AN ACT CREATING THE VIDEOGRAM REGULATORY BOARD.

• Number: Presidential Decree No. 1987
• Sections: 20

Preamble

WHEREAS, the proliferation and unregulated circulation of

videograms including, among others, videotapes, discs, cassettes or any

technical improvement or variation thereof, have greatly prejudiced the

operations of movie-houses and theaters, and have caused a sharp decline in

theatrical attendance by at least forty percent (40%) and a tremendous drop in

the collection of sales, contractors specific, amusement and other taxes,

thereby resulting in substantial losses estimated at P450 Million annually m

government revenues;

WHEREAS, videograms establishments collectively earn around

P600 Million per annum from rentals, sales and disposition of videograms, and

such earnings have not been subjected to tax, thereby depriving the Government

of approximately P180 Million in taxes each year;

WHEREAS, the unregulated activities of videogram

establishments have also affected the viability of the movie industry,

particularly the more than 1,200 moviehouses and theaters throughout the

country, and occasioned industry-wide displacement and unemployment due to the

shutdown of numerous moviehouses and theaters;

WHEREAS, in order to ensure national economic recovery, it

is imperative for the Government to create an environment conducive to the

growth and development of all business industries, including the movie industry

which has an accumulated investment of about P3 Billion;

WHEREAS, proper taxation of the activities of video-gram

establishments will not only alleviate the dire financial condition of the movie

industry upon which more than 75,000 families and 500,000 workers depend for

their livelihood, but also provide an additional source of revenue for the

Government, and at the same time rationalize the heretofore uncontrolled

distribution of videograms;

WHEREAS, the rampant and unregulated showing of obscene

videogram features constitutes a clear and present danger to the moral and

spiritual well-being of the youth, and impairs the mandate of the Constitution

for the State to support the rearing of the youth for civil efficiency and the

development of moral character and promote their physical, intellectual, and

social well-being;

WHEREAS, civic-minded citizens and groups have called for

remedial measures to curb these blatant malpractices which have flaunted our

censorship and copyright laws;

WHEREAS, in the face of these grave emergencies corroding

the moral values of the people and betraying the national economic recovery

program, bold emergency measures must be adopted with dispatch;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution, do hereby

decree:

Section 1 Creation.

SECTION 1. Creation.— There is hereby created an

office to be known as the Videogram Regulatory Board, hereinafter referred to as

the BOARD, which shall have its principal office in Metro Manila and shall be

under the Office of the President of the Philippines. The BOARD shall regulate

the importation, exportation, production, reproduction, distribution,

exhibition, showing, sale, lease or disposition of videograms including, among

others, videotapes, discs, cassettes or any technical improvement or variation

thereof in accordance with such rules and regulations to be adopted by the

BOARD.

Section 2 Composition of the Board.

SEC. 2. Composition of the Board.— The Board shall

be composed of a Chairman, a Vice-Chairman and eighteen (18) members who shall

all be appointed by the President of the Philippines to serve for a term of one

(1) year, unless sooner removed by the President for any cause;

Provided, That they shall be eligible for reappointment after the

expiration of their term. If the Chairman or Vice-Chairman or any of the members

fails to complete his term, any person appointed to fill the vacancy shall serve

only for the unexpired portion of the term of the Board member whom he

succeeds.

No person shall be appointed to the BOARD, unless he is a natural-born

citizen of the Philippines, not less than twenty-one years of age, and 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 areas of the videogram industry; Provided, further, That at

least five (5) members must be members of the Philippine Bar.

The Chairman, Vice-Chairman and members of the BOARD shall be entitled to

transportation, representation and other allowances which shall in no case

exceed Five Thousand Pesos (P5,000.00) per month.

Section 3 Powers and Functions.

