OV 2012

Republic of the Philippines &-b FH
HOUSE OF REPRESENTATIVES 4
Quezon City

8B November 2012
MEMORANDUM
FOR THE DEPUTY SECRETARY GFNER/

OPERATIONS
ATTENTION THE EXECUTIVE DIRECTOR

PLENARY AFFATRS BUREAU

THE SERVICE DIRECTOR

BILES AND INDEX SERVICE
FROM THE DEPUTY SECRETARY GENERAL

FOR COMMITTEE AFFAIRS 670 2
SUBTECT COMMITTEE REPORT ON HOUSE BILL NO.

substitution of House 1 Ne

5961 and $147, sntitted:
Amending Republic Act “an Act Providing For Tac
Establishment Of The Peopic's Television Network. incorporaied,
Defining Its Powers And Functions, Providing For Its Sources Of Funding
And For Other Purposes”

wh 2472

We are respectfells apgspitins. herewith six (6) copies of the Committee Report on
House Bill No. _ in substitution of House Bill Nos. 5061 and 5147, entitled.
“4n Act Amending Republic Act No 7306 Entitled 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 Purpose:

For your appropriate action

ATTY. ARLENE DADA-ARNALDO

Ww


21 Noy 2012 5
Le eH f
Republic of the Philippines coe he i
HOUSE OF REPRESENTATIVES
Quezon City. Metro Manila

FIFTEENTH CONGRESS
Third Regular Session

2
COMMITTEE REPORT No. __ 2472

Submined by the Commitesspp (ayerragnt Enterprises & Privatization and Commitee
on Public Information on 2 t iced

RE: House Bilf No. 87023
Recommending its approval in substitution of House Bill Nos. 5061 and 5147
Sponsors: Representatives Erico Basilio A. Fabian, Ben P. Evardone, Antonio L. Tinie

Lucy Marie Torres-Gomer, Dakila Carlo E. Cua, Bemadette R. !errara-Dy, Raymond ¥
Palatino, Leopoldo N. Bataoil, Antonio I. Kho. and Rachel Marguerite B, Del Mar

Mr. Speaker:

The Committee on Government Enterprises & Privatization and the Committee cn
Public Information, to which were referred House Bill No. 5061, introduced ty
Representative Lucy Marie Torres-Gomez. entitled:

“AN ACT
AMENDING REPUBLIC ACT NO. 7306 © AN ACT PROVIDING FOR THE
ESTABLISHMENT OF THE PEOPLE'S TELEVISION NETWORK, INC.
DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FOR ITS SOURCES
OF FUNDING AND FOR OTHER PURPOSES”

and House Bill No. 5147, introduced by Representative Dakila Carlo E. Cua, entitled:

AN ACT
AMENDING REPUBLIC ACT NO. 7306 - AN ACT PROVIDING FOR THE
ESTABLISHMENT OF THE PEOPLE'S TELEVISION NETWORK, INC.
DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FOR ITS SOURCES
OF FUNDING AND FOR OTHER PURPOSES *
8702

have considered the same and recommend that the attached House Bill No.
entitled:


“AN ACT
AMENDING REPUBLIC ACT NO. 7306 ENTITLED 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 approved in substitution of House Bill Nos, $061 and 5147, with Representatives Lucy
Marie Torres-Gomez, Dakila Carlo L. Cua, Bemadette R. Herrara-Dy, Raymond \

Palatino, Leopoldo N. Bataoil, Antonio T, Kho. Rachel Marguerite B. Del Mar, Erico
Basilio A. Fabian, Ben P. Evardone and Antonio |... Tinio as authors thereof,

Respecttully submitted:

BI f 'ARDONE, ERICO BASIEIO A. FABIAN

Chairman
Committee on Public Information. Committde on Government Enterprises &
Privatizatic

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES.
Quezon City


Republic of the Philippines
HOUSE. OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Third Regular Session
HOUSE BiLLNo.__ 8703

(i Substitution of House Bill Nos. 5061 and 5147)

Introduced by Representatives Lucy Marie Torres-Gomez, akila Carlo E. Cua,
Bemadette R. Herrera-Dy, Raymond V. Palatino, Leopoldo N. Bataoil, Antonio
T. Kho. Rachel Marguerite B. el Mar. Frico Basilio A. Fabian, Ben P. Evardone

and Antonio L. Vinio
——— SS
AN ACT
AMENDING REPUBLIC ACT NO. 7306 ENTITLED “AN ACT
PROVIDING FOR THE ESTABLISHMENT OF THE PEOPI.L’S
TELEVISION NE) WORK, INCORPORATED, DEFINING ITS POWERS
AND FUNCTIONS, PROVIDING FOR ITS SOURCES OF FUNDING
AND FOR OTHER PURPOSES”

‘Be enacted bythe Serutc and the House of Representaves ofthe Phitmpines in Congress axsemBled:

SECTION L. Title - This Act shall be known as the “People’s Television

i

2 Network Charter of 2012."

3

4 C. 2, Section 2 of RA 7306 is hereby amended to read as follows:
3

6 “SEC. 2. Declaration of Policies. - In consonance with the
7 Constitutional recognition of the vital role of communication and
8 information in nation-building, and the important aspect played by
9 the broadcasting industry, it is hereby declared as the policy of the
10 State to:

iW

i2 a) Xxx

M4 b) xxx

15

16 ) xxx

7

18 d) xxx

19
20 e) Xxx
21

22 f) xx


g) [Detach government television from advertising and commercial
interest as far as practicable so as not to unduly compete with the
private television sector and ensure that government television
shall provide quality altemative programs tor the benefit and moral
upliftment of the _citizenry.]_ PROVIDE QUALITY
ALTERNATIVE PROGRAMS FOR THE BENEFIT AND
MORAT. UPLIFTMENT OF THE CITIZENRY.”

SEC. 3. Section S of RA 7306 is hereby amended to read as follows:

“SEC, 5. Domicile — The Network shall have its principal
office and domicile in the Metropolitan Manila area It may aatso
establish offices, branches and/or stations in any [other] part of the
Philippines as its Board of Directors may see fit.

THE GOVERNMENT OF THE PHILIPPINES, THROUGH THE
LAND MANAGEMENT BUREAU OF THE DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES, SHALL
IDENTIFY APPROPRIATE ALIENABLE AND DISPOSABLE
LANDS FOR THE NETWORK TO BUILD I'S MAIN
BROADCAST CENTER AND MAJOR PROVINCIAL
STATIONS.”

SEC! 4. Subsections (e) and (h) of Section 8 of RA 7306 is hereby
amended to read as follows:

“SEC. 8 Powers of the Network — The Network shall have
the following powers:

a) Xxx

b) xxx

¢) Xxx

d) xxx

©) to ACQUIRE, purchase, receive, take or grant, hold, convey,
sell, lease, pledge, mortgage and otherwise deal with such real and
persénal property;

f) xxx

8) xXx


1 h) to raise, borrow or obtain funds, from any source, private or
2 government, foreign or domestic and to enter into any financial or
3 credit arrangements in onder to support and carry out its objectives
4 and purposes, subject to the APPROVAL OF THE MONETARY
5 BOARD OF THE BANGKO SENTRAI. NG PILIPINAS UPON

6 THE RECOMMENDATION OF THE DEPARTMENT OF
7 FINANCE AND TO OTHER pertinent laws governing public debt
8g and expenditure;

9

lo i) xxx

ul

12 i xxx

13

14 kK) yxx

is

16 Do xxx

17

18 SEC. 5. Subsection (e) of Section 9 of RA 7306 is hereby amended to read

19 as follows:

20

24 “SEC. 9. Functions of the Network — The Network shall

22 have the following functions:

24 a) xxx

25

26 b) xa

27

28 ©) wx

29

30 & px

31

32 ©) to provide subsidized air time to legitimate people’s

33 organizations AND NON-GOVERNMENT ORGANIZATIONS

34 (NGOs) in the promotion of their programs and projects;

35

36 f) xxx

7

38 > xxx

39

40 SEC. 6, Section 10 of RA 7306 is hereby amended to read as follows:

4]

42 “SEC. 10. The Board of Directors. — The corporate

43 powers of the Network shall be exercised, all its business

44 conducted and all its property controlled and held by the Board of

45 Directors. It shall be composed of five (5) members who shall be

46 appainted by the President of the Philippines FROM A


SHORTLIST. PREPARED BY THE GOVERNANCE
CONMISSION FOR  GOVERNMENT-OWNED OR
CONTROLLED CORPORATIONS (GCG). The Board shall be
made up of the following:

{a) [ewo (2) members from the Government sector] THE
CHAIRPERSON;

(B) THE CHIFF EXECUTIVE OFFICER (CLO);
{()] (C) two (2) members from the private sector, one (1) of
whom shall have at least ten (10) years of experience in the

broadcast industry; and

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

SEC. 7. Insert a new Section 10-A which shall read:

“SEC, 10-A. The Advisory Council. — SIXTY (60) DAYS
FROM THFIK APPOINTMENT, THE BOARD OF DIRECTORS
SHALL PREPARE A LIST OF ITS RECOMMENDED
NOMINEES FOR THF MEMBERS OF THE ADVISORY
COUNCIL AND WHICH SHALL BE SUBMITTED TO THE.
SECRETARY OF THE PRESIDENTIAI. COMMUNICATIONS
OPERATIONS OFFICE (PCOO) FOR CONSIDERATION AND.
APPROVAL, THE NOMINEES FOR THE 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.

