, . 
~Flwtl' 
SIXTEENTH CONGRESS OF THE REPUBLIC) 
fOHlft Ilf t~l? }~ f'rrrbrq 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
AUG 28 r 2 :33 
SENATE 
Senate Bill No. 
1 3 8 8 
RECF!VFD HV:-f- ' 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Pursuant to the constitutional guarantee on freedom of expression and on the 
principle of giving priority to arts and culture to foster patriotism and nationalism, 
accelerate social progress, and promote total human liberation and development, 
the State shall promote and support the development and growth of the local film 
industry as an aesthetic and cultural medium for a better understanding and 
appreciation of Filipino social values and national identity and as an indispensable 
economic partner in nation-building. 
Moreover, the film industry has become a significant social institution that exerts 
tremendous influence in the lives of our people and serves as a vital tool for socio-
cultural changes in our society. 
There is thus a need for the government to 
integrate and rationalize all existing and planned policies and programs designed 
to encourage the preservation, growth, development and upgrading of the art and 
science of film making in the country, to the end that the film industry will not only 
be viable and profitable commercial endeavor intended for public entertainment, 
but an instrument to enhance the quality of life thru examination of the human and 
social conditions, contribute to the dignity and nobility of the human spirit, 
accelerate the artistic, scientific and socio-cultural advancement of the nation, 
promote patriotism, nationalism, total human liberation and development, and 
reinforce the national endeavor of social and economic development and progress 
for the Philippines. 
Furthermore, there is a need to continue supporting the declared State policy to 
provide support and assistance to the local film industry, specifically for the 
purpose of achieving sound, effective and progressive integration and correlation 
of this business, economic and commercial functions and operations of the said 
industry, thereby making the said industry a truly dynamic and vigorous instrument 
for national cultural growth and development, and vital social institution which will 
enhance the artistic, scientific and socio-cultural heritage of the nation. 
The immediate passage of this bill is thus earnestly requested. 
GOY EJERCITO ESTRADA 
Senator 


,srrmtr 
SIXTEENTH CONGRESS OF THE REPUBLIC) 
(~tr.rr uf Hie ifilrrrpbrv 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
AUG 28 P 2 :33 
SENATE 
Senate Bill No. 13 8 8 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
TO PROMOTE AND SUPPORT THE DEVELOPMENT AND GROWTH OF THE 
PHILIPPINE FILM INDUSTRY, CREATING FOR THIS PURPOSE THE 
PHILIPPINE FILM COMMISSION, DEFINING ITS POWERS AND FUNCTIONS 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Shott Title. This Act shall be known as the "Local Film Industry 
Development Act of 2013". 
SEC 2. State Policy. Pursuant to the constitutional guarantee on freedom of 
expression and on the principle of giving priority to arts and culture to foster 
patriotism and nationalism, accelerate social progress, and promote total human 
liberation and development, the State shall promote and support the development 
and growth of the local film industry as an aesthetic and cultural medium for a 
better understanding and appreciation of Filipino social values and national identity 
and as an indispensable economic partner in nation-building. 
To achieve this end, the State shall formulate and implement policies and 
programs to upgrade the art and craft of film making and encourage the production 
of films for commercial purposes. intended for public entertainment. that seek to 
enhance the quality of life, examine the human and social conditions and 
contribute to the dignity and nobility of the human spirit. 
SEC 3. 
Creation of the Philippine Film Commission. 
To implement the 
policies and attain the objectives enunciated in this Act, the Film Development 
Council of the Philippines (FDCP) created. under Republic Act 9167 is hereby 
reorganized into the Philippine Film Commission hereinafter referred to as the 
"Commission". The Commission shall be an independent agency. It shall render 
an annual report of its activities and achievements to the President and to the 
Congress and shall have its prinqipal offices in Metropolitan Manila. 
