FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
f) "'60 
S. No. C- ~) 
Introduced by Senator JUAN MIGUEL F. ZUBIRI 
EXPLANATORY NOTE 
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The Philippine Constitution declares, as a policy, that the State should give 
priority to the arts and culture. Moreover, it guarantees to everyone the freedom of 
expression. Mass media, as found in the Rules and Regulations for Mass Media in the 
Philippines, embraces means of communication that reach and influence large numbers 
of people including print media, radio, television, and films. Film as a medium of 
communication, mode of expression, and an important art form, therefore, undoubtedly 
enjoy constitutional protection. 
With the aid of advanced technology, film has not only become a popular form of 
entertainment but it has emerged as a social institution. Its pervasiveness or ability to 
reach a wide audience with a strong and influential message accounts for this. It cannot 
be gainsaid that it plays a critical rolE;! in forming and reflecting public opinion. It does not 
only entertain but it also educates, enlightens and inspires its audiences. Film can 
become a powerful tool for effecting change. Thus, it may be said that, to an extent, it 
has taken on some of the roles played by our traditional institutions such as the church, 
school, govemment, and family. Moreover, the past decades have seen the rise of the 
film industry. The film industry has become a valuable contribution to the Philippine 
economy. At present, watching a movie is an important part of every Filipino's social life. 
Thus, with the obvious pervasive effect of film in the lives of every Filipino and 
the significant contribution of the film industry to our economy, there is a need for a law 
that will regulate this effect and, at the same time, encourage the production of films not 
only for commercial or entertainment purposes but as a viable tool for change in 
enhancing the quality of life of every Filipino. This bill aims to achieve these ends. In the 
process and in order to implement and attain these ends, this bill will reorganize the 
Film Development Council of the Philippines (FDCP) into an independent agency to be 
called the Philippine Film Commission. 
Hence, this Representation humbly asks the approval of this bill. 


, . 
FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
s. No. 2560 
Introduced by Senator JUAN MIGUEL F. ZUBIRI 
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 of 201 0". 
3 
4 
Section 2. State Policy. - Pursuant to the constitutional guarantee on freedom of 
5 
expression and on the principle of giving priority to arts and culture to foster patriotism 
6 
and nationalism, accelerate social progress, and promote total human liberation and 
7 
development, the state shall promote and support the development and growth of the 
8 
local film industry as an aesthetic and cultural medium for a better understanding and 
9 
appreciation of Filipino social values and national identity and as an indispensable 
10 
economic partner in nation-building. 
11 
To achieve this end, the State shall formulate and implement policies and 
12 
programs to upgrade the art and craft of film making and encourage the production of 
13 
films for commercial purposes, intended for public entertainment, that seek to enhance 
14 
the quality of life, examine the human and social conditions and contribute to the dignity 
15 
and nobility of the human spirit. 
16 
17 
Section 3. Creation of the Philippine Film Commission. - To implement the 
18 
poliCies and attain the objectives enunciated in this Act, the Film Development Council 
19 
of the Philippines (FDCP) created under Republic Act no. 9167 is hereby reorganized 
20 
into the Philippine Film Commission hereinafter referred to as "Commission". The 
21 
Commission shall be an independent agency. It shall render an annual report of its 


