THIRTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
introduced bv Senator Luisa “Loi” P. Eiercito Estrada 
EXPLANATORY NOTE 
Under Section 21, Article II of the 1987 Constitution, it is the policy of the 
State to promote comprehensive rural development. 
On the other hand, paragraph (2), Section 1 of Article XI1 of the 
fundamental law of the land provides that “The State shall promote 
industrialization 
and 
full 
employment 
based 
on 
sound 
agricultural 
development.. ..through industries that make full and efficient use of human and 
natural resources.. .” Paragraph 3 of the above-mentioned Article likewise states 
that “in the pursuit of these goals, all regions of the country shall be given.an 
optimum opportunity to develop.” 
The geographjcal location of the Philippines is a focal point for 
manufacture, i ndustrial and s hipping s ervices considering that i t  serves as the 
bridge between Northeast and Southeast Asia. The Subic Bay Metropolitan 
Authority (SBMA), itself a special economic and free-port area, is a major center 
for trade, commerce, manufacture and industry. 
Along this line, this bill seeks to establish the legal framework and 
mechanism for the integration, coordination and creation of a publishing hub in 
SBMA. Thus, through the bill, a special economic zone for the book publishing 
industry shall be established in SBMA, to be known as the Philippine Book 
Publishing Industry Development Center, otherwise known as the Book City. The 
Book City shall be allotted a one hundred (100) hectares at SBMA, located at 
Olongapo City and Subic, Zambales, the specific metes bound of which shall be 
more particularly defined in a presidential proclamation that shall be issued for 
this purpose. 
The Book City is envisioned to house among others the following facilities: 
(a) The offices of the National Library; (b) the offices of the National Book 
Development Board (NBDB) created under R.A. No. 8047; (c) The Book 
Development Academy; (d) The Book Publishing Expo Center; (e) The Book 
Publishing Convention Center; (f) The Book City Hostel; (9) The Publishing 
Recreation Center; (h) The National Paper Recycling Plant: and (i) the offices, 
plants and warehouses o f  the publishers, printers, book traders or booksellers 
and other related activities including their bookstores, if any. 
Through the Book City, it is envisioned that publishing will be an 
indispensable element of the national economy and an industry of national 
interest and importance that must be harnessed as an engine of socio-economic 
and industrial growth to provide investment, foreign exchange and employment, 
and an enhanced sense of national pride, for all Filipinos. 


2 
It must be pointed out that as provided for in Section 2 of R.A. NO. 8047, 
otherwise known as the Book Publishing Industry Development Act, it is declared 
as a state policy that the book publishing industry has a significant role in 
national development, considering that books which are its products are 
instrumental in the citizenry’s intellectual, technical and cultural development --- 
the basic social foundation for the economic and social growth of the country. 
Books are the most effective and economical tools for achieving educational 
growth, for 
imparting information and for 
recording, preserving, and 
disseminating the nation’s cultural heritage. 
Accordingly, is hereby declared a policy of the State to promote the 
continuing development of the book publishing industry, with the active 
participation of the private sector, to ensure an adequate supply of affordable 
quality-produced books not only for the domestic but also for the export market. 
In pursuance of these policies, this bill encourages, promotes, induces 
and accelerates a .Sound and balanced industrial, economic and social 
development of the book publishing industry in order to make the Philippine 
publishing industry globally competitive and world class. Moreover, the 
establishment of the Book City will provide more jobs to the people especially 
those in the rural areas, increase their productivity and their individual and family 
income, and thereby improve the level and quality of their living condition through 
the establishment, among others, of book publishing development center and 
through measures that shall effectively attract legitimate and productive private 
investments. 
It is also envisioned that the Book City reinvigorates the publishing and 
printing industries supportive of the global publishing community and those in 
related industries. 
Moreover, the establishment of an economic zone devoted to the 
development of publishing, printing, and sale of books will also pave the way for 
the development of electronic media as well as diversification of the digital 
publications such as e-book and interactive CDRoms to spur renewed interest in 
reading in the next generations. 
Finally, this bill if quickly passed into law w ill turn the Philippines into a 
publishing hub in Asia and the Pacific region. 
LUISA iiLoiij P.&JERCITO-ESTRADA 


THIRTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
3-91 &, 
S. No.- 
Introduced by Senator Luisa "Loi" P. Ejercito Estrada 
AN ACT 
PROVIDING FOR THE LEGAL FRAMEWORK AND MECHANISMS FOR THE 
CREATION, OPERATION, ADMINISTRATION, AND COORDINATION OF THE 
PHILIPPINE BOOK PUBLISHING INDUSTRY DEVELOPMENT CENTER, 
OTHERWISE KNOWN AS THE "BOOK CITY", CREATING FOR THE 
PURPOSE, THE BOOK PUBLISHING ENTERPRISE ZONE AUTHORITY 
(BPEZA) AND FOR OTHER PURPOSES 
Be if enacfed by the Senate and House of Representatives of fhe 
Philippines in Conaress assembled: 
THE POLICY, PURPOSES, INTENTS AND OBJECTIVES 
SECTION 1. Short Title. -This Act shall be known and cited as "Book City 
i 
Act of 2005." 
SEC. 2. Declaration of Policy. - It is the policy of the State that publishing 
is an indispensable element of the national economy and an industry of national 
interest and importance, such that it must be harnessed as an engine of socio- 
economic and industrial growth to provide investment, foreign exchange and 
employment, and an enhanced sense of national pride, for all Filipinos. 
It is recognized that the book publishing industry has a significant role in 
national development, considering that books which are its products are 
instrumental in the citizenry's intellectual, technical and cultural development --- 
the basic social foundation for the economic and social growth of the country. 
Books are the most effective and economical tools for achieving educational 
growth, for 
imparting information and for 
recording, preserving, and 
disseminating the nation's cultural heritage. 
Accordingly, is hereby declared a policy of the State to promote the 
continuing development of the book publishing industry, with the active 


participation of the private sector, to ensure an adequate supply of affordable 
quality-produced books not only for the domestic but also for the export market. 
In pursuance of these policies, the government shall actively encourage, 
promote, induce and accelerate a sound and balanced industrial, economic and 
social development of the book publishing industry in order to make the 
Philippine publishing industry globally competitive and world class and to provide 
more jobs to the people especially those in the rural areas, increase their 
productivity and their individual and family income, and thereby improve the level 
and quality of their living condition through the establishment, among others, of 
book publishing development center and through measures that shall effectively 
attract legitimate and productive private investments. 
SEC. 3. Purposes, lntenfs and Objectives. - It is the purpose, intent and 
objective of this Act: 
(a) To establish the legal framework and mechanism for the integration, 
coordination and creation of a publishing hub in SBMA; 
(b) To encourage the transfer and/or putting up of offices, establishments 
and plants engaged in the book publishing industry and related 
business o r  activities i n the Book C ity, where h ighly trained workers 
and efficient services will be available not only for domestic enterprises 
but also for international enterprises; 
i 
(c) To promote the flow of investors, both local and foreign, into publishing 
industry which would generate employment opportunities and establish 
backward and forward linkages among industries in and around the 
Book City; 
(d) To stimulate the repatriation of Filipino capital by providing attractive 
climate and incentives for publishing business activity; 
(e) To promote financial and industrial cooperation between the 
Philippines and industrialized countries, particularly the Asia Pacific 
through technology transfer and investment in the publishing industry 
that will modernize the country’s publishing sector and improve 


3 
productivity levels by utilizing new technological and managerial know- 
how and become globally competitive: and 
i 
(f) To vest the special publishing economic zones on certain areas 
thereof with the status of a separate customs territory within the 
framework of the Constitution and the national sovereignty and 
territorial integrity of the Philippines. 
SEC. 4. Definition of Terms.- For purposes of this Act, the following 
definitions shall apply to the following terms: 
(a) Book City - refers to the special economic zone for the book publishing 
industry created in Section 5 of this Act. 
(b) Book Development - refers to a condition not only for having more 
output in book production and development but also different kinds of 
outputs that were previously produced, as well as changes in the 
technical and institutional arrangements by which output is produced 
and distributed. 
(c) Book Publishing - refers to process of choosing and making books 
dealing with everything known to the human spirit philosophy, religious 
beliefs, intellectual ideas, the physical world, all the arts and the 
sciences. 
(d) Publishing Special Economic Zones - refers to the one hundred (100) 
hectares at SBMA, located at Olongapo City and Subic, Zambales, 
allotted for the Philippine Book Publishing Industry Development 
Center, created under Sections 5 and 6 of this Act. 
i 
(e) Publishing Export Processing Zone - refers to a specialized industrial 
estate located physically and/or administratively outside customs 
territory, predominantly oriented to export production. Enterprises 
located in export processing zones are allowed to import capital 
equipment and raw materials free from duties, taxes and other import 
restrictions. 