Tilt ADVISORY COUNCTI. SHALL BL COMPOSED OF
SEVEN (7) MEMBERS WITH AT LEAST FIVE (5) YFARS OF
WIDE EXPERIENCE AND LXPERTISE IN THEIR
RESPECTIVE FIELDS OF WORK. THE ADVISORY COUNCIL
SHALL PROPOSE AND RECOMMEND POLICIES
RELATING TO THE NETWORK’S OPERATIONS,
PROGRAMMING, BROADCASTING, TECHNICAL AND
CREATIVE PRODUCTION AND MANAGEMENT, WHICH
SHALL BE SUBJECT TO THE APPROVAI. OF THE BOARD
OF DIRECTORS,


THE MEMBERS OF THE ADVISORY COUNCIL SHAT.
(CT FROM AMONG THEMSELVES A CIJIAIRPERSON.
THE CHAIRPERSON OF THE BOARD OF DIRECTORS
SHALL SIT AS AN EX-OFFICIO MEMBER OF THE
ADVISORY COUNCIL.

THE MEMBERS OF THE ADVISORY COUNCIL SIIAII.
RENDER VOLUNTARY SERVICE. TO THE NETWORK. NO
MEMBER SHALL BE PAID ANY _HiONORARIA,
ALLOWANCFS AND OTHER PERSONNEI. BENEFITS.

SEC. 8. Section 12 of RA 7306 is hereby amended to read as follows:

“SEC. 12 Term of the Members of the Board [The initial
appointees of the President of the Philippines 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 private sector, for four (4) years,

Subsequent appointees shall serve a term of four (4) years, without
reappointment.] THE TERM OF OFFICE OF EACH
APPOINTIVE 1IRECTOR SHALL BE ONE (1) YEAR.
UNLESS SOONER REMOVED FOR CAUSE. Appointment to
any vacancy in the Board shall be for the unexpired portion of the
term of the predecessor.

The members shall elect FROM among themselves one who will
serve as [Chairman] CITAIRPERSON of the Board. The board
shall meet at least twice a month to discuss matters of policy in
order to effectively carry out the provisions of this Act”

SEC. 9. Section 14 of RA 7306 is hereby amended to read as follows:

“SEC. 14, The Network Cieneral Manager. The Network
General Manager shall be elected ANNUALLY by the Board, of
which he need not be a member. In the latter case, he shall serve as
an 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. THE
GENERAL MANAGER SHALL BE SUBJECT TO THE,
DISCIPLINARY POWERS OF THE BOARD AND MAY BE
REMOVED BY THF BOARD FOR CAUSE.”


BIS cama~avuawn—

4
15
16
i7
18
19
20
2
22
23
24
25
26
27
28
29
30
3h
32
33
34
35
36
37
38
39
40
4h
42
43
44
45
46

SEC, 10. Section 17 of RA 7306 is hereby amended to read as follows:

“SEC. 17. Use of Blocktimers — The use of blocktimers
shall be allowed but timited to education, [and] sports, ‘;OURISM,
QUALITY ENTERTAINMENT PROGRAMS AND SUCH
programs only] WHICH PROMOTE PUBLIC INTEREST,
SUBJECT TO QUALITY STANDARDS SET BY THE BOARD
OF DIRECTORS. The Network shall assume solidary Liability
witht each of the individual producers for the content of all
programs shown by blocktimers.”

SEC. 11, Section 18 of RA 7306 is hereby amended to read as follows:

“SEC. 18. Capitalization — The authorized capital stock of
the Network shall be = =[One] SIX Billion Pesos
[(P1,000,000,000,00)] (P6,000,000,000.00) divided into [one] six
million [(1,000,000)] (6,000,000) shares with a par value of One
Thousand Pesos (P1,000.00) per share, which shall be subscribed
in full by the Government,

{The initial paid-up capital shall be One Hundred Million Pesos
(P100,000,000.00) which shall be released from funds of the
National ‘Treasury upon the effectivity of this Act, The sums of
One Hundred Million Pesos (P100,000.000.00) and Three Hundred
Millton Pesos (P300,000,000.00) are authorized to be appropriated
as paid-up capital in the General Appropriations Act of the second
and third years following the date of effectivity of this Act,
respectively.]

OF THE ADDITIONAL PAID-UP CAPITAL OF FIVE BILLION
PESOS — (P5,000,000,000.00), TWO BILLION PESOS
(P2,000,000,000.00) SHALL BR TAKEN FROM THE
PROCEEDS OF THE PRIVATIZATION OF RADIO
PHILIPPINES: NETWORK (RPN 9) AND
INTERCONTINENTAL BROADCASTING CORPORATION
(BC 13). THE REMAINING THREE BILLION PESOS
(P3,000,000,000.00) SHALL BE APPROPRIATED UNDER THE
ANNUAL GENERAL APPROPRIATIONS ACTS.

[The unpaid balance of the authorized capital stock shall be
apprbpriated as and when deemed necessary by Congress in the
subsequent years.]”


SEC. 12. Section 19 of RA 7307 is hereby amended to read as follows:

“SEC. 19. Revenue Generation — The Network shall be
allowed to generate funds from advertising and air time sales in
accordance with the policies and rates set by the Board of
Directors(: Provided, that in the three (3) year period after the
effectivity of this Act and every three (3) ycars thereafter,
advertising sales shall not exceed seventy-five (75%), fifty percent
(50%), and twenty-five percent (25%). respectively, of the average
advertising sales of individual commercial stations: Provided,
further, that no commercial advertising shall be allowed nine (9)
years after the effectivity of this Act: Provided, finally, that
institutional advertising and blocktime sales shall not be covered
by tltis limitations.) 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
EXPENDITURE PROGRAM.’

SEC. 13. Section 23 of RA 7306 is hereby amended to read as follows:

“SEC, 23, Salary 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 Position
Classification Board (CPCB).] PERSUANT TO THE PROVISIONS OF
RA NO. 10149, THE GCG SHALL DEVELOP A COMPENSATION
AND POSITION CLASSIFICATION SYSTEM WIIICH SHALL
APPLY TO ALL OFFICERS AND EMPLOYEES OF THE NETWORK
SUBJECT TO THE APPROVAL OF THE PRESIDENT OF THE
PHILIPPINLS.”

SEC. 14. Redesignate Section 25 to Section 26, and Section 26 to Section
27 and the other sections accordingly and insert new Sections 25 and 26. The new
Sections 25 and 26 shall read as follows:

“SLC. 25. REORGANIZATION OF THE NETWORK.
NINETY (90) DAYS AFTER THE APPROVAL OF THIS ACT,
THE BOARD OF DIRECTORS IS HEREBY EMPOWERED TO
REORGANIZE THE NETWORK TO MAKE If MORE
EFFECTIVE AND INNOVATIVE. FOR THIS PURPOSE, THE
BOARD MAY ABOLISH OR CREATE OFFICLS, TRANSFER
FUNCTIONS, EQUIPMENT, PROPFRTIFS, RECORDS AND
PERSONNEL, INSTITUTE COST-CUTTING AND OTHER
RELATED MEASURES TO CARRY OUT THE SAID
OBJECTIVES, SUBJECT TO THE PROVISIONS OF
REPUBLIC ACT 10149, OTHERWISE KNOWN AS THE
~GOUC GOVERNANCE ACT OF 2011": PROVIDED, THAT



ANY OFFICIAL OR EMPLOYEE OF THE NETWORK WHO
MAY BE AFFECTED BY REASON OF THE
REORGANIZATION SHALL HAVE THE OPTION TO RETIRE
UNDER LXISTING RETIREMENT LAWS OR AVAIL OF THE
BENFFITS PROVIDED UNDER THE PERTINENT
PROVISIONS OF EXECUTIVE ORDER NO. 366, SERIES OF
2004.

SEC, 26, {(MPLEMENTING RULES — AND.
REGULATIONS. - WITHIN NINETY (90) DAYS FROM THE.
EFFECTIVITY OF THIS ACT, THE PRESIDENTIAL
COMMUNICATIONS OPERATIONS OFFICE (PCOQ) SHALL.
DRAFT THE IMPLEMENTING RULES AND REGULATIONS
(IRR) OF THIS ACT, IN CONSULTATION WITH THE.
VARIOUS STAKEHOLDERS, GOVERNMENT AND NON
GOVERNMENT SECTORS.”