1 
activities and achievements to the President and to the Congress and shall have its 
2 
principal offices in Metropolitan Manila. 
3 
4 
Section 4. Composition of the Commission. - The Commission shall be 
5 
composed of a Chairperson and seventeen (17) members, eight (8) of whom shall be 
6 
regular members while the other nine (9) shall be in an ex-officio capacity: Provided, 
7 
That only the regular members are entitled to vote, while the Chairperson shall vote only 
8 
in case of tie: Provided further, That the Chairperson shall be appointed by the 
9 
President from the lists of nominees submitted to him by the regular members; Provided 
10 
finally, That the Chairperson shall be a person of proven administrative proficiency, 
11 
independence, knowledgeable of the technical and artistic aspects of the film production 
12 
and fully committed to the promotion and development of the Philippine Cinema as art. 
13 
The eight (8) regular members shall be as follows: 
14 
1. A regular representative of the Directors' Guild of the Philippines, Inc; 
15 
2, A regular representative of the Nagkakaisang Manggagawa ng Pelikulang 
16 
Pilipino; 
17 
3. A regular representative of {he Mowelfund; 
18 
4. A regular representative of the Actors' Guild of the Philippines, Inc.; 
19 
5. A regular representative from the National Cinema Association of the 
20 
Philippines; 
21 
6. A regular representative from the academe; 
22 
7. A regular representative from the local film producers; 
23 
8. A regular representative from the Independent Film cooperative. 
24 
25 . 
The nine (9) members who shall be ex-officio members of the Commission are 
26 
the following: 
27 
1. The Secretary of the Department of Trade and Industry or his/her duly 
• 
28 
designated regular representative; 
29 
2. The Secretary of the Department of Education or his/her duly designated 
30 
regular representative; 
31 
3. The Secretary of the Department of Tourism or his/her duly deSignated regular 
32 
representative; 
33 
4. The Secretary of the Department of Foreign Affairs or his/her duly designated 
34 
regular representative; 
35 
5. The Secretary of the Department of Interior and Local Government or his/her 
36 
duly designated regular representative; 
37 
6. The Secretary of the Department of Finance or his/her duly deSignated regular 
38 
representative; 
2 


1 
7. The Director General of the Film Academy of the Philippines or his/her duly 
2 
designated regular representative; 
3 
8. The President of the Cultural Center of the Philippines or his/her duly 
4 
designated regular representative; 
5 
9. The head of the Cinema Committee of the National Commission for Culture 
6 
and the Arts or his/her duly designated regular representative. 
7 
8 
Section 5. Term of Office. - The Chairperson and the eight (8) regular members 
9 
shall hold office for a term of three (3) years, unless sooner removed by the 
10 
Commission; Provided, That they shall be eligible for reappointment after the expiration 
11 
of their terms; Provided further, That if a member fails to complete his/her term, the 
12 
person appointed to fill the vacancy shall serve only the unexpired portion of the 
13 
vacated term whom he/she succeeds; Provided finally, That such service of the 
14 
unexpired portion shall not be counted as a term. 
15 
16 
Section 6. Powers and Functions. - The Commission shall have the following 
17 
powers and functions: 
18 
1. To coordinate :all programs and policies of government departments and 
19 
agencies that are related to the development of the local film industry; 
20 
2. To establish and implement a Cinema Evaluation System in accordance with 
21 
the criteria set forth in this Act; 
22 
3. To develop and implement an incentive and reward system for the producers 
23 
based on merit to encourage the production of quality films; 
24 
4. To promote, organize, encourage or support a more scientific system in which 
25 
local films can be marketed locally and internationally; 
26 
5. To develop and promote programs to enhance the skills and expertise of 
27 
Filipino film artists, technicians and workers through continuous craft and 
28 
technical upgrading as well as attitude training; 
29 
6. To set up and operate a one-stop shop to assist foreign and local producers 
30 
making films in the country; 
31 
7. To develop and implement a two-pronged program that will encourage the 
32 
production of quality films; 
33 
8. To encourage, support and coordinate the holding of national and regional film 
34 
festivals exclusively of Filipino films; 
35 
9. To establish, organize, operate and maintain international film festivals, 
36 
exhibitions and similar activities, including an ASEAN film festival and market; 
37 
10. To encourage and facilitate partiCipation in international film festivals and to 
38 
ensure the continuous presence of Philippine films in international markets; 
3 


