting services; 
11 
h) to raise, borrow or obtain funds, from any source, private or government, foreign or 
12 
domestic and to enter into any financial or credit arrangements in order to support and 
13 
carry out its objectives and purposes, subject to the pertinent laws governing public 
14 
debt and expenditure; 
IS 
i) 
to receive donations and grants from any source whether local or foreign and avail of 
16 
official development assistance and concessional loans provided by foreign 
17 
governments, foundations or financial institutions; 
18 
j) 
to enter into, make, perform and carry out contracts of any kind and description in 
19 
furtherance of the corporate purpose with any person, firm, association or corporation; 
20 
k) to accept corporate institutional support for developmental programs and to determine 
21 
the conditions subject to which the said programs may be accepted for television 
22 
transmission; and 
23 
1) 
to exercise the general powers outlined in the Corporation Code of the Philippines, as 
24 
well as such other incidental powers as may be necessary to carryon its activities. 
25 
SECTION 9. 
Functions of the Network. -
The Network shall have the following 
26 
functions: 
27 
a. to serve primarily as a vehicle for the State for purposes of education, science and 
28 
technology, arts, culture, and sports in order to foster national pride and identity; 
29 
b. to serve as a vehicle for bringing the Government closer to the people in order to 
30 
enhance their awareness of the programs, policies, thrusts, and directions of the 
31 
Government; 
32 
c. to ensure that the programs broadcast by the Network maintain a high general standard 
33 
in all respects, and in particular, in respect to their content and quality and proper 
34 
balance of educational, news, public affairs, entertainment, and sports programs; 
35 
d. to serve as an effective outlet for alternative programming; 
36 
e. TO PROVIDE AIRTIME TO LEGITIMATE PEOPLE'S ORGANIZATIONS AND 
37 
NON GOVERNMENT ORGANIZATIONS IN THE PROMOTION OF THEIR 
38 
PROGRAMS AND PROJECTS; 
39 
f. 
to serve as an effective medium for national unity and political stability by reaching as 
40 
much of the Filipino population as possible through the effective use of modern 
41 
broadcasting technology; and 
42 
g. to ensure that nothing is included in the programs broadcast by the Network which 
43 
shall; 
44 
45 
46 
47 
48 
49 
50 
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 V. - CORPORATE STRUCTURE 
2 
SECTION 10. 
The Board of Directors. -
The corporate powers of the Network shall 
3 
be exercised, all its business conducted and all its property controlled and held by the Board of 
4 
Directors. It shall be composed of five (5) members who shall be appointed by the President of 
5 
the Philippines. The Board shall be made up of the following: 
6 
a. two (2) members from the Government sector; 
7 
b. two (2) members from the private sector, one (1) of whom shall have at least ten (10) 
8 
years of experience in the broadcast industry; and 
9 
c. one (1) member from the educational sector. 
10 
SECTION 10-A. 
The Advisory Board. -
THE PRESIDENT OF THE PHILIPPINES 
II 
SHALL APPOINT SEVEN (7) SECTORAL MEMBERS WITH WIDE EXPERIENCE AND 
12 
EXPERTISE IN THEIR RESPECTIVE FIELDS OF WORK TO CONSTITUTE THE 
13 
ADVISORY BOARD. 
14 
THE MEMBERS OF THE ADVISORY BOARD MAY BE CHOSEN FROM AMONG 
15 
NOMINEES OF ASSOCIATIONS AND ORGANIZATIONS REPRESENTING VARIOUS 
16 
STAKEHOLDERS IN THE BROADCAST INDUSTRY AND THEY SHALL SERVE WITH 
17 
A FIXED TERM OF ONE (1) YEAR. 
18 
THE ADVISORY BOARD SHALL SERVE AS THE STRATEGIC AND POLICY-
19 
MAKING BODY THAT WILL FORMULATE POLICIES TO GOVERN THE NETWORK. 
20 
THE CHAIRMAN OF THE BOARD OF DIRECTORS SHALL BE AN EX-OFFICIO 
21 
MEMBER OF THE ADVISORY BOARD. 