SEC 4. Composition of the Commission. The Commission shall be composed 
of a Chairperson and seventeen (17) members, eight (8) of whom shall be regular 
members while nine (9) shall be in an ex-officio capacity; Provided, That only the 
regular members are entitled to vote, while the Chairperson shall vote only in case 
of tie; Provided further, That the Chairperson shall be appointed by the President 
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from the list of nominees submitted to him by the regular members; Provided 
finally, That the Chairperson shall be a person of proven administrative 
proficiency, independence, knowledgeable of the technical and artistic aspects of 
the film production and fully committed to the promotion and development of the 
Philippine Cinema as art. 
The eight (8) regular members shall be as follows: 
1. A regular representative of the Directors' Guild of the Philippines, Inc.; 
2. A regular representative of the Nagkakaisang Manggagawa ng Pelikulang 
Pilipino; 
3. A regular representative of the Mowelfund; 
4. A regular representative of the Actors' Guild of the Philippines, Inc.; 
5. A regular representative from the National Cinema Association of the 
Philippines; 
6. A regular representative from the academe; 
7. A regular representative from the local film producers; 
8. A regular representative from the Independent Film cooperative. 
The nine (9) members who shall be ex-officio members of the Commission are the 
following: 
.. 
1. The Secretary of the Department of Trade and Industry or his/her duly 
deSignated regular representative; 
2. The Secretary of the Department of Education or his/her duly designated 
regular representative; 
3. The Secretary of the Department of Tourism or his/her duly designated 
regular representative; 
4. The Secretary of the Department of Foreign Affairs or his/her duly 
deSignated regular representative; 
5. The Secretary of the Department of Interior and Local Government or 
his/her duly designated regular representative; 
6. The Secretary of the Department of Finance or his/her duly designated 
regular representative; 
7. The Director General of the Film Academy of. the. Philippines or his/her duly 
designated regular representative; 
8. The President of the Cliitural" Center of the Philippines or his/her duly 
designated regular representative; 
9. The head of the Cinema Committee of the National Commission for Culture 
and the Arts or his/her duly designated regular representative. 
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SEC 5. Term of Office. The Chairperson and the eight (8) regular members shall 
hold office for a term of three (3) years, unless sooner removed by the 
Commission.; Provided, That they shall be eligible for reappointment after the 
expiration of their terms; 
Provided further, That if a member fails to complete 
his/her term, the person appointed to fill the vacancy shall serve only the 
unexpired portion of the vacated term whom he/she succeeds; Provided final/y, 
That such service of the unexpired portion shall not be counted as a term. 
SEC 6. 
Powers and Functions. 
The Commission shall have the following 
powers and functions: 
1. To coordinate all programs and policies of government department and 
agencies that are related to the development of the local film industry; 
2. To establish and implement a Cinema Evaluation System in accordance 
with the criteria set forth in this Act; 
3. To develop and implement an incentive and reward system for the 
producers based on merit to encourage the production of quality films; 
4. To promote, organize, encourage or support a more scientific system in 
which local films can be marketed locally and internationally; 
5. To develop and promote programs to enhance the skills and expertise of 
Filipino film artists, technicians and workers through continuous craft and 
technical upgrading as well as ,attitude training; 
6. To set up and operate a one-stop shop to assist foreign and local producers 
making films in the country; 
7. To develop and implement a two-pronged program that will encourage the 
production of quality films; 
8. To encourage, support and coordinate the holding of national and regional 
film festivals exclusively of Filipino films; 
9. To establish, organize, operate and maintain international film festivals, 
exhibitions and similar activities, including an ASEAN film festival and 
market; 
10.To encourage and facilitate participation in international film festivals and to 
ensure the continuous presence of Philippine films in international markets; 
11. To invest funds and other assets in such activities or undertakings that shall 
directly or indirectly promote development of the film industry, including the 
production of films, and other terms and conditions as it may deem wise 
and desirable; 
12. To ensure the establishment of a film archive in order to conserve and 
protect film negatives arid/or prints as part of the nation's historical, cultural 
and artistic heritage; 
13. To take measures to acquire for safeguarding and preservation of any part 
or all of the national film production, including the institution of mandatory 
deposit systems which is hereby expressly authorized; 
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14. To set up mechanics to address the welfare and working conditions of local 
film workers, a concern to be implemented in coordination with the 
Mowelfund and the Nagkakaisang Manggagawa ng Pelikulang Pilipino; 
15. To promote the establishment of cinema clubs in barangays and schools in 
coordination with the Department of Education and the Commission on 
Higher Education and to develop elective courses related to film at the 
collegiate levels as part of a film audience development program; 
16. To prescribe the procedures for the exercise of its powers and functions as 
well as the performance of its duties and responsibilities; 
17. To determine the Commission's organizational structure and staffing pattern 
and appoint its officers and employees in accordance with Civil Service 
laws, rules and regulations; 
18.To promote the development and growth of the independent film 
movement; 
19. To acquire, manage and hold such real and personal property as may be 
necessary to carry out the purpose and objectives of this Act; and, 
20. To perform such other functions as may be necessary to carry out the 
provisions of this Act. 
