Republic of the Philippines
HOUSE OF REPRESENTATIVES

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Quezon City, Metro Manila DS pate 0.1 sep 205

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TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO._4277

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Introduced by Representative Jan Rurik D. Padiernos, GP (Galing sa Puso) Party-List

EXPLANATORY NOTE

The Movie and Television Review and Classification Board (MTRCB) was
created under Presidential Decree No. 1986 (1985) with the mandate to regulate and
classify motion pictures and television programs in the Philippines. Since then, the
media ecosystem has transformed. Streaming, on-demand, and online platforms have
expanded public access to audio-visual content beyond cinemas and broadcast.

The Philippine movie and television industry is facing a decline marked by
decreased film and television production, low ticket sales and viewership, and a
struggle to compete with foreign-produced materials, as well as with various internet-
based or streaming platforms and entertainment alternatives. As a regulatory body, the
MTRCB, in addition to reviewing and classifying movies, television programs,
publicity materials, and advertisements brought before it, must also initiate plans and
work together with the industry and other stakeholders to improve, upgrade, and make
viable the industry as a contributor to the government’s economic recovery program.

There is a pressing need to strengthen the mandate of MTRCB's regulatory
authority for the protection of the general public, particularly minors, from exposure to
harmful and inappropriate content. This is in view of the evolving media landscape and
the proliferation of digital content.

Gaps have emerged: (a) limited coverage of digital and subscription platforms,
(b) outdated review and enforcement tools, and (c) institutional constraints on staffing
and funding. This bill updates the MTRCB’s mandate so the State can fulfill its parens
patriae duty to protect children and promote the general welfare, while respecting the
constitutional guarantees of free speech, expression, and the press. Restrictions are
narrowly tailored to compelling interests, provide clear standards, and include due-
process safeguards and an administrative appeal mechanism.

‘The measure: (1) extends jurisdiction to subscription video-on-demand and
similar services; (2) requires platform-level ratings disclosure, parental controls, and
age-verification for adult content, consistent with the Data Privacy Act; (3) enhances
the Board's quasi- i-judicial authority to impose proportionate administrative sanctions
and to deputize agencies for enforcement; and (4) modemizes organization,

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compensation, and digitalization programs through a Retained Income Fund subject to
COA and DBM oversight.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

aha
ATTY. JAN RURIK D. PADIERNOS

GP (Galing sa Puso) Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILLNO._4277

Introduced by Representative Jan Rurik D. Padiernos, GP (Galing sa Puso) Party-List

AN ACT STRENGTHENING THE MANDATE, CAPABILITIES,
AND ORGANIZATIONAL STRUCTURE OF THE MOVIE AND
TELEVISION REVIEW AND CLASSIFICATION BOARD (MTRCB)
AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Short Title. — This Act shall be known as the “Movie and
Television Review and Classification Board Act.”

SEC. 2. Declaration of Policy. — The State recognizes the vital role of theyouth
in nation-building and shall promote and protect their physical, moral, spiritual,
intellectual, and social well-being. The State likewise recognizes the vital role of
‘communication and information in nation-building.

The State, as parens patriae, recognizes the need to strengthen the mandate of
its regulatory authority for the protection of the general public, particularly minors,
from exposure to harmful and inappropriate content, in view of the evolving media
landscape and proliferation of digital content. The best interests of children and the
youth shall be the paramount consideration in all actions concerning them, whether
undertaken by public or private social welfare institutions, courts of law, administrative
authorities, and legislative bodies, consistent with the principle of First Call for
Children, as enunciated in the United Nations Convention on the Rights of the Child.

Towards this end, it is hereby declared the policy of the State to ensure public
safety and moral integrity, and to promote general welfare by effectively regulating and
classifying movies, television programs, series, publicity materials, advertisements, and
publicly accessible content from subscription video on-demand services.