1 
11. To invest funds and other assets in such activities or undertakings that shall 
2 
directly or indirectly promote development of the film industry, including the 
3 
production of films, and other terms and conditions as it may deem wise and 
4 
desirable; 
5 
12. To ensure the establishment of a film archive in order to conserve and protect 
6 
film negatives and/or prints as part of the nation's historical, cultural and 
7 
artistic heritage; 
8 
13. To take measures to acquire for 'safeguarding and preservation any part or 
9 
all of the natienal film production, including the institution of mandatory 
10 
deposit systems which is hereby expressly authorized; 
11 
14. To set up mechanics to address the welfare and working conditions of local 
12 
film workers, a concern to be implemented in coordination with the Mowelfund 
13 
and the Nagkakaisang Manggagawa ng Pelikulang Pilipino; 
14 
15. To promote the establishment of cinema clubs in barangays and schools in 
15 
16 
coordination with the Department of Education and the Commission on 
Higher Education and to develop elective courses related to film at the 
17 
collegiate levels as part of a film audience development program; 
18 
16. To prescribe the procedures for the exercise of its powers and functions as 
19 
well as the performance of its duties and responsibilities; 
20 
17. To determine the Commission's organizational structure and staffing pattern 
21 
and appoint its officers and employees in accordance with Civil Service laws, 
22 
rules and regulations; 
23 
18. To promote the development and growth of the independent film movement; 
24 
19. To acquire, manage and hold such real and personal property as may be 
25 
necessary to carry out the purpose and objectives of this Act; and 
26 
20. To perform such other functions as may be necessary to carry out the 
27 
provisions of this Act. 
28 
29 
Section 7. Meetings. - The Commission shall meet at least once a month or as 
30 
often as necessary at the call of the Chairperson or majority of the members. A majority 
31 
of the regular members of the Commission shall constitute a quorum to do business. 
32 
The members of the Commission shall be entitled to honoraria based on existing 
33 
government accounting and auditing rules and regulations. 
34 
35 
Section 8. The Chairperson. - The Chairperson shall be the Chief Executive 
36 
Officer and shall exercise overall administrative supervision to ensure the effective and 
37 
efficient implementation of the policies lay down by the Commission. The Chairperson 
4 


1 
shall have the same rank and salary as an Undersecretary of a Department as provided 
2 
for in the Salary Standardization Law. 
3 
4 
Section 9. Functions of the Chairperson. - The Chairperson shall have the 
5 
following functions: 
6 
1. Execute and administer the policies, plans and programs approved by the 
7 
Commission; 
8 
2. Direct and supervise the operations and internal affairs of the Commission; 
9 
3. Establish the intemal organization and administrative procedures of the 
10 
Commission; 
11 
4. Recommend to the Commission the appointment, transfer or detail, 
12 
suspension, dismissal for cause of its subordinate officials and employees; 
13 
and 
14 
5. Such other functions, which the Commission may assign from time to time. 
15 
16 
Section 10. The Executive Director. - The Chairperson shall be assisted by an 
17 
Executive Director to be appointed by the Commission upon the recommendation of the 
18 
Chairperson. The Executive Director shall have a salary comparable to that equivalent 
19 
rank under the Revised Compensation and Position Classification System and shall be 
20 
co-terminus with the Chairperson unless sooner removed for cause. 
21 
22 
Section 11. Cinema Evaluation Board. - The Commission will absorb the 
23 
Cinema Evaluation Board of the FDCP, hereinafter referred to as the "CEB", which shall 
24 
evaluate and grade films submitted to the Commission, subject to the following: 
25 
a) Composition, Qualifications and Appointment - The CEB shall be 
26 
composed of a Board Chairperson and twenty (20) members, ten (10) of 
27 
whom shall come from the film industry, and the other ten (10) from the arts, 
28 
academe, business and such other sectors as the Commission may choose to 
29 
identify. The Chairperson of the Commission shall appoint the members of the 
30 
CEB from among thirty (30) submitted by the members of the Commission; 
31 
Provided, That the persons appointed to the CEB should be knowledgeable of 
32 
the artistic and technical aspects of film making and fully committed to the 
33 
promotion and development of cinematographic art along world class 
34 
standards and global marketability. 
35 
b) Term of Office - The CEB 'Chairperson and members shall serve for a term of 
36 
two (2) years and shall be eligible for re-appointment for a second term; 
37 
Provided, That no member shall serve for more than two (2) consecutive 
38 
terms; Provided further, if any member fails to complete a term, the person 
5 