SEC. 3. Powers and Functions. —The BOARD shall have

the following powers and functions:

To supervise, regulate, grant, deny or cancel permits for the importation,

exportation, production, copying, sale, lease, exhibition or showing of

videograms including, among others, videotapes, discs, cassettes or any

technical improvement or variation thereof;

To approve or disapprove, delete objectionable portions from and/or prohibit

the importation, exportation, production, copying, distribution, sale, lease,

exhibition or showing of videograms, including, among others, videotapes, discs,

cassettes or any technical improvement or variation thereof, which, in the

judgment of the BOARD applying contemporary Filipino cultural values as basic

standard, are objectionable for being immoral, indecent, libelous, contrary to

law or good customs, or injurious to the prestige of the Republic of the

Philippines or its people, or with a dangerous tendency to encourage or fan

hatred, the commission of violence or of a wrong or crime, such as but not

limited to:

i) Those which tend to incite subversion, insurrection, rebellion or sedition

against the State or otherwise threaten the economic and/or political stability

of the State;

ii) Those which tend to undermine the faith and confidence of

the people in their government and/or the duly constituted authorities;

iii)

Those which glorify criminals or condone crimes;

iv) Those which are libelous

or defamatory to the good name and reputation of any person, whether living or

dead;

v) Those which serve no other purpose but to satisfy the market for

excessive violence or hard-core pornography:

vi) Those which tend to abet the

traffic in and use of prohibited drugs; or

vii) Those which commit direct or

indirect contempt of any court of justice or quasi-judicial tribunal whether any

litigation on the subject of the video is pending or not before such court of

tribunal.

To classify all videograms into categories such as "For General Patronage".

For Adults Only”, or such other categories as the BOARD may determine for

the

public interest;

To close video theaters and other similar establishments engaged in the

public exhibition or showing of videograms which violate the provisions of this

Decree and the rules and regulations promulgated by the BOARD pursuant thereto;

To levy, assess and collect, and periodically adjust and revise the rates of

fees and charges for the work of review and examination and for the issuance of

licenses and permits which the BOARD is authorized to grant in the exercise of

its powers and functions and in the performance of its duties and

responsibilities;

To review and examine all videograms, including among others, videotapes,

discs, cassettes or any technical improvement or variation thereof, as well as

publicity materials or advertisements related thereto, with the end in view of

making appropriate classification;

To deputize representatives from the government and from the various

associations in the videogram industry, whose main duties shall be to help and

ensure compliance with all laws, rules and regulations relative to this Decree.

For this purpose, the BOARD may constitute such Council or Councils composed of

representatives from the government and the videogram industry as may be

appropriate to implement the objectives of this Decree. The BOARD may also call

upon any law enforcement agency for assistance in the implementation and

enforcement of its decisions, orders and rules and regulations;

To cause the prosecution, on behalf of the People of the Philippines, of

violators of this Decree and the rules and regulations promulgated or issued by

the BOARD.

9) To promulgate such rules and regulations as are necessary or proper for

the implementation of this Decree and the accomplishment of its purposes and

objectives. Such rules and regulations shall take effect after fifteen (15) days

following their publication in newspapers of general circulation in the

Philippines;

To prescribe the internal and operational systems and procedures for the

exercise of its powers and functions including the creation and vesting of

authority upon sub-committees of the BOARD for the work of review, examination

or classification and other related matters; and

To exercise such other powers and functions as may be necessary or

incidental to the attainment of the purposes and objectives of this Decree, and

to perform such other related duties and responsibilities as may be directed by

the President of the Philippines.

Section 4 Executive Officer.

SEC. 4. Executive Officer. —The Chairman of the

HOARD shall be the Chief Executive Officer. He shall exercise the following

duties and functions:

Execute, implement and enforce the decisions, orders, rules and regulations

promulgated or issued by the BOARD;

Direct and supervise the operations and the internal affairs

of the

BOARD:

Establish the internal organization and procedures of the BOARD, and

recommend to the BOARD the appointment of the necessary administrative and

subordinate personnel; and

Exercise such other powers and functions and perform such duties as are not

specifically lodged in the BOARD.

The Chief Executive Officer shall be assisted by an Executive Director who

shall be appointed by the President of the Philippines. The Executive Director

shall hold office for a term of one (1) year, unless sooner removed by the

President of the Philippines, for any cause.

