ra
_ 29 JAN 2013 **

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0 PH
Republic of the Philippines 1

House of Representatives
Quezon City

FIFTEENTH CONGRESS
Third Regular Session

commrrree Report No._ 2630

Submitted by the Committ i ent Reorganization, Trade and Industry, and
Suing by te Connon aes

Recommending its approval in substitution of House Bill Nos. 5779 and 6513;

Sponsors: Reps. Jalosjos, Garcia and Limkaichong

Mr. Speaker:

The Committees on Government Reorganization, ‘Trade and Industry and
Appropriations, to which were referred House Bill No. 5779, introduced by Representative
Juian Edgardo “Sonny” M. Angara, entitled:

“AN ACT
CREATING THE DESIGN COUNCIL OF THE PHILIPPINES, DEFINING ITS POWER
AND FUNCTIONS, AND FOR OTHER PURPOSES”

introduced by Representatives Jorge “Bolet” Banal and Cesar V.

and House Bill No. 65
Sarmiento, entitled:

“AN ACT
PROMOTING COMPETITIVE FILIPINO DESIGN, PROVIDING FOR THE PURPOSE OF
A NATIONAL DESIGN POLICY AND STRENGTHENING AND RENAMING THE
PRODUCT DEVELOPMENT AND DESIGN CENTER OF THE PHILIPPINES AND FOR

OTHER PURPOSES” { 6852

have considered the same and recommend that the attached House Bill No. entitled
“AN ACT PROMOTING AND STRENGTHENING FILIPINO DESIGN, PROVIDING
FOR THE PURPOSE A NATIONAL DESIGN POLICY AND RENAMING THE
PRODUCT DEVELOPMENT AND DESIGN CENTER OF THE PHILIPPINES INTO THE
DESIGN CENTER OF THE PHILIPPINES AND FOR OTHER PURPOSES” be approved



in substitution of House Bil 6513 with _- Representatives Juan Edgardo
M. Angara, Jorge “Bolet” Banal, Cesar V-Sarmiento, Julieta R. Cortuna, Rufus B. Rodriguez,
Angelo B. Paimones, Albert S. Garcia, Cesar G. Jalosjos, and Jocelyn S. Limkaichong as

authors thereof.

Respectfully subr

Chairperson
Committee on Appropriations

THE HONORABL!
HOUSE OF REPRESENTATIVES
Quezon City


BUNS

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
‘Third Regular Session

House BiliNo,__ 68.5.2

5 {In Substitution of House Bills 5779 and 6513)

Introduced by Representatives Juan Edgardo M. Angara, Jorge “Bolet” Banal,
Cesar V.Sarmiento, Julieta R. Cortuna, Rufus B. Rodriguez, Angelo B. Palmones,
Albert S. Garcia , Cesar G. Jalosjos and Jocelyn S. Limkaichong

AN ACT

PROMOTING AND STRENGTHENING FILIPINO DESIGN, PROVIDING
FOR THE PURPOSE A NATIONAL DESIGN POLICY AND RENAMING
THE PRODUCT DEVELOPMENT AND DESIGN CENTER OF THE
PHILIPPINES INTO THE DESIGN CENTER OF THE PHILIPPINES AND
FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembl:«t:

"SECTION 1. Short Title. - This Act shall be known as the “Philippine Design
Competitiveness Act of 2013.”
SEC. 2. Statement of Policy. - It is the declared policy of the State to enhance the
competitiveness and innovation of Philippine products, create market-responsive
design services. while advocating for economic and environmental sustainability. The
State shall also endeavor to promote an economy and society driven by design and
creativity responsive to our fast-changing times and reflective of the Filipino culture
and identity, while concurrently advocating the protection of intellectual property
rights to these ideas and innovations.
SEC. 3. Objective: - The State shall promote and strengthen the Philippine design
industry to achiev« :he following objectives:

a. Create integrated, forward-thinking and long-range direction and strategy for

the design industry:
b. Provide long-term guidance to promote national awareness on the use of

design as a strategic tool for economic competitiveness and social innovation:


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SEC.

Integrate design into other industries and aspects of society in order to create a
demand for good design, and to extend its impact economically, socially and
environmentally:

Incorporate design as a priority component in national planning and
development; and

Ultimately, encourage and drive innovation so that the Philippines may use as
leverage our raw materials, netural resources, and creativity to stay ahead of
the curve.

4. Reenginzering the Product Development and Design Center of the

»Philippines and S--engthening its Mandate, - The Product Development and Design

Center of the Philippines (PDDCP) is hereby reengineered and renamed into the

Design Center of the Philippines, herein referred to as the Design Center. It shall be

attached to the Department of Trade and Industry. It is mandated to promote design as.

a creative tool for improving the quality and competitiveness and branding of Filipino

products in the global market; as a strategic tool of value creation for sustainable

economic growth and development; and as an innovative tool for enhancing the

quality of human life.

The Design Center

a,

c

ther mandated to:
Develop and maintain a creative research and development program on
product de sign, development, and improvement of Philippine products and
services, its luding those created by small and medium enterprises (SMEs);
Conduct continuing research on product and product packaging design trends,
materials and processing technologies;

Create, develop, promote and upgrade the design of all Philippine products
and services. including those created by SMEs;

Conduct seminars and workshops on product design and development;

Set-up design exhibitions;

Publish design-related materials;

Ensure protection of Filipino design ideas, products, and other outputs of
creative talents;

Promote dzsign education throughout the country to meet the needs of
Philippine dustries; and

Promote Philippine design here and all over the world.


To effectively carry out this mandate, the Design Center shall exercise the
“following powers aad functions:