Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL No, 5926

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

EXPLANATORY NOTE
Article XIV of the 1987 Constitution provides that:

Section 14. The State shall 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.

Section 15. Arts and letters shall enjoy the patronage of the
State. The State shall conserve, promote, and popularize the nation’s
historical and cultural heritage and resources, as well as artistic
creations.

Section 16. All the country’s artistic and historic wealth
constitutes the cultural treasure of the nation and shall be under the
protection of the State which may regulate its disposition.

In his book, The End of National Cinema, University of the Philippines
Assistant Professor Patrick Campos claims that at the turn of the 21* century, the
Philippine Cinema has lost its national identity due to globalization.

According to a study conducted by the National Statistical Coordination
Board in 2011, the number of films produced in the Philippine Movie Industry
has halved over the past decade. From 1960 to 1999, the Philippines produced
an average of about 140 movies each year which means that local films
accounted for 20% of the domestic market. However, from 2000 to 2009, local
film output fell to an average of 73 films annually which represents only 11% of
the domestic market. The rise of independent film production has kept the
industry from declining further as independent films have accounted for more
than half the total movies made in the Philippines.

Foreign films, particularly those from Hollywood, pose a big threat to the
local film industry. These films have huge commercial appeal and thus preferred
by moviegoers. Furthermore, locally produced films usually get bypassed in
favor of commercially viable Hollywood releases. Since theaters are concerned in


making profits, more often than not, they tend to prioritize showing Hollywood
films at the cost of limiting the viewing for local films.

This bill seeks to promote the Philippine film industry by establishing
support measures to safeguard its artistic and economic development. First, this
bill seeks to establish an annual film quota that requires all theatrical venues to
exhibit only Filipino films for a period of twenty eight days, specifically from June
1 to 14 and from December 18 to 31 every year. The bill also guarantees all
Filipino films a full week's run in all commercial theaters. Filipino films shall also
enjoy booking priority on “payday playdates.”

If enacted, this measure will encourage the production of quality films
that will re-awaken Filipinos to our rich cultural heritage. Furthermore, it will
advance the role of Philippine cinema as a driving force for the Philippine
economy. Thus, the approval of this measure is earnestly sought.

ALFRED V:


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL no, 5926

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

AN ACT
PROMOTING THE PHILIPPINE FILM INDUSTRY THROUGH AN ANNUAL FILM
QUOTA AND OTHER SUPPORT MEASURES

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

SECTION 1. Title. - This Act shall be known, cited and referred to as the
“Philippine Film Industry Promotion Act.”

SECTION 2. Declaration of Policy. -It is hereby declared that the State
shall give priority to the arts and culture to foster in Filipinos an authentic and
dynamic sense of humanity, patriotism and nationalism. The State shall 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. All the country’s artistic and historic wealth constitutes
the cultural treasure of the nation and shall be under the protection of the State,
which may regulate and develop its disposition. A vital and integral part of this
cultural treasure is the Philippine cinema industry, which the State endeavors to
constantly maintain, strengthen, and improve according to global standards, but
always with due regard for contemporary Filipino cultural values. By ensuring an
assured space in the annual calendar for the exclusive exhibition of Filipino films
and providing other support measures, the State aims to develop the cinema
industry in terms of artistry, technical excellence, universal appeal, and a
profound sense of the Filipino spirit, all with the due regard for the artistic, moral,
educational and economic well-being of directors, writers, actors, producers,
crew, theater owners and operators, distributors, suppliers and allied industries,
and other stakeholders, and particularly the Filipino movie audience.

SECTION 3. Definition of Terms. For purposes of this Act, the following
terms shall mean:

a. Filipino Film means a film -

i, Which is wholly or mainly produced in the
Philippines;


ii, All the studio scenes of which have been
photographed or filmed in the Philippines; and

iii. Which has been produced by a company incorporated
in the Philippines.

b. Film - A series of pictures projected in a screen in rapid
succession, with objects shown in successive positions
slightly changed so as to produce the optical effect of a
continuous picture in which the objects move, whether the
picture be black and white or colored, silent or with
accompanying sound, on whatever medium and with
whatever mechanism, equipment, and/or technology they
are projected, and in whatever material device they are
preserved or recorded for instant projection, for the purpose
of this Act the material in which the motion picture is
contained, preserved, or recorded, forms an integral part of
the film subject of this Act.