SEC. 15. Separability Clause. ~ If any provision or part of this Act is
declared invalid or unconstitutional, the remainder shall not be alfected thereby
and shall cohtinue to be full force and effect.

SEC. 16. Repealing Clause — All laws, decrees, executive orders,
administrative orders, rules and regulations and other issuances or parts thereof
inconsistent herewith arc hereby repealed, amended or modified accordingly.

SEC. 17, Efffectivity Clause, This Act shail take effect fifteen (15) days
after its publication in two (2) national newspapers of general circulation,

Approved,


FACT SHEET

{ 6702
House Bill No.” 703
(As Approved On )

“AN ACT
AMENDING REPUBLIC ACT NO. 7306 ENTITLED AN
ACT PROVIDING FOR THE ESTABLISHMENT OF THE
PEOPLE’S TELEVISION NETWORK, INC., DEFINING ITS
POWERS AND FUNCTIONS, PROVIDING FOR ITS
SOURCES OF FUNDING AND FOR OTHER PURPOSES”

Introduced by:
REPRESENTATIVES LUCY MARIE TORRES-GOMEZ, DAKILA CARLO E. CUA.
BERNADETTE R, HERRARA-DY, RAYMOND V. PALATINO, LEOPOLDO N. BATAOIL.
ANTOMO T. KHO, RACHEL MARGUERITE B. DEL MAR, ERICO BASILIO A, FABIAN,
BEN P. EVARDONE AND ANTONIO L. TINIO.

Committee Referral: COMMITTEE ON GOVERNMENT ENTERPRISES &
PRIVATIZATION (Primary)

Committee Chairperson: Rep. ERICO BASILIO A. FABIAN
Commitice Referral; COMMITTEE ON PUBLIC INFORMATION (Secondary)
Committee Chairperson: Rep. BEN P. EVARDONE

OBJECTIVES

* To allow the People's Television Network to generate revenues from
advertising and airtime sales for self-sufficiency and commercial viability

+ To enhance the network's role as a government arm in nation-building in
the communications and information industry

KEY PROVISIONS:

* Seeks to enable PTV-4 to maximize revenues from advertising and airtime
sales to make it self-sufficient and financially viable

* Mandates an increase in the authorized capital of the network to
P6,000,000,000.06 to enable it to upgrade its equipment and facilities

= Provides for the reorganization of the network to make it more effective
and innovative

RELATED LAWS:
= Republic Act No. 7306
= Republic Act No. 10142


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

FIFTEENTH CONGRESS.
Second Regular Session

MINUTES OF THE JOINT MEETING OF THE COMMITTEE ON GOVERNMENT ENTERPRISES
AND PRIVATIZATION AND THE COMMITTEE ON PUBLIC INFORMATION HELD ON 6 JUNE
2012, 9:30 A.M. AT CONFERENCE ROOM NOS. 3 & 4, RAMON V. MITRA, JR. BLDG.,
HOUSE OF REPRESENTATIVES, QUEZON CITY

GUESTS:

1. Atty. Leslie Cordero — Assistant Secretary, Presidential Communications cad
Operations Office (PCOO)

2. Mr. Philippe Cortes - PCOO.

3. Mr. Cleo Dongga— General Manager, PTV 4

4. Mr. Larry Andes —Head, Corporate Affairs, PTV 4

5. Atty. Sonny Matuta — Federation of Free Workers (FFW)

L CALL TO ORDER

The Chairman of the Committee on Government Enterprises and Privatization, Rep.
Erico Basilio A. Fabian, and Chairman of the Committee on Public Information, Rep. Ben
P. Evardone, called the meeting to order at 10:00 am. Rep. Antonio L. Tinio moved to
dispense with the calling of the roll. The motion was duly seconded and approved.

I. DELIBERATION

Rep. Antonio L. Tinio, Chairman of the technical working committee (TWC}, presented
the draft substitute bill, entitled: “An Act Amending Republic Act No. 7306 Entitled 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”. The substitute bill is a consolidation of House Bil! Nos. 5061 and $147,
authored by Rep. Lucy Torres-Gomez and Rep. Dakila Cua, respectively. It seeks to
revitalize PTV 4 in order to sustain its operations and be able to serve as the main
broadcast and information dissemination arm of government agencies for its programs,
policies, and projects and ultimately transforming it into a public service network. Rep.
Bernadette Herrera-Dy moved to approve the substitute bill, which was duly seconded.
The Committees approved the substitute bill to House Bill Nos. $061 and $147, subject
to style.



1, ADJOURNMENT

The joint committee hearing was adjourned at 10:25 a.m.

Prepared by

9
(
san el eosaoas

SLSO I

Certified Correct:

CORA BARJ@-RIGOR
Committee Secretary

Committe on Public Information

Crveetaqeagh
CATHERINE N. MACAPAGAL
Committee Secretary

Me P. EVARDONE

Chairman
Committee on Government
Enterprises and Privatization


es
Republic af the Biilippines

House of Representatives
Guecon City, Metro Mavils

HON. JOSEPH EMILIO A. ABAYA
Congressman. Ist District, Cavite
Chairman, Committee on Appropriations

‘October 15, 2012

HON. ERICO BASILIO A. FABIAN

Chairperson

Committee on Government Enterprises and Privatization
House of Representatives

Dear Chairperson Fabian:

Please be informed that the Committee on Appropriations in its meeting held today at
Conference Rooms 14 and 15, Ramon V. Mitra Bidg., approved to report out Substitute
Bill to House Bill Nos. 5061 and 5147, titled, “AN ACT AMENDING REPUBLIC ACT HO
7306, ENTITLED “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” with the following arnendments.

in

On page 2, between lines 25 and 26, insert a new section to read as
follows and renumber subsequent sections accordingly:

*SEC. 3. Section 4 of RA 7306 is hereby amended to read 2s follows:

“SECTION 4. Corporate Existence. ~ The legal existence of the Network
shall be for a period of fifty (50) years from the effectivity of [this Act] RA
NO. 7306, SUBJECT TO RA NO. 10149 OR THE “GOCC
GOVERNANCE ACT OF 2011” AND OTHER RELEVANT LAWS.”,

‘On the same page, line 41, between the numerical "4” and the letter "(2)",
add the letter °s* to the word “Subsection” and between the letter “e" and
the preposition “of insert the phrase AND (b} ;

‘On page 3, Subsection (h) of Section 8 of RA 7306, jine 27, between Ine
article “the” and the word ‘pertinent’, insert the phrase APPROVAL OF
THE MONETARY BOARD OF THE BANGKO SENTRAL NG PILIPINAS
UPON THE RECOMMENDATION OF THE DEPARTMENT
FINANCE AND OTHER ;


10.

On page 5, Sec. 6, line 3, between the word “Philippines” and the period
(), insert the phrase FROM A SHORTLIST PREPARED BY THE
GOVERNANCE COMMISSION FOR GOVERNMENT -OWNED OR
CONTROLLED CORPORATIONS (GCG),

On page 6, Sec. 7, between lines 4 and 5, insert a new paragraph to read
as follows:

THE MEMBERS OF THE ADVISORY COUNCIL SHALL RENDER
VOLUNTARY SERVIGE TO THE NETWORK. NO MEMBER SHALL BE
PAID ANY HONORARIA, ALLOWANCES AND OTHER PERSONNEL
BENEFITS. ;

On the same page, between lines 27 and 28, insert a new section to read
as follows and renumber subsequent sections accordingly

“SEC___. Section 14 of RA No. 7306 is hereby amended to read as
follows’

“SEC. 14. The Network General Manager. The Network Gereral
Manager shall be elected ANNUALLY by the Board, of which he need not
be a member. In the latter case, he shail serve as an 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.
THE GENERAL MANAGER SHALL BE SUBJECT TO THE
DISCIPLINARY POWERS OF THE BOARD AND MAY BE REMOVED
BY THE BOARD FOR CAUSE.,

On the same page, Section 10, line 44, between the preposition “of and
the word "TEN*, delete the opening and ciosing brackets ( )) in the word
“One" and between the words “[Gnej’ and "Thousand" deiete the vord
"TEN",

On the same page and Section, line 45, delete the opening and closing
brackets ({  ]) in the numerical *[P1,000]' and delete the numerical
*(P10,000)";

On page 7, same Section, lines 11 and 12, add the preposition OF before
the word "THE" and after the numerical (P5,000,000,000.00) delete the
period {,) and substitute it with a comma (,);

On the same Section and page, between lines 17 to 24, deiete the
provision starting with the word “ANOTHER up to the word "ACT" and in
lieu thereof, insert the following:

THE REMAINING THREE BILLION PESOS (P3,000,000,000.00) SHALL
BE APPROPRIATED UNDER THE ANNUAL GENERAL
APPROPRIATIONS ACTS.;


14.

12.

14.

15.

