Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2738

Introduced by HONORABLE EDCEL “GREX” B. LAGMAN

EXPLANATORY NOTE

The Metro Manila Film Festival (MMFF) isan annual event that features quality and
potential high grossing films produced by Filipinos. It was originally under the management
and administration of the people from the Local Film Industry. However, in recent years up to
the present, it is the Metro Manila Development Authority (MMDA) that administers and
manages the film fest by its own executive order, and not by legislation.

Every year, controversy hounds the operation and management of the Metro Manila
Film Festival. The original proceeds of the MMFF income which benefit the Movie Workers
Welfare Foundation (Mowelfund) the Film Academy of the Philippines and the Motion Picture
Anti-Film Piracy Council are now being shared by other government agencies (i.e Film
Development Council of the Philippines and Optical Media Board) that ar? merely on-lookers
in terms of operations of the MMFF. The proceeds can still be given to other government
agencies at the discretion of the President of the Philippines.

The root cause of this controversy is that the yearly implementer and organizer of the
MMFF, which is the Metropolitan Manila Development Authority (MMDA) does not come from
the movie and film industry and as such, cannot relate to the real sentiments of the people
working with the industry, The MMDA, in the first place, has no legal basis to operate and
manage the MMFF as its charter, RA 7924 is silent on the matter, The predecessor of the
MMDA, the Metro Manila Commission, by tradition, manages the operation of the MMFF, but
this function was not carried in the present MMDA charter.

In order that the movie and film industry flourish and to address the recurring
controversies every year, it is just but proper that the organization, operation and
management of the Metro Manila Film Festival be transferred to the Metro Manila Film
Festival Executive Committee and the original beneficiaries of the MMI, with the proper
allocation of proceeds be retained.

In this manner not only will we unload from the MMDA a task that has no connection

whatsoever with its very purpose of existence but we are giving back to the people of the
Film Industry what is rightful their expertise and domain.

EDCEL “GREX” B. LAGMAN


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO.2'738

Introduced by: HONORABLE EDCEL “GREX” B. LAGMAN

AN ACT
MANDATING THE ORGANIZATION, OPERATION AND MANGEMENT OF
THE METRO MANILA FILM FESTIVAL TO THE MMFF EXECUTIVE COMMITTEE,
PROVIDING FUNDS THEREFOR,AND FOR OTHER PURPOSES:

Be it enacted by Senate and the House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Declaration of Policy. - It is the policy of the State to foster the
preservation, enrichment, and dynamic evolution of a Filipino national culture based on the
principle of unity in diversity in a climate of free artistic and intellectual expression. Further,
the State shall conserve, promote, and popularize the nation’s historical end cultural heritage
and resources, as well as artistic creations. It is the commitment of the State to enrich
Philippine culture, to reawaken the people to their historical heritage and traditional values,
and to clarify the Filipino image, through the revival and refurbishment of native arts, among
which is the Filipino cinema which should rediscover itself by upholding its inherent artistic
and social responsibility. And finally, the State recognizes the value and importance of the
local movie industry in the over-all developmental effort, encouraging quality film production
both in substance and in form and providing incentives to the performing artist and the
technicians in the industry.

SECTION 2. Creation of the Metro Manila Film Festival (MMFF) Executive
Committee. - The Film Development Council of the Philippines (FDCP) is hereby authorized
to facilitate the creation of the MMFF Executive Committee for the purpose of organization,
operation and management of the Metro Manila Film Festival.

SECTION 3. Functions of the MMFF Executive Committee. -- In order to insure
the successful celebration of the annual Metro Manila Film Festival, and to harness the full
potential of the movie and film industry to be a viable and profitable business enterprise and
to accelerate preservation, growth and development of the motion picture art and science in
the country, the MMFF Executive Committee shall:

a. Give due recognition, awards distinction, appreciation through the Metro Manila
Film Festival and other forms of reward for significant efforts and
accomplishments of the improved and development of the motion picture art
and science in the country;

Set up and administer a viable system of objectives to encourage the growth
and development of high quality motion pictures in the country, which
incentives shall include the grant of recognition to deserving individuals or
entities who have contributed to the vital task and objectives of improving the
quality of film-making or cinematic production in the country;