4 
(f) Related Activities - refers to the domestic manufacturing industries 
which have direct bearing on the long-term viability of the book 
publishing industry. 
THE BOOK CITY 
SEC. 5. Creation of the Book City. - In pursuit of the foregoing declared 
policies, there is hereby established a special economic zone for the book 
publishing industry in Subic Bay Metropolitan Authority (SBMA), to be known as 
the Philippine Book Publishing Industry Development Center, otherwise and 
herein after referred known as the Book City. The Book City shall be allotted a 
one hundred (100) hectares at SBMA, located at Olongapo City and Subic, 
Zambales, the specific metes bound of which shall be more particularly defined in 
a presidential proclamation that shall be issued for this purpose. 
SEC. 6. The Book City. - The Book City is envisioned to house among 
others the following facilities: (a) The offices of the National Library; (b) the 
offices of the National Book Development Board (NBDB) created under R.A. No. 
8047; (c) The Book Development Academy; (d) The Book Publishing Expo 
Center; (e) The Book Publishing Convention Center; (f) The Book City Hostel; (9) 
The Publishing Recreation Center; (h) The National Paper Recycling Plant: and 
(i) the offices, plants and warehouses of the publishers, printers, book traders or 
booksellers and other related activities including their bookstores, if any. 
THE BOOK PUBLISHING ENTERPRISE ZONE AUTHORITY 
SEC. 7. The Book Publishing Enterprise Zone Authority. - Attached for 
purposes of policy coordination and administrative supervision to the Department 
Enterprise Zone Authority (BPEZA), which shall own, manage, or supervise the 
Book City established under this Act, and its principal office shall be located at 
SBMA, Olongapo City and Subic, Zambales. 
of Trade and Industry, shall be a body corporate known as the Book Publishing 
A 
SEC. 8. Administration. - The BPEZA shall be governed by a Board of 
Directors (the "BPEZA Board"), composed of eleven (1 1) directors, five ex-officio 


5 
members representing the Government and six (6) directors, coming from the 
private sector as follows: 
a) The five (5) ex-officio members are (i) the Undersecretary for Tourism 
Development of the Department of Tourism; (ii) the Administrator of the Book 
Publishing Enterprise Zone Authority (BPEZA); (iii) the Undersecretary for Plans 
and Programs of the Department of Public Works (DPWH); (iv) the 
Undersecretary for Plans and Programs of the Department of Interior and Local 
Government (DILG); and (v) the Undersecretary of the Department of Trade and 
i 
industry. 
b) Six (6) directors to be appointed by the President of the Philippines 
from the nominees of (i) the Philippine Educational Publishers Association 
(PEPA), representing the book publishers; (ii) the Book Printers Association of 
the Philippines (BPAP), representing the printers; (iii) the National Book 
Suppliers and Publishers Association (NBSA), representing the book suppliers; 
(iv) the Legal Writers Association of the Philippines, representing the writers and 
authors; (v) the Philippine Book Federation, representing the related activities 
and players in the publishing industry; (vi), Book Exporters Association of the 
Philippines (BEAP), representing the book exporters and traders. 
The appointed directors must be Filipino, engaged in the management of 
business in the sectors they represent for at least ten ( I O )  years, except in the 
case of the author or writer who must be a recognized author or writer for at least 
five (5) years and have demonstrable expertise in their respective industries or 
sectors. 
The appointed directors shall serve for a term of four (4) years with one re- 
appointment. 
The appointed directors including the designated ex-officio members shall 
elect among them a Chairperson, preferably coming from the private sector, 
while the Vice-Chairperson, shall come from the government representative. 
i 
The BPEZA's powers, business and property shall be exercised, 
conducted and held by the BPEZA Board. The BPEZA Chairperson shall be the 
Chief Executive Officer of the Board while the BPEZA Administrator shall 


