REPUBLIC ACT NO. 7306 - 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



TITLE I. — GENERAL PROVISIONS

SECTION 1. Title. — This Act shall be known as the "Charter of the
People's Television Network, Incorporated".

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

a) Fully develop communication structures suitable to the needs and
aspirations of the nation and in accordance with a policy that
respects the freedom of speech and of the press;

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

c) Develop the broadcasting industry as a medium for the
development, promotion and advancement of Filipino nationalism,
culture and values that serve as an instrument in the struggle for
Filipino sovereignty, identity, national unity and integration;

d) Harness the resources of the government and the private sector
towards a close, continuous and balanced cooperation in order to take
advantage of technological advances in the broadcasting industry;

e) Maintain a broadcast industry system that serves as a vital link
for participative democracy and effective government information
dissemination through developmental communication, free from any
political or partisan influence and held accountable directly to the
people;

f) Encourage the development and broadcast of balanced programs
which feature, among others, educational, wholesome entertainment,
cultural, public affairs and sports; and

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 alternative programs for the benefit and moral
upliftment of the citizenry.

TITLE II. — CREATION AND DOMICILE

SECTION 3. Creation. — There shall be created a body corporate to
be called "The "People's Television Network, Incorporated,"
hereinafter referred to as the "Network," which shall engage in
television broadcasting in the Philippines. The Network shall be
government-owned and controlled corporation under a Board of Directors
to be appointed by the President of the Philippines.

SECTION 4. Corporate Existence. — The legal existence of the
Network shall be for a period of fifty (50) years from the effectivity
of this Act.

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

TITLE III. — FRANCHISE AND LICENSE TO OPERATE

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

SECTION 7. License to Operate. — The National Telecommunications
Commission (NTC) shall forthwith cause the issuance to the Network of
the corresponding license to operate upon compliance with all its
requirements.

TITLE IV. — POWERS AND FUNCTIONS

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

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

b) to have continuous succession in its corporate name;

c) to adopt and use a corporate seal;

d) to adopt by-laws, not contrary to law, morals, or public policy,
and to amend or repeal the same in accordance with the provisions of
existing laws;

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

f) to establish, purchase, install, construct, use and maintain
national, regional, provincial and community stations and facilities
for television broadcasting throughout and in any part of the country;

g) to enter into joint ventures or partnerships with other
broadcasting authorities and stations or international agencies or
private organizations for the purpose of promoting its broadcasting
services;

h) to raise, borrow or obtain funds, from any source, private or
government, foreign or domestic and to enter into any financial or
credit arrangements in order to support carry out its objectives and
purposes, subject to the pertinent laws governing public debt and
expenditure;

i) to receive donations and grants from any source whether local or
foreign and avail of official development assistance and concessional
loans provided by foreign governments, foundations or financial
institutions;

j) to enter into, make, perform and carry out contracts of any kind
and description in furtherance of the corporate purpose with any
person, firm, association or corporation; t

k) to accept corporate institutional support for developmental
programs and to determine the conditions subject to which the said
programs may be accepted for television transmission; and

l) to exercise the general powers outlined in the Corporation Code
of the Philippines, as well as such other incidental powers as may be
necessary to carry on its activities.

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

a) to serve primarily as a vehicle for the State for purposes of
education, science and technology, arts, culture, and sports in order
to foster national pride and identity;

b) to serve as a vehicle for bringing the Government closer to the
people in order to enhance their awareness of the programs, policies,
thrusts, and directions of the Government;

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

d) to serve as an effective outlet for alternative programming;

e) to provide subsidized air time to legitimate people's
organizations NGOs in the promotion of their programs and projects;

f) to serve as an effective medium for national unity and political
stability by reaching as much of the Filipino population as possible
through the effective use of modern broadcasting technology; and

g) to ensure that nothing is included in the programs broadcast by
the Network which shall;

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

2) offend any racial group or promote ill-will between different
races or different public groups, prescribing such programs as would
promote strictly partisan politics and propaganda;

3) offend the followers of any religious faith, sect, or order, or

4) outrage public feeling in general.

TITLE V. — CORPORATE STRUCTURE

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

a) two (2) members from the Government sector;

b) two (2) members from the private sector, one (1) of whom shall
have at least ten (10) years of experience in the broadcast industry;
and

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

SECTION 11. Qualifications of the Members of the Board. — The
members of the Board shall be of proven and unquestionable probity,
integrity, honesty, impartiality, reputation, and knowledgeable of the
broadcast industry. They shall not be, in any way, connected with any
other broadcasting corporation or hold any position that may conflict
with their functions and duties as Directors of the Network.

If a member shall be appointed to another government office or runs
for any elective position, he shall be deemed to have vacated
membership in the Board on the day of his appointment or filing of his
candidacy, as the case may be.

SECTION 12. Term of the Members of Board. — The initial appointees
of the President of the 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. 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 will 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. Functions and Duties of the Board of Directors. — The
general functions and duties of the Board of Directors shall be as
follows:

a) to carry out the provisions of this Act,

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

c) to decide matters of policy; and

d) to submit to the President of the Philippines and the Congress a
comprehensive annual report on the operation of the Network within the
first sixty (60) days of the fiscal year.

SECTION 14. The Network General Manager. — The Network General
Manager shall be elected by the Board, of which he need not be a
member. In the latter case, he shall serve as 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.

If the Network General Manager is absent, or is incapacitated by
reason of illness or for any other cause, is temporarily unable to
perform his duties, the Board of Directors may designate an
officer-in-charge to act in his place and stead during such absence
from duty.

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

a) submit policy recommendations and propose measures necessary to
carry out the objectives and functions of the Network for the
consideration of the Board;

b) recommend to the Board for approval an organizational structure
and plantilla for personnel of the Network, in accordance with
existing laws, rules and regulations;

c) execute, administer and implement policies and measures approved
by the Board;

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

e) represent the Network, its dealings with other persons,
entities, agencies and institutions, whether public or private,
domestic or foreign, subject to the limitations and conditions herein
provided;

f) appoint, subject to the confirmation by the Board, discipline or
remove for cause, officer and personnel of the Network in accordance
with the Civil Service Law, rules and regulations; and

g) perform such other functions and duties which may be assigned to
him by the Board.

TITLE VI. — PROGRAM STANDARDS

SECTION 16. General Program Standards. — The Board of Directors is
mandated to set up a Code of Standards, inclusive of the following
aspects:

a) Presentations of news

b) Public Affairs Programs and Commentaries

c) Public Service Programs

d) Educational Programs

e) Children's Programs

f) Agriculture and Livelihood Programs

g) Women and Youth Issues

h) Locally-produced and foreign produced programs.

SECTION 17. Use of Blocktimers. — The use of blocktimers shall be
allowed but limited to education and sports programs only. The Network
shall assume solidary liability with each of the individual producers,
for the content of all programs shown by blocktimers.

TITLE VII. — FINANCIAL PROVISIONS

SECTION 18. Capitalization. — The authorized capital stock of the
Network shall be One Billion Pesos (P1,000,000,000.00) divided into
one Million (1,000,000) shares with the 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 Million 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.

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

SECTION 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) years thereafter, advertising sales shall not exceed
seventy-five percent (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 this limitations. All fees or
other revenues collected or received by the Network shall be retained
by it and utilized solely for its operations.

TITLE VIII. — ADMINISTRATIVE PROVISIONS

SECTION 20. Record of Transactions. — The Network shall keep proper
accounts and records of all its transactions and affairs, and shall do
all things necessary to ensure that all payments made out of its
moneys are correctly made and properly authorized, and that adequate
control is maintained over the assets of, or in the custody of, the
Network and the expenditures incurred by the Network. The Network
shall be subject to audit by the Commission on Audit.

TITLE IX. — TAX EXEMPTIONS

SECTION 21. Tax Exemptions on Importations. — The importations of
equipment, apparatus and materials to be actually, directly and
exclusively used in the operation of the Network, whether purchased
from or donated by any foreign government and/or private entity shall
be free from the payment of any and all forms of taxes, license fees
and customs duties that may be levied upon them. Such equipment and
apparatus shall include cameras, TV monitors and recorders, TV
transmitters, electronic tubes, editing machines, and all such
necessary equipment required for television broadcasting: provided,
that the subsequent importation of the equipment, apparatus and
materials shall be subject to review by the Department of Finance:
provided, further, that in the event the equipment, apparatus and
materials are sold to non-tax exempt persons or entities, the buyers
shall be considered the exporters and who shall then be subject to
tax.

TITLE X. — EMPLOYEES OF THE NETWORK

SECTION 22. Civil Service Law Coverage for Employees. — The hiring,
appointment, employment, promotion, disciplinary control, and other
terms and conditions of the service of all employees of the Network,
and such other matter affecting its employees shall be consistent with
the provisions of the Civil Service Law, rules and regulations.

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 Coverage for Employees. — All employees hired by
the Network shall be deemed members of the Governments Service
Insurance System (GSIS) for the purpose of employee benefits.

TITLE XI. — MISCELLANEOUS PROVISIONS

SECTION 25. Transition Clause. — All the powers, functions, assets
and liabilities, capital, accounts, contracts, and facilities
pertaining to the People's Television - 4(PTV-4), and all equipment
relating to television broadcasting owned by the government shall be
transferred to the Network.

SECTION 26. Transitory Provision. — The Network General Manager
shall recommend to the Board of Directors a corporate plan that
includes programming direction, budget, organizational plan and
structure, a staffing pattern and compensation plan within ninety (90)
days from the effectivity of this Act. Said corporate structure shall
be implemented by the Network General Manager within thirty (30) days
after its approval by the Board of Directors: provided, that the
current and incumbent employees of the People's Television - 4 (PTV-4)
shall be absorbed and accommodated by the Network.

SECTION 27. Amendments. — The provisions of this Act shall be
subject to amendments, alteration 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 is declared invalid or unconstitutional, the remainder shall not
be affected thereby and shall continue to be in full force and effect.

SECTION 29. Repealing Clause. — All laws, decrees, executive
orders, administrative orders, rules and regulations, and other
issuances or parts thereof inconsistent herewith are hereby repealed,
amended or modified accordingly.

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

Approved: March 26, 1992