SEC. 3. Definition of Terms. — For purposes of this Act:

(@) Adult refers to any person eighteen (18) years of age or over;
(b) Advertisement refers to any form of visual communication produced directly by or
on behalf of the advertiser intended primarily to promote or to influence consumer
behavior;


(c) Board refers to the Movie and Television Review and Classification Board;

(d) Children refer to persons below eighteen (18) years of age, or those eighteen (18)
years of age or over but are unable to fully care for or protect themselves from abuse,
neglect, cruelty, exploitation, or discrimination because of a physical or mental
disability or condition;

(©) Movie refers to a recording of moving images or a series of pictures presented in
rapid succession, with objects shown in successive positions slightly changed to
produce the optical effect of a continuous picture in which the objects move, whether
the picture be black and white or colored, silent or with accompanying sound, on any
medium and projected using any mechanism or equipment preserved in any material or
recorded for instant projection, or viewed through subscription video on-demand
services (SVODs) or any technology of similar nature presently existing or will be
developed or invented in the future;

(®) News Report a screen broadcast that delivers information about current events
specifically limited to straight and factual reporting, and excludes commentaries;

(g) Non-Theatrical Distribution refers to:

(1) Public showing of long or short movies through the use of mobile projection
equipment not imposing admission fees; or

(2) Showing of long or short movies such as films for children, or educational,
documentary, cultural, scientific, newsreel, industrial, sales, public relations, or
instructional films to private organizations, societies, clubs, and groups;

(h) Online Curated Content refers to the digital material that has been carefully selected,
gathered, organized, and presented from various sources intended for a specific purpose
or audience, and distributed through websites and social media platforms;

(i) Other Public Place refers to an indoor or outdoor area other than a movie theater,
whether publicly or privately owned, to which the public have access by right or by
invitation, expressed or implied, whether by payment of monetary consideration or not,
serving as a place of work or used by the general public such as but not limited to theater
lobbies, restaurants, hotels, halls, plazas, bars, cafes and other establishments of similar
nature;

(j) Public Exhibition refers to the act of showing motion pictures, television programs,
series, publicity materials, and advertisements, in cinemas, theaters, screen broadcast
and other public places such as but not limited to common carriers, theater lobbies,
restaurants, hotels, halls, plazas, bars, and other similar places that are open to the
general public regardless of monetary consideration or the number of persons present;

(k) Publicity Materials and/or Promotional Materials refer to any video and non-video
material used to generate public interest in movies, television programs, series, and
other related media;


() Review Session refers to the examination of movies, television programs, series,
publicity materials, and advertisement by the BOARD;

(m) Series refers to a set or collection of episodes of a program shown at intervals
through screen broadcast or subscription video on-demand services;

(n) Screen Broadcast refers to any content that is viewed, distributed, or consumed
through electronic screens (e.g. smartphones, tablets, televisions, computers, or through
hologram or projection display) such as but not limited to movies and television
programs, online streaming platforms, social media content, interactive media, digital
advertisement and video games;

(0) Subscription Video On-Demand Service refers to a type of online video service
where users pay a recurring subscription fee, typically monthly or annually, to access a
library of movies, television shows, series, and other video content on demand;

(p) Theatrical Distribution refers to public showing and/or exhibition of movies in a
cinema, theater, or any other place imposing admission fees for entertainment,
education, information, and advertising in all screen broadcasting; and

(q) User refers to a person who uses subscription video on-demand service with or
without a fee.

SECA, Name and Existence. - The Movie and Television Review and
Classification Board (MTRCB), hereinafter referred to as the BOARD, a regulatory
body under the Office of the President of the Philippines, shall operate under the
provisions of the Act. The BOARD shall have its principal office in Metro Manila.

SEC. 5. Composition; Qualifications; Benefits. — The Board shall be composed
of a Chairperson, a Vice-Chairperson, and thirty (30) members appointed by the
President of the Philippines. The Chairperson, the Vice-Chairperson, and the members
of the BOARD, shall continue to serve unless removed by the President of the
Philippines for any cause.

‘An appointee to the BOARD must be a natural-born citizen of the Philippines,
at least twenty-one (21) years of age, of good moral character and standing in the
community: Provided, That in the selection of the members of the BOARD, due
consideration shall be given to such qualifications as would produce a multi-sectoral
combination of expertise in the various aspects of the movie and television industries:
Provided, further, That at least five (5) members of the BOARD shall be members of
the Philippine Bar: Provided, finally, That at least fifteen (15) members of the BOARD,
other than the Chairperson and the Vice-Chairperson, shall come from the movie,
television, and on-demand streaming industries.