On the same page and Section, lines 28-31, delete the last sentence
starting from the article "THE" up to the year “2014”;

On page 8, between lines 16 and 17, insert a new section to amend
Section 23 of R.A No. 7306 and renumber subsequent sections
accordingly:

Sec.__. Section 23 of R.A. 7306 is hereby amended to read as follows

SECTION 23. Salary Scale far 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 Position
Classification Board (CPC8)}. PURSUANT TO THE PROVISIONS OF
R.A. NO. 10149, THE GCG SHALL DEVELOP A COMPENSATION
AND POSITION CLASSIFICATION SYSTEM WHIGH SHALL
APPLY TO ALL OFFICERS AND EMPLOYEES OF THE NETWORK
SUBJECT TO APPROVAL BY THE PRESIDENT OF THE
PHILIPPINES. ;

On the same page, Section 25, lines 28 to 30 between the year "2071"
and the word “PROVIDED” , delete the phrase starting with the word
“ANDY up to the word "LAW" ;

On the same page and Section, between lines 33 and 34, delete the
provision starting with the word "AUTHORIZED" up to the word "LAWS"
and in lieu thereof insert the phrase SHALL HAVE THE OPTION TO
RETIRE UNDER EXISTING RETIREMENT LAWS OR AVAIL OF THE
BENEFITS PROVIDED UNDER THE PERTINENT PROVISIONS OF
EXECUTIVE ORDER NO, 366, SERIES OF 2004. ;

On the same page and Section, delete lines 36 to 46.

Very truly yours,

Jos!

)

ILIO AGI ‘BG ABAYA

cc: Hon. Lucy Marie Torres-Gomez
Hon. Dakila Carlo E, Cua

Hon, Antonio L. Tinio
Hon. Ben P. Evardone


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO 5061

Introduced by Honorable Lucy Marie Torres-Gomez

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,
Tafevision (GFV-4) and wes the broacicast 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, M8S was renamed Peoples’ Televisian

TV).
In 1992, tha network became @ government-owned and controlled corporation
known as People’s Network, Inc. (PTBE) by virtue of Republic Act No. 7306 signed by

President Corazon C. Aquino.

26, 2001, PTNI adopted the name National Broa
in recognition of the need to develop a new im

programming thrusts.

dieasting Network (NBN)
age in line with its new

Since 1992, PTNI has been operating on revenues tt generates on its own. 3
generates its revenue through airtime saies, commercial spats co-productions, (nter™

agency collaborative programs and equipment rental. In July 2001, the Network
Stopped airing commercial advertisements, as stipulated in its Charter. 10 augment its
ozerational requirements, bsidies released as needed

PTNI has received government sul
based on requests made by the Network from the Nai

tional Government.

Thus, there is an urgent need to regenerate ang improve the information
mechanisms of government, Under its Charter, the Network does not receive annual
azpropriation for operations, After 2001, PTNI/NBN by express provision of ‘aw,
specifically, section 19 of Title VII of RA 7306, cannot engaged in commercia:
advertisirig which tas 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 to 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 shal! be
utilized by PTV solety for its operations and capital expenditure; (b) the government to
approve a capital infusion to jumpstart the rehabiltation 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, approval of this bill is earnestly sought,

Lucy ae EZ
Uv



FIFTEENTH CONGRESS

rn Rema Ger

Introduced by Honorable Lucy Marie Torres-Gomez

Be is enacied by the Se

6

AN ACT PROVIDING FOR THE ES’
NETWORK, INCORPORATED, DEFINING ITS POWERS AW!

AN ACT

AMENDING REPUBLIC ACT NO. 7306 -
TABLISHMENT OF THE PEOPLE'S TELEVISION
‘PD FUNCTIONS, PROVIDING

FOR ITS SOURCES OF FUNDING AND FOR OTHER PURPOSES

nate amd the House of Representatives ofthe Philippines in Congress assembled:

JEILE 1. — GENERAL PROVISIONS

SECTION 1. Title. —This Act shall be known 2s he “Amended Charter of the People's

cision Network, Incorporated”

Declaration of Policies, — in cossonanee with the Constirutionsl recognition oF
of communication and information iz nation-building, and the iniponsnt aspect
oe cotramntng industry, 3s hereby declared as the policy ofthe State co

slop cortmunication structures saitabie 1 the needs and asplzations of the nation

a) Fall
Tespects the fteedom of speech and of the press

aad in eseordance with a policy that

b) Give priority te education, science and zechnology, as culture, and sports to foster
paiotsco and rasionelism, accelerate social progress, ‘aad promote total humue Liberation and

development,

op the broadcasting industry as & mediurt for tae development promotion and
alismn, culture and values that serve as an instrument in the
ational unicy and integration;

<) De
advaacerent of Filipino ratio
stnegg. ino sovercignty, identity,

ate sector towards a close, continucus

d) Hemess the resources ofthe government a th
© Monced cooperation in order to take advantage of technological advances in the

serves as a vita! link for participative democracy
ough developmental communication,
é accountable directly to the people;

©) Maiziain a broadcast industry system thet
and ef information disseminat

fee for aay political or partisan influence anc

eianced programs which feature, among

Encourage the development and broadcast of
(ffairs and sports; and

_ edp-atiunal, wholesome entertainment, ¢

eal, pub

TELEVISION SHALL NOT UNDCLY
ON SECTOR FOR ADVERTISING AND

H) PROVIDE QUALITY ALTERNATIVE PROGRAMS FOR THE BENETIT AND
MORAL UPLIFTMENT OF THE CITIZENRY.



et

TILED. CREATION AND DOMICILE

SECTIONS. Creation, — There shall be created a body compors¥s 1 be called “The "People's

Television Network, Incorporated,” hereinafter referred to as the “Network,” whick shal! engage
ih tovision broadcasting in the Philippines. The Newwork shall be government-owned and
in teilled corporation under a Board of Directors to be appointed by the President of the

Philippines.

SECTION 4. Corporate Existence. al existence of the Network shall be for # period
ivity of RA 7306, NOTH WJHLSTANDING ANY

fy (50)
PROVISION OF LAW TO THE CONTRARY ROVIDED, HOWEVER, THAT AT THE
END OF THE SAID PERIOD, THE NETWORK SHALL AUTOMATICALLY

CONTINUE TO EXIST FOR: ‘ANOTHER EJFTY (50) YEARS, UNLESS OTHERWISE
PROVIDED BY LAW.

The Network shell have fs principal office and domicile in the
 eemaablish oftices, branches and/or stations in any pact of

ee fit.

SECTION 5. Domicile. —
‘Mewopolitan Manila area. It may
the Philippines as its Board of Directors may

SECTION 5-4. - THE GOVERNMENT OF THE PHILIPPINES, THROUGH THE
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES AND THE

BUREAU OF LANDS, SHALL IDENTIFY AND
GOVERNMENT LAND FOR THE NETWORK TO ESTABLISH AND BULLD ITS

MAIN BROADCAST CENTER AND MAJOR PROVINCIAL STATIONS.
‘TITLE DL — FRANCHISE AND LICENSE TO OPERATE

titution, laws, orders,

SECTION 6 Franchise Grant, — Subject ro the provision of the Cor
ere not inconsistent herewith, the nerwork fs hersoy gramied a Frant
jnainvaic and operaze television broadcasting sation wid satel i
Tebtiges in the Philippines for a period co-termines wich the corporate ext=t=76
“The Notional Telecomnmaumicetions Commission (NTC)
“Network of the corresponding license to operate upon

‘SECTIO! License to Operate. —
shaij forihwith cause the issuance to the
swith ell its requirements. :

WTLE IV. — POWERS AND FUNCTIONS

cork shell have the following powers:

SECTION 8. Powers ofthe Neowork, — The S
2). to sut or be sued in its comporate name:

vatinuous succession in its corporaie 7amie:

a)

« policy, and so amend or repeal the

Jaws not contrary te law, morals,

a) toadopt
ame iz arcordayce with the provisions of ex'sting iews:

hold, convey.

re ACQUIRE, purchase, receive, ta cll, lease, pledge, ‘nortges:
feraise deal with such rea! anc persamal Prope) wee

©) te establish, purchase, install, construct, use ané maintain’rational, regional, provincial smt¢
part of che

2 emunity staions and facilities for television oroadcasting throughout and in any

COUNTS;



5
6
7

sete joing ventures oF partnerships with other broadcisting authorities and stations ar
crea agencies or privete organizations for the purpose ef promoting broadcasting

from any source, private or government, foreign oF

aver ine any financial or credit arrangements in order to support C2°y out its
t laws governing public debt and expendinares

domestic ani
cbjentives ané purposes, subject to the pertinen
focal or foreign and avail of official

to receive donations and grants from any source whesher |
governments, foundations oF

development assistance and concessional loans provided by Foret
financial institutions;

4) went io, make, perform and carry out contacts Of ary kind and deserigtion in
D ecaas ofthe corporate purpase with eny perso, Zzm, association oF corporation;

opmental programs and to determine the
ioe accepted for television transmission; and

ik) to nccept corporate instinutional support for de
conditions subject to which the said programs mey
the Corporation Code of the Philippines, as well as

