Creation of Experimental Cinema of the Philippines

Section 1 creates a corporation known as the Experimental Cinema of the Philippines, referred to as the Cinema.
The Cinema is attached to the Ministry of Tourism.
The Cinema is organized as a corporate entity with powers described in the order.

Section 2 grants the Cinema the power to engage in various activities for the promotion of growth and development of the film industry.
Section 2 authorizes the Cinema to produce or import all kinds of films for exhibition at the Film Center established under Executive Order No. 640-A.
Section 2 tasks the Cinema to manage and operate the Film Center established under Section 6 of Executive Order No. 640-A, through an arrangement with the Cultural Center of the Philippines.
Section 2 requires the Cinema to coordinate with the Filipino Motion Pictures Development Board on matters affecting the film industry.
Section 2 authorizes the Cinema to establish and maintain a special fund used to provide financial assistance to motion picture projects.
Section 2 empowers the Cinema to formulate and administer, subject to approval of the President, a national film rating and classification system based on guidelines, rules, and regulations promulgated by the Board of Trustees.
Section 2 authorizes the Cinema to establish, operate, and maintain a Film Archive for preserving and disseminating all kinds of motion picture.
Section 2 directs the Cinema to assist Filipino talents in acquiring the skills, experience, and expertise necessary for quality film production.

Section 2 authorizes the Cinema to borrow funds and acquire, manage, and hold real and personal property necessary to carry out its purposes.
Section 2 authorizes the Cinema to invest funds and other assets in undertakings and under terms it deems wise or desirable.
Section 2 authorizes the Cinema to establish, organize, operate, and maintain international film festivals, exhibitions, and similar activities.
Section 2 authorizes the Cinema to construct and maintain buildings and establishments such as theaters, screening rooms, and similar facilities.
Section 2 authorizes the Cinema to perform other functions authorized by law or by the President of the Philippines.

Section 3 provides that all films produced or imported by the Cinema for exhibition at the Film Center shall be free from censorship.

Section 4 provides that the Cinema’s operations are managed by a Board of Trustees composed of three (3) members.
The Board consists of: (1) the Minister of Tourism or a duly authorized representative, (2) a Chairman, and (3) one member appointed by the President of the Philippines.
Section 5 requires the Board to prepare and adopt rules and regulations necessary for effective discharge of its responsibilities.
Section 5 requires the Board to prepare and/or approve a budget for the Cinema’s operations.
Section 5 requires the Board to review periodically the Cinema’s administration and programs.

Section 6 establishes the Director-General as the Chief Executive Officer of the Cinema.
The Director-General is appointed by the President of the Philippines and is also the Chairman of the Board.
The Director-General receives compensation and remunerations to be fixed by the Board.
Section 6 directs the Director-General to submit proposed policies and measures to the Board for consideration.
Section 6 requires the Director-General to recommend, coordinate, and administer the Cinema’s programs and projects.
Section 6 directs the Director-General to direct and supervise the Cinema’s operations and internal administration.
Section 6 requires submission of an annual report to the Board covering: the Cinema program of operations during the years, its financial operations and status, and the program and budget for the ensuing year.
Section 6 authorizes the Director-General to organize and appoint the personnel necessary for the Cinema’s operation.
Section 6 requires coordination and establishment of linkages with other entities related to the Cinema’s activities.
Section 6 empowers the Director-General to exercise other powers and functions vested by the Board.

Section 7 establishes a Deputy Director-General appointed by the President and compensated with remunerations fixed by the Board.
Section 7 requires the Deputy Director-General to assist in implementing and administering Board-approved policies governing the Cinema’s business.
Section 7 directs the Deputy Director-General to direct, supervise, and coordinate the operations of the Cinema’s various departments and offices.
Section 8 requires the Cinema to appoint and maintain an adequate technical and administrative staff.
Section 8 mandates that staff appointments follow the laws, rules, and regulations governing government corporations.
Section 9 authorizes the Cinema to receive donations from domestic and foreign sources.
Section 9 authorizes the Cinema to exercise all powers and prerogatives of a private corporation under the Corporate Code of the Philippines.

Section 10 provides that any donation, contribution, subsidy, or financial aid made to the Cinema is exempt from taxes of any kind.
Section 10 provides that donations, contributions, subsidies, or financial aid made to the Cinema constitute allowable deductions in full from the income of donors, contributors, or givers for income tax purposes.
Section 10 exempts the Cinema, its assets, acquisitions, income, and its operations and transactions from any and all taxes, fees, charges, imports, licenses, and assessments, direct or indirect imposed by the government or any political subdivision.
Section 10 includes exemption from import taxes, duties and fees.

Section 11 appropriates PHP 3,000,000 from the Special Activities Fund for the Cinema’s initial operation.
Section 11 requires that any additional amount needed for operation be included in the General Appropriations Act.
Section 12 provides that upon dissolution, after payment of liabilities, the Cinema’s remaining assets shall be turned over or disposed of to: a foundation or institution with the same or similar pursuits, or to the Republic of the Philippines or any of its agencies or instrumentalities, as the Board of Trustees decides.
Section 13 repeals, amends, or modifies all provisions of Executive Order No. 640-A and all other laws, decrees, orders, or regulations inconsistent with Executive Order No. 770.

Section 14 provides that Executive Order No. 770 takes effect immediately.
The order is signed in the City of Manila on January 29, 1982.