SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
"13 
JUL 30 P3:2 3 
SENATE 
1177 
'iV. ~, 
"I'V 
S.NO. ____ _ 
Introduced by Senator ANTONIO "SONNY" F. TRILLANES IV 
The State recognizes the role of 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. I In 2002, furthermore, the government 
created the Film Development Council that would establish and implement the Cinema 
,Evaluation System and an im;enti,ve reward system to promote production of quality firms; 
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. 2 
This bill, thus, 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. 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 through the setting up of mechanics that 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 bi I is earnestly sought. 
ANTONIO 'SONNY" F. TRILLANES IV 
1 Information retrieved from http://filmacademyphil.org!?page id=9 
2 Information retrieved from http://entertainment.inguirer,net!304SS!philippine-film-industry-in-decline 
1 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
11'7'7 
,S. NO. ____ _ 
.sen,,!!, 
{~!f\H ill lilt ~t'\ q'9bf~ 
·13 
JUL 30 P 3 :23 
Introduced by Senator ANTONIO "SONNY" F. TRILLANES IV 
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: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Local Film Industry 
2 
Development Act of2013." 
3 
4 
SEC. 2. State Policy. - Pursuant to the constitutional guarantee on freedom of expression 
5 
and on the principle of giving priority to arts and culture to foster patriotism and nationalism, 
6 
accelerate social progress, and promote total human liberation and development, the state shall 
7 
promote and support the development and growth of the local film industry as an aesthetic and 
8 
cultural medium for a better understanding and appreciation of Filipino social values and 
9 
national identity and as an indispensable economic partner in nation-building, 
10 
11 
To achieve this end, the State shall formulate and implement policies and programs to 
12 
upgrade the art and craft of film making and encourage the production of films for commercial 
13 
purposes, intended for public entertainment, that seek to enhance the quality of life, examine the 
14 
human and social conditions and contribute to the dignity and nobility of the human spirit. 
15 
16 
SEC. 3. Creation of the Philippine Film Commission. - To implement the policies and 
17 
attain the objectives enunciated in this Act, the Film Development Council of the Philippines 
_ 18 
. (FDCP) created- under Republic Act no. 9167- is hereby reorganized into the Philippine Film 
19 
Commission hereinafter referred to as "Commission." The Commission shall be an independent 
20 
agency. It shall render an annual report of its activities and achievements to the President and to 
21 
the Congress and shall have its principal offices in Metropolitan Manila. 
22 
23 
SEC. 4. Composition of the Commission. - The Commission shall be composed of a 
24 
Chairperson and seventeen (17) members, eight (8) of whom shall be regular members while the 
1 


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1 
other nine (9) shall be in an ex-officio capacity: Provided, That only the regular members are 
2 
entitled to vote, while the Chairperson shall vote only in case of tie: Provided further, That the 
3 
Chairperson shall be appointed by the President from the lists of nominees submitted to him by 
4 
the regular members; Provided finally, That the Chairperson shall be a person of proven 
5 
administrative proficiency, independence, knowledgeable of the technical and artistic aspects of 
6 
the film production and fully committed to the promotion and development of the Philippine 
7 
Cinema as art. 
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9 
10 
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12 
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15 
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17 
18 
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. 
19 
The nine (9) members who shall be ex-officio members of the Commission are the 
20 
following: 
'21 
1. The Secretary of the Department of Trade and Industry or his/her duly designated 
22 
regular representative; 
23 
2. The Secretary of the Department of Education or hislher duly designated regular 
24 
representative; 
25 
3. The Secretary of the Department of Tourism or his/her duly designated regular 
26 
representative; 
27 
4. The Secretary of the Department of Foreign Affairs or his/her duly designated regular 
28 
representative; 
29 
5. The Secretary of the Department of Interior and Local Government or his/her duly 
30 
designated regular representative; 
31 
6. The Secretary of the Department of Finance or hislher duly designated regular 
32 
representative; 
33 
7. The Director General of the Film Academy of the Philippines or his/her duly 
34 
designated regular representative; 
35 
8. The President of the Cultural Center of the Philippines or hislher duly designated 
36 
regular representative; 
2 


1 
2 
3 
9. The head of the Cinema Committee of the National Connnission for Culture and the 
Arts or his/her duly designated regular representative. 