22 
SECTION 11. 
Qualifications of the Members of the Board. -
The members of the 
23 
Board shall be of proven and unquestionable probity, integrity, honesty, impartiality, 
24 
reputation, and knowledgeable of the broadcast industry. They shall not be, in any way, 
25 
connected with any other broadcasting corporation or hold any position that may conflict with 
26 
their functions and duties as Directors of the Network. 
27 
If a member shall be appointed to another government office or runs for any elective 
28 
position, he shall be deemed to have vacated membership in the Board on the day of his 
29 
appointment or filing of his candidacy, as the case may be. 
30 
SECTION 12. 
Term of the Members of Board. -
The initial appointees of the 
31 
President of the Philippines shall have the following terms: 
32 
33 
a. Three (3) directors, one from each sector, for two (2) years, and 
34 
b. The other two (2) directors, one (1) each from the government and private sector, for 
35 
four (4) years. 
36 
Subsequent appointees shall serve a term of ONE (1) YEAR TERM SUBJECT TO 
37 
REAPPOINTMENT BY THE PRESEIDENT. Appointment to any vacancy in the Board shall 
38 
be for the unexpired portion of the term of the predecessor. 
39 
THE MEMBERS SHALL ELECT AMONG THEMSELVES ONE WHO WILL SERVE AS 
40 
CHAIRMAN OF THE BOARD. THE BOARD SHALL MEET AT LEAST TWICE A MONTH 


1 
TO DISCUSS MATTERS OF POLICY IN ORDER TO EFFECTIVELY CARRY OUT THE 
2 
PROVISIONS OF THIS ACT. 
3 
SECTION 13.. Functions and Duties of the Board of Directors. -
The general 
4 
functions and duties of the Board of Directors shall be as follows: 
5 
a. to carry out the provisions of this Act, 
6 
b. to exercise the corporate powers, and conduct all business of the Network; 
7 
c. to decide matters of policy; and 
8 
d. to submit to the President of the Philippines and the Congress a comprehensive annual 
9 
report on the operation of the Network within the first sixty (60) days of the fiscal year. 
10 
SECTION 14. The Network General Manager. - The Network General Manager shall 
11 
be elected by the Board, of which he need not be a member. In the latter case, he shall serve as 
12 
ex-officio member of the Board. He shall also be the Chief operating Officer of the Network, 
13 
who shall be responsible for the proper administration and management of the Network in 
14 
accordance with the policies laid down by the Board. 
15 
If the Network General Manager is absent, or is incapacitated by reason of illness or for 
16 
any other cause, is temporarily unable to perform his duties, the Board of Directors may 
17 
designate an officer-in-charge to act in his place and stead during such absence from duty. 
18 
SECTION 15. Powers and Functions of the Network General Manager. -
Subject to 
19 
the control and supervision of the Board, the Network General Manager shall have the 
20 
following powers and functions: 
21 
a. submit policy recommendations and propose measures necessary to carry out the 
22 
objectives and functions of the Network for the consideration of the Board; 
23 
b. recommend to the Board for approval an organizational structure and plantilla for 
24 
personnel of the Network, in accordance with existing laws, rules and regulations; 
25 
c. execute; administer and implement policies and measures approved by the Board; 
26 
d. Submit to the Board an annual budget and such supplemental budgets as may be 
27 
necessary for its consideration and approval; 
28 
e. represent the Network, its dealings with other persons, entities, agencies and 
29 
institutions, whether public or private, domestic or foreign, subject to the limitations 
30 
and conditions herein provided; 
31 
f. 
appoint, subject to the confirmation by the Board, discipline or remove for cause, officer 
32 
and personnel of the Network in accordance with the Civil Service Law, rules and 
33 
regulations; and 
34 
g. perform such other functions and duties which may be assigned to him by the Board. 
35 
TITLE VI. - PROGRAM STANDARDS 
36 
SECTION 16. 
General Program Standards. -
The Board of Directors is mandated to 
37 
set up a Code of Standards, inclusive of the following aspects: 
38 
a. Presentations of News 
39 
b. Public Affairs Programs and Commentaries 
40 
c. Public Service Programs 
41 
d. Educational Programs 
42 
e. Children's Programs 


f. 
