Pursuant to Board Resolution No. 99-07-158 which was passed by the VRB Board of Directors during-its regular meeting held on July 26, 1999, the following revisions to Memorandum Circular No. 98-002 shall be implemented:

II. Inspection Operations:

a. For non-registered video establishments - Automatic Closure

b. For licensed video establishments

i. First Offense	- Thirty (30) days suspension of license and closure of the establishment
ii. Second Offense	- Sixty (60) days suspension of license and closure of the establishment
iii. Third Offense	- Permanent Closure with the revocation of license. Incusion in the Black List of habitual delinquent/recidivist establishments

This Circular shall take effect 15 days upon its publication in a newspaper of general circulation.

(SGD.) ENRIQUE M. MONTERO
Chairman and Chief Executive Officer