4 
SEC. 5. Term of Office. - The Chairperson and the eight (8) regular members shall hold 
5 
office for a term of three (3) years, unless sooner removed by the Commission; PrOVided, That 
6 
they shall be eligible for reappointment after the expiration of their terms; Provided further, That 
7 
if a member fails to complete his/her term, the person appointed to fill the vacancy shall serve 
8 
only the unexpired portion of the vacated term whom he/she succeeds; Provided finally, That 
9 
such service of the unexpired portion shall not be counted as a term. 
10 
11 
SEC. 6. Powers and Functions. - The COllllllission shall have the following powers and 
12 
functions: 
13 
I. To coordinate all programs and policies of government departments and agencies that are 
14 
related to the development of the local film industry; 
15 
2. To establish and implement a Cinema Evaluation System in accordance with the criteria 
16 
set forth in this Act; 
17 
3. To develop and implement an incentive and reward system for the producers based on 
18 
merit to encourage the production of quality films; 
19 
4. To promote, organize, encourage or support a more scientific system in which local films 
20 
can be marketed locally and internationally; 
21 
5. To develop and promote programs to enhance the skills and expertise of Filipino film 
22 
artists, technicians and workers through continuous craft and technical upgrading as well 
23 
as attitude training; 
24 
6. To set up and operate a one-stop shop to assist foreign and local producers making films 
25 
in the country; 
26 
7. To develop and implement a two-pronged program that will encourage the production of 
27 
quality films; 
28 
8. To encourage, support and coordinate the holding of national and regional film festivals 
29 
exclusively of Filipino films; 
30 
9. To establish, organize, operate and maintain international film festivals, exhibitions and 
31 
similar activities, including an ASEAN film festival and market; 
32 
10. To encourage and facilitate participation in international film festivals and to ensure the 
33 
continuous presence of Philippine films in international markets; 
34 
11. To invest funds and other assets in such activities or undertakings that shall directly or 
35 
indirect1:v promote development of the film industIJ:', including the production of films, 
36 
and other terms and conditions as it may deem wise and desirable; 
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12. To ensure the establishment of a film archive in order to conserve and protect film 
2 
negatives and/or prints as part of the nation's historical, cultural and artistic heritage; 
3 
13. To take measures to acquire for 'safeguarding and preservation any part or all of the 
4 
national film production, including the institution of mandatory deposit systems which is 
5 
hereby expressly authorized; 
6 
14. To set up mechanics to address the welfare and working conditions oflocal film workers, 
7 
a concern to be implemented in coordination with the Mowelfund and the Nagkakaisang 
8 
Manggagawa ng Pelikulang Pilipino; 
9 
15. To promote the establishment of cinema clubs in barangays and schools in coordination 
10 
with the Department of Education and the Commission on Higher Education and to 
11 
develop elective courses related to film at the collegiate levels as part of a film audience 
12 
development program; 
13 
16. To prescribe the procedures for the exercise of its powers and functions as well as the 
14 
perfOlmance of its duties and responsibilities; 
15 
17. To determine the Commission's organizational structure and staffing pattern and appoint 
16 
its officers and employees in accordance with Civil Service laws, rules and regulations; 
17 
18. To promote the development and growth of the independent film movement; 
18 
19. To acquire, manage and hold such real and personal property as may be necessary to 
19 
carry out the purpose and objectives of this Act; and 
20 
20. To perform such other functions as may be necessary to carry out the provisions of this 
21 
Act. 
22 
23 
SEC. 7. Meetings. - The Commission shall meet at least once a month or as often as 
24 
. necessary at. the.call of the Chairperson or majority of the members. A majority of the regular 
25 
members of the Commission shall constitute a quorum to do business. The members of the 
26 
Commission shall be entitled to honoraria based on existing govermnent accounting and auditing 
27 
rules and regulations. 
28 
29 
SEC. 8. The Chairperson. - The Chairperson shall be the Chief Executive Officer and shall 
30 
exercise overall administrative supervision to ensure the effective and efficient implementation 
31 
of the policies lay down by the Commission. The Chairperson shall have the same rank and 
32 
salary as an Undersecretary of a Department as provided for in the Salary Standardization Law. 
