Creation of Videogram Regulatory Board

Composed of a Chairman, Vice-Chairman, and eighteen members appointed by the President for one-year terms, eligible for reappointment.
Members must be natural-born Filipino citizens, at least 21 years old, and of good moral character.
At least five members must be members of the Philippine Bar.
Board members receive transportation, representation, and other allowances not exceeding P5,000 per month.

Supervises and regulates permits related to videograms’ lifecycle and commercial handling.
Approves, disapproves, deletes objectionable content using contemporary Filipino cultural standards.
Defines categories for videograms (e.g., General Patronage, For Adults Only).
Authority to close establishments showing prohibited content.
Levies, assesses, collects, and adjusts fees related to licensing, permits, and examinations.
Reviews videograms and related publicity materials for classification.
Can deputize government and industry representatives to enforce compliance.
Prosecuting authority for violations on behalf of the people.
Promulgates necessary rules and regulations with 15 days post-publication effectivity.
Prescribes internal operating procedures and may create sub-committees.
Performs additional powers necessary for its mission as directed by the President.

Chairman acts as Chief Executive Officer responsible for enforcement and administration.
Oversees Board operations, personnel appointments, and internal organization.
Assisted by an Executive Director appointed by the President for a one-year term.
Salaries fixed by the decree: Chairman (P72,000/year), Executive Director (P60,000/year).

No person may engage in videogram activities (import, export, production, sale, lease, etc.) without registration and permits from the Board.
Registration is prerequisite for obtaining business permits or licenses from other authorities.

Copying or reproduction of cinematographic art prohibited without written consent of rights holders.
No reproduction allowed within six months of first theatrical release unless consent is given for a shorter period.

Sale, lease, or disposition of any videogram requires prior registration with the Board and display of registration identification/seal.

Violations of key provisions (Sections 3, 6, 7, 8, 10) subject offenders to imprisonment from three months and one day to one year and fines from P50,000 to P100,000.
Corporate officers responsible for violations are personally liable.
Probation Law provisions do not apply to offenses under this decree.

Provinces collect a 30% tax on purchase price or rental rate of videograms.
Tax proceeds split 50/50 between the province and the municipality; in Metropolitan Manila, shared equally with the Metropolitan Manila Commission.
Tax payable within first 20 days of the following month; late payments subject to surcharges, interest, and penalties.
Willful neglect or fraudulent returns subject to an additional 50% surcharge.
Cities may also levy similar taxes.

Board may deputize government agencies or units for enforcement under Board control.

Board determines organizational and staffing structure.
Authority to suspend, dismiss or approve appointments and transfers of personnel.
Secretary of the Board appointed to safeguard meeting records and perform other duties.

Board personnel subject to Civil Service Law, except technical staff who must be selected based on merit and fitness.

Chairman of Commission on Audit serves as ex officio auditor or appoints a representative.
Auditor submits annual and special reports to the Board.
Board responsible for auditor’s salaries and expenses.

Existing videogram establishments have 45 days from effectivity to register and permit with the Board.
All inventories must be registered before sale or lease.
Possession of unregistered videograms is prima facie evidence of violation.

Initial P3 million appropriated from National Treasury for Board organization and operations.
Subsequent funding through annual General Appropriations Act.
Board revenues augment budget for operational expenses.

Board to submit annual performance and operational reports to the President within three months after each fiscal year.