Unless otherwise provided by law, the Chief Executive Officer shall

receive an annual salary of Seventy Two Thousands Pesos (P72,000.00) and the

Executive Director shall receive an annual salary of Sixty Thousand Pesos

(P60,000.00).

Section 6 Registration.

SEC. 6. Registration.— No person, whether natural

or juridical, may engage in the importation, exportation, production,

reproduction, exhibition, showing, sale, lease or disposition of videograms

unless such person is first registered with and permitted by the BOARD to

operate as such. The registration with and permit issued by the BOARD is a

condition precedent for securing a business permit or license from the

appropriate authorities.

Section 7 Reproduction of Cinematographic Art.

SEC. 7. Reproduction of Cinematographic Art.— No

person registered and permitted to engage in the videogram industry can copy or

reproduce any cinematographic art without the written consent or approval of the

producer, importer or licensee of the cinematographic art to be copied or

reproduced, and in no case shall any cinematographic art be allowed to be copied

or reproduced within a period of six (6) months after it is first released for

theatrical exhibition, unless the producer, importer or licensee agrees to a

shorter period.

Section 8 Sale, Lease or Disposition of Videograms.

SEC. 8. Sale, Lease or Disposition of Videograms.

—No videogram including, among others, videotapes, discs, cassettes or any

technical improvement or variation thereof, shall be sold, leased or otherwise

disposed of unless first registered with the BOARD with the corresponding

registration identification or seal in such form and manner as may be

provided for by the BOARD.

Section 9 Penalty.

SEC. 9. Penalty. —Any person who violates any or

all of the provisions of Sections 3, 6, 7, 8 and 10 of this Decree or the rules

and regulations to be promulgated pursuant thereto, either as principal,

accomplice or accessory, shall, upon conviction, suffer a mandatory penalty of

three (3) months and one (1) day to one (1) year imprisonment plus a fine of not

less than Fifty Thousand Pesos (P50,000.00) but not more than One Hundred

Thousand Pesos (P100.000.00). Should the offense be committed by a juridical

person, the chairman, the president, secretary, treasurer, or the partner

responsible therefor, shall be the persons penalized.

The provisions of Presidential Decree No. 968, as amended (Probation Law),

shall not apply in cases of violations of this Decree, including its

implementing rules and regulations.

Section 10 Tax on Sale, Lease or Disposition of Videograms.

SEC. 10. Tax on Sale, Lease or Disposition of

Videograms.— Notwithstanding any provision of law to the contrary, the

province shall collect a tax of thirty percent (30 %) of the purchase price or

rental rate, as the case may be. for every sale, lease or disposition of a

videogram containing a reproduction of any motion picture or audio-visual

program. Fifty percent (50 %) of the proceeds of the tax collected shall accrue

to the province, and the other fifty percent (50°£) shall accrue to the

municipality where the tax is collected: Provided, That in Metropolitan

Manila, the tax shall be shared equally by the city/municipality and the

Metropolitan Manila Commission.

The tax herein imposed shall be due and payable within the first twenty (201

days of the month next following that for which it is due. by the proprietor,

seller or lessor concerned, and such tax shall be determined on the basis of a

true and complete return of the amount of gross receipts derived during the

preceding month. If the tax is not paid within the time fixed herein above. the

taxpayer shall be subject to such surcharges, interests and penalties prescribed

by the Local Tax Code. In case of wilful neglect to file the return and pay the

tax within the time required, or in case a fraudulent rerun: is filed or a false

return is wilfully made, the taxpayer shall be subject to a surcharge of fifty

percent (50%) of the correct amount of the tax due in addition to the interest

and penalties provided by tie local Tax Code.

Any provision of law to the contrary notwithstanding a city may also levy and

collect among others, any of the taxes, fees and other impositions that the

province or the municipality may levy and collect.

Section 11 Assistance in the Entertainment Functions of the BOARD.

SEC. 11. Assistance in the Entertainment Functions of

the BOARD. — deputize, for a fixed and limited period, the heads or

personnel of such agencies and units to perform enforcement function for the

BOARD. The government agencies and units exercising the enforcement functions

for the BOARD shall, insofar as such functions are concerned, be subject to the

direction and control of the BOARD.