33 
34 
SEC. 9. Functions of the Chairperson. - The Chairperson shall have the following 
35 
functions: 
36 
1. Execute and administer the policies, plans and programs approved by the Commission; 
37 
2. Direct and supervise the operations and internal affairs of the Commission; 
4 


1 
3. Establish the internal organization and administrative procedures ofthe Commission; 
2 
4. Recommend to the Commission the appointment, transfer or detail, suspension, dismissal 
3 
for cause of its subordinate officials and employees; and 
4 
5. Such other functions, which the Commission may assign from time to time. 
5 
6 
SEC. 10. The Executive Director. - The Chairperson shall be assisted by an Executive 
7 
Director to be appointed by the Commission upon the recommendation of the Chairperson. The 
8 
Executive Director shall have a salary comparable to that equivalent rank under the Revised 
9 
Compensation and Position Classification System and shall be co-terminus with the Chairperson 
10 
unless sooner removed for cause. 
11 
12 
SEC. 11. Cinema Evaluation Board. - The Commission will absorb the Cinema Evaluation 
13 
Board of the. FDCP, hereinafter. referred to as tlw "CEB", which shall evaluate and grade films 
14 
submitted to the Commission, subject to the following: 
15 
a. Composition, Qualifications and Appointment. - The CEB shall be composed of a Board 
16 
Chairperson and twenty (20) members, ten (l0) of whom shall come from the film 
17 
industry, and the other ten (10) from the arts, academe, business and such other sectors as 
18 
the Commission may choose to identify. The Chairperson of the Commission shall 
19 
appoint the members of the CEB from among thirty (30) submitted by the members of 
20 
the Commission; Provided, That the persons appointed to the CEB should be 
21 
knowledgeable of the artistic and technical aspects of film making and fully committed to 
22 
the promotion and development of cinematographic art along world class standards and 
23 
global marketability. 
24 
b. Term of Office. - The CEB Chairperson and members shall serve for a term of two (2) 
25 
years and shall be eligible for re-appointment for a second tenn; Provided, That no 
26 
member shall serve for more than two (2) consecutive terms; Provided further, if any 
27 
member fails to complete a term, the person appointed to fill the vacancy shall serve only 
28 
for the unexpired portion of the term of the person whom he/she succeeds, unless re-
29 
appointed: Provided finally, That the service of the unexpired portion shall not be 
30 
counted as a term. In the initial appointments, the CEB Chairperson and the twenty (20) 
31 
members shall hold office for two (2) years. 
32 
c. Participation. - No member of the CEB shall participate in the grading of a film in which 
33 
he or she or any member of his or her family or any relative within the fourth degree of 
34 
consanguinity or affinity shaH have financial or any other interest; Provided, That such 
35 
member shall disclose fully at the time of his or her inhibition, the nature of his or her 
36 
interest including actual or potential conflict of interest and the reasons of his or her 
37 
inhibition. 
5 


1 
2 
SEC. 12.· Cinema -Evaluation System. - The e CEB shall formulate and establish a set of 
3 
standards and criteria and procedures for the Cinema Evaluation System, subject to the approval 
4 
of the Commission, primarily based on but not limited to the following: direction; screenplay; 
5 
cinematography; editing; production design; musical scoring; sound and acting. 
6 
7 
SEC. 13. Grading of Films. - The grading of films by the CEB shall be subject to the 
8 
following provisions: 
9 
10 
a. Pre-qualification procedures and requirements. - The Commission shall prescribe pre-
II 
qualification procedures and requirements for application for grading; Provided, That 
12 
only films whose premiere showing shall be held in the Philippines, and those which 
13 
have not had any theatrical release, free television broadcast, cable broadcast or video 
14 
release in any commercial medium anywhere in the world shall be qualified for 
15 
evaluation by the board; Provided further, That the CEB should evaluate and grade only 
16 
films that are intended for theatrical and other forms or exhibition that will charge 
17 
admission fees and which are at least eighty (80) minutes in length and that the producer 
18 
shall submit hislher film for grading at least seven (7) days before its scheduled day of 
19 
play date. 
20 
b. Evaluation Period. - A film shall be reviewed, evaluated and graded by the CEB within 
21 
five (5) working days after submission of the application. The CEB shall transmit its 
22 
decision to the Commission within twenty four (24) hours from the rendering of the 
23 
decision. The Commission shall inform the producer of the CEB's decision not later than 
24 
twenty four (24) hours upon receipt therewith .. 