Agriculture and Livelihood Programs 
2 
g. Women and Youth Issues 
3 
h. Locally-produced and foreign produced programs. 
4 
SECTION 17. 
USE OF BLOCKTIMERS. -
THE USE OF BLOCKTIMERS SHALL 
5 
BE ALLOWED BUT LIMITED TO EDUCATION, SPORTS, QUALITY ENTERTAINMENT 
6 
PROGRAMS, AND SUCH PROGRAMS WHICH PROMOTE NATIONAL INTEREST, 
7 
SUBJECT TO QUALITY STANDARDS SET BY THE BOARD OF DIRECTORS. THE 
8 
NETWORK 
SHALL 
ASSUME 
SOLIDARY 
LIABILITY WITH 
EACH 
OF 
THE 
9 
INDIVIDUAL PRODUCERS, FOR THE CONTENT OF ALL PROGRAMS SHOWN BY 
10 
BLOCKTIMERS. 
11 
TITLE VII. -
FINANCIAL PROVISIONS 
12 
SECTION 18. 
CAPITALIZATION. -
THE ADDITIONAL AUTHORIZED CAPITAL 
13 
STOCK OF THE NETWORK SHALL BE SUBJECT TO APPROPRIATION IN THE 
14 
GENERAL APPROPRIATIONS ACT. 
15 
SECTION 19.REVENUE GENERATION. -THE NETWORK SHALL BE ALLOWED 
16 
TO. GENERATE 
FUNDS 
FROM 
ADVERTISING 
AND 
AIRTIME 
SALES 
IN 
17 
ACCORDANCE WITH THE POLICIES AND RATES SET BY THE BOARD OF 
18 
DIRECTORS. SUBJECT TO EXISTING LAWS, ALL FEES OR OTHER REVENUES 
19 
COLLECTED OR RECEIVED BY THE NETWORK SHALL BE RETAINED BY IT AND 
20 
UTILIZED SOLELY FOR ITS OPERATIONS AND CAPITAL EXPENDITURES. 
21 
SECTION 19-A. EXEMPTION FROM RA No. 7656. - THE NETWORK SHALL BE 
22 
EXEMPT FROM REMITTING FIFTY PERCENT (50%) OF ITS ANNUAL NET EARNINGS 
23 
AS PROVIDED BY RA No. 7656, SUBJECT TO THE APPROVAL OF THE DEPARTMENT 
24 
OF FINANCE, AND PROVIDED, THAT THE ANNUAL NET EARNINGS BE USED 
25 
SOLELY FOR ITS OPERATIONS AND CAPITAL EXPENDITURES. 
26 
TITLE VIII. -
ADMINISTRATIVE PROVISIONS 
27 
SECTION 20. Record of Transactions. -
The Network shall keep proper accounts and 
28 
records of all its transactions and affairs, and shall do all things necessary to ensure that all 
29 
payments made out of its moneys are correctly made and properly authorized, and that 
30 
adequate control is maintained over the assets of, or in the custody of, the Network and the 
31 
expenditures incurred by the Network. The Network shall be subject to audit by the 
32 
Commission on Audit. 
33 
TITLE IX. -
TAX EXEMPTIONS 
34 
SECTION 21. 
Tax Exemptions on Importations. -
The importations of equipment, 
35 
apparatus and materials to be actually, directly and exclusively used in the operation of the 
36 
Network, whether purchased from or donated by any foreign government and/ or private 
37 
entity shall be free from the payment of any and all forms of taxes, license fees and customs 
38 
duties that may be levied upon them. Such equipment and apparatus shall include cameras, 
39 
TV monitors and recorders, TV transmitters, electronic tubes, editing machines, and all such 
40 
necessary equipment required for television broadcasting: provided, that the subsequent 


1 
importation of the equipment, apparatus and materials shall be subject to review by the 
2 
Department of Finance: provided, further, that in the event the equipment, apparatus and 
3 
materials are sold to non-tax exempt persons or entities, the buyers shall be considered the 
4 
exporters who shall then be subject to tax. 