1 
appointed to fill the vacancy shall serve only for the unexpired portion of the 
2 
term of the person whom he/she succeeds, unless re-appointed: Provided 
3 
finally, That the service of the unexpired portion shall not be counted as a 
4 
term. In the initial appointments, the CEB Chairperson and the twenty (20) 
5 
members shall hold office for two (2) years. 
6 
c) Participation - No member of the CEB shall participate in the grading of a film 
7 
in which he or she or any member of his or her family or any relative within the 
8 
fourth degree of consanguinity or affinity shall have financial or any other 
9 
interest; Provided, That such member shall disclose fully at the time of his or 
10 
her inhibition, the nature of his or her interest including actual or potential 
11 
conflict of interest and the reasons of his or her inhibition. 
12 
13 
Section 12. Cinema Evaluation System. - The CEB shall formulate and 
14 
establish a set of standards and criteria and procedures for the Cinema Evaluation 
15 
System, subject to the approval of the Commission, primarily based on but not limited to 
16 
the following: direction; screenplay; cinematography; editing; production design; musical 
17 
scoring; sound and acting. 
18 
19 
Section 13. Grading of Fifms. - The grading of films by the CEB shall be subject 
20 
to the following provisions: 
21 
(a) Pre-qualification procedures and requirements - The Commission shall 
22 
prescribe pre-qualification procedures and requirements for application for 
23 
grading; Provided, That only films whose premiere showing shall be held in 
24 
the Philippines, and those which have not had any theatrical release, free 
25 
television broadcast, cable broadcast or video release in any commercial 
26 
medium anywhere in the world shall be qualified for evaluation by the board; 
27 
Provided further, That the CEB should evaluate and grade only films that are 
28 
intended for theatrical and other forms or exhibition that will charge admission 
29 
fees and which are at least eighty (80) minutes in length and that the 
30 
producer shall submit his/her film for grading at least seven (7) days before its 
31 
scheduled day of play date. 
32 
(b) Evaluation Period - A film shall be reviewed, evaluated and graded by the 
33 
CEB within five (5) working days after submission of the application. The CEB 
34 
shall transmit its decision to the Commission within twenty four (24) hours 
35 
from the rendering of the decision. The Commission shall inform the producer 
36 
of the CEB's decision not later than twenty four (24) hours upon receipt 
37 
therewith. 
6 


1 
(c) Grading of Firms - The CEB shall review and grade a film submitted for 
2 
grading. The CES and the Commission shall, at any time neither be allowed 
3 
to cut, delete, shorten or modify in any manner films being graded by the 
4 
CES, nor shall they be allowed to suggest cuts or deletion or any other form 
5 
of modification to the film makers and pre requisites for earning the CEB 
• 
6 
grading. Such grading shall be given due weight and consideration by the 
7 
Movie and Television Review and Classification Soard (MTRCB), the Optical 
8 
Media Soard (OMS), the Department of Trade and Industry (DTI) and other 
9 
government agencies for the graded film's viewing, reproduction, exportation 
10 
and other purposes. 
11 
(d) Reconsideration to the Board En Bane - The action taken by the CES on the 
12 
film submitted for evaluation and grading may be reconsidered upon motion 
13 
to the CEB en bane within twenty four (24) hours from receipt of notice of said 
14 
action, and the CES en bane shall render its decision within forty eight (48) 
15 
hours from its receipt of the motion for reconsideration. The CES en banc 
16 
must be composed of at least majority of the CES. 
17 
(e) Finality of Grading - The grading submitted by the CES en bane to the 
18 
Commission shall be final. 
19 
20 
Section 14. Privileges of Graded Films. - Films which have obtained an "A" or 
21 
"S" grading from the Commission pursuant to Sections 11 and 12 of this Act shall be 
22 
entitled to the following privileges: 
23 
Amusement Tax Reward. - A grade "N or "S" shall entitle the producer to an 
24 
incentive equivalent to the amusement tax imposed and collected on the graded films 
25 
by cities and municipalities in Metro Manila and other highly urbanized and independent 
26 
component cities in the Philippines pursuant to Sections 140 and 151 of the Republic 
27 
Act No. 7160 at the following rates: 
28 
1. For grade "A" Films - Eighty (80%) percent of the amusement tax collected on 
29 
such films. The remaining twenty (20%) percent shall accrue to the funds of 
30 
the Commission; and 
31 
2. For grade "S" Films - Sixty Jive (65%) percent of the amusement tax collected 
32 
on such films. The remaining thirty five (35%) percent shall accrue to the 
33 
funds of the Commission; Provided, That thirty (30%) percent of the 
34 
amusement tax rebates shall accrue to the talents and workers involved in the 
35 
film that was graded A or S, with the other seventy (70%) percent accruing to 
36 
the film producer. 
37 
7 