SEC 7. Meetings. The Commission shall meet at least once a month or as often 
as necessary at the call of the Chairperson or majority of the members. A majority 
of the regular members of the Commission shall constitute a quorum to do 
business. The members of the Commission shall be entitled to honoraria based 
on existing government accounting and auditing rules and regulations. 
SEC 8. The Chairperson. The Chairperson shall be the Chief Executive Officer 
and shall exercise overall administrative supervision to ensure the effective and 
efficient implementation of the policies laid down by the Commission. 
The 
Chairperson shall have the same rank and salary as an Undersecretary of a 
Department as provided for in the Salary Standardization Law. 
SEC 9. Functions of the Chairperson. The Chairperson shall have the following 
functions: 
., 
.... 
1. Execute and administer the policies, plans and programs approved by the 
Commission; 
2. Direct and supervise the operations and internal affairs of the Commission; 
3. Establish the internal organization and administrative procedures of the 
Commission; 
4. Recommend to the Commission the appointment, transfer or detail, 
suspension, dismissal for cause of its subordinate officials and employees; 
and, 
5. Such other functions, which the Commission may assign from time to time. 
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SEC 10. The Executive Director. The Chairperson shall be assisted by an 
Executive Director to be appointed by the Commission upon the recommendation 
of the Chairperson. The Executive Director shall have a salary comparable to that 
equivalent rank under the Revised Compensation and Position Classification 
System and shall be co-terminus with the Chairperson unless sooner removed for 
cause. 
SEC 11. Cinema Evaluation Board. The Commission will absorb the Cinema 
Evaluation Board of the FDCP, hereinafter referred to as the "CEB", which shall 
evaluate and grade films submitted to the Commission, subject to the following: 
a) Composition, Qualifications and Appointment -
The CEB shall be 
composed of a Board Chairperson and twenty (20) members, ten (10) of 
whom shall come from the film industry, and the other ten (10) from the 
arts, academe, business and such other sectors as the Commission may 
choose to identify. The Chairperson of the Commission shall appoint the 
members of the CEB from among thirty (30) submitted by the members of 
the Commission; Provided, That the persons appointed to the CEB should 
be knowledgeable of the artistic and technical aspects of film making and 
fully committed to the promotion and development of cinematographic art 
along world class standards and global marketability. 
b) Term of Office - The CEB Chairperson and members shall serve for a term 
of two (2) years and shall be eligible for re-appointment for a second term; 
Provided, That no member shall serve for more than two (2) consecutive 
terms; Provided further, That if any member fails to complete a term, the 
person appointed to fill the vacancy shall serve only for the unexpired 
portion of the term of the person whom he/she succeeds, unless re-
appointed; Provided final/y, That the service of the unexpired portion shall 
not be counted as a term. In the initial appointments, the CEB Chairperson 
and the twenty (20) members shall hold office for two (2) years. 
c) PartiCipation - No member of the CEB shall participate in the grading of a 
film in which he or she or any member of his or her family or any relative 
within the fourth degree of consanguinity or affinity shall have financial or 
any other interest; Provided, That such member shall disclose fully at the 
time of his or her inhibition, the nature of his or her interest including actual 
or potential conflict of interest and the reasons of his or her inhibition. 