1) wexercise the general powers outlined in
its activities.

such other incidental powers as may be necessary to Carry on
‘The Network shall have the following functions:

SECTION 9. Functions of the Network. —

2). to serve primarily asa vehicle for the State Zo" porposss of education, science and
Clcnpoloes, ats, culture, and sports in order to foster matiomel pride and identity;

loses to the people in order to enkaace
irections of the Government:

1) tosene as a vebiale for bringing the Govern
‘eazeness of the programs, policies, thrusts, ang

snaintain a high general standard ‘tall
ualisy and proper bafance of

adcast by the Nemwork.

respects, an¢ ix particulary, in respect to their con ¢
Caoationa’, news, public affairs, entertainment, an¢ sports programs;

for alternative programming;

©) TO PROVIDE AIRTIME TO LEGITIMATE PEOPLE'S ORGANIZATIONS AND
NGOS IN THE PROMOTION OF THEIR PROGRAMS AND PROJECTS;

unigy end political stability by reaching as much
odemn broadcasting

ad) wo serve as an effective outlet

as en effective medium for ‘national
population as possible through the effective us

technology, ané

broadcest by the Network which shall;

g) co ensure that nothing is included in the progres

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

ifl-wit berween different races or different public

2} offend any ras ‘al group or promote
cily partisan patitics and propaganéa:

grorps, pseribing such programs as would promcte Sx

aSfénd the followers of any religious faith, sect, or order, or

ourrage public feeling in generat

RPORATE STRUCTURE

TIE V.

__The corporate powers of the Network shall be

SECTION 10. The Board of Directors
aMlits property controlled and held by the Boaré of

exercised, al] its business conducted and

ot


a

B

24
25

Directors. I: shall be composed of five

(5) members who shall be appointed by the President of

the Philippines. The Board shall be made up of s

a)

by twa QI

°)

SECTION 10-A. Th
SHALL APPOINT SEVEN (7) SECTORAL

AND EXPERTISE IN

two (2) members from the Governmy
‘embers front the private sector,

ctor .

‘one (1) of Whom shall have at ten (10) years

of experience in the broadcast industry, an¢

cone (1) member from the educational sector.

THE ADVISORY BOARD.

THE MEMBERS OF

NOMINEES OF ASSO!
VARIOUS STAKEHOLDERS 1N THE BROADCAST INDU:
“TERM OF SIX (6) YEARS.

SERVE AS THE STRATEGIC AND POLICY-
RMULATE POLICIES TO GOVERN THE

SERVE WITH A FIXED

THE ADVISORY BOARD SHALL
MAKING BODY THAT WILL FO)
NETWORK. THE
OFFICIO MEMBER 0}

SECTION 11. Qualifications of the Members of

be of prover and unquestionable probity

Laowiedgeable of the broadcast indsstry. They stall to: Dey
other broadcasting corporation or hold any po!
duties as

Tf

ctors of the Network.

of bis candidany, as the case may be.

SECTION 12.

‘THEIR RESPECTIVE FIELDS ©)

TNE ADVISORY BOAI
CATIONS AND ORGANIZATIONS REPRESENTING

‘CHAIRMAN OF THE
)F THE ADVISORY BOARD.

sper shall de appointed to another governa
Shall be deemed to have vacated memberstip in the

‘Term of the Members of Board. — Toe initial appointee:

1c Advisory Board. — THE PRESIDENT OF ‘THE PHILIPPINES

MEMBERS WITH WIDE EXPERIENCE
F WORK TO CONSTITUTE

RD MAY BE CHOSEN FROM AMONG

ISTRY AND THEY SHALL

‘BOARD OF DIRECTORS SHALL BE AN EX-

(the Board. — The members of the Board shall
impartiality, reputation, and

in any way, connected with any

ss may confict with their functions and

integrity,

en: office or rans for any elective position,
Boerd on the day ov his appointment or fils

3 of che President of the

Phirippines shall have the following terms:

‘Three (2) directors, one trom each s

a
bs) The ober awo (2) directors, one (1)
@)ysss.

Subsequent appointes

to any vacaniy in the Board shall be for

‘THE MEMBERS SHALL ELECT
AS CHAIRMAN OF THE BOARD.
MONTH TO DISCUSS MATTERS: OF POLICY IN ORDE!

os shall serve a term of four (4) years, without reappoft

ctor, for two (2) years, end

‘each from the governmens and private Sector, for four

1: Appoint:
‘portion of the term of the predecessor.

the unexp

AMONG THEMSELVES ONE WHO WILE SERVE
THE BOARD SHALL MEET AT LEAST TWICE A

R TO EFFECTIVELY

CARRY OUT THE PROVISIONS OF DUS ACT.

Board of Directors shall be

to decide matters of policy; and

to submit to the President of the Phi

Functions and Duties of the Board

Directors. —The general functions and

as follows:

Jippines and the Congress a comprehensive annual

b


any (60) days of the fiscal year.

operation of the Network within

i, reportond

SECTION £~ he NitHork General Mania} The NecwWork (eeheraT Manager stall BE
elected by the Board, of which he need not be = member. In the Jarier case. ‘he shall yerve cs an
ceeds member ofthe Board. He shall also be the Chief operating Officer of she Network,
Sc eull be responsible forthe proper administration and management of the Network in

accordance with the polities laid down by the Board.

2
a
4

is incapacitated by reason of illness or for any
his daties, the Board of Directors may designate a
wing such absence from duty.

Af the Network General Manager is absent, or
other cause, is temporarily unable to perform
bfficer-in-charpe to uct in bis place and stead dis

SECTION 15. Powers and Functions of the Network General Manager. — Subject to the
contro! and supervision of the Board, the Network General Manager shall have the following

powers and functions:

2) submit policy recommendations and propose measures necessary {0 ca:7y Ov! the objectives
‘and fimcttons of the Network for the consideration of the Board;

Leb) recomend to the Board for approval an o-ganizational structure ane plantilla for personnel
1 of the Network, in accordance with existing laws, rules and regulations;

16) execune salminister and implement policies and measures approved by the Boerd;
tymit to the Board an annual budget and such supplemental budgets as mey be necessary

7a) &
fi eration and approval;

other parsons, entiies, agencies and institutions,

192} represent the Network its dealings wit
subject to the limitations and conditions herein

20 whether public or private, domestic or foreign,
2. provided:

ct 10 the confirmation by the Board, discipline or remove for cause, officer anc
personne! of the Network in accordance with i} Service Law, rules and regulations; and

24g) perform such other functions and duties waich mey be assigned to him by the Board.

TITLE I. PROGRAM STANDARDS
as SECTION 16, General Program Standards. — Tae Board oF Directors is mandated to set up @
34 Case of Standards, inclusive of the following aspe=ss:

27a} Presentations of News

ic Aifairs Programs and Commentaries

29 c) Public Service Programs

39d) Educaticral Programs

31 ¢). Children’s Programs

322) Agriculture and Livelihood Programs

33g} Womenand Youth[ssues ..

\grares.

34H). Locally-produced and foreign produseé 30


SECTION 17, USE OF BLOCKTIMERS. — THE USF OF BLOCKTIMERS SHAUL
j-+ BE ALLOWED BUT LIMITED TO EDUCATION - SPORTS; QUALITY — ~~
3. ENTERTAINMENT PROGRAMS, AND SUCH PROGRAMS WHICH PROMOTES

NATIONAL INTEREST, SUBJECT TO QUALITY STANDARDS SET BY TILE BOARD

4
$ OF DIRECTORS. THE NETWORK SHALL ASSUME SOLIDARY LIABILITY WITH
§ EACH OF THE INDIVIDUAL PRODUCERS, FOR THE CONTENT OF ALL
7 PROGRAMS SHOWN BY BLOCKTIMERS.
TILE Vil. — FINANCIAL PROVISIONS
8 SECTION 18, CAPITALIZATION. — THE ADDITIONAL AUTHORIZED CAPITAL
CT TO APPROPRIATION IN THE

§ STOCK OF THE NETWORK SHAJ.L BE SUBJE!
10 GENERAL APPROPRIATIONS ACT.

11 SECTION 19. REVENUE GENERATION. _-THE NETWORK SHALL BE ALLOWED TO

12. GENERATE FUNDS FROM "ADVERTISING AND AIRTIME SALES IN
RATES SET BY THE BOARD OF

13 ACCORDANCE WITH THE POLICLES AND.
tL DIRECTORS. SUBJECT TO EXISTING LAWS, ALL FEES OR OTHER REVENUES
RK SHALL BE RETAINED BY IT

15 COLLECTED OR RECEIVED BY THE NETWO!
16 AND UTILIZED SOLELY FoR ITS ‘OPERATIONS AND CAPITAL EXPENDITURES.

e

SECTION 19-A. EXEMPTION FROM RA No. 7656. ‘THE NETWORK SHALL BE
EXEMPT FROM REMITTING FISTY PERCENT (50%) OF ITS ANNUAL NET
EARNINGS AS PROVIDED BY RA No. 7656, SUBJECT TO THE APPROVAL OF THE
DEPARTMENT OF FINANCE, AND PROVIDED, THAT THE ANNUAL NET
EARNINGS BE USED SOLELY FOR TTS OPERATIONS AND CAPITAL
EXPENDITURES.