1 
Section 15. Amusement Tax Deduction and Remittances. - All revenues from 
2 
the amusement tax on the graded film which may otherwise accrue to the cities and 
3 
municipalities in Metro Manila and highly urbanized and independent component cities 
4 
in the Philippines pursuant to Sections 140 of the Republic Act No. 7160 during the 
5 
period the graded film is exhibited, shall be deducted and withheld by the proprietors, 
6 
operators or lessees of theaters or cinemas and remitted within thirty (30) days from the 
7 
termination of the exhibition to the Commission which shall reward the corresponding 
8 
amusement tax to the producers and the talents and workers of the graded film within 
9 
fifteen (15) days from receipt thereof. 
10 
Proprietors, operators or lessees of theaters or cinemas who fail to remit 
11 
amusement tax proceeds within the prescribed period shall be liable to a surcharge 
12 
equivalent to five (5%) percent of the amount due for each month of delinquency which 
13 
shall be paid to the Commission. 
14 
15 
Section 16. Enforcement. - For purposes of implementing the previous Section, 
16 
the Commission may: 
• 
17 
1. Impose administrative fines and penalties of not more than One hundred 
18 
thousand pesos (Php100,000.00) for the violation of any of the provisions of 
19 
this Act and/or its implementing rules and regulations issued by the 
20 
Commission. 
21 
2. Cause or initiate the criminal or administrative prosecution of violators of this 
22 
act and its implementing rules and regulations. 
23 
3. Cause the closure of any theater or cinema that fails or unreasonably refuse to 
24 
remit tax collected on the graded film for a period not exceeding fifteen (15) 
25 
days after which such period shall automatically be lifted without prejudice to 
26 
the right of the Commission to cause or initiate criminal or administrative 
27 
prosecution against the erring theater or cinema owners pursuant to 
28 
paragraph 2 of this section. 
29 
4. Call upon representatives of the different govemment agencies and other 
30 
various organizations in the movie industry to help ensure compliance with 
31 
the provisions of this act and its implementing rules and regulations. 
32 
For this purpose, the Commission may constitute regional sub-
33 
commissions in the cities and municipalities throughout the country composed of 
34 
representatives from the government and from the private sector as may be 
35 
appropriate to implement the purposes and objectives of this Act and its 
36 
implementing rules and regulations and they shall serve without compensation 
37 
and only for such period of time as the Commissioner shall determine. 
8 


I 
5. To deputize any law enforcement agency and instrumentality of the 
2 
government for assistance 'for the implementation and enforcement of its 
3 
functions and orders. 
4 
5 
Section 17. Film Endowment Board. - There is hereby created a Film 
6 
Endowment Board hereinafter referred to as the FEB which shall provide subsidy for the 
7 
production of worthwhile screenplays and films submitted to the FEB for consideration, 
8 
subject to the following: . 
9 
a. Composition, Qualifications and Appointment - The FEB shall be composed of 
10 
a Board Chairperson and seven (7) members, four (4) of whom shall come 
11 
from the film industry, and the other three (3) from the arts, academe, 
12 
business and other sectors as the Commission may choose to identify. The 
13 
Chairperson of the Commission shall appoint the members of the FEB from 
14 
among fifteen (15) nominees submitted by the members of the Commission; 
15 
Provided that the persons appointed to the FEB should be knowledgeable of 
16 
the artistic and technical aspects of filmmaking and fully committed to the 
17 
promotion and development of cinematographic art along world class 
18 
standards and local and global marketability. 
19 
b. Term of Office - The FEB Chairperson and members shall seNe for a term of 
20 
two (2) years and shall be eligible for re-appointment for a second term; 
21 
Provided, That no memQer shalf seNe for two (2) consecutive terms; 
22 
Provided further, That if any member fails to complete a term, the person 
23 
appointed to fill the vacancy shall seNe only for the unexpired portion of the 
24 
term of the person whom he/she succeeds, unless re-appointed; Provided 
25 
finally, That the seNice of the unexpired portion shall not be counted as a 
26 
term. The FEB Chairperson and the seven (7) members shall hold office for 
27 
two (2) years. 
• 
28 
c. Participation - No member of the FEB shall participate in approving of funding 
29 
for a film in which he or she or any member of his or her family or any relative 
30 
within the fourth degree of consanguinity or affinity shall have financial or any 
3 I 
other interest; Provided, That such member shall disclose fully at the time of 
32 
33 
34 
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. 
35 
Section 18. Film Endowment Evaluation System. - The FEB shall formulate 
36 
and establish a set of standards and criteria and procedures for the Film Endowment 
37 
Fund Evaluation System, subject to the approval of the Commission, based on but not 
9 