6 
implement the actions required by the BPEZA in her/his capacity as the chief 
operating officer. 
SEC. 9. BPEZA Adminisfrator. - The BPEZA shall have an Administrator 
who must be a Filipino, must be at least thirty five (35) years of age and not more 
than fifty-five (55) at the time of the appointment, have a postgraduate degree in 
business, law, tourism, or public administration, and have demonstrated 
expertise in any of those fields. He/she must have been engaged in a managerial 
capacity for at least five (5) years prior to hislher appointment. 
SEC. I O .  Meetings of fhe Board. - The BPEZA Board shall meet at least 
once a month at the BPEZAs principal office unless the BPEZA Board had 
i 
previously agreed in writing to meet at another location. 
SEC. 11. General Powers and Functions of the BPEZA.- The BPEZA 
Board shall have the general powers of a body corporate, which includes the 
power of succession, to sue and be sued in such corporate name, to acquire, 
hold and dispose of real and personal property, to adopt, amend and repeal it by 
laws, and to enter into contracts of every kind. In relation to its functions, it shall 
also specifically have the power to: 
a. Enter into, make, perform and carry out contracts of every class, 
kind and description which are necessary or incidental to the 
realization of its purposes with any person, firm or corporation, 
private or public, and with foreign government entities; 
b. Contract loans, indebtedness and credit, issue commercial 
papers and bonds, in any local or convertible foreign currency 
from any international financial institutions, foreign government 
entities, and local or foreign private commercial banks or similar 
institutions under terms and conditions prescribed by law, rules 
and regulations; 
c. Execute any deed of guarantee, mortgage, pledge, trust or 
assignment of any property for the purpose of financing the 
programs and projects deemed vital for the early attainment of 
its goals and objectives, subject to the provisions of Article VII, 


7 
Section 20, and Article XII, Section 2, paragraphs (4) and (5) of 
the Constitution; 
d. Construct, own, lease, operate and maintain public utilities as 
well as infrastructure facilities; 
e. Receive donations, grants, bequests and assistance of all kinds 
from local and foreign governments and private sectors and 
utilize the same; 
f. Exercise eminent domain: 
g. Develop policies, plans and programs for submission to the 
Board for the development and operation of the Book City; 
h. Register, regulate and monitor enterprises in BPEZA; 
i 
i. Coordinate with local government units and exercise general 
supervision over the development, plans, activities and 
operations of the BPEZA; and 
j. 
Review proposal for the establishment of other BPEZA, 
whenever feasible, in other regions or cities throughout the 
country. 
The BPEZA shall be deemed a government infrastructure corporation 
under the p rovisions oft he Administrative Code of 1 987 ( Executive 0 rder N 0. 
292, Book IV, Chapter 13, Section 58). 
SEC. 12. Powers and Functions of the BPEZA Administrator.- The BPEZA 
Administrator shall coordinate the policies, plans and programs concerning 
BPEZA.' As such, he or she shall provide overall supervision over and general 
direction to the development of BPEZA. He or she shall determine the structure 
and the,staffing pattern and personnel complement of the BPEZA and establish 
offices when, necessary, all subject to the approval of the BPEZA Board. 
' 
In addition, he or she shall have the following specific powers and 
responsibilities: 
i 


8 
a. 
b. 
C. 
d. 
e. 
f. 
Coordinate with the Philippine National Police in safeguarding all 
the lands, buildings, records, monies, credits and other 
properties and rights of investors within the BPEZA; 
Ensure that all revenues of the BPEZA are collected and applied 
in accordance with law; 
Submit to the Board the ongoing and proposed projects, work 
and financial programs, annual budget of receipts, and 
expenditures of the BPEZA; 
Acquire jurisdiction, as he or she may deem proper, over the 
protests, complaints, and claims of the residents and enterprises 
in a BPEZA concerning administrative matters; 
Recommend to the Chairperson the grant, approval, refusal, 
amendment or termination of the BPEZA franchises, licenses, 
permits, contracts, and agreements in accordance with the 
policies set by the BPEZA; 
Require owners of houses, buildings or other structures 
constructed without the necessary permit whether constructed 
on public or private lands, to remove or demolish such houses, 
buildings, structures within sixty (60) days after notice and upon 
failure of such owner to remove or demolish such house, 
building or structure within said period, the BPEZA Administrator 
or hidher authorized representative may summarily cause its 
removal or demolition at the expense of the owner, any existing 
law, decree, executive order and other issuances or part thereof 
to the contrary notwithstanding; 
g. 
Subject to the approval of the Chairperson of the BPEZA, issue 
rules and regulations to implement the provisions of this Act. 
t 
SEC. 13. Capitalization.- The national government shall appropriate the 
sum of Five Hundred Million Pesos for the capitalization of BPEZA. 