TITLE VEL. — ADMINISTRATIVE PROVISIONS

23. SECTION 20. Record of Transactions, — Tae Newrork shall keep proper accoumts and reco:és
34 ofall ts saxsaccions and affairs, and shall do all things necessary © ensure that all payments

33 grade out of ls moneys are correetly raade and prover authorized, and that adequate control is
3G mainteined over the assets of, or in the custody of # ‘Network and the expenditures incurred ay

sstwork, The Nezwork shall be subject to sudit by the Coramission on Audit.

COMPANIES, WHICH ARE GI 4
‘OR COMMUNITY TELEVISION AND ARE AFTILIATED.

TELEVISION STATION 2
1) COMMENSURATE TAX CREDITS:

WITH THE NETWORK SHALL BE GRANTE!
PROVIDED, THAT UPON TERMINATION OF THE AFFILIATION WITH THE

NETWORK, THE TAX CREDITS SHALL CEASE TO BE GRANTED.

TITLE IX. —TAX EXEMPTIONS

porcations of equipment, apparatus

ax Exemptions on Imporzations. —~

ES)

36 s to be actually, directly and excles operation of the Network,

37° wheter parchased from or donated by any ft andior private emtity shall 9° fee

38 apy and ol] forms of taxes, li es and customs duties that mey .

5) gosh equipment and apparatus scall inciudk cameras, TV monor® and

2 SV transmitters, elgetronic tubes, editing <n 1 such necessary equipm:
quipmer, ~

ed for ielevision nroadcasti
appararus and materials shall be subject ro review bs
43 further, that ip the event the equipment, apparans and mi
G4 persons or onciies, the buyers shall be considered the expor

45 wx

4]

terials are suld to nem-tax exempt
rs und who shall then be subject to



| 45

SECTION 25-A. EXEMPTION FROM REAL PROPERTY TAX. ~ SUBJECT TO THE
PROVISIONS OF THE LOCAL GOVERNMENT CODE AND THE NATIONAL
INTERNAL REVENUE-CODE; THE NETWORK SHALE BE EXEMPT FROM REAL
PROPERTY TAX PROVIDED THAT SAVINGS FROM REAL PROPERTY TAX
EXEMPTION WILL BE USED TO FUND CAPITAL EXPENDITURES AND

OPERATIONS FOR THE NETWORK.
TITLE X.— EMPLOYEES OF THE NETWORK,

SECTION 22, Civil Service Law Coverage for Employees. — The hiring, appointment,
oyment, promotion, disciplinary control, and other terms aad conditions of the service of atl

employees of the Network, and such other matter affecting its employees shall be consistent with

the provisions of the Civil Service Law, mules 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. Salary 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 Position Classification Board (CPCB).

SECTION 24. GSIS Cow

dsemed members of the
employee benefits

‘TITLE XL. ~ MISCELLAS

SECTION 25. Transition Clause, — AK the po}

accounss, coatracts, and
ating to te

SECTION 26. Transitor

jerage for Employees. — All employees hired by the Network shall be
Governments Service Insurance System (GSIS) for the purpose of

SEQUS PROVISIONS

fumetions, asscts and liabilities, cay
facilities pertaining to the P vision - 4{PTV-4), ang all
evision broadeasting owned by the government shall be trensferred to

ry Provision: — The Network General Manager shall recommend to the

Board of Directors a comporate plan that includes programming direction, budget, orgunizational

plac and structure, a staffing pattem and compensation
Act. Said corporate structure shali Se implemented by ‘the Network Geneva?

thin thirty (3

oramode:ed 3y the Ne

and incumbent employees of the People's Tele

tan within ninety (90) days from the

0) days after its approval by the Board of Directors: provided, :bat the
vision - 4 (PTV-4) shall be absorbed ané

jetwork.

SECTION 26-A. REORGANIZATION OF THE NETWORK. - NINETY (90) DAYS FROM
TEE APPROVAL OF THIS ACT, THE BOARD OF DIRECTORS IS HEREBY
EMPOWERED TO REORGANIZE THE NETWORK TO MAKE IT MORE

EFFECTIVE AND INNOVATIVE. POR THUS PURPOSE, THE BOARD MAY ABOLISH
OR CREATE OFFICES, TRANSFER FUNCTIONS, EQUIPMENT, PROPERTIES,

RECORDS, AND PERSONNEL; INSTTTUTE COST-CUTTIN

AND OTHER

RELATED MEASURES TO CARRY OUT THE SAID OBJECTIVES. PROVIDED.
THAT ANY OFFICIAL OR EMPLOYEE OF THE NETWORK WHO MAY BE
PFIASED OLT BY REASON OF THE REORGANIZATION AUTHORIZED HEREIN

SHALL BE ENTITLED TO SUCH BENEFITS AS MAYBE DETERMINED) BY

EXISTING |. AWS.

SECTION 26-B. OBLIGATIONS. THE GOVERNMENT OF THE REPUBLIC OF THE
__ PHILIPPINES, THROUGH THE DPPARTMENT OF FINANCE SHALL GUARANTEE

‘ALL PRESENT AND FCTURE FINANCIAL OBLIGATIONS THAT THE NETWORK
"ER INTO WITH LOCAL AND FOREGIN ENTITIES.



~ SECTION 27. Amendments. — The provisions of this Act shall be subject to amendments,
2 iteration or repeal by the Congress of the Philippines, when public interest so requires.

‘SECTION 28-- Separability Clause, — If any provision or part of this Act ‘s declared invalid or

imcoastitutional, the remainder shall not be affected thereby and shall continue to be in full force
and effect
6 SBCTION29. Repealing Clause. — All laws, decrees, executive orders, administrative orders,

7 rules and regulations, and other issuances or parts thereof inconsistent herewith are hereby
8 repealed, amended or modified accordingly.

. SECTION 30. Affectivity Clause. — This Act shall take effect fifteen (15) days after its
10 publication in two (2} national newspapers of general circulation.

Appravea: __

19



REPUBLIC OF THE PHILIPPINES
* CONGRESS OF THE PHILIPPINES

FIFTEENTH CONGRESS
SECOND REGULAR SESSION

HOUSE BILL NO. 5147

ee
Introduced by: REP. DAKILA CARLO ENRIQUEZ CUA

a a

AN ACT
AMENDING REPUBLIC ACT NO. 7306 —
AN ACT PROVIDING FOR THE ESTABIISHMENT OF THE PEOPLE'S TELEVISION
NETWORK, INCORPORATED, DEFINING ITS POWERS AND FUNCTIONS,
PROVIDING FOR JTS SOURCES OF FUNDING AND FOR OTHER PURPOSES

EXPLANATORY NOTE

‘The People’s Television Network Inc. (PTND is the flagship television network owned by the
Philippine Government. PTNI began operations in 1974 as Government Television (GTV-4) and was
roadcast arm af the National Media Production Center (NMPC). In 1980, GTV-4 evolved into
fhe Maharlike 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
levision Network, Inc, (ETN) by virtue of Republic Act No. 7306 which was signed by
corazon C. Aquino.

People’s
Presider

‘onal Broadcasting Nerwork (NBN) as its call

On July 16, 2001, PTNI adopted the name Nat
‘in line with its new programming thrusts.

name, in recognition of the need to develop a new im:

1992, PTX] has been operating on revenues it generates on its own. It generates its

Sine:
collaborative programs

revenue through airtime sales, commercial spots co-productions, inter-agency
and equipment rental. In July 2001, the Network stopped airing commerctal advertisements, as
stipulated in its Charter. To augment its operational requirements, PTNI has received government
dies released as needed based on requests made by the Network from the National Government.



"=" "RUS! here WS an Urgent noed 0 7

generae and improve tt information m isms: OF
s Charter the Network does no: receive anual appropriation for operates
aly, section 19 of Title VIL of RA 7306,

government. Under j
‘After 2001, PTNUNBN by express provision of law. specific
tannot engage in commercial advertising which has made it difficult 1 meet its daily operational
expenses. Currently, PTNUNBN is under financial rehabilitation and is in serious need of capital

infusion to be able move towards it being self-sufficient and commercialiy viable once again.

9 do the following: (a) to allow the network te

generate funds from ativertising and airtime ssles and the same shalt be utilized by PTV solely for its
operations and capital expenditure; (b) for goverament te approve & capital infusion te jumpstart

cr rniftaton of the network; and (c) for the nctwork to adopt other measures thet will help restore
the viability of the network operations.

This bill seeks to amend the PTV Charter t

Thus, approval of this bill is highly endorsed.