1 
limited to the following: the aesthetic value of the screenplay submitted; the 
2 
marketability of the film product; and its integral cultural personality. 
3 
4 
Section 19. Endowment Funding for Films. - The endowment funding for films 
5 
by the FEB shall be subject to the following provisions: 
6 
a. Pre-qualification procedures and requirements - The Commission shall 
7 
prescribe pre-qualification procedures and requirements for application for 
8 
endowment funding; Provided, That only original screenplays which have not 
9 
yet been produced and which when filmed are at least eighty (80) minutes in 
10 
length or only films whose premiere showing shall be held in the Philippines, 
11 
and those which have not had any theatrical release, free television 
12 
broadcast, cable broadcast or video release in any commercial medium 
13 
anywhere in the world shan be qualified for evaluation by the board. 
14 
b. Evaluation period - A submitted screenplay or film shall be evaluated and 
15 
approved for funding within thirty (30) days after submission. The FEB shall 
16 
transmjt it to the Commission within twenty four (24) hours from the rendering 
17 
of the c:Jecision. The Commission shall inform the filmmaker or scriptwriter of 
18 
the FEB's decision not later than one (1) week upon receipt herewith. 
19 
c. Finality of endowment fund decision - The evaluation submitted by the FEB en 
20 
banc to the Commission shall be final. 
21 
d. Copyright and distribution - Once the Commission approves a project for 
22 
funding, the applicant receives an agreement that includes the Commission's 
23 
policies on copyright, distribution, credits, and other matters. The Commission 
24 
reserves the right to place additional conditions or stipulations deemed 
25 
necessary or appropriate on an endowment award. Unless specifically 
26 
provided otherwise, the following policies will apply to projects and to the use 
27 
of materials produced or distributed with endowment funds. 
28 
1. Ownership, copyright, distribution, exhibition, and use rights for all 
29 
projects developed or distributed with endowment funds shall be 
30 
vested in the producer, writer, artist, or other originator of the work 
31 
provided that the Commission will require the applicant to assign a 
32 
share of all rights including copyright in the work to the Commission as 
33 
security for its investment. The Commission will take a fifty (50%) 
34 
percent share of such rights, with fifty (50%) percent to be retained by 
35 
the applicant. The Commission will require repayment of its 
36 
endowment funding no later than one (1) year, at which time the 
37 
Commission will assign its share of the copyright and other rights back 
38 
to the applicant or its assignee. In order to secure repayment of the 
10 


1 
Commission's development funding, applicant will not be able to 
2 
assign, license or otherwise transfer any rights to the work without the 
3 
prior written approval of the Commission. 
4 
2. Five DVD prints shall become property of the Commission. The 
5 
Commission reserves the non-exclusive right to distribute or exhibit its 
6 
copy for non-commercial purposes, as it deems appropriate. 
7 
3. The Commission reserves a royalty-free, non-exclusive, and irrevocable 
8 
rights to reproduce, publish, or otherwise use these materials for 
9 
govemment purposes and to authorize others to do so. 
10 
11 
All projects developed through a Commission endowment, including associated 
12 
publicity or promotional materials, shall carry a statement indicating that it was funded 
13 
by the Commission. There shall also be a disclaimer statement to the effect that the 
14 
views expressed therein are not necessarily those of the Commission. The project must 
15 
be promoted as a Philippine work at film festivals and in markets abroad. In co-
16 
productions, the Philippine nationality of the produced film must be mentioned together 
17 
with any others. 
18 
19 
Section 20. Funding. - In order to provide for the initial funding of the 
20 
Commission, there is hereby created a Philippine Film Commission Fund Account to be 
21 
deposited in the National Treasury which shall be included in the annual General 
22 
Appropriations Act and shall be constituted from the proceeds from a special film 
23 
commission tax of two pesos (Php 2.00) which is hereby levied on all admission tickets 
24 
of movie houses in the Philippines for a period of twenty (20) years; 
25 
To augment ,its operational expenses, the Commission may: 
26 
1) Utilize the remaining twenty (20%) percent and thirty five (35%) percent of the 
27 
amusement tax collected during the period grade "A" and "8" films are 
28 
exhibited, as provided under Sections 14 and 15 hereof; and 
29 
2) Impose reasonable fees and charges for services rendered; Provided, that the 
30 
amount actually collected Shall be deposited in the National Treasury as a 
31 
special account in the General Fund and may be used to augment its 
32 
maintenance and other operational expenses, and capital outlays except the 
33 
purchase of motor vehicles, subject to existing accounting and budgeting 
34 
rules and regulations; 
35 
3) Secure funding from the Philippine Amusement and Gaming Corporation for 
36 
the amount necessary to subsidize the production of thirty (30) films 
37 
annually. 
38 
11 