SEC 12. Cinema Evaluation System. The CEB shall formulate and establish a 
set of standards, criteria and procedures for the Cinema Evaluation System, 
subject to the approval of the Commission, primarily based on, but not limited to 
the following: direction, screenplay, cinematography, editing, production design, 
musical scoring, sound, and acting. 
SEC 13. Grading of Films. The grading of films by the CEB shall be subject to 
the following provisions: 
.. 
a) Pre-qualification procedures and requirements. 
The Commission shall 
prescribe pre-qualification procedures and requirements for application for 
grading; Provided, That only films whose premiere showing shall be held in 
the Philippines, and those which have not had any theatrical release, free 
television broadcast, cable broadcast or video release in any commercial 
5 


medium anywhere in the world shall be qualified for evaluation by the 
board; Provided further, That the CEB should evaluate and grade only films 
that are intended for theatrical and other forms or exhibition that will charge 
admission fees and which are at least eighty (80) minutes in length and that 
the producer shall submit his/her film for grading at least seven (7) days 
before its scheduled day of play date. 
b) Evaluation Period. A film shall be reviewed, evaluated and graded by the 
CEB within five (5) working days after submission of the application. The 
CEB shall transmit its decision to the Commission within twenty four (24) 
hours from the rendering of the decision. The Commission shall inform the 
producer of the CEB's decision not later than twenty four (24) hours upon 
receipt therewith. 
c) Grading of Films. The CEB shall review and grade a film submitted for 
grading. 
The CEB and the Commission shall, at any time neither be 
allowed to cut, delete, shorten or modify in any manner films being graded 
by the CEB, nor shall they be allowed to suggest cuts or deletions or any 
other form of modification to the film makers and pre-requisites for earning 
the CEB grading. 
Such grading shall be given due weight and 
consideration by the Movie and Television Review and Classification Board 
(MTRCB), the Optical Media Board (OMB), the Department of Trade and 
Industry (DTI) and other government agencies for the graded film's viewing, 
reproduction, exportation and other purposes. 
d) Reconsideration to the Board En Bane. The action taken by the CEB on 
the film submitted for evaluation and grading may be reconsidered upon 
motion to the CEB en banc within twenty four (24) hours from receipt of 
notice of said action, and the CEB en banc shall render its decision within 
forty eight (48) hours from its receipt of the motion for reconsideration. The 
CEB en bane must be composed of at least majority of the CEB. 
e) Finality of Grading. The grading submitted by the CEB en banc to the 
Commission shall be final. 
SEC 14. Privileges of Graded Films . . Films which have obtained an "A" or "8" 
grading from the Commission pursuant to Sections 11 and 12 of this Act shall be 
entitled to Amusement Tax Reward. 
A grade "A" or "B" film shall entitle the 
producer to an incentive equivalent to the amusement tax imposed and collected 
on the graded films by cities and municipalities in Metro Manila and other highly 
urbanized and independent component cities in the Philippines pursuant to 
Sections 140 and 151 of Republic Act No. 7160 at the following rates: 
1. For grade "A" Films - Eighty percent (80%) of the amusement tax collected 
on such films. The remaining twenty percent (20%) shall accrue to the 
funds of the Commission; and, , 
2. For grade "B" Films -
Sixty five percent (65%) of the amusement tax 
collected on such films. 
The remaining thirty five percent (35%) shall 
accrue to the funds of the Commission; Provided, That thirty percent (30%) 
of the amusement tax rebates shaU accrue to the talents and workers 
involved in the film that was graded "A" or "B", with the other seventy 
percent (70%) accruing to the film producer. 