‘The Chairperson and Vice-Chairperson shall have the rank, salary, rights,
privileges, and benefits equivalent to a Department Undersecretary and Department
Assistant Secretary, respectively.

The thirty (30) members of the Board shall receive allowances and honoraria
for each movie, trailer, television program, series, TV plug, advertisement, or publicity


material reviewed or classified. Such additional allowances shall be subject to the
approval of the President upon the recommendation of the Department of Budget and
Management (DBM).

SEC. 6. Compensation of the Members of the Board. — For performing the
core mandate of the BOARD, the Board Members shall receive compensation
equivalent to, at least, two salary grades lower than the salary grade of the Vice-
Chairperson: Provided, that they shall be entitled to other allowances and benefits
provided under existing laws.

SEC. 7. Powers and Functions. — The Board shall have the following functions,
powers and duties:

(a) Promulgate rules and regulations for the implementation of this Act and the
accomplishment of its purposes and objectives, including guidelines and standards for
production, advertising, and titles, including, without limitation, the registration of all
entities subject to the jurisdiction of the Board in accordance with this Act. Such rules
and regulations shall take effect after fifteen (15) days following their publication in a
newspaper of general circulation in the Philippines;

(b) Screen, review, and examine movies, television programs, series, and
publicity materials such as advertisements, trailers, and stills, whether for theatrical or
non-theatrical distribution, screen broadcast, public exhibition, or any other technology
of similar nature, imported or produced in the Philippines, and in the latter case, whether
for local public exhibition or export. For on-demand streaming services, the Board may,
if necessary, require a reclassification of the relevant material after showing or
streaming, upon the final decision of the Board;

(c) Approve, disapprove, and/or prohibit the importation, exportation,
production, copying, distribution, sale, lease, exhibition, and/or screen broadcast of
movies, television programs, series, and publicity materials for public exhibition
subject of the preceding paragraph, which, in the judgment of the BOARD, are contrary
to law, good morals, good customs, public order and safety, or public policy;

(4) Supervise, regulate, and grant, deny, or cancel permits for the importation,
exportation, production, copying, distribution, sale, lease, exhibition, screen broadcast
of movies, television programs, series, and publicity materials;

(©) Classify movies, television programs, series, and similar shows for public
exhibition into categories such as “G” or “For General Patronage” (all ages admitted),
“PG” or “Parental Guidance” “R” or “Restricted”,“X” or “Not for Public Exhibition,”
or such other categories as may be determined by the BOARD for the public interest.
‘An existing system by an streaming video on-demand streaming service that provides
for a similar, more particular, or more stringent classification than that imposed by the
BOARD shall be sufficient and shall not require further modification. Subscription
video on-demand services shall likewise establish a classification system as provided
in this Act;

(f) Close theaters, movie houses and other similar establishments engaged in the
public exhibition of movies and television programs which fail, despite notice, to


comply with a written order or warning to cease and desist from engaging in acts that
grossly violate the provisions hereof;

(g) Levy, assess, collect, and adjust and revise fees, charges, and/or penalties,
in relation to the registration of entities, the review and examination, and the issuance
of the licenses and permits, which the BOARD is authorized to grant in the exercise of
its powers and functions; Provided, that if circumstances so warrant, and subject to the
approval of the Board, the Chairperson may waive fees, penalties, surcharges and other
impositions;

(b) Deputize representatives from the government and from various associations
in the movie industry to ensure compliance with all laws relative to the import, export,
reproduction, distribution, sale, lease, exhibition, screen broadcast of movies, television
programs, series, advertisements, and publicity materials in accordance with Section 24
hereof. For this purpose, the BOARD may also constitute Local Regulatory Councils
composed of representatives from the government and the movie and television
industry as may be appropriate;

(i) Initiate the prosecution of violators of this Act and other laws pertinent to the
movie, television, screen broadcast and online streaming services;