DAKILA CARLO ENRIQUEZ CUA



FIOUSE OF REPRES!
QUEZON CIT

FIFTEENTH CONGRESS
SECOND REGULAR SESSION

HOUSE BILL NO. 5147

Introduced by: REP. DAKILA CARLO ENRIQUEZ CUA

AN ACT
AMENDING REPUBLIC ACT NO. 7306 —
AN ACT PROVIDING FOR THY. ESTABLISHMENT OF THE PEOPLE'S TELEVISION
NETWORK, INCORPORATED, DEFINING ITS POWERS AND FUNCTIONS.
PROVIDING FOR ITS SOURCES OF FUNDING AND FOR OTHER PURPOSES

Hppines in Congress assembled:

mnasted by the Senate and the House of Representatives ¢:

TITLE L. — GENERAL PROVISIONS

wr avche “Amended Charter ofthe Peopl

SECTION 1, Title. — This Act shall be
Television Neowerk, Incorporeted™.

swith 2 Constimtional recegrit
-building, and the important

ered as the policy of the State to:
eeds and aspirations of the
frcedom of speech and of che

SECTION 2, Declaration of Policies. — Inc
of the vital role of communication and icformation
aspect played by the broadcasting industry, it's here>s

'2) Fully develop communication structures suizable to ¢
nation and in accordance with ¢ poli
press:

b} Give priority to education, svie
patriotism and nationalism, acceeraze sosia! Pro}
Tiheration and development,

€) Develop the broadcasting industry 28 am
advancement of Filipino nationalism. ©
in the straggle for Filipino so

i Hamess the resources of the governmen:
continuous and balanced cooperation
advances ir: the broadcasting indust-y;

¢) Maintain a broadcast industry system ther 5
democracy and effective governmen:

“opmental communication.
accountable directly to the pease

£; Encourage the development and orci
among athers, educational. whi

and sporss to faster
gress, and promote toxa] hurnar.

and

lopment, promezion and
5 that serve as am insls
y and integration;

Gy


2) ENSURE THAT THE GOVERNMENT TELEVISION SHALL NOT
UNDULY COMPETE WITH THE PRIVATE TELEVISION SECTOR FOR

ADVERTISING AND COMMERCIAL INTEREST AS FAR AS
PRACTICABLE;

h) PROVIDE QUALITY ALTERNATIVE PROGRAMS FOR THE BENEFIT
AND MORAL UPLIFTMENT OF THE CITIZENRY.

TNTLE II. - CREATION AND DOMICILE

‘There shall be created a body corporate to be called "The
rreinafter referred to as the “Network.” which

ypines. The Network shall be government-
Directors to be appointed by the President

SECTION 3. Creation. —
“People's Television Network, Incorporated,” her
shalt engage in television broadcasting in the Philip
owned and controlled corporation under a Board of
of the Philippines.

The legal existence of the Network shall be for a

SECTION 4. Corporate Existence. —
306, NOTH WIHTSTANDING, ANY

period of fifty (50) years from the effectivity of RA 7.
PROVISION OF LAW TO THE CONTRARY: PROVIDED, HOWEVER, THAT AT
THE END OF THE SAID PERIOD, THE NETWORK SHALL AUTOMATICALLY
CONTINUE TO EXIST FOR ANOTHER FIFTY (50) YEARS, UNLESS

OTHERWISE PROVIDED BY LAW.

1s principal office and domicile in the
hes andior stations in any part

SECTION 5. Domicile. — The Network shali ba
Metropoli:an Manila area. It may also establish offic
of the Phi‘ippines as its Board of Directors may sze fit

SECTION 3-A. - THE GOVERNMENT OF THE, PHILIPPINES, THROUGH THE
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES AND THE
BUREAU OF LANDS, SHALL IDENTIFY AND APPROPRIATE ALIENABLE
GOVERNMENT LAND FOR THE NETWORK TO ESTABLISH AND BUILD JTS
MAIN BROADCAST CENTER AND MAJOR PROVINCIAL STATIONS, FOR

POSSIBLE. EXPANSION.

“(TTLE Il. — FRANCHISE AND LICENSE TO OPERATE

SECTION 6. Franchise Grant. — Subject to the provision of the Constitution, laws, orders.
decrees not inconsistent herewith, the newark is hereby granted a franchise to construct,
maintain and operate television broadcasting stations and satellite receiving and transmitting
Zacilities in the Philippines for a period co-terminus with the corporate existence of the

Nensork.

SECTION 7. License to Operate. —'The National Telecommunications Commission
(NTC: shall fonhwith cause the issuance to the Neswork of the corresponding license to

operate upon compliance with all its requirements.



AND FUNCTIONS

~ TITLE W. -
SECTION 8. Powers of the Network. — The ‘Network shall have the following powers:

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

») to have continuous succession in its corporate name;

3) adopt and use a corporate seal;

8) 10 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:

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

) 1 esablish, purchase, install, construct, use and maintain national, regional,
provincial community stations and facilities far teievision broadcasting throughout

and in any part of the country;
erships with other broadcasting authorities and

g) tw enter into joint ventures or partne
q a
‘ations or international agencies or private organizations for the purpose of

promoting ils broadcasting services;
by 10 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 pertinent laws governing

public debt and expenditure;

i) to receive donations and grants from any source whether Jocal
official development assistance and concessional Yoans
governments, foundations or financial instinutions:

|) to enter inio, make, perform and carcy out cont
furtherance of the corporate purpose with any person, firm.
vorporation;

k) to accept corporate institutional support for
the conditions subject to which said programs mey
ransmission; and

1) to exercise the general powers 0
‘well as such other incidental p

or foreign and avail of
provided by foreign

-s of any kind and description in
association oF

developmental programs and to determine
be accepted for television

uutlined in the Corporation Code of the Philippines, as
owers as may be secessary to carry on its activities.

SECTION 9. Functions of the Network — The Nerwork shall have the following functions:

a) to serve primarily as a vehicle for the State for purposes of edveation, sofence and
technology, arts, cultare, and sports in order te foster national pride and identity:

’) to serve as @ vehicle for bringing the Govemment closer to the people ie order to
enhance their awareness of the programs. policies, thrusts, and direetions of the
Government;

©) to ensure that the programs broadcast by the Network maintain « high general
‘standard in all respects, and in articular, in respect to their content and quality and
proper balance of educational, news, public affairs, entertainment, and sports
programs;

4} to serve ax an effective outlet for alternative programming;

¢) TO PROVIDE AIRTIME TO LEGITIMATE PEOPLE'S ORGANIZATIONS
'AND NON GOVERNMENT ORGANIZATIONS IN THE PROMOTION OF
THEIR PROGRAMS AND PROJECT!

4) w serve as an effective modium for natjonat tnity_and political stability, by reachin,
‘uch of the Filipino population as possible through the effective use of modem

broadcasting technology, and

oO


¢ that nothing is in

offend public morals, good taste, or decency;
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;
offend the followers of any religious faith, sect, or order, or

|. ourrage public feeling in general.

2

TITLE V.— CORPORATE STRUCTURE

SECTION 10. The Bourd of Directors. — The corporate powers of the Network shail be
exercised, alls business conducted and all its property controlled and held by the Board of
Directors, It shall he composed of five (5) members who shall be appointed by the President
of the Pailippines. The Board shall be made up of the following:

a) two (2) members from the Government se
ib) two (2) members from the private sector, one

years of experience in the broadcast industy
¢) one (]} member from the: educational sector.

(1) of whom shal] have at least ten (10)
id

SECTION 10-A, The Advisory Board. — THE PRESIDENT OF THE PHILIPPINES

SHALL APPOINT SEVEN (7) SECTORAL MEMBERS WITH WIDF- EXPERIENCE
AND EXPERTISE IN THEIR RESPECTIVE FIELDS OF WORK TO CONSTITUTE
THE ADVISORY BOARD.

‘THE MEMBERS OF THE ADVISORY BOARD MAY BE CHOSEN FROM AMONG
NOMINEES OF ASSOCIATIONS AND ORGANIZATIONS REPRESENTING
VARIOUS STAKEHOLDERS IN THE BROADCAST INDUSTRY AND THEY
SHALL SERVE WITH A FIXED TERM OF ONE (1) YEAR.

‘THE ADVISORY BOARD SHALL SERVE AS THE STRATEGIC AND POLICY
MAKING BODY THAT WILL FORMULATE POLICIES TO GOVERN THE
NETWORK. THE CHAIRMAN OF THE BOARD OF DIRECTORS SHALL BEAN
EX-OFFICIO MEMBER OF THE ADVISORY BOARD.

SECTION 11. Qualifications of the Members of the Board. — The members of the Board
shal: be af praven and unguestionable probity, integrity. 3 impartiality, reputation, and
knowledgeable of the broadcast industry. They shali not be, in any way. connected with any
other broadcasting corporation or hold any position ther may conflict with their functions ané
duties as Directors of the Network

Ifa member shill be appointed to another government office or runs for any clective position.
he shall be deemed to have vacated membership in the Board on the day of his appointment
1is candidacy, as the case may be.