6 


SEC 15. Amusement Tax Deduction and Remittances. All revenues from the 
amusement tax on the graded film which may otherwise accrue to the cities and 
municipalities in Metro Manila and highly urbanized and independent component 
cities in the Philippines pursuant to Sections 140 of Republic Act No. 7160 during 
the period the graded film is exhibited, shall be deducted and withheld by the 
proprietors, operators or lessees of theaters or cinemas and remitted within thirty 
(30) days from the termination of the exhibition to the Commission which shall 
reward the corresponding amusement tax to the producers and the talents and 
workers of the graded film within fifteen (15) days from receipt thereof. 
Proprietors, operator or lessees of theaters or cinemas who fail to remit 
amusement tax proceeds within the prescribed period shall be liable to a 
surcharge equivalent to five percent (5%) of the amount due for each month of 
delinquency which shall be paid to the Commission. 
SEC 16. Enforcement. For purposes of implementing the previous Section, the 
Commission may: 
1. Impose administrative fines and penalties of not more than One Hundred 
Thousand Pesos (P100,000.00) for the violation of any of the provisions of 
this Act and/or implementing rules and regulations issued by the 
Commission. 
2. Cause or initiate the criminal or administrative prosecution of violators of 
this Act and its implementing rules and regulations. 
3. Cause the closure of any theater or cinema that fails or unreasonable 
refuse to remit tax collected on the graded film for a period not exceeding 
fifteen (15) days after which such period shall automatically be lifted without 
prejudice to the right of the Commission to cause or initiate criminal or 
administrative prosecution against the erring theater or cinema owners 
pursuant to paragraph 2 of this Section. 
4. Call upon representatives of the different government agencies and other 
various organizations in the movie industry to help ensure compliance with 
the provisions of this Act and its implementing rules and regulations. 
For this purpose, the Commission may constitute regional sub-commissions 
in the cities and municipalities throughout the country composed of 
representatives from the government and from the private sector as may be 
appropriate to implement the purposes and objectives of this Act and its 
implementing rules and regulations and they shall serve without 
compensation and only for such period of time as the Commissioner shall 
determine. 
5. To deputize any law enforcement agency and instrumentality of the 
government for assistance for the implementation and enforcement of its 
functions and orders. 
SEC 17. Film Endowment Board. There is hereby created a Film Endowment 
Board hereinafter referred to as the FEB which shall provide subsidy for the 
production of worthwhile screenplays· and films submitted to the FEB for 
consideration, subject to the following: 
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a. Composition, Qualifications and Appointment. The FEB shall be composed 
of a Board Chairperson and seven (7) members, four (4) of whom shall 
come from the film industry, and the other three (3) from the arts, academe, 
business and other sectors as the Commission may choose to identify. The 
Chairperson of the Commission shall appoint the members of the FEB 
From among fifteen (15) nominees submitted by the members of the 
Commission; Provided, That the persons appointed to the FEB should be 
knowledgeable of the artistic and technical aspects of filmmaking and fully 
committed to the promotion and development of cinematographic art along 
world class standards and local and global marketability. 
b. Term of Office. The FEB Chairperson and members shall serve for a term 
of two (2) years and shall be eligible for re-appointment for a second term; 
Provided, That no member shall serve for two (2) consecutive terms; 
Provided further, That if any member fails to complete a term, the person 
apPOinted to fill the vacancy shall serve only for the unexpired portion of the 
term of the person whom helshe succeeds, unless re-appointed; Provided 
finally, That the service of the unexpired portion shall not be counted as a 
term. The FEB Chairperson and the seven (7) members shall hold office 
for two (2) years. 
c. Participation. 
No member of the FEB shall participate in approving of 
funding for a film in which he or she or any member of his or her family or 
any relative within the fourth degree of consanguinity or affinity shall have 
financial or any other interest; Provided, That such member shall disclose 
fully at the time of his or her inhibition, the nature of his or her interest 
including actual or potential conflict of interest and the reasons of his or her 
inhibition. 
