REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City
SEVENTEENTH CONGRESS
Second Regular Session
House Bill No. 7691

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

‘The State recognizes the role of the Philippine film industry as a potent tool for information
gathering, dissemination and communication, and as a catalyst of public opinion. Being a
powerful sector in the country, it is a medium that projects the Filipinos’ love for art, as well
as mirrors our culture and our national identity. More than this, it has a huge impact in
providing significant contribution to the national economy in terms of employment
generation and revenues to the government through taxes.

In recognition of the industry's contribution, and in support to the arts, the government
created the Film Academy of the Philippines, an alliance of various guilds of the movie
industry, which would oversee the welfare of its members through the provision of subsidies,
projects and opportunities to develop their knowledge and expertise. Furthermore, in 2002,
the government created the Film Development Council that would establish and implement
the Cinema Evaluation System and an incentive reward system to promote production of
quality films; undertake activities to promote our participation in local and international
market; and develop and promote programs to enhance the skills and expertise of Filipinos,
among others.

Despite these, however, the local industry is in an evident decline, apparent in the number of
movies produced. According to the study conducted by the National Statistical Coordination
Board, the number of movies produced halved during the recent years. From 1960 to 1990,
the Philippines produced about 140 movies annually. However, from 2000 to 2009, it fell to
an average of 73 every year’.

This bill, seeks to strengthen the support given by the government to the local movie industry
by creating the Philippine Film Commission that would replace the Film Development
Council of the Philippines. The Commission would be an independent body and representing
a greater number of stakeholders through larger membership. It would extend the functions of
the Film Development Council of the ines through the setting up of mechanics that

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irer,net!304SS'philippine-film-industry-in-decline

*2 Information retrieved from hitp://entertainmentit



would address the welfare of local film workers, and the establishment of cinema clubs in
barangays and schools, as well as the integration of film-related courses in the collegiate level
as part of film audience development program. Furthermore, this bill would also create a Film
Endowment Board which shall provide subsidy for the production of worthwhile screenplays
and films submitted to the Board for consideration.

In view of the foregoing, the immediate passage of this bill is eamestly sought.

ALEJANO
Representative
Magdalo Para sa Pilipino Party-List


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City
SEVENTEENTH CONGRESS
Second Regular Session

House Bill No. 7691

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

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 the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. — This Act shall be known as the "Local Film Industry
Development Act of 2018".

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 no. 9167 is hereby reorganized into the
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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 principal 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
the other 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 from the lists 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;
. A regular representative of the Mowelfund;
A regular representative of the Actors’ Guild of the Phi
A regular representative from the National Cinema Association of the Philippines;
A regular representative from the academe;
/. A regular representative from the local film producers; and
A regular representative from the Independent Film cooperative.

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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 representati
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;



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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 Cultural Center of the Philippines or his/her duly designated
regular representative; and

9. ‘The head of the Cinema Committee of the National Commission for Culture and
the Arts or his/her duly designated regular representative.

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 finally, That such service of the unexpired portion shall not be counted as

aterm.

SEC. 6. Powers and Functions. — The Commission shall have the following powers

and functions:

To coordinate all programs and policies of government departments and agencies that
are related to the development of the local film industry;

. To establish and implement a Cinema Evaluation System in accordance with the

criteria set forth in this Act;

. To develop and implement an incentive and reward system for the producers based on

merit to encourage the production of quality films;

|. To promote, organize, encourage or support a more scientific system in which local

films can be marketed locally and internationally;


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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
festival 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 and/or prints as part of the nation's historical, cultural and artistic heritage;

13. To take measures to acquire for safeguarding and preservation any part or all of the
national film production, including the institution of mandatory deposit systems
which is hereby expressly authorized;

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 Pi

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;


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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.

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:

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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, 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 finally, 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.

©. 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, or 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 inhibiti

SEC. 12. Cinema -Evaluation System. — The CEB shall formulate and establish a set

of standards and 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.


1 SEC. 13. Grading of Films. — The grading of films by the CEB shall be subject to the
2 following provisions:

3 a. Pre-qualification procedures and requirements. — The Commission shall prescribe
4 pre-qualification procedures and requirements for application for grading; Provided,
5 ‘That only films whose premiere showing shall be held in the Philippines, and those
6 which have not had any theatrical release, free television broadcast, cable broadcast or
7 video release in any commercial medium anywhere in the world shall be qualified for
8 evaluation by the board; Provided further, That the CEB should evaluate and grade
9 only films that are intended for theatrical and other forms or exhibition that will

10 charge admission fees and which are at least eighty (80) minutes in length and that the
a producer shall submit his/her film for grading at least seven (7) days before its
2 scheduled day of play date.

B 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
15 transmit its decision to the Commission within twenty four (24) hours from the
16 rendering of the decision. The Commission shall inform the producer of the CEB's
7 decision not later than twenty four (24) hours upon receipt therewith.