9 
SEC. 14. Registration. - Business enterprises within the Book City shall 
register with the BPEZA to avail of all incentives and benefits provided for in this 
Act. 
SEC. 15. Civil Dispute Resolufion. - The BPEZA shall establish a civil 
dispute mediation office to assist in the resolution of civil disputes within the Book 
City where one of the parties to the dispute is a non-resident alien. No civil 
dispute in a BPEZA involving a non-resident alien may be filed in court without 
having undergone mediation proceedings under this section. The BPEZA shall 
charge reasonable fees for civil dispute mediation. 
SEC. 16 Labor Dispufe Resolution. - To resolve disputes between 
workers and employers for any violation of the Labor Code (Presidential Decree 
No. 442, as amended), the BPEZA shall establish a labor dispute resolution 
office to mediate between workers and employers. The BPEZA shall charge 
reasonable fees for labor dispute resolution. 
In order to promote a stable investment climate and realizing the critical 
role publishing industry plays in the Philippine economy, employees and 
enterprises operating within the Zone shall be prohibited from engaging in strikes 
or strike-related activity within five years from the establishment of the enterprise. 
The Department of Labor and Employment and the National Labor 
Relations Commission shall not acquire jurisdiction over any complaints arising 
i 
from a violation of the Labor Code or its rules and regulations from an enterprises 
located and operating within a Book City unless such a complaint has undergone 
labor dispute resolution with the BPEZA. 
SEC. 17. One-Stop Shop Processing.-. At the Book City, the BPEZA shall 
establish an office where an investor or enterprise or company can obtain all 
necessary permits and licenses from all national and local government offices. All 
government agencies shall assign representatives at Book City to coordinate with 
the BPEZA for the issuance of such permits and licenses. 
SEC. 18. Privately-owned Companies at BPEZA.- privately owned 
corporations and companies at Book City shall operate autonomously and 
independently of the BPEZA, but shall nevertheless be monitored by the BPEZA 
for the implementation of incentives. 


BPEZA INVESTMENT INCENTIVES 
10 
4 
SEC. 19. Fiscal and Non-Fiscal Incentives. - Importations of capital goods 
into the Book City for use by a BPEZA registered enterprises within the City shall 
be imported without duties; Provided that no importations of foreign capital goods 
shall be allowed where competitive products with significant Philippine 
component are available in the domestic market. 
Purchase of local goods and services by BPEZA registered enterprises for 
use within the Book City shall be value-added tax zero-rated. 
BPEZA registered enterprises shall be entitled to an income tax holiday for 
five years from the start of its operations. Such income tax holiday may be 
extended for u p t o  a n additional five years i f  t he B PEZA registered enterprise 
undertakes a major expansion or upgrade of its facilities. The additional facilities 
shall be computed in proportion of the cost of the expansion or upgrade in 
relation to the total assets of the enterprise. 
After the expiration of the income tax holiday, BPEZA registered 
enterprises shall also be entitled, in lieu of all national and local taxes, a tax on 
gross income at a rate of two percent to three percent (2 to 3%), depending on 
the amount of investment and the number of persons employed. 
One-third of the proceeds of such tax shall be remitted to the affected 
local governments, one-sixth to the Book Academy for its administrative 
operations, one-sixth to BPEZA, one-sixth shall be remitted to the national 
government and the remaining one-sixth shall be placed in the Book Academy 
Trust Fund to be used specifically for the support and promotion of Filipino 
authors and editors especially in science and technology, literature and in subject 
areas wherein locally authored books are either few or non-existent. 
Likewise, BPEZA registered enterprises shall be entitled to avail of 
preferential rates for power, water and other public utilities for industrial 
consumers . 


