REPUBLIC
ACT NO. 7306
REPUBLIC
ACT NO. 7306 - AN ACT PROVIDING FOR THE ESTABLISHMENT OF THE QUALITY 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 Quality 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 commercial 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 “Quality 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 effectively 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 entertainment 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 effectively 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 effectively 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 Quality Television
– 11 (QTV-11), 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 affectivity 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 Quality Television 11 (QTV-11) 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, 2004
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