SEC 18. Film Endowment Evaluation System. The FEB shall formulate and 
establish a set of standards and criteria and procedures for the Film Endowment 
Fund Evaluation System, subject to the approval of the Commission, based on, 
but not limited to the following: the aesthetic value of the screenplay submitted, the 
marketability of the film product, and its integral cultural personality. 
SEC 19. Endowment Funding for Films. The endowment funding for films by 
the FEB shall be subject to the following provisions: 
a. Pre-qualification procedures and requirements. 
The Commission shall 
prescribe pre-qualification procedures and requirements for application for 
endowment funding; Provided, That only original screenplays which have 
not yet been produced and which when filmed are at least eighty (80) 
minutes in length or only films whose premiere showing shall be held in the 
Philippines, and those which have not had any theatrical release, free 
television broadcast, cable broadcast or video release in any commercial 
medium anywhere in the world shall be qualified for evaluation by the 
Board. 
b. Evaluation period. A sub"mitted screenplay or film shall be evaluated and 
approved for funding within thirty (30) days after submission. The FEB shall 
transmit it to the Commission within twenty four (24) hours from the 
rendering of the decision. The Commission shall inform the filmmaker or 
scriptwriter of the FEB's decision not later than one (1) week upon receipt 
therewith. 
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c. Finality of endowment fund decision. The evaluation submitted by the FEB 
en banc to the Commission shall be final. 
d. Copyright and distribution. 
One the Commission approves a project for 
funding, 
the applicant receives 
an 
agreement that includes the 
Commission's policies on copyright, distribution, credits, and other matters. 
The Commission reserves the right to place additional conditions or 
stipulations deemed necessary or appropriate on an endowment award. 
Unless specifically provided otherwise, the following policies will apply to 
projects and to the use of materials produced or distributed with endowment 
funds. 
1. Ownership, copyright, distribution, exhibition and use rights for all 
projects developed or distributed with endowment funds shall be vested 
in the producer, writer, artist, or other originator of the work; Provided, 
That the Commission will require the applicant to assign to assign a 
share of all rights including copyright in the work to the Commission as 
security for its investment. The Commission will take a fifty percent 
(50%) share of such rights, with fifty percent (50%) to be retained by the 
applicant. The Commission will require repayment of its endowment 
funding no later than one (1) year, at which time the Commission will 
assign its share of the copyright and other rights back to the applicant or 
its assignee. 
In order to secure repayment of the Commission's 
development funding, applicant will not be able to assign, license, or 
otherwise transfer any rights to the work without the prior written 
approval of the Commission. 
2. Five DVD prints shall become property of the Commission. 
The 
Commission reserves the non-exclusive right to distribute or exhibit its 
copy for non-commercial purposes, as it deems appropriate. 
3. The Commission reserves a royalty-free, non-exclusive, and irrevocable 
rights to reproduce, publish, or otherwise use these materials for 
government purposes and to authorize others to do so. 
All projects developed through a Commission endowment, including associated 
publicity or promotional materials, shall carry a statement indicating that it was 
funded by the Commission. There shall also be a disclaimer statement to the 
effect that the views expressed therein are not necessarily those of the 
Commission. The project must be promoted as a Philippine work at film festivals 
and in markets abroad. 
In co-productions, the Philippine nationality of the 
produced film must be mentioned together with any others. 
SEC 20. Funding. In order to provide for the initial funding of the Commission, 
there is hereby created a Philippine Film Commission Fund Account to be 
deposited in the National Treasury which shall be included in the annual General 
Appropriations Act and shall be constituted from the proceeds from a special film 
commission tax of Two Pesos (P2.00) which is hereby levied on all admission 
tickets of movie houses in the Philippines for a period of twenty (20) years. 