Engage in fund raising campaign among all sectors of society to ensure
successful operation of the annual MMFF;

Collect the proceeds of the MMFF and disburse the shares to different
beneficiaries identified in this Act. In relation to this, the Commission on Audit

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shall, among others, conduct an annual comprehensive audit of accounts and
transactions pertaining to MMFF revenue and receipts, expenditures and uses of
funds and property;

Establish, operate and maintain a Film Archive for the purpose of preserving and
disseminating motion picture which are historical, cultural and/or aesthetic value
of the nation; and

Provide assistance and support for all efforts, activities and enterprises which
are designed or envisioned to raise the standard of the cinematic art and
science in the country in consonance with the cultural, scientific educational
values and sensibilities of our people and our society, and in keeping with the
country’s social and economic development aims and objectives; and consistent
therewith, to adopt and implement such measures as may be proper or
necessary to ensure the success of such efforts, activities and enterprises and to
obtain satisfactory results therefrom, particularly performance, and also in terms
of cultural achievements.

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SECTION 4. Composition of the MMFF Executive Committee - The MMFF
Executive Committee shall be composed of the following:

a. Chairperson: Executive Director of the FDCP
b. Members: One representative from the different guilds — under
the Film Academy of the Philippines, to wit:

* Philippine Motion Picture Producers Association

* Movie Producers and Distributors Associations of the Philippines
Kapisanan ng mga Direktor ng PelikulangPilipino

Kapisanan ng mga Artistang Pilipino saPelikula at Telebisyon
Screenwriters Guild for Motion Pictures

Filipino Society of Cinematography

Sound Technicians Association for Motion Pictures

United Film Musical Directors of the Philippines

Production Designers Guild of the Philippines

Assistant Director and Production Managers Guild of the Philippines

c. President of the Movie Workers Welfare Fund Foundation INC. (MOWELFUND)

d, Chairman of the National Commission for Culture and the Arts (NCCA)

e, One representative from the Local Government Units of Metro Manila as chosen
by the Metro Manila Mayors.

SECTION 5. Distribution of the Amusement Tax collected by the Local
Government Units to beneficiaries. The total amusement tax collected by the Local
Government Units in Metro Manila and in other places where all or any film festival entry is
exhibited simultaneously during the Festival period shall be held in trust by the local
government units concerned and said collection shall be released to the following
beneficiaries:

a. Movie Workers Welfare Fund Foundation INC. (MOWELFUND) -
FORTY percent (40%)

b. Film Academy of the Philippines (FAP) - FORTY percent (40%)

c. Optical Media Board (OMB) - TWENTY percent (20%)

SECTION 6. Advertisement, Promotions, Sponsorships, Festival Income. The
Festival Income from sources other than proceeds from theater ticket sales, such as but not
limited toadvertisement, promotions, sponsorships shall be divided to the above named
beneficiaries in the same ration.


SECTION 7. Metropolitan Manila Film Festival Income Distribution. The net
income of the annual Metropolitan Manila Film Festival shall be distributed to the following
traditional beneficiaries:

a. Movie Workers Welfare Fund Foundation INC. (MOWELFUND) —
FORTY percent (40%)

b. Film Academy of the Philippines (FAP) - FORTYpercent (40%)

c. Motion Picture Anti-Piracy Council - TWENTY percent (20%)

SECTION 8. Appropriation. To effectively carry out the objectives of this Act, the
amount of TWENTY MILLION PESOS (P20,000,000) is hereby authorized to be appropriated
under the FDCP for the initial operation of the MMFF Executive Committee. Thereafter, such
funds as are necessary shall be included in the annual General Appropriations Act.

SECTION 9. Separability Clause. If any part, section, or provision of this Act shall
be held unconstitutional or invalid,the other parts or provisions shall not be affected hereof.

SECTION 10. Repealing Clause. All laws, decrees, orders, issuances, rules and
regulations or parts thereof inconsistent with this provision are hereby repealed or modified
accordingly.

SECTION 11. Effectivity Clause. This Act shall take effect fifteen (15) days after
its complete publication in a at least two (2) newspapers of national circulation.

Approved,