25 
c. Grading of Firms. - The CEB shall review and grade a film submitted for grading. The 
26 
CBS and the Commission shall, at any time neither be allowed to cut, delete, shorten or 
27 
modify in any manner films being graded by the CBB, nor shall they be allowed to 
.28 
suggest cuts or deletion or any other form of modification to the film makers and pre 
29 
requisites for earning the CEB grading. Such grading shall be given due weight and 
30 
consideration by the Movie and Television Review and Classification Board (MTRCB), 
31 
the Optical Media Board (OMS), the Department of Trade and Industry (DTI) and other 
32 
government agencies for the graded film's viewing, reproduction, exportation and other 
33 
purposes. 
34 
d. Reconsideration to the Board En Bane. - The action taken by the CBB on the film 
35 
submitted for evaluation and grading may be reconsidered upon motion to the CEB en 
36 
bane within twenty four (24) hours from receipt of notice of said action, and the CBB en 
6 


1 
banc shall render its decision within forty eight (48) hours from its receipt of the motion 
2 
for reconsideration. The CEB en banc must be composed of at least majority of the CEB. 
3 
e. Finality of Grading. - The grading submitted by the CEB en banc to the Commission 
4 
shall be final. 
5 
6 
SEC. 14. Privileges of Graded Films. -Films which have obtained an "A" or "B" grading 
7 
from the Commission pursuant to Sections II and 12 of this Act shall be entitled to the following 
8 
privileges: 
9 
10 
Amusement Tax Reward. - A grade "A"or "B" shall entitle the producer to an incentive 
11 
equivalent to the amusement tax imposed and collected on the graded films by cities and 
12 
mnnicipalities in Metro Manila and other highly urbanized and independent component cities in 
13 
the Philippines pursuant to Sections 140 and 151 of the RepUblic Act No. 7160 at the following 
14 
rates: 
15 
1. For grade "A" Films - Eighty (80%) percent of the amusement tax collected on such 
16 
films. The remaining twenty (20%) percent shall accrue to the funds of the 
.17 
Commission; and 
18 
2. For grade "B" Films - Sixty Five (65%) percent of the amusement tax collected on 
19 
such films. The remaining thirty five (35%) percent shall accrue to the funds of the 
20 
Commission; Provided, That thirty (30%) percent of the amusement tax rebates shall 
21 
accrue to the talents and workers involved in the film that was graded A or B, with 
22 
the other seventy (70%) percent accruing to the film producer. 
23 
24 
SEC. 15. Amusement Tax Deduction and Remittances. -
All revenues from the 
25 
amusement tax on the graded film which may otherwise accrue to the cities and municipalities in 
26 
Metro Manila and highly urbanized and independent component cities in the Philippines 
27 
pursnant to Sections 140 of the Republic Act No. 7160 during the period the graded film is 
28 
exhibited, shall be deducted and withheld by the proprietors, operators or lessees of theaters or 
29 
cinemas and remitted within thirty (30) days from the termination of the exhibition to the 
30 
Commission which shall reward the corresponding amusement tax to the producers and the 
31 
talents and workers ofthe graded film within fifteen (15) days from receipt thereof. 
32 
Proprietors, operators or lessees of theaters or cinemas who fail to remit amusement tax 
33 
proceeds within the prescribed period shall be liable to a surcharge equivalent to five (5%) 
34 
percent of the amount due for each month of delinquency which shall be paid to the 
35 
Commission. 
36 
7 


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 pesos 
4 
(PhplOO,OOO.OO) 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 its 
7 
implementing rules and regulations. 
8 
3. Cause the closure of any theater or cinema that fails or unreasoriably refuse to remit tax 
9 
collected on the graded film for a period not exceeding fifteen (15) days after which such 
10 
period shall automatically be lifted without prejudice to the right of the Commission to 
11 
cause or initiate criminal or administrative prosecution against the erring theater or 
12 
cinema owners pursuant to paragraph 2 of this section. 
13 
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 this 
15 
act and its implementing rules and regulations. 
16 
For this purpose, the Commission may constitute regional sub- commissions in the cities 
17 
and municipalities throughout the country composed of representatives from the 
18 
government and from the private sector as may be appropriate to implement the purposes 
19 
and objectives of this Act and its implementing rules and regulations and they shall serve 
20 
without compensation and only for such period of time as the Commissioner shall 
21 
detennine. 