To augment its operational expenses, the Commission may: 
1. Utilize the remaining twenty percent (20%) and thirty five percent (35%) of 
the amusement tax collected during the period grade "A" and "B" films are 
exhibited, as provided under Sections 14 and 15 hereof; 
9 


2. Impose reasonable fees and charges for services rendered; Provided, That 
the amount actually collected shall be deposited in the National Treasury as 
a special account in the General Fund and may be used to augment its 
maintenance and other operational expenses, and capital outlays except 
the purchase of motor vehicles, subject to existing accounting and 
budgeting rules and regulations; and, 
3. Secure funding from the Philippine Amusement and Gaming Corporation for 
the amount necessary to subsidize the production of thirty (30) films 
annually. 
SEC 21. 
Authority to Accept Donations. 
The Commission may accept 
donations, contributions, grants, bequest or gifts, in cash or in kind, from various 
sources, domestic or foreign, except from movie producers relevant to its 
functions. 
Said donations shall be deemed automatically appropriated for 
purposes specified by the donor or in the absence thereof, for the programs or 
projects as may be approved by the Commission subject to the usual government 
accounting and auditing rules and regulations; 
Provided, That cash donations 
shall not be used to fund the personal services requirements of the Commission. 
Any donation, contribution, subsidy or financial aid which may be made to the 
Commission shall be exempt from taxes of any kind and constitute allowable 
deduction in full from the income of the donors, contributors or givers for income 
tax purposes. 
SEC 22. Assistance from other ~~)lernment Agencies. The Commission may 
call on any department, bureau, office, agency or instrumentality of government for 
such direct assistance as may be needed in the performance of its functions. 
SEC 23. Implementing Rules and Regulations. The Commission shall, within 
ninety (90) days after the approval of this Act, issue the necessary rules and 
regulations to implement the provisions hereof. 
SEC 24. Transitory Provision. To provide continuity in the operation of the 
Commission, the incumbent officials and employees of FDCP and the CEB shall, 
in a holdover capacity, continue to perform their respective duties and 
responsibilities and shall receive their corresponding salaries and benefits until 
such time that the organization of the Commission shall have been completed. 
The transition period shall not exceed six (6) months after effectivity of this Act. 
All officials of the FDCP and CEB shall be deemed resigned from services upon 
the organization of the Commission; Provided, That the officials and employees 
who shall be laid off shall be given preferential treatment in appointments to new 
positions to which they may qualify under the new staffing pattern; 
Provided 
finally, That those who shall not be given new appointments shall be entitled to all 
compensation and benefits due them under existing laws. 
All books, assets, rights, privileges,records, obligations and liabilities of FDCP and 
CEB are hereby transferred to the Commission. 
SEC 25. Organizational Structure. The organizational structure and staffing 
pattern of the Commission shall be established in coordination with the 
10 


Department of Budget and Management (DBM) and in accordance with Civil 
Service laws, rules, and regulations. 
SEC 26. Annual Report. The Commission shall, within ninety (90) days after the 
end of every fiscal year, submit to Congress an annual report on its compliance 
with, or accomplishments under this Act, together with 
its plans and 
recommendations to improve and develop its capability to enforce the prOVisions 
of this Act, and a complete accounting of transactions with respect to any funds 
received under this Act. 
SEC 27. Repealing Clause. Republic Act No. 9167, otherwise known as the Film 
Development Council of the Philippines Act, is hereby repealed. 
All other laws, decrees, orders, issuances, rules and regulations which are 
inconsistent with the provisions of this Act are hereby repealed, amended or 
modified accordingly. 
SEC 28. Separability Clause. If, for any reason, any provision of this Act, or any 
part thereof, is declared invalid or unconstitutional, all other sections or provisions 
not affected thereby shall remain in full force and effect. 
SEC 28. Effectivity. This Act shall take effect fifteen (15) days after publication in 
two (2) newspapers of national .circulation. 
Approved, 
'1" 
" 
11