Powers and Functions of the Cinema
- The Cinema shall promote the growth and development of the film industry through various activities.
- The Cinema shall produce or import all kinds of films for exhibition at the Film Center established under Executive Order No. 640-A.
- The Cinema shall manage and operate the Film Center established under Section 6 of Executive Order No. 640-A under an arrangement with the Cultural Center of the Philippines.
- The Cinema shall coordinate with the Filipino Motion Pictures Development Board on matters affecting the film industry.
- The Cinema shall establish, operate, and maintain a special fund for financial assistance to motion picture projects.
- The Cinema shall formulate and administer, subject to the approval of the President, a national film rating and classification system based on guidelines, rules, and regulations promulgated by the Board of Trustees.
- The Cinema shall establish, operate, and maintain a Film Archive to preserve and disseminate all kinds of motion picture.
- The Cinema shall assist Filipino talents in acquiring skills, experience, and expertise necessary for quality film production.
- The Cinema shall have authority to:
- borrow funds,
- acquire, manage, and hold real and personal property necessary for its purposes,
- invest funds and other assets in activities or undertakings under terms and conditions it deems wise or desirable,
- establish, organize, operate, and maintain international film festivals, exhibitions, and similar activities,
- construct and maintain buildings and establishments such as theaters, screening rooms, and similar facilities,
- perform other functions authorized by law or by the President of the Philippines.
Freedom from Film Censorship
- All films produced or imported by the Cinema for exhibition at the Film Center shall be free from censorship.
Board of Trustees Governance
- The Cinema’s operations shall be managed by a Board of Trustees composed of three (3) members.
- The Board of Trustees shall be composed of:
- the Minister of Tourism or a duly authorized representative,
- a Chairman,
- one member appointed by the President of the Philippines.
- The operations of the Cinema shall be managed by this Board through its governing responsibilities.
Board Responsibilities and Rulemaking
- The Board of Trustees shall:
- prepare and adopt rules and regulations it considers necessary for effective discharge of its responsibilities,
- prepare and/or approve a budget for the operations of the Cinema,
- review periodically the administration and programs of the Cinema,
- perform other functions authorized by law.
Director-General and Deputy Director-General
- The Chief Executive Officer of the Cinema shall be the Director-General.
- The Director-General shall be appointed by the President of the Philippines.
- The Director-General shall be the Chairman of the Board.
- The Director-General shall receive compensation and remunerations to be fixed by the Board.
- The Director-General shall have these powers and duties:
- submit for the Board’s consideration proposed policies and measures necessary for operations,
- recommend, coordinate, and administer the Cinema’s programs and projects,
- direct and supervise the Cinema’s operations and internal administration,
- submit an annual report to the Board covering:
- the Cinema’s program of operations during the years,
- financial operations and status,
- a program and budget for the ensuing year,
- organize and appoint the personnel necessary for operation,
- coordinate and establish linkages with other entities related to Cinema activities,
- exercise other powers and discharge other functions vested by the Board.
- The Deputy Director-General shall be appointed by the President of the Philippines and shall receive compensation and remunerations to be fixed by the Board.
- The Deputy Director-General shall assist the Director-General by:
- directing implementation and administration of Board-approved policies governing the Cinema’s business,
- directing, supervising, and coordinating operations of the Cinema’s various departments and offices.
Staffing, Donations, and Corporate Powers
- The Cinema shall appoint and maintain an adequate technical and administrative staff.
- Staff shall be appointed in accordance with the laws, rules, and regulations governing government corporations.
- The Cinema shall have authority to receive donations from domestic and foreign sources.
- The Cinema may exercise all powers and prerogatives of a private corporation under the Corporate Code of the Philippines.
Tax Exemptions and Initial Appropriation
- Any donation, contribution, subsidy, or financial aid made to the Cinema shall be:
- exempt from taxes of any kind, and
- allowable deductions in full from the income of the donors, contributors, or givers for income tax purposes.
- The Cinema, its assets, acquisitions, income, and its operations and transactions shall be exempt from any and all taxes, fees, charges, imports, licenses, and assessments imposed by the government or any of its political subdivisions, including import taxes, duties, and fees.
- Appropriation: Out of the Special Activities Fund, an amount of three million pesos is appropriated for the initial operation of the Cinema.
- Any additional amount needed for operation shall be included in the General Appropriations Act.
Dissolution, Repeal, and Effectivity
- Upon dissolution of the Cinema, remaining assets after payment of liabilities shall be disposed of and turned over to:
- any foundation or institution pursuing the same or similar pursuits as the Cinema, or
- the Republic of the Philippines or any of its agencies or instrumentalities as the Board of Trustees may decide.
- Repealing clause: All provisions of Executive Order No. 640-A and all other laws, decrees, orders, or regulations inconsistent with Executive Order No. 770 are repealed, amended, or modified accordingly.
- Effectivity: Executive Order No. 770 takes effect immediately.