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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7192

Introduced by Representative Sharon S. Garin

EXPLANATORY NOTE
Section 14, Article XIV of the 1987 Philippine Constitution provides:

“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.”

The film industry is one of the most vibrant, prosperous, and sustainable
creative sectors. It is a valuable contributor to the country's cultural and economic
development and a purveyor of culture and the arts. While it is a non-essential
business sector, it nevertheless plays an important role in our daily lives because it
helps us appreciate and preserve culture, heritage, and the arts.

The film industry, including the audio-visual industry services for live events
and performances, television production, and other audio-visual activities, provides
employment to at least 2.8 million workers, mostly freelancers. According to the
article, entitled “Sending out an SOS for the PH film and audiovisual industry,”
published on the Manila Times online portal on June 7, 2020 and penned by Ms. Liza
Dino-Seguerra, chairperson of the Film Development Council of the Philippines, “At
present, P1.27 trillion is the estimated worth of the total creative industries.” The
other creative fields or industries include television, heritage and arts, design and
architecture, printing and publishing, and science and technology (research and
development in manufacturing). In the same article, she added that, “These
devastating financial blows have spurred the arts, entertainment, and recreation
sector to be No.1 hardest-hit business sector caused by Covid-19, according to a


survey of the Department of Finance conducted by the National Economic and
Development Authority.”

The film industry has lost a significant amount of money due to the temporary
closures of cinema theatres nationwide. Prohibition on mass gatherings such as movie
screenings and showings were implemented to stem the spread of the coronavirus
disease 2019 (COVID-19), hence, audiences have not watched movies in the movie
houses, theaters, or cinemas since the community quarantine was implemented. The
cancellation of produced cinema programs and films and the long suspension of film
production, distribution, and exhibition are among other reasons for the displacement
of the film industry's workers. Its revenue losses have inversely led to the catastrophic
shoot up of its unemployed population who mainly rely on the film industry to subsist.

Since the dreaded COVID-19 pandemic hit the country, it is not only the
audiences of the film industry that have been affected but more so, the filmmakers
and their workers. According to the online article, entitled “PH gov't to set up
streaming platform ‘Sine Lokal Online’ to help entertainment industry,” by Coconuts
Manila dated May 15, 2020, it cited that “... the FDCP was just able to help 5,000
people when as many as 150,000 in the film business have lost their jobs. In the
events industry, as many as 200,000 people have been displaced.”

Given this scenario, an economic stimulus package designed for the film
industry in the form of subsidies, especially to the most vulnerable workers, is
necessary. Without augmentation of the funding for the film industry, the danger of
the industry's collapse is inevitable.

This bill seeks to provide for COVID-19 response and recovery interventions by
accelerating recovery and improving the economic performance of the film companies
and the vulnerable workers’ quality of life. Further, it will produce more viable film
culture and healthy film communities and audiences in both domestic and global
markets. These interventions include online platform creation, financial assistance,
subsidies, unemployment or separation financial assistance, guaranteed loans and
training, and waiver or discounted rating fees and permits.

In view of the foregoing, immediate approval of this bill is earnestly sought.



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. ee

Introduced by Representative Sharon S. Garin

AN ACT
PROVIDING FOR RESPONSE AND RECOVERY INTERVENTIONS TO
COMPANIES AND WORKERS OF THE FILM INDUSTRY AND
APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Declaration of Policy. — 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.

Towards this end, and in cognizance of the adverse effects of the coronavirus
disease 2019 (COVID-19) to the local film industry, the State shall provide for COVID-
19 response and recovery interventions to affected film companies and workers to
help them transition swiftly to the new normal amidst the COVID-19 pandemic.

SEC. 2. COVID-19 Response and Recovery Interventions. — In order to
help the film industry recover from the effects of the COVID-19 pandemic, the

following interventions shall be implemented:


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(a) _ Grant financial support to affected workers by their respective local
government units to help them defray the costs related to COVID-19 prevention,
detection, and rapid response measures such as rapid test kits, personal protective
equipment, and sanitary tools and materials;

(b) Conduct mass testing and provide rapid test kits, personal protective
equipment, sanitary tools, and materials for film companies by the Film Development
and Council of the Philippines (FDCP), in coordination with the Department of Health
(DOH);

() Create a pay-per-view online streaming platform of local films by the
FDCP to help Filipino film companies showcase their quality films intended for
commercial and entertainment purposes, both domestic and world markets, that focus
more on the enhancement of the quality of life, the human and social conditions, and
the dignity and nobility of the human spirit;

(d) _ Provide a subsidy by the FDCP to affected film workers whose areas are
still placed under community quarantine: Provided, That the subsidy shall be
computed based on the prevailing regional minimum wage rates: Provided, further,
That the displaced film industry workers who previously received assistance under
Republic Act No. 11469, otherwise known as the “Bayanihan to Heal as One Act,”are
excluded from receiving the subsidy provided in this Act;

() Provide unemployment or involuntary separation assistance amounting
to Twenty thousand pesos (P20,000.00) to displaced workers in the film industry by
the FDCP: Provided, That, any form of unemployment or involuntary separation

assistance or subsidies previously received by the displaced workers under the


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Bayanihan to Heal as One Act shall preclude the displaced workers from receiving any
unemployment or involuntary separation assistance provided in this Act;

() Provide support and access to modern information and communications
technology equipment and facilities by granting subsidies or loans to the film
companies by the FDCP, in coordination with the Department of Information and
Communications Technology (DITC), needed in shifting to online platforms;

(g) | Grant loan guarantees to affected film companies by the FDCP, in
coordination with the Department of Trade and Industry (DTI), to augment their
capitals to bankroll projects or produce more quality content;

(h) Provide relevant training programs by the FDCP, in coordination with the
DTI, to affected film workers for their upskilling, re-skilling, and retooling to micro,
small, and medium enterprises; and

(i) Waive or give discounts to rating fees imposed by the Movie and
Television Review and Classification Board (MTRCB) and the processing fees for
permits and amusement tax for the operation of film companies collected by local
government units.

SEC. 3. Appropriations. — To support the implementation of this Act, the
amount of Five hundred million pesos (P500,000,000.00) is appropriated out of the
available funds in the National Treasury not otherwise appropriated. Thereafter, the
amount necessary for the continued implementation of this Act shall be included in
the annual General Appropriations Act.

SEC. 4. Implementing Rules and Regulations. — Within ninety (90) days

from the approval of this Act, the chairperson of the FDCP shall, in coordination with


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the Secretary of the Interior and Local Government, Secretary of Health, Secretary of
Information and Communications Technology, Secretary of Trade and Industry, and
the chairperson of the MTRCB, promulgate the necessary rules and regulations for the
effective implementation of this Act. |

SEC. 5. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or a newspaper of general circulation.

Approved,