22 
5. To deputize any law enforcement agency and instrumentality of the government for 
23 
assistance for the implementation and enforcement of its functions and orders. 
24 
25 
SEC. 17. Film Endowment Board. - There is hereby created a Film Endowment Board 
26 
hereinafter referred to as the FEB which shall provide subsidy for the production of worthwhile 
27 
screenplays and films submitted to the FEB for consideration, subject to the following: 
28 
a. Composition, Qualifications and AppOintment. - The FEB shall be composed of a Board 
29 
Chairperson and seven (7) members, four (4) of whom shall come from the film industry, 
30 
and the other three (3) from the arts, academe, business and other sectors as the 
31 
Commission may choose to identify. The Chairperson of the Commission shall appoint 
. 32 
the members of the FEB from among fifteen (15) noininees submitted by the members of 
33 
the Commission; Provided. That the persons appointed to the FEB should be 
34 
knowledgeable of the artistic and technical aspects of filmmaking and fully committed to 
35 
the promotion and development of cinematographic art along world class standards and 
36 
local and global marketability. 
8 


1 
b. Term of Office. - The FEB Chairperson and members shall serve for a term of two (2) 
2 
years and shall be eligible for re-appointment for a second tenn; Provided, That no 
3 
member shall serve for two (2) consecutive terms; Provided further, That if any member 
4 
fails to complete a term, the person appointed to fill the vacancy shall serve only for the 
5 
unexpired portion of the term of the person whom he/she succeeds, unless re-appointed; 
6 
Provided finally, That the service of the unexpired portion shall not be counted as a term. 
7 
The FEB Chairperson and the seven (7) members shall hold office for two (2) years. 
8 
c. Participation. - No member of the FEB shall participate in approving of funding for a 
9 
film in which he or she or any member of his or her family or any relative within the 
10 
fourth degree of consanguinity or affinity shall have financial or any other interest; 
11 
Provided, That such member shall disclose fully at the time of his or her inhibition, the 
12 
nature of his or her interest including actual or potential conflict of interest and the 
13 
reasons of his or her inhibition. 
14 
15 
SEC. 18. Film Endowment Evaluation System. - The FEB shall formulate and establish a 
16 
set of standards and criteria and procedures for the Film Endowment Fund Evaluation System, 
17 
subject to the approval of the Commission, based on but not limited to the following: the 
18 
aesthetic value ofthe screenplay submitted; the marketability of the film product; and its integral 
19 
cultural personality. 
20 
'21 
SEC. 19~ Endow/llent Fu';ding for Films.':'" The endowment funding for films by the FEB 
22 
shall be subject to the following provisions: 
23 
a. Pre-qualification procedures and requirements - The Commission shall prescribe pre-
24 
qualification procedures and requirements for application for endowment funding; 
25 
Provided, That only original screenplays which have not yet been produced and which 
26 
when filmed are at least eighty (80) minutes in length or only films whose premiere 
27 
showing shall be held in the Philippines, and those which have not had any theatrical 
28 
release, free television broadcast, cable broadcast or video release in any commercial 
29 
medium anywhere in the world shall be qualified for evaluation by the board. 
30 
b. Evaluation period. - A submitted screenplay or film shan be evaluated and approved for 
31 
funding within thirty (30) days after submission. The FEB shall transmit it to the 
32 
Commission within twenty four (24) hours fi'om the rendering of the decision. The 
33 
Commission shall inform the filmmaker or scriptwriter of the FEB's decision not later 
34 
than one (l) week upon receipt herewith. 
35 
c. Finality of endowment fond decision. - Once the Commission approves a project for 
36 
funding, the applicant receives an agreement that includes the Commission's policies on 
37 
copyright, distribution, credits, and other matters. The Commission reserves the right to 
9 


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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 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 
authotize others to do so. 
24 
All projects developed through a Commission endowment, including associated publicity 
25 
or promotional materials, shall carry a statement indicating that it was funded by the 
26 
Commission. There shall also be a disclaimer statement to the effect that the views expressed 
27 
therein are not necessarily those of the Commission. The project must be promoted as a 
28 
Philippine work at film festivals and in markets abroad. In co-productions, the Philippine 
29 
nationality of the produced film must be mentioned together with any others. 