The BPEZA in conjunction with the Bureau of Internal Revenue (BIR) and 
the Bureau of Customs shall promulgate rules and regulations for the 
implementation of this provision. 
SEC. 20. Profif Remiffance.- Without prior approval from the Bangko 
Sentral ng Pilipinas (BSP), after tax profits and other earnings of foreign 
investments in enterprises in the Zone may be remitted outward in the equivalent 
foreign exchange through any of the banks licensed by the Bangko Sentral ng 
Pilipinas in the Book City provided such foreign investments in said enterprises 
have been previously registered with the BSP. 
i 
SEC. 21. Lease of Land.- Consistent with the provisions of the Investor's 
Lease Act (Republic Act No. 7652), lands and buildings in the Book City may be 
leased to foreign investors for a period not exceeding fifty (50) years, renewable 
once for a period of not more than twenty-five (25) years. The leasehold right 
acquired under long-term contracts may be sold, transferred or assigned, subject 
to the-conditions set forth under the Investor's Lease Act. 
SEC. 22. Visa Privileges. -Any investor within the Book City whose initial 
investment shall not be less than one hundred thousand dollars, and hidher 
spouse and dependent children under twenty-one years of age shall be granted 
permanent resident status. 
The BPEZA shall issue working visas renewable every two years to 
foreign executives and other aliens, possessing highly-technical skills which no 
Filipino within the Book City possesses, as certified by the Department of Labor 
and Employment (DOLE). The names of aliens granted permanent resident 
status and working visas by the BPEZA shall be reported to the Bureau of 
Immigration within thirty (30) days after issuance thereof. 
THE BOOK ACADEMY 
b 
SEC. 23. 
Book Academy. - There shall be established a Book 
Academy of the Philippines, hereinafter referred to as the Academy to be headed 
by an Executive Director, who shall be appointed by the President of the 
Philippines to be chosen from the list of nominees submitted and recommended 
by the duly recognized and accredited publishing associations. 


12 
The Academy shall be adequately staffed with qualified technical and 
administrative personnel. 
SEC. 24. Functions of the Academy. - The Academy shall have the 
following functions: 
(a) Maintain, develop and implement a continuing program of book writing, 
publishing, editing, compiling, book selling and training career training 
and development; 
i 
(b) Formulate programs and conduct trainings for writers, authors, 
publishers, editors, compilers, book sellers and traders: 
(c) Provide for the training and development of workers in the publishing 
industry, in cooperation with TESDA, Department of Trade and 
Industry (DTI) and state universities and colleges and the private 
sector; 
(d) Conduct workshops, seminars, conferences for various associations 
involved 
in 
the 
book 
publishing 
industry 
domestically 
and 
internationally; 
(e) Source out scholarship programs, grants and other incentives for 
personnel development; 
(f) Conduct continuing studies and researches necessary for career 
development: and 
(9) Perform such other functions as may be necessary to carry out the 
objectives of this Act. 
SEC. 25. Academy Trust Fund. - A  Book Academy Trust Fund is hereby 
established exclusively for the support and promotion of Filipino authors and 
editors especially in science and technology, literature and in subject areas 
4 
wherein locally authored books are either few or non-existent. 


13 
SEC. 26. Sources of Fund. - The contribution of the Fund shall be 
sourced from government and private sectors as follows: 
(a) 
The amount of Fifty Million Pesos (Php50, 000,000.00) shall be 
taken from the Philippine Amusement and Gaming Corporation 
(PAGCOR) fund at five million pesos (Php5, 000,000.00) per 
month for ten (IO) months. 
(b) 
Another amount of Fifty Million Pesos (PhpSO, 000,000.00) shall 
be taken from the Philippine Charity Sweepstakes Office 
(PCSO) at five million pesos (Php5, 000,000.00) per month for 
ten (IO) months. 
i 
(c) 
The private portion of the fund shall be raised from donations 
and other conveyances including funds, materials, property and 
services, by gratuitous title. 
Provided, however, that, the interest drawn from the Fund shall be 
awarded only after one (1) year from the organization of the Fund, and the grants 
shall be awarded equitably among the authors based on their regional residence 
or domicile. 
SEC. 27. Ofher Sources of Fund and Incentive. - Government owned or 
controlled corporations (GOCCS) are hereby authorized to give grants to the 
Fund at their discretion, but not to exceed fifteen percent (15%) of their 
unimpaired surplus. 
Contribution to the Fund shall be deductible for income tax purposes in 
accordance with the provision of Section 29 (h) (A) of Republic Act No. 8424, 
otherwise known as the National Internal Revenue Code. 
SEC. 28. Management of the Fund- The Book Academy Trust Fund shall 
be administered by the Book Academy Trust Fund Board composed of the 
Chairperson of the CPEZA or its representative as Chairperson, and the 
Executive Director of the Book Academy and well-known and recognized author, 
to be chosen from a list of nominees of the duly recognized and accredited 
associations of Filipino authors to be appointed by the President of the 
Philippines, as members. 
i 


14 
For the sound and judicious management of the Fund, the Trust Fund 
Board shall appoint a government financial institution as portfolio manager of the 
Fund, subject to the guidelines promulgated by the Board. 
SEC. 29. Guidelines on the Use of Fund. The Book Academy Trust Fund 
Board shall prepare the implementing guidelines and decision-making 
mechanisms, subject to the following: 
(a) 
Unless otherwise stipulated by the private donor, only earnings 
of private contribution shall be used for grants; 
(b) 
No part of the seed capital of the Fund, including earnings 
thereof, shall be used to underwrite overhead expenses for 
administration; 
i 
(c) 
There shall be an external auditor to perform an annual audit of 
the Fund’s performance; and 
(4 
The Fund shall be exempt from pre-audit by the Commission on 
Audit. 
MISCELLANEOUS PROVISIONS 
SEC. 30. Education in Publishing /ndusfry.- The BPEZA shall work closely 
with the D epartment of E ducation ( DepEd) for the development of educational 
programs for the primary and secondary educational levels that assist in the 
creation of a culture and habit of reading, specifically through the enhancement 
and production of educational materials on literature, history and culture, 
language and science and technology. 
The BPEZA shall also work closely with the Commission on Higher 
Education (CHED) on the regulation of colleges and universities that grant 
undergraduate and postgraduate degrees in publishing. 
The Technical Education Skills Development Authority (TESDA) is hereby 
mandated to develop programs that foster the development of the skills of 


15 
personnel engaged in book publishing industry through in-service training 
programs and formal degree and non-degree book publishing courses. 
SEC. 31. Relationship with Economic Zones. - The BPEZA in 
coordination with the SBMA and the Philippine Economic Zone Authority (PEZA) 
shall promulgates rules and regulations to govern the relationship between the 
BPEZA created under this Act, and economic zones created under Republic Act 
Nos. 7227, 7916, as a mended, where the a rea comprising an economic zone 
overlaps, falls within or encompasses that of an economic zone, provided, that 
such rules and regulations shall consider the special nature and requirements of 
the Book City in relation to other industries, establishments and operations in 
economic zones. 
SEC. 32. Other lnvesfment Incentives.-The investment incentives offered 
under this Act shall be without prejudice to the availment of other incentives 
provided under Republic Act No. 8047, otherwise known as the Book Industry 
Development Act and other rules and regulations issued and promulgated by the 
National Book Development Board (NBDB) pursuant to said Act, other laws, 
decrees or issuances provide for similar or identical benefits, the beneficiary 
may elect to avail of the benefit provided under only one particular law, decree 
or issuance. 
6 
SEC. 33. Implementing Rules and Regulations.- The BPEZA in close 
coordination and consultation with the private sector, and other concerned 
government agencies shall issue guidelines and prescribe rules and regulations 
for the effective implementation of the provisions of this Act, within ninety (90) 
days after the effectivity of this Act which shall be published in two newspapers of 
general circulation. A copy of such guidelines, rules and regulations shall be 
furnished the Congress of the Philippines. 
SEC. 34. Separability Clause, - Any portion or provision of this Act that 
may be declared unconstitutional shall not have the effect of nullifying other 
portions or provisions thereof as long as such remaining portions or provisions 
can still subsist and be given effect in their entirety. 
SEC. 35. Repealing Clause.- All law, orders, decrees, rules and 
regulations, and other issuances, or parts thereof, inconsistent herewith are 
hereby repealed or modified accordinoly. 
- 


16 
SEC. 36. Effectivity.- This Act shall take effect fifteen (15) days following 
its publication in a newspaper of general circulation. 
Approved, 
i