FOURTEENTH CONGRESS OF THE REPUBLIC) 
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OF THE PHILIPPINES 
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Second Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
This bill is intended to support the Philippines' independent film industry. 
The 1987 Constitution. Articles 14 Sec. 14 and 15 read: 
Section 14. The State shall foster the preservation, enrichment, and 
dynamic evolution of a Filipino national culture based on the principle in 
unity in diversity in a climate of free artistic and intellectual expression. 
Section 15. Arts and letters shall enjoy the patronage of the State. 
The State shall conserve, promote, and popularize the nation's historical 
and cultural heritage and resources, as well as artistic creations. 
Our independent film industry has created a growing international interest in 
Filipino works, borne out of the increasing number of awards garnered by our filmmakers 
at prestigious film festivals. Some of these recent winners include: Ang Pagdadnlugu ni 
Maxinzo Oliveros which won 15 international awards, including three awards at the 
Berlinale (The Teddy award, International Jury Prize at the Kinderfest and Special 
Mention from the Children's Jury of the Kinderfest). It is also the first Philippine film 
nominated for Best Foreign Film at the Independents' Spirit Awards in the U.S. Kubrndor 
was honored with the International Critic's Award by the FIPRESCI (short for Fbdkration 
Internationale de la Presse Cinkmatographique, in English, known as International 
Federation of Film Critics) during the 2006 Moscow International Film Festival; and in 
2007, it was nominated Best ASEAN film in the Bangkok International Film Festival. 
Rigodon won the best feature film award in the international competition category at the 
eighth International Panorama of Independent Filmmakers in Athens, Greece last 
September 30, 2006. Rigodon was also invited to screen at the Museum of Modern Art 
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(MoMA) in 2007. 
Documentary Film in the 34th Brussels International Independent Film Festival in 2007. 
Neo-Lounge, an outstanding documentary, was adjudged Best 
Independent films are called such, because they were not produced by the 
established film companies, and by necessity, finished on much smaller budgets. Their 
independence allows them to challenge the status quo, tackling heretofore unexplored 
subject matter, inviting the audience not only to feel but to think. 
They present a genuine alternative cinema to the current crop of mainstream 
productions in movies and television, which are primarily geared towards profit, and as 
such, are dictated by the usual commercial formulas. 
Currently, the government supports independent films through the Film 
Development Council of the Philippines (FDCP) and through programs such as the 
Cinemalaya Philippine Independent Film Festival. The awards “seek to discover, 
encourage, and honor the cinematic works of Filipino filmmakers that boldly articulate 
and freely interpret the Filipino experience with fresh insight and artistic integrity.” 
However, this is not enough. In 1999, figures from the FDCP showed that the 
Philippines produced 199 films. But it took a dive in 2004, producing only 55 films. 
Nestor Jardin, president of the Cinemalaya in 2005, and a board member of the Film 
Development Council, believes that this decline can be attributed to a lot of things; one of 
which is the money factor involving the high production costs that come with putting 
together a film as well as high amusement taxes imposed here in the Philippines. Thus, 
i€ not given financial support, independent filmmakers may soon fall into the trap of 
pandering to the audience in order to sell their movies. Since these films cannot and 
should not rely on box office. receipts to recoup their production costs, the state should 
take steps to encourage these filmmakers to maintain their independence, by rewarding 
those films which performed well in prestigious film competitions. These filmmakers 
can use these grants to offset their costs and use the rest as seed money for their next 
note-worthy project. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
Second Regular Session 
OF THE PHILIPPINES 
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j (1 ; : -, :, 
Introduced by Senator Miriam Defensor Santiago 
ANACT 
ENCOURAGING THE PRODUCTION OF PHILIPPINE INDEPENDENT FILMS, 
PROVIDING INCENTIVES TO FILMMAKERS WHO ARE GIVEN HONORS IN 
CREDIBLE INTERNATIONAL FILM COMPETITIONS. 
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 “Honoring Philippine 
Independent Films Act of 2008”. 
SECTION 2. Declaration of Policy. - It is the policy of the state to promote and 
support the development and growth of the local film industry, in general, and the 
production of independent films, in particular. The State shall endeavor to discover, 
encourage, and honor the cinematic works of Filipino filmmakers that boldly articulate 
and freely interpret the Filipino experience with fresh insight and artistic integrity. 
SECTION 3. Grants for award-winningfilms. - To achieve this law’s purpose, 
Philippine independent films that have been awarded the Best Film prize or its equivalent 
iiicluding those that merited recognition for technical excellence in respected 
iiiternational film competitions or cinema festivals shall be given the following 
incentives: 
3.1 A grant of five million pesos (Php 5,000,000.00) to the film production or 
entity that produces the award winning full-length feature or documentary film; 
3.2. A grant of three million pesos (Php 3,000,000.00) to the film production or 
entity that produces the award winning short feature or documentary film; 


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3.3. Full tax exemptions relevant to the screening of the film and its commercial 
exhibition, including those levied by local government units (LGUs); 
3.4. The award winning film shall be considered and shall have the honor of being 
given an automatic rating of an “A” film being granted by the Cinema Evaluation Board. 
SECTION 4. Eligibility for Grants. -To be eligible for a grant under Section 3.1., 
films must be made by Filipino filmmakers who have not yet directed more than 3 full- 
length coinmercial feature films. The total production budget for the full-length feature 
or documentary film should not exceed three million pesos (Php 3,000,000.00). The film 
length should be between 90 to 120 minutes. 
To be eligible for a grant under Section 3.2., the film must be made by a Filipino 
filmmaker. The total production budget for the short feature or documentary film should 
not exceed one million pesos (Php Pl,OOO,OOO.OO). The film length should not be more 
than 20 minutes (no minimum length). 
All films should not have been produced by commercial producers, to guarantee 
the filmmakers’ creative control over the film. 
SECTION 5. Implementing Agency. - 
National Commission for Culture and the 
Arts (NCCA) is hereby authorized and directed to adopt a system to implement and carry 
out the provisions of this Act. The NCCA shall, within sixty (60) days from the 
effectivity of this Act, promulgate rules and regulations to carry out and enforce the 
provisions of this Act. 
SECTION 6. Appropriations. - A special fund amounting to fiRy million pesos 
(Php 50,000,000.00) which shall be sourced from the funds of the Philippine Amusement 
and Gaining Corporation (PAGCOR) is hereby created. 
Other amounts as may be 
necessary to carry out the provisions of this Act, are hereby authorized to be appropriated 
from the National Treasury. 
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SECTION 7. Separability Clause. - If any provision or part hereof, is held invalid 
or unconstitutional, the remainder of the Act or the provision not otherwise affected shall 
reinaiii valid and subsisting. 
SECTION 8. Repealing Clause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation contrary to, 
or incoiisistent with the provisions of this Act is hereby repealed, modified or amended 
accordingly. 
SECTION 9. Efectivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in at least two (2) newspapers of general circulation. 
Approved, 
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