(j) In the exercise of its quasi-judicial functions, hear and resolve administrative
cases against violators of this Act and, impose administrative sanctions in accordance
with this Act;

(k) The BOARD has the power to issue subpoena ad testificandum or subpoena
duces tecum to compel the attendance of witnesses and production of documents and
other effects, to cite in contempt persons or entities willfully disregarding its process,
and to coordinate with the appropriate government agencies to enforce its decisions and
issuances in accordance with Section 24 of this Act;

() Prescribe the internal and operational procedures for the exercise and
performance of its powers, functions, duties and responsibilities, including creating and
vesting authority on sub-committees of the BOARD for review and other related
matters;

(m) Prepare the BOARD’s annual budget proposal for submission to the
Department of Budget and Management (DBM);

(n) Recommend the organizational structure and staffing pattern and establish,
fix, review, or revise an appropriate compensation package for the officers and
employees of the BOARD, subject to approval by the DBM and review by the Civil
Service Commission (CSC);

(0) Grant financial assistance to the members of the movie and television
industry, former and present members of the Board, and staff, subject to guidelines
approved by the Board and pertinent rules and regulations of the Commission on Audit
(COA);


(p) The BOARD may also require commission any law enforcement agency, the
Department of Information and Communications Technology (DICT), the National
Telecommunications Commission (NTC), or other concerned agencies, for assistance
in the implementation and enforcement of its decisions, orders or awards; and

(q) Exercise such other powers and functions which are necessary or incidental
to the attainment of the purposes and objectives of this Act.

SEC. 8. Obligations of Subscription Video On-Demand Services. —

(a) Register the streaming service with the BOARD, providing comprehensive
contact information, including the name of the person or office in charge, e-mail
address, landline, mobile numbers, and the physical address in the Philippines. Such
information shall be prominently displayed on the service provider’s platform or
website.

(b) Establish and provide informative descriptions, in both English and Filipino,
of the ratings and classifications on the content offered to assist users in making
informed decisions on their viewing choices;

(©) Ensure that appropriate classifications and ratings are prominently displayed
not only at the beginning of the movies, television programs, and series but also in
publicity materials such as advertisements, trailers, and similar materials to notify users
of all the content offered;

(d) Submit to the BOARD a comprehensive list of all the content offered in its
service, accompanied by their respective classifications and ratings.

(©) Implement appropriate safety measures to allow users or parents of minors
to restrict content, control access, view, and change privacy account settings of the
service, taking into consideration the appropriateness of classifications and ratings;

(8 Establish a feedback mechanism for users within the on-demand streaming
service to determine whether the movie, television program, or series corresponds to
the displayed classifications and ratings. The feedback mechanism shall be easily
accessible and prominently featured on its platform or website;

(g) Establish an effective mechanism to respond promptly to users’ complaints
or inquiries.

SEC. 9. Age Verification Protocols. — All online providers of adult content shall
be required to adopt an age verification process. For this purpose, the presentation of
any valid government-issued identification exhibiting the user’s photograph and age or
date of birth shall be required. To protect users’ personal information, on-demand
streaming platforms shall comply with the provisions of Republic Act No. 10173 or the
“Data Privacy Act”, and ensure that any data collected for age verification is encrypted,
securely stored, and used solely for the purposes of this Act.

SEC. 10. Decision and Appeal. - The decision of the BOARD approving or
disapproving the exhibition of a movie, television program, series, publicity material,


and advertisement in the Philippines must be rendered within ten (10) days from
submission, counted from the date of receipt by the BOARD of an application for the
purpose, together with the movie, television program, series, and other non-video
publicity material. For each review session, the Chairperson of the BOARD shall
designate a committee composed of three (3) BOARD members to undertake the
review. A majority vote shall be required for the approval/disapproval of any material
submitted to it for review.

Within five (5) days from receipt of the committee’s written decision, the
applicant may file a motion for reconsideration to the Chairperson. The Chairperson of
the BOARD shall designate a committee of five (5) BOARD members to undertake a
second review session.

