Abolition of Experimental Cinema of the Philippines

August 8, 1985

EXECUTIVE ORDER NO. 1051

ABOLITION OF THE EXPERIMENTAL CINEMA OF THE PHILIPPINES

WHEREAS, under Executive Order No. 770, as amended, the Experimental Cinema of the Philippines was established to engage in various activities for the promotion and development of the local film industry; HICSTa

WHEREAS, it is the policy of the State to encourage and motivate the private sector to actively, constructively and responsibly participate and contribute in the upliftment of our people's aesthetic values, especially through the local film industry;

WHEREAS, the private sector should be involved and mobilized to provide assistance and support to the film industry by improving the quality of its production so that locally produced movies can improve its standing in the international film markets;

WHEREAS, it is thus necessary to abolish the Experimental Cinema of the Philippines to pave the way for the establishment, formation and organization of a non-stock, non-profit foundation with private sector participation to be registered with the Securities and Exchange Commission;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order:

SECTION 1. Abolition of the Experimental Cinema of the Philippines and Formation of a Foundation. — The Experimental Cinema of the Philippines shall be abolished not later than the end of September, 1985. Prior to the abolition, the ECP Board of Trustees shall initiate, in coordination with the private sector, the formation and organization of a non-stock and non-profit foundation to be registered with the Securities and Exchange Commission.

Upon the issuance of the Securities and Exchange Commission of the proper Certificate of Incorporation of the foundation, the Experimental Cinema of the Philippines shall be deemed abolished and all its remaining assets, collectibles and the balance of its appropriations shall be turned over to the foundation so created and registered with the SEC pursuant to Section 12 of Executive Order No. 770.

The officers and personnel of the Film Archives, Office of the ECP shall be transferred to the Board of Review for Motion Pictures and Television.

SECTION 2. Powers and Functions of the Foundation. —

1. To engage in various activities for the promotion of the growth and development of the film industry; DAEaTS

2. To coordinate with the Filipino Motion Pictures Development Board in all matters affecting the film industry;

3. To establish, operate and maintain a special fund which shall be utilized to provide financial assistance to motion picture projects;

4. To absorb the powers and functions of the Film Ratings Board which was established under Executive Order No. 811;

5. To assist Filipino talents in the acquisition of skills, experience and expertise necessary for quality film production;

6. To borrow funds, acquire, manage and hold such real and personal property as may be necessary to carry out the purposes and objectives of the foundation;

7. To invest funds and other assets in such activities or undertakings and under terms and conditions as it may deem wise or desirable;

8. To establish, organize, operate and maintain international film festivals, exhibitions and other similar activities;

9. To construct and maintain buildings and establishments such as theaters, screening rooms and other similar facilities;

10. To promote or undertake youth-oriented activities involving the development of culture and arts;

11. To perform such other functions as may be necessary in the prosecution of its task.

SECTION 3. Board of Trustees. — The Foundation shall have a Board of Trustees of at least seven (7) members, 2 of whom shall be the President of the Cultural Center of the Philippines and the Chairman of the Film Ratings Board, and the remaining 5 members shall come from the private sector. Such Board of Trustees shall formulate its own programs and implementing rules and regulations.

SECTION 4. Assistance. — All government agencies with relevant functions shall give assistance to the foundation in order to enable it to attain the objectives mentioned above.

SECTION 5. Censorship. — The Foundation may produce, import or acquire film which, when shown at the Manila Film Center, shall be free from censorship.

SECTION 6. Taxes. — All taxes imposed on the Foundation so registered shall, in lieu of being paid directly to the Bureau of Internal Revenue or the local government concerned be remitted to the foundation; such fund to be used by the foundation for its cultural activities and the maintenance of the Manila Film Center. Such taxes shall be part of the expenses of its operations. TEDaAc

The foundation shall report to the Bureau of Internal Revenue or to the local government concerned the amount of taxes so transferred for the activities of the Foundation within fifteen (15) days from its accrual.

SECTION 7. Manila Film Center. — The Foundation shall take over from the ECP, the powers and functions to manage and operate the Manila Film Center, provided it shall assume all expenses for its maintenance and upkeeping.

SECTION 8. Government Subsidy. — If the Foundation shall receive from the government any subsidy or contribution, such funds are considered public trust and shall be subject to the visitorial powers of the Commission on Audit under Section 29 of the Presidential Decree No. 1445.

SECTION 9. Gratuity. — Any officer or employee of the ECP, not appointed to the appropriate position in the Board of Review for Motion Pictures and Television or who refuses his appointment shall be deemed separated from the service and shall be paid the money value of his accumulated vacation and sick leaves and such retirement benefit(s) as may be due him under existing laws. Any personnel not entitled to retirement benefit(s) shall be paid a gratuity of one month's pay for every year of service, a fraction of more than six (6) months being considered one whole year, payable in lump sum from the savings and salary lapses in the ECP.

SECTION 10. Appointment, Promotion; Terms and Conditions of Employment. — The Foundation and its officers and employees shall not be covered by the Office of the Compensation and Position Classification. The officers and employees of the Foundation shall be appointed or promoted pursuant to such management policies and/or appropriate merit and fitness system as may be adopted by the Board.

SECTION 11. Repealing Clause. — All previous orders and laws inconsistent herewith are hereby repealed or modified accordingly.

SECTION 12. Separability Clause. — If for any reason, any section or provision of this Act is declared unconstitutional or invalid, the other sections or provisions hereof which are not affected thereby shall continue in full force and effect.

SECTION 13. Effectivity. — This Order shall take effect immediately. aCcSDT

DONE in the City of Manila, this 8th day of August, in the year of Our Lord, Nineteen Hundred and Eighty-Five.

Published in the Official Gazette, Vol. 81 No. 38 page 4134 on September 23, 1985.