5 
TITLE X. -
EMPLOYEES OF THE NETWORK 
6 
SECTION 22. 
Civil Service Law Coverage for Employees. - The hiring, appointment, 
7 
employment, promotion, disciplinary control, and other terms and conditions of the service of 
8 
all employees of the Network, and such other matters affecting its employees shall be 
9 
consistent with the provisions of the Civil Service Law, rules and regulations: PROVIDED, 
10 
HOWEVER, THAT POSITIONS CONSIDERED AS CREATIVE AND ARTIStIC IN 
11 
NATURE SHALL BE EXEMPTED FROM THE QUALIFICATION STANDARDS AND 
12 
CIVIL SERVICE ELIGIBILITY REQUIREMENTS. 
13 
SECTION 23. 
Salary Scale for Officials and Employees. - The rates of compensation 
14 
and classes of positions in the Network shall not be covered by Republic Act 6758 and the 
15 
Compensation and Position Classification Board (CPCB). 
16 
SECTION 24. 
GSIS Coverage for Employees. -
All employees hired by the Network 
17 
shall be deemed members of the Governments Service Insurance System (GSIS) for the 
18 
purpose of employee benefits. 
19 
TITLE XI. -
MISCELLANEOUS PROVISIONS 
20 
SECTION 25. 
Transition Clause. -
All the powers, functions, assets and liabilities, 
21 
capital, accounts, contracts, and facilities pertaining to the People's Television (PTV), and all 
22 
equipments relating to television broadcasting owned by the government shall be transferred 
23 
to the Network. 
24 
SECTION 26. 
Transitory Provision. -
The Network General Manager shall 
25 
recommend to the Board of Directors a corporate plan that includes programming direction, 
26 
budget, organizational plan and structure, a staffing pattern and compensation plan within 
27 
ninety (90) days from the effectivity of this Act. Said corporate structure shall be implemented 
28 
by the Network General Manager within thirty (30) days after its approval by the Board of 
29 
Directors: provided, that the current and incumbent employees of the People's Television 
30 
(PTV) shall be absorbed and accommodated by the Network. 
31 
SECTION 26-A. REORGANIZATION OF THE NETWORK. - NINETY (90) DAYS 
32 
FROM THE APPROVAL OF THIS ACT, THE BOARD OF DIRECTORS IS HEREBY 
33 
EMPOWERED TO REORGANIZE THE NETWORK TO MAKE IT MORE EFFECTIVE 
34 
AND INNOVATIVE. FOR THIS PURPOSE, THE BOARD MAY ABOLISH OR CREATE 
35 
OFFICES, TRANSFER FUNCTIONS, EQUIPMENT, PROPERTIES, RECORDS, AND 
36 
PERSONNEL, INSTITUTE COST-CUTTING AND OTHER RELATED MEASURES TO 
37 
CARRY OUT THE SAID OBJECTIVES. PROVIDED, THAT ANY OFFICIAL OR 
38 
EMPLOYEE OF THE NETWORK WHO MAY BE PHASED OUT BY REASON OF THE 
39 
REORGANIZATION AUTHORIZED HEREIN SHALL BE ENTITLED TO SUCH 
40 
BENEFITS AS MAYBE DETERMINED BY EXISTING LAWS. 


SECTION 27. Amendments. -
The provlslOns of this Act shall be subject to 
2 
amendments, alteration or repeal by the Congress of the Philippines, when public interest so 
3 
requires. 
4 
SECTION 28. 
Separability Clause. - If any provision or part of this Act is declared 
5 
invalid or unconstitutional, the remainder shall not be affected thereby and shall continue to 
6 
be in full force and effect. 
7 
SECTION 29. 
Repealing Clause. - All laws, decrees, executive orders, administrative 
8 
orders, rules and regulations, and other issuances or parts thereof inconsistent herewith are 
9 
hereby repealed, amended or modified accordingly. 
10 
SECTION 30. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
11 
publication in two (2) national newspapers of general circulation. 
12 
Approved,