SECTION 4. Annual Film Quota, There is hereby established by an annual
film quota under which only Filipino films shall be publicly exhibited in all
commercial theaters in the Philippines as well as in all theatrical venues operated
by the Film Development Council of the Philippines (FDCP), the Cultural Center of
the Philippines (CCP) and the National Commission for the Culture and the Arts
(NCCA), and any such other cinematic venues, whether privately or government-
operated, for an annual period of twenty-eight (28) days, namely from the 1 to
14% of June, and from the 18" to the 31* of December. The aforesaid dates shall
be without prejudice to any such additional dates within the calendar year to be
determined by the President of the Philippines following the objectives of this
Act. Subject to the exception under Section 7, Presidential Decree No. 1986, in
relation to Section 3 of this Act, the exhibition of any film, trailer, or publicity
material pursuant to the annual film quota shall be subject to review,
classification, and enforcement by the Movie and Television Review and
Classification Board (MTRCB). Operators of movie theaters and similar venues
shall give priority to publicity materials of films intended for exhibition during
the above quota sub-periods as well as such other periods determined by the
President of the Philippines as stated above within two months before the
respective first days thereof,

SECTION 5. Guaranteed Week's Run and Playdate Prioring. All Filipino
films shall be guaranteed a full week's run, i.e. seven (7) days, in all commercial
theaters and venues counted from opening day, regardless of box-office potential
or performance. In addition, all Filipino film shall enjoy booking priority on so-
called “payday playdates”, i.e. exhibition release dates that fall on, or are close to,
the 15" or end of any calendar month.

SECTION 6. Organization of Film Festivals. The establishment herein of
the annual film quota shall be without prejudice to the organization of film
festivals and screenings to coincide with any or both of the sub-periods, or such


additional periods to be determined by the President of the Philippines as stated
above, under Section 3 hereof, and consistent with the objectives of this Act. The
said festivals may be organized, consistent with their respective statutory
mandates, by the FDCP, CCP and NCCA, singly/collectively and/or in
collaboration with film industry stakeholders, cultural associations, and
educational institutions as well as with other government agencies, such as but
not limited to the MTRCB in regard to content classification and audience
sensitivity, and local government units, including any leagues or other
aggrupations thereof; provided that: nothing herein shall be construed to prevent
local government units to singly or collectively and/or in collaboration with the
other entities, whether private or governmental, to organize their own festivals
to coincide with and take advantage of the film quota established herein. The
organizers of film festivals referred to in this section shall have the authority,
insofar as they are allowed by law, to formulate their own rules and regulations,
for the conduct thereof, the selection of entries and participants, the granting of
awards and incentives, the designation of beneficiaries, sources of funds, and
such other aspects of holding a film festival whether national, regional, provincial
or local in scope; provided: that such rules and regulations shall always ensure
transparency in the selection and awarding process, as well as the prompt
publication, both online and in print, of the box office performance of all entries
during any festival no later than seven after its termination.

SECTION 7. Implementing Rules and Regulations. The Chairpersons of
the FDCP, NCCA, and CCP, in coordination with the MTRCB, the Film Academy of
the Philippines, cinema-related guilds, local government units and other relevant
agencies, entities, institutions, and associations interested in the development of
the Philippine film industry shall promulgate the necessary rules and regulations
within one hundred twenty (120) days from the effectivity of date of this Act,
including any guidelines for any festivals or screening, applications and awards,
incentives, source of funds, and monitoring and compliance measures.

SECTION 8. Separability Clause. \f any provision of the Act is declared
invalid, other parts or provisions hereof not affected thereby shall remain and
continue to be in full force and effect.

SECTION 9. Repealing Clause. All laws, decrees, executive orders,
presidential proclamations, rules and regulations or parts thereof contrary to or
inconsistent with the provisions of the Act are repealed or modified accordingly.

SECTION 10. Effectivity Clause. This Act shall take effect fifteen (15) days

after its publication in the Official Gazette and two (2) newspapers of general
circulation in the Philippines.

Approved,