Section 12 Organizational Pattern; Personnel.

SEC. 12. Organizational Pattern; Personnel. —The

BOARD shall determine its organizational structure and its staffing pattern. It

shall have the power to suspend or dismiss for cause any employee and/or approve

or disapprove the appointment, transfer or detail of employees. It shall appoint

the Secretary of the BOARD who shall be the official custodian of the records of

the meetings of the BOARD and who shall perform such other duties and functions

as directed by the BOARD.

Section 13 Applicability of Civil Service Law.

SEC. 13. Applicability of Civil Service Law.—The

BOARD and its officers and employees shall be subject to the Civil Service Law,

rules and regulations; Provided, That technical personnel shall be

selected on the basis of merit and fitness to be determined in accordance with

such policies and guidelines as may be approved by the BOARD.

Section 14 Auditor.

SEC. 14. Auditor. —The Chairman of the Commission

on Audit shall be the ex officio Auditor of the BOARD. For this purpose, he may

appoint a representative who shall be the auditor of the BOARD, together with

the necessary personnel to assist said representative in the performance of his

duties. The number and salaries of the auditor and said personnel shall be

determined by the Chairman of the Commission on Audit, subject to the rules and

regulations of the Commission on Audit. Said salaries and all other expenses of

maintaining the auditor's office shall be paid by the BOARD.

The Auditor shall, as soon as practicable, but not later than three (3)

months after the accounts have been submitted to audit, send an annual report to

the BOARD. the Auditor shall also submit such periodic or special reports as the

BOARD may deem necessary or proper.

Section 15 Transitory Provision.

SEC. 15. Transitory Provision. — All videogram

establishments in the Philippines are hereby given a period of forty-five (45)

days after the effectivity of this Decree within which to register with and

secure a permit from the BOARD to engage in the videogram business and to

register with the BOARD all their inventories of videograms, including

videotapes, discs, cassettes or other technical improvements or variations

thereof, before they could be sold, leased, or otherwise disposed of. Thereafter

any videogram found in the possession of any person engaged in the videogram

business without the required proof of registration by the BOARD, shall be prima

facie evidence of violation of this Decree, whether the possession of such

videogram be for private showing and/or for public exhibition.

Section 16 Appropriations.

SEC. 16. Appropriations. —.The sum of Three Million

Pesos out of any available funds from the National Treasury is hereby

appropriated and authorized to be released for the organization of the BOARD and

its initial operations. Henceforth, funds sufficient to fully carry out the

functions and objectives of the BOARD shall be appropriated every fiscal year in

the General Appropriations Act.

All fees, revenues and receipts of the BOARD from any and all sources shall

be used to augment the funds to support the expenditures needed by the BOARD in

the pursuit of its purposes and objectives and the exercise o its powers and

functions, and for such other purposes as may hereafter be directed by the

President of the Philippines.

Section 17 Annual Reports.

SEC. 17. Annual Reports. — The BOARD shall, within

three months after the end of every fiscal year, submit its annual report to the

President. The annual report shall include, among others, a statement of the

BOARDs accomplishments together with its plans and recommendations to improve

and develop its operations and the supervision and regulation of the videogram

industry.

Section 18 Separability Clause.

SEC. 18. Separability Clause.— In case any

provision of this Decree shall be held or declared invalid or unconstitutional,

the validity of the other provisions shall not be affected thereby.

Section 19 Repealing Clause.

SEC. 19. Repealing Clause. —Any provision of law,

decree, executive order, letter of instructions or implementation, or other

rules and regulations inconsistent with the provisions of this Decree is hereby

repealed, amended or modified accordingly.

Section 20 Effectivity.

SEC. 20. Effectivity. —This Decree shall take

effect after fifteen (15) days following its publication in the Official

Gazette.

DONE in the City of Manila, this 5th day of October, in the year of Our Lord,

nineteen hundred and eighty-five.

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JUAN C. TUVERA

Presidential Executive

Assistant