1 
Section 21. Authority to Accept Donations. - The Commission may accept 
2 
donations, contributions, grants, bequest or gifts, in cash or in kind, from various 
3 
sources, domestic or foreign, except from movie producers relevant to its functions. 
4 
Said donations shall be deemed automatically appropriated for purposes specified by 
5 
the donor or in the absence thereof, for the programs or projects as may be approved 
6 
by the Commission subject to the usual government accounting and auditing rules and 
7 
regulations; Provided, That cash donations shall not be used to fund the personal 
8 
services requirements of the Commission. Any donation, contribution, subsidy or 
9 
financial aid which may be made to the Commission shall be exempt from taxes of any 
10 
kind and constitute allowable deduction in full from the income of the donors, 
11 
contributors or givers for income tax purposes. 
12 
13 
Section 22. Assistance from other Government Agencies . . The Commission 
14 
may call on any department, bureau, office, agency or instrumentality of government for 
15 
such direct assistance as may be needed in the performance of its functions. 
16 
17 
Section 23. Implementing rules and Regulations . . The Commission shall, 
18 
within ninety (90) days after the approval of this Act, issue the necessary rules and 
19 
regulations to implement the provisions hereof. 
20 
21 
Section 24. Transitory Provision. - To provide continuity in the operation of the 
22 
Commission, the incumbent officials and employees of FDCP and the CEB shall, in a 
23 
holdover capacity, continue to perform their respective duties and responsibilities and 
24 
shall receive their corresponding saiaries and benefits until such time that the 
25 
organization of the Commission shall have been completed. The transition period shall 
26 
not exceed six (6) months after effectivity of this Act. 
27 
All officials of the FDCP and CEB shall be deemed reSigned from services upon 
28 
the organization of the Commission; Provided, That the officials and employees who 
29 
shall be laid off shall be given preferential treatment in appointments to new pOSitions to 
30 
which they may qualify under the new staffing pattern; Provided finally, That those who 
31 
shall not be given new appointments shall be entitled to all compensation and benefits 
32 
due them under existing laws. 
33 
All books, assets, rights, privileges, records, obligations and liabilities of FDCP 
34 
and CEB are hereby transferred to the Commission. 
35 
36 
Section 25. Organization Structure. - The organizational structure and staffing 
37 
pattern of the Commission shall be established in coordination with the Department of 
12 


1 
Budget and Management (DBM) and in accordance with Civil SeNice laws, rules, and 
2 
regulations. 
3 
4 
Section 26. Annual Report. - The Commission shall, within ninety (90) days 
5 
after the end of every fiscal year, submit to Congress an annual report on its compliance 
6 
with, or accomplishments under this act, together with its plans and recommendations 
7 
to improve and develop its capability to enforce the provisions of this Act, and a 
8 
complete accounting of transactions with respect to any funds received under this Act. 
9 
10 
Section 27. Repealing Clause. - Republic Act No. 9167, otherwise known as 
11 
the Film Development Council of the Philippines Act, is hereby repealed. 
12 
All other laws, decrees, orders, issuances, rules and regulations which are 
13 
inconsistent with the provisions of this Act are hereby repealed, amended or modified 
14 
accordingly. 
15 
16 
Section 28. Separability Clause. - If, for any reason, any provision of this Act, 
17 
or any part thereof, is declared invalid or unconstitutional, all others sections or 
18 
provisions not affected thereby shall remain in force and effect. 
19 
20 
Section 29. Effectivity. - T.his Act shall take effect fifteen (15) days after 
21 
publication in two (2) newspapers of national circulation. 
22 
23 
Approved, 
13