30 
31 
SEC. 20. Funding. - In order to provide for the initial funding of the Commission, there 
32 
is hereby created a Philippine Film Commission Fund Account to be deposited in the National 
33 
Treasury which shall be included in the aunual General Appropriations Act and shall be 
34 
constituted from the proceeds from a special film commission tax of two pesos (Php 2.00) which 
35 
is hereby levied on all admission tickets of movie houses in the Philippines for a period of 
36 
twenty (20) years; 
37 
To augment its operational expenses, the Commission may: 
10 


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3 
4 
5 
6 
7 
8 
9 
10 
11 
I. 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; and 
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; 
3. Secure funding from the Philippine Amusement and Gaming Corporation for the 
amount necessary to subsidize the production of thirty (30) films annually. 
12 
SEC. 21. Authority to Accept Donations. - The Commission may accept donations, 
13 
contributions, grants, bequest or gifts, in cash or in kind, from various sources, domestic or 
14 
foreign, except from movie producers relevant to its functions. Said donations shall be deemed 
15 
automatically appropriated for purposes specified by the donor or in the absence thereof, for the 
16 
programs or projects as may be approved by the Commission subject to the usual government 
17 
accounting and auditing rules and regulations; Provided, That cash donations shall not be used to 
18 
fund the personal services requirements of the Commission. Any donation, contribution, subsidy 
19 
or financial aid which may be made to the Commission shall be exempt from taxes of any kind 
20 
and constitute allowable deduction in full from the income of the donors, contributors or givers 
21 
for income tax purposes. 
22 
23 
SEC. 22. Assistance from other Government Agencies. - The Commission may call on 
24 
any. depaliment, bureau, offi~e, agency or instrumentality of government for such direct 
25 
assistance as may be needed in the perfonnance of its functions. 
26 
27 
SEC. 23. Implementing Rules and Regulations. - The Commission shall, within ninety 
28 
(90) days after the approval of this Act, issue the necessary rules and regulations to implement 
29 
the provisions hereof. 
30 
31 
SEC. 24. Transitory Provision. -
To provide continuity in the operation of the 
32 
Commission, the incumbent officials and employees of FDCP and the CEB shall, in a holdover 
33 
capacity, continue to perfonn their respective duties and responsibilities and shall receive their 
34 
corresponding salaries and benefits until such time that the organization of the Commission shall 
35 
have been completed. The transition period shall not exceed six (6) months after effectivity of 
36 
this Act. 
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1 
All officials of the FDCP and CEB shall be deemed resigned from services upon the 
2 
organization of the Commission; Provided, That the officials and employees who shall be laid 
3 
off shall be given preferential treatment in appointments to new positions to which they may 
4 
qualify under the new staffing pattern; Provided finally, That those who shall not be given new 
5 
appointments shall be entitled to all compensation and benefits due them under existing laws. 
6 
All books, assets, rights, privileges, records, obligations and liabilities of FDCP and CEB 
7 
are hereby transferred to the Commission. 
8 
SEC. 25. Organization Structure. - The organizational structure and staffing pattern of 
9 
the Commission shall be established in coordination with the Department of Budget and 
10 
Management (DBM) and in accordance with Civil Service laws, rules, and regulations. 
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12 
SEC. 26. Annual Report. - The Commission shall, within ninety (90) days after the end 
13 
of every fiscal year, submit to Congress an annual report on its compliance with, or 
·14 
'accoinplishnients under this aCt, together with its plans and recommendations to improve and 
15 
develop its capability to enforce the provisions of this Act, and a complete accounting of 
16 
transactions with respect to any funds received under this Act. 
17 
18 
SEC. 27. Repealing Clause. - Republic Act No. 9167, otherwise known as the Film 
19 
Development Council of the Philippines Act, is hereby repealed. 
20 
All other laws, decrees, orders, issuances, rules and regulations which are inconsistent 
21 
with the provisions of this Act are hereby repealed, amended or modified accordingly. 
22 
23 
SEC. 28. Separability Clause. - If, for any reason, any provision ofthis Act, or any part 
24 
thereof, is declared invalid or unconstitutional, all others sections or provisions not affected 
25 
thereby shall remain in force and effect. 
26 
27 
SEC. 29. Effectivity. - This Act shall take effect fifteen (15) days after publication in two 
28 
(2) newspapers of national circulation. 
Approved, 
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