An Act Creating The Videogram Regulatory Board

Case Overview and Summary

Summary of Presidential Decree No. 1987

Creation of the Videogram Regulatory Board (Section 1):
- An office called the Videogram Regulatory Board (the Board) is created under the Office of the President.
- The Board shall regulate the importation, exportation, production, reproduction, distribution, exhibition, showing, sale, lease or disposition of videograms.

Composition of the Board (Section 2):
- The Board is composed of a Chairman, Vice-Chairman, and 18 members appointed by the President for a 1-year term.
- Members must be natural-born Filipino citizens, at least 21 years old, of good moral character, and with expertise in the videogram industry.
- At least 5 members must be members of the Philippine Bar.
- The Chairman, Vice-Chairman, and members are entitled to allowances not exceeding ₱5,000 per month.

Powers and Functions of the Board (Section 3):
- To supervise, grant, deny, or cancel permits for the importation, exportation, production, copying, sale, lease, exhibition or showing of videograms.
- To approve, disapprove, delete objectionable portions, or prohibit the importation, exportation, production, copying, distribution, sale, lease, exhibition or showing of videograms that are immoral, indecent, libelous, contrary to law or good customs, or injurious to the prestige of the Philippines or its people, or with a dangerous tendency to encourage hatred, violence, or crime. (Section 3.2)
- To classify videograms into categories such as "For General Patronage" or "For Adults Only".
- To close video theaters and establishments exhibiting or showing videograms that violate the provisions of the Decree.
- To levy, assess, collect, and adjust fees and charges for the review, examination, and issuance of licenses and permits.
- To review and examine all videograms and related publicity materials for classification.
- To deputize representatives from the government and videogram industry to ensure compliance with laws and regulations.
- To cause the prosecution of violators of the Decree and its rules and regulations.
- To promulgate rules and regulations for the implementation of the Decree.
- To prescribe internal and operational systems and procedures for the exercise of its powers and functions.
- To exercise other powers and functions necessary for the attainment of the Decree's purposes and objectives.

Executive Officer (Section 4):
- The Chairman of the Board is the Chief Executive Officer.
- The Chief Executive Officer executes, implements, and enforces the decisions, orders, rules and regulations of the Board.
- The Chief Executive Officer is assisted by an Executive Director appointed by the President.
- The Chief Executive Officer receives an annual salary of ₱72,000, and the Executive Director receives an annual salary of ₱60,000.

Registration Requirement (Section 6):
- No person, natural or juridical, may engage in the importation, exportation, production, reproduction, exhibition, showing, sale, lease or disposition of videograms without being registered and permitted by the Board.
- Registration with and permit from the Board is a prerequisite for securing a business permit or license from appropriate authorities.

Reproduction of Cinematographic Art (Section 7):
- No person 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 art.
- No cinematographic art shall be allowed to be copied or reproduced within 6 months after its first theatrical release, unless the producer, importer or licensee agrees to a shorter period.

Sale, Lease or Disposition of Videograms (Section 8):
- No videogram shall be sold, leased or otherwise disposed of unless first registered with the Board with the corresponding registration identification or seal.

Penalty (Section 9):
- Any person who violates Sections 3, 6, 7, 8 and 10 of the Decree or its rules and regulations shall be punished with 3 months and 1 day to 1 year imprisonment and a fine of ₱50,000 to ₱100,000.
- If the offense is committed by a juridical person, the chairman, president, secretary, treasurer, or responsible partner shall be penalized.
- The Probation Law shall not apply to violations of the Decree.

Tax on Sale, Lease or Disposition of Videograms (Section 10):
- A tax of 30% of the purchase price or rental rate shall be collected by the province for every sale, lease or disposition of a videogram containing a reproduction of any motion picture or audiovisual program.
- 50% of the tax proceeds shall accrue to the province, and 50% to the municipality where the tax is collected.
- In Metropolitan Manila, the tax shall be equally shared by the city/municipality and the Metropolitan Manila Commission.
- The tax is due and payable within the first 20 days of the following month, subject to surcharges, interests and penalties prescribed by the Local Tax Code for non-payment or willful neglect.
- Cities may also levy and collect taxes, fees and other impositions that provinces or municipalities may levy and collect.

Assistance in Enforcement Functions (Section 11):
- The Board may solicit direct assistance from other government agencies and units, and deputize their heads or personnel for a fixed and limited period to perform enforcement functions for the Board.
- The deputized agencies and units shall be subject to the direction and control of the Board insofar as such enforcement functions are concerned.

Organizational Pattern and Personnel (Section 12):
- The Board shall determine its organizational structure and staffing pattern.
- The Board has the power to suspend or dismiss employees for cause, and approve or disapprove appointments, transfers or details of employees.
- The Board shall appoint a Secretary who shall be the official custodian of the Board's records and perform other duties as directed by the Board.

Applicability of Civil Service Law (Section 13):
- The Board and its officers and employees shall be subject to the Civil Service Law, rules and regulations.
- Technical personnel shall be selected based on merit and fitness, in accordance with policies and guidelines approved by the Board.

Auditor (Section 14):
- The Chairman of the Commission on Audit shall be the ex officio Auditor of the Board.
- The Chairman of the Commission on Audit may appoint a representative and necessary personnel to assist as the auditor of the Board.
- The salaries and expenses of the auditor's office shall be paid by the Board.
- The Auditor shall submit an annual report and periodic or special reports as deemed necessary by the Board.

Transitory Provision (Section 15):
- All videogram establishments in the Philippines are given 45 days after the effectivity of the Decree to register with and secure a permit from the Board to engage in the videogram business.
- All videogram inventories must be registered with the Board before they can be sold, leased, or otherwise disposed of.
- Possession of unregistered videograms by persons engaged in the videogram business shall be prima facie evidence of violation of the Decree.

Appropriations (Section 16):
- ₱3 Million is appropriated from the National Treasury for the organization and initial operations of the Board.
- Funds sufficient to 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 shall be used to augment the funds to support its expenditures and purposes.

Annual Reports (Section 17):
- The Board shall submit an annual report to the President within 3 months after the end of every fiscal year.
- The annual report shall include the Board's accomplishments, plans, and recommendations to improve and develop its operations and supervision of the videogram industry.