18 c. Grading of Firms. — The CEB shall review and grade a film submitted for grading.
19 ‘The CEB and the Commission shall, at any time neither be allowed to cut, delete,
20 shorten or modify in any manner films being graded by the CEB, nor shall they be
a allowed to suggest cuts or deletion or any other form of modification to the film
2 makers and prerequisites for earning the CEB grading. Such grading shall be given
23 due weight and consideration by the Movie and Television Review and Classification
24 Board (MTRCB), the Optical Media Board (OMS), the Department of Trade and
25 Industry (DTI) and other government agencies for the graded film's viewing,
26 reproduction, exportation and other purposes.

7 d. Reconsideration to the Board En Banc. — The action taken by the CEB on the film
28 submitted for evaluation and grading may be reconsidered upon motion to the CEB en
29 bane within twenty four (24) hours from receipt of notice of said action, and the CEB
30 cen bane shall render its decision within forty eight (48) hours from its receipt of the
31 motion for reconsideration. The CEB en banc must be composed of at least majority

32 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 "B"
grading from the Commission pursuant to Sections II and 12 of this Act shall be entitled to
the following privileges:

Amusement Tax Reward. ~ A grade "A" or "B" 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 the Republic Act No.
7160 at the following rates:

1. For grade "A" Films - Eighty (80%) percent of the amusement tax collected on such
films. The remaining twenty (20%) percent shall accrue to the funds of the
Commission; and

2. For grade "B" Films - Sixty Five (65%) percent of the amusement tax collected on
such films. The remaining thirty five (35%) percent shall accrue to the funds of the
Commission: Provided, That thirty (30%) percent of the amusement tax rebates shall
accrue to the talents and workers involved in the film that was graded A or B, with the
other seventy (70%) percent accruing to the film producer.

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 the 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, operators 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
(5%) percent of the amount due for each month of delinquency which shall be paid to the

‘Commission.


1 SEC. 16. Enforcement. — For purposes of implementing the previous Section, the
2 Commission may:
3 1. Impose administrative fines and penalties of not more than One hundred thousand
4 pesos (Php 100,000.00) for the violation of any of the provisions of this Act and/or its
5 implementing rules and regulations issued by the Commission.
6 2. Cause or initiate the criminal or administrative prosecution of violators of this act and
7 its implementing rules and regulations.
8 3. Cause the closure of any theater or cinema that fails or unreasonably refuse to remit
9 tax collected on the graded film for a period not exceeding fifteen (15) days after
10 which such period shall automatically be lifted without prejudice to the right of the
cy Commission to cause or initiate criminal or administrative prosecution against the
12 erring theater or cinema owners pursuant to paragraph 2 of this section.
3 4. Call upon representatives of the different government agencies and other various
14 organizations in the movie industry to help ensure compliance with the provisions of
15 this act and its implementing rules and regulations.
16 For this purpose, the Commission may constitute regional sub-commissions in
v7 the cities and municipalities throughout the country composed of representatives from
18 the government and from the private sector as may be appropriate to implement the
19 purposes and objectives of this Act and its implementing rules and regulations and
20 they shall serve without compensation and only for such period of time as the
a Commissioner shall determine.
2 5. To deputize any law enforcement agency and instrumentality of the government for
2B assistance for the implementation and enforcement of its functions and orders.
2
25 SEC. 17. Film Endowment Board. — There is hereby created a Film Endowment

26 Board hereinafter referred to as the FEB which shall provide subsidy for the production of
27 worthwhile screenplays and films submitted to the FEB for consideration, subject to the

28 following:

29 a. Composition, Qualifications and Appointment. — The FEB shall be composed of a
30 Board Chairperson and seven (7) members, four (4) of whom shall come from the
31 film industry, and the other three (3) from the arts, academe, business and other
32 sectors as the Commission may choose to identify. The Chairperson of the

33 Commission shall appoint the members of the FEB from among fifteen (15) nominees
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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 he/she 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.

cc. 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, or 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

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commercial medium anywhere in the world shall be qualified for evaluation by the
board.

.. Evaluation period. — A submitted 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 herewith.
Finality of endowment fund decision. — Once 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 a share of all rights including copyright in the work
to the Commission as security for its investment. The Commission will take a fifty
(50%) percent share of such rights, with fifty (50%) percent to be retained by the
applicant. ‘The Commission will require repayment of its endowment funding not
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
‘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.

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Al 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. — \n 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 (Php
2.00) 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 (20%) percent and thirty five (35%) percent of the
amusement tax collected during the period grade "A" and "B” films are exhibited, as
provided under Sections 14 and 15 hereof;

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 ine Amusement and Gaming Corporation (PAGCOR)
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

12


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 Government 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
afier 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.

Al books, assets, rights, privileges, records, obligations and liabilities of FDCP and
CEB are hereby transferred to the Commission.

SEC. 25. Organization Structure. — The organizational structure and staffing pattern
of the Commission shall be established in coordination with the 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

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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. — \f, for any reason, any provision of this Act, or any
part thereof, is declared invalid or unconstitutional, all others sections or provisions not
affected thereby shall remain in force and effect.

SEC. 29. Effectivity. —‘This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) newspapers of national circulation.

Approved,