The Chairperson, the Vice-Chairperson, or a member designated by the
Chairperson shall preside over the second review session. Upon a majority vote of all
its members present, the committee shall render a decision on behalf of the BOARD,
within five (5) days from the receipt of the motion for reconsideration.

The decision of the BOARD for the second review shall be in writing, with the
factual and legal bases clearly stated. In resolving a complaint, the BOARD shall be
guided by compelling state interest that must be protected and shall ensure that the
restriction or punishment is narrowly drawn to achieve such end.

The decision of the BOARD shall be final, except for a decision disapproving a
movie, television program, or series, in its entirety, which shall be appealable to the
President of the Philippines, who may decide on the appeal or be assisted either by an
ad hoc committee created by the President or by the Appeals Committee herein created.

‘An Appeals Committee in the Office of the President of the Philippines is
hereby created, composed of a Chairperson and four (4) members to be appointed by
the President of the Philippines. The Office of the Deputy Executive Secretary for Legal
Affairs shall serve as the Secretariat of the Appeals Committee.

The Appeals Committee shall submit its recommendation to the President, whose
decision on an appealed matter shall be final.

SEC. 11. Chief Executive Officer. The Chairperson of the BOARD shall be
the Chief Executive Officer (CEO) of the BOARD and shall exercise the following
functions, powers, and duties:

(a) Execute, implement, and enforce the decisions, orders, awards, rules, and
regulations issued by the BOARD;

(b) Direct and supervise the operations and internal affairs of the BOARD;

(©) Establish the internal organization and administrative procedures of the
BOARD, including recommending the appointment of the necessary administrative and
subordinate personnel; and

(d) Exercise other powers, functions, and duties not specifically lodged in but
authorized by the BOARD.

‘The Chairperson and CEO shall be assisted by an Executive Director who shall
have the rank, salary, rights, privileges, and benefits equivalent to an Executive Director


V and shall hold office for a term of three (3) years unless sooner removed by the
President of the Philippines for cause: Provided, that any appointee shall be eligible for
re- appointment.

SEC. 12. Examination and Review. — Except for members of and persons
specifically authorized by the BOARD, no other person shall be allowed inside the
review room during the examination and review of a movie, programs, or publicity
material. Before each review session, the distributor or producer shall submit to the
BOARD a swom statement declaring the exact number of prints or digital copies made
for a subject picture or material and such other related information as the BOARD may
require to complete its examination and review.

SEC. 13. Prohibited Acts. — The following shall be prohibited under this act:

(a) The public distribution, exhibition, streaming, or causing the public
distribution, exhibition or streaming of any movie, television program, series, publicity
material, or advertisement which is objectionable under Section 7(c) of this Act, in a
movie theater or similar establishments, in free or cable television, or subscription video
on-demand services;

() The public distribution, exhibition, or causing the public distribution or
exhibition in any cinema or theater or similar establishment, screen broadcast, of any
movie, television program, publicity material or advertisement that has not been
reviewed or is different from what was reviewed, classified, and approved by the Board
for distribution and exhibition, or which, although previously classified, is covered by
an expired, cancelled, or tampered permit;

(©) The printing or causing the printing of a label or notice which tends to
misrepresent a movie, television program, publicity material, or advertisement as
having been officially classified by the BOARD when it has not been so classified;

(d) Exhibiting a movie other than what is advertised as showing, even if the film
shown has a valid permit;

(c) Exhibiting or causing the exhibition in a theater, cinema, or similar
establishment, of an old or re-issued movie which has been previously approved by the
BOARD, but without the word "re-issue" clearly and boldly stamped in the publicity
materials of the said movie;

(8 Distributing, exhibiting, showing, or causing the distribution, exhibition, or
showing of any movie, television program, series, publicity material, and advertisement
that has been disapproved for public exhibition by the BOARD;

(g) Failure to verify the age and allowing the admission of a person below the
age required by the film's rating and classification as indicated in the "Permit to
Exhibit." Cinema or Theater personnel may request for additional identification to
validate the age of the person seeking admission; and

(h) Failure of subscription video on-demand services in any platform to
implement sufficient age verification mechanisms as required under Section 9 of this


Act, or allowing individuals below eighteen (18) years of age to access restricted
content.

SEC. 14, Posting of Permit to Exhibit. ~The movie exhibitors shall post and/or
display or cause the posting and/or display of the BOARD- issued theatrical permit to
exhibit at conspicuous places near the theater entrance or place of exhibition.

All cinema advertisements shall state the classification rating of the movie being
exhibited or advertised. The classification rating must be displayed at the beginning of
the TV program and in any of its publicity materials.

SEC. 15. Exemption. - Movies, television programs, series, publicity materials,
or advertisements produced, imprinted, or exhibited by the Philippine Government
and/or its departments and agencies, and news reports without annotations shall not be
under the jurisdiction of the Board.

SEC. 16. Penalties. —

A. Criminal Penalty. — Any person who violates the provisions of this Act shall, upon
conviction by a court of law with competent jurisdiction, be punished by a penalty of
three (3) months and one (1) day to one (1) year imprisonment. If the offender is a
juridical person, the penalty shall be imposed on the corporation and/or upon its

Chairperson, Directors, Partners or Officers responsible for the violation or
indispensable to its commission.

B, Administrative Penalties. ~The BOARD shall impose the following administrative
penalties, taking into consideration the gravity of the offense and the frequency of
violation committed:

1.) Confiscation of the material/s violative of this Act;

2.) Fine of not less than Fifty thousand pesos (Php50,000.00) but notexceeding Five
hundred thousand pesos (Php500,000.00) for:

i) Violation of Section 13 of this Act;

ii) Refusal to admit the BOARD and its authorized representatives, agencies or
officially deputized personnel to cinemas, theaters, and similar establishments;

) Exhibition, display, or distribution of unapproved still photos, billboards, leaflets,
posters, layouts, and photo frames;

iv) Incorrect display or non-display of the classification rating in the theater lobby or
entrance of cinemas, theaters, and similar establishments;

v) Tampering with or falsifying a reviewed material;

vi) Tampering with or falsifying a permit to exhibit; and


vii) Exportation or importation of movies or television programs, series, publicity

materials, and advertisement without a valid permit.

3.) Suspension, non-renewal, or cancellation of the licenses or permits to operate and/or
exhibit;

4.) Suspension of television programs; and

5.) Removal of the specific movie, episode, or publicity material from the online
catalogue, or the objectionable portion of the subscription video on-demand service
found to be in violation of this Act upon the final and executory decision of the Board.

SEC. 17. Banning of Video and Non-Video Materials. — In the event that
movies, television programs, series, publicity materials, and advertisements after
examination and review by the BOARD, is declared unfit for public exhibition in the
Philippines, said movies, television programs, series, publicity materials, and
advertisements shall be banned for exhibition in the Philippines.

The BOARD may direct the subscription video on-demand service to take down
content which violates the standards laid down in Section 7(c) hereof.

SEC. 18, Inspection.— In addition to its powers vested by law, and for the
effective enforcement of the provisions of this act, the BOARD or its duly authorized
representatives shall have the power to inspect all public exhibitions of any movies,
television programs, series, publicity materials, and advertisements in movie houses,
theaters and other public establishments, and in any case, upon discovery of any movies,
television programs, series, publicity materials, and advertising which, although
previously approved by the Board, has been tampered with to introduce any unapproved
matter, to immediately seize the article containing or incorporating such unapproved
matter and to cause the prosecution of the person(s) responsible for violating existing
laws, rules, or regulations.

Upon conviction of the violator(s), the materials seized as well as the other
proceeds or instruments of the crime shall be disposed of in accordance with applicable
laws.

SEC, 19. Exemption from Tax, Legal Processes and Lien. — All laws to the
contrary notwithstanding, the Board and all its assets and properties, all fees and
charges collected, and all accruals thereto and income or investment camings
Therefrom, as well as all supplies, equipment, papers or documents, except those taxes
which the BOARD holds as a collecting agent, shall be exempt from any tax
assessment, fee, charge, or customs or import duty, and shall not be liable to
attachments, garnishments, levy, or seizure by or under any legal or equitable process
whatsoever. No tax measure of whatever nature enacted shall apply to the Board, unless
it expressly revokes the tax exemption herein granted. Any tax assessment against the
Board shall be null and void.

SEC. 20. Organizational Structure and Staffing Pattern. — The BOARD shall
determine its organizational structure and staffing pattern, subject to the approval of the
DBM and consistent with civil service laws, rules, and regulations. It shall have the


power to suspend or dismiss any employee for cause and/or approve or disapprove their
appointment, transfer, or detail. The Board shall appoint its Secretary, who shall be the
official custodian of the records of its meetings of and shall perform other duties and
functions directed by the BOARD.

SEC. 21. Applicability of the Civil Service Law. ~The BOARD and its officers
and employees shalll be subject to the Civil Service law, rules, and regulations: Provided
that technical personnel shall be selected based on merit and fitness in accordance with
policies and guidelines approved by the BOARD.

SEC. 22. Annual Report. - The BOARD shall, within three (3) months after
the end of every fiscal year, submit its annual report to the President of the Philippines.
The annual report shall include, among others, a statement of the BOARD’s
accomplishments, plans, and recommendations to improve and develop its operations
and the supervision and regulation of the movie and television industry.

SEC. 23. Retained Income Fund. ~ Notwithstanding any provision of law, rule
or regulation, executive or administrative order to the contrary, there is hereby
established a Retained Income Fund, to be maintained and administered at all times by
the BOARD, and without need of remittance to the National Treasury but subject to
existing government auditing rules and regulations. Thirty (30%) percent of the net
receipts of all fees, charges, impositions, fines, and/or penalties imposed, levied,
assessed and collected shall be allocated as contribution to the operating expenses and
capital expenditures of the BOARD.

The BOARD shall submit, either in printed form or by way of electronic
document, to the DBM, with copies given to the House Committee on Appropriations
and the Senate Committee on Finance separate quarterly reports on income of, and
expenditure from, this fund. Any disbursement in the subsequent quarters shall be void,
except upon certification by the DBM that said report has been submitted.

SEC. 24. Assistance in the Enforcement Functions of the BOARBOARD. —
BOARD may solicit the direct assistance of other government agencies and units, and
deputize, for a fixed and limited period, the heads or personnel of such agencies and
units to perform enforcement functions and shall for such purpose, exercise their
functions subject to the BOARD'S direction.

SEC. 25. Transitory Provision. — The incumbent Chairperson, Vice-
Chairperson, and members of the BOARD shall continue to perform their respective
duties and functions until their successors have been appointed and have assumed
office.

SEC. 26. Appropriations. The amount needed for the initial implementation
of this Act shall be charged against the current year’s appropriation of the BOARD.
Thereafter, such amount as may be necessary for its continued implementation shall be
included in the annual General Appropriations Act.

SEC. 27. Authority to Use Income. — In addition to the annual appropriations
of the BOARD provided under the Annual General Appropriations Act, the BOARD is
hereby authorized to use its income not exceeding the amount of Ninety-Five Million


Pesos (PhP 95,000,000.00) a year for a period of five (5) years after the effectivity of
this Act to implement the program for full computerization/digitalization of the
operations of the BOARD, subject to the usual accounting and auditing requirements.

SEC. 28. Implementing Rules and Regulations. - The BOARD, in
coordination with the DICT, the NTC, the DBM, and the CSC, and upon consultation
with relevant stakeholders, shall promulgate the rules and regulations to effectively
implement the provisions of this Act.

SEC. 29. Repealing Clause. — Presidential Decree No. 1986, series of 1985 is
hereby repealed. All other laws, presidential decrees, executive orders, letters of
instruction, proclamations or administrative regulations that are inconsistent with the
provisions of this Act are hereby repealed, amended, or modified accordingly.

SEC. 30. Separability Clause. ~ If any portion or provision of this Act is
declared invalid or unconstitutional, the remainder thereof not otherwise affected shall
remain in force and effect.

SEC. 31. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

APPROVED,