__ SECTION.12. ...Darm of the Members.uf Board —~
the Philippines shal! have the following terms:

a) three (3) directors, one from each sector, for two (2) years, and
b) the other two @) directors, one (1) each from the government and private sector, for

four (4) years.

Suibsequent appointees shall serve a term of ONE (3) YEAR TERM SUBJRCT TO
REAPPOJNTMENT BY THE PRESEMDENT. Appointment 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 WILI.
SERVE AS CHAIRMAN OF THE BOARD. THE BOARD SHALL MEET AT
LEAST TWICE A MONTH TO DISCUSS MATTERS OF POLICY IN ORDER
TO EFFECTIVELY CARRY OUT THE PROVISIONS OF THIS ACT.

SECTION 13. Fumctions 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,

Bb) wexercse Se corporate powers, and conduct all business of the Network:

©) to decide matters of policy; and

@ to submit to the President of the Philippines und 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 Genera! Manager. — The Network General Manager shalt be
slected by the Board, of which he need not be @ member. In the latter ease, he shal! serve as
ae kcofifeie member of the Board. He shall also be the Chief operating Officer of the
Nermork, who shall be responsible for the proper sdministration and management of the
Nenwork in accordance with the policies laid down by the Board.

Ifthe Nerwork General Manager is absent, or is incapacitated by reasom of iiness oF for ans
tthe cause, is temporarily unable to perform his duties, the Board of Directors may designate

fn officer in-charge to act in his place and stead during such absence from duty.

SECTION 15, Powers and Functions of the Network General Manager. — Subject to the
contol and supervision of the Board, the Network General Manager shall have the foliowing
powers and functions:

2} submit poliey recommendations and propose measures necessary ¥0 camry out the
objectives and functions of the Network for the consideration of the Board;
by seoommmend to the Board for upproval an organizational structure and planta. for
personnel of the Network, in accordance with existing laws, rules and regulations:
©) execute, administer and implement policies and measures approved by the Board;
2) Submit to the Board an annual budget anc stich suppiemental budgets es may be
necessary for its consideration and appre:
renresene the Network, its dealings with ashe: persons, entities, agencies and
Jnstinutions, whether public or private. domestic or foreign, subject. 0 the limitations,
and conditions hereinprovided;



___D. appoint, subject to, the confirmation by the Board, discipline ort:
Sfiizer and personnel of the Network in agvoréance with the Civi
and regulations; and

) petform such other functions and di

| Service Law, rules”

which may be assigned to him by the Board.

TITLE VI.— PROGRAM STANDARDS
SECTION 16. 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
) Public Aflairs Programs and Commentaries
o) Public
4) Educational Programs
2) Children's Programs

f) Agricukure and Livelihood Programs

g) Women and Youth Issues

) Locally-produced and foreign produced programs.

SECTION 17. USE OF BLOCKTIMERS. — TBE USE OF BLOCK TUMERS 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 DIRECTORS, THE NETWORK SHALL ASSUME SOLIDARY
LIABILITY WITH EACH OF THE INDIVDL AL PRODUCERS, FOR THE
CONTENT OF ALL PROGRAMS SHOWN BY BLOCKTIMERS.

TITLE VO. — FINANCIAL PROVISIONS

SECTION 18. CAPITALIZATION. — THE ADDITIONAL AUTHORIZED CAPITAL
STOCK OF THE NETWORK SHALL BE SUBJECT TO APPROPRIATION IN THE
GENERAL APPROPRIATIONS ACT.

SECTION 19. KEVENUE GENERATION. —TBE NETWORK SHALL BE
ALLOWED TO GENERATE FUNDS FROM ADVERTISING AND AIRTIME SALES
TX ACCORDANCE WITH THE POLICIES AND RATES SET BY THE BOARD OF
DIRECTORS. SUBJECT TO EXISTING LAWS, SLL FEES OR OTHER REVENUES
COLLECTED OR RECEIVED BY THE NETWORK SUALI. BE RETAINED BY IT
AND UTILIZED SOLELY FOR ITS OPERATIONS AND CAPITAL
EXPENDITURES.

9. 7656.- THE NETWORK SHALL BE

SECTION 19-4. EXEMPTION FROM RA?
EXEMPT FROM REMITTING FIFTY PER!

EARNINGS AS PROVIDED BY RA No. 765¢
THE DEPARTMENT OF FINANCE, AND PROVIDED, THAT THE ANNUAL NET

EARNINGS BE USED SOLELY FOR ITS OPERATIONS AND CAPITAL
EXPENDITURES.



ADMINISTRATIVE PROVISIONS ___ us —- ----

__TITLE WI

__The Network shall Keep proper accounts and
records of all its transactions and affairs, and shal! do all things necessary to ensure that all
ayments made out oF is moneys are correctly made and properly authorized, and chat
adequate contol 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 hy the
Commission on Audit.

SECTION 20. Record of Transactions.

‘TITLE IX.— TAX EXEMPTIONS

SECTION 21, Tax Exemptions on Imporiations. — Toe importations of equipment,
apparanis and materials to be actully, directly and exziusively used in the operation ofthe
Neowork, whether purchased from or donated by any foreign government and/or private
envy shall be fre from the payment af any and all forms of taxes, license fees and customs
duties that may be levied upon them. Such equipment ané apparatus shall include cameras,
TV mmontors aad recorders, TY transmitters, electronic tubes, editing machines, and al. such
necessary equipment required for television broadcasting: provided, that the subsequent
immpomation ofthe equipment, apparatus and materials shall be subject to review by the
Department of Finance’ provided, furher, hac in the event the equipment, apparatus aoe
morals are sold to non-tax exempt persons or erties, the buyers shall be considered the
exporters who shall then be subject to tax.

SECTION 21-A. EXEMPTION FROM REAL PROPERTY TAX. - SUBJECT TO THE
PROVISIONS 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 PROPERTY
TAX EXEMPTION WILL BE USED TO FUND CAPITAL EXPENDITURES AND

OPERATIONS FOR THE NETWORK.

TITLE X. — EMPLOYEES OF THE NETWORK

SECTION 22. Civil Service Law Coverage for Employees. — The hiring, appointment,
emplormen, promotion, disciplinary contol, an¢ other terms and conditions of the service of
all employees of the Network, and such other matters affecting its employees shell be
Consistent with the provisions of the Civil Service Law, rales and regilations: PROVIDED,
AOWEVER, THAT POSITIONS CONSIDERED AS CREATIVE AND ARTISTIC IN
NATURE SHALL BE EXEMPTED FROM THE QUALIFICATION STANDARDS

AND CIVIL SERVICE ELIGIBILITY REQUIREMENTS.

Salary Scale for Officials and Employees. — The rates of compensation and
classes of positions in the Network ‘shall nat be covered by Republic Act 6758 and the
Copensetion and Position Classification Boaré (CPCB).

1

SECTION 24. GSIS Coverage for Employees. — All employees hired by the Network shel
be deemed members of the Govemments Service Insurance System (GSTS) for the purpose
fits.

empl:

ee



___ATELE. XL MISCELLANEOUS PROVISIONS... -—2) <= orn

SECTION 25, Transition Clause. — All the powers. fmctions, assets and liabilities.
capital, accounts, contracts, and facilities pertaining te the People's Television (PTV), and all
‘equipments relating o television broadcasting owned by the government shall be transferred

to the Network.

| SECTION 26, Transitory Provision. — The Network General Manager shall recommend
1b the Board of Ditectors a corporate plan that includes programming direction, budget
dreanizational plan and soucture, a staffing pattern and compensation plan within ninety (90)
dane from the effectivity of this Act. Said corporate structure shall be implemented hy the
Newark 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
(PTY) shall be absorbed and accommodated by the Network.

SECTION 26-A. REORGANIZATION OF THE NETWORK. - NINETY (90) DAYS
FROM THE APPROVAL OF THIS ACT, THE BOARD OF DIRECTORS 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 OBJECTIVES.
PROVIDED, THAT ANY OFFICIAL OR EMPLOYEE OF TBE. NETWORK WHO
MAY BE PHASED OUT BY REASON OF THE REORGANIZATION AUTHORIZED
HEREIN SHALL BE ENTITLED TO SUCH BENEFITS 45 MAYBE DETERMINED
BY EXISTING LAWS.

SECTION 27. Amendments. — The provisions of Act shall be subject to amendments,
alteration or repeal by the Congress of the Philippines, when public interest so require:

SECTION 28. Separability Clause. — If any prov sion or part of this Act is declared
jnvalid or unconstitutional, the remainder shall not be affected thereby and shall continue to

be in fuull force and effect.

SECTION 29. Repealing Clause. — All laws, decrees, executive orders, adminisuative
ordess, suies and regulations, and other issuances or parts thereof inconsistent herewith are
hereby repealed, amended or modified accordin|

SECTION 30. Effectivty Clause. — This Act shall take effect fifteen (15) days after its
publication in two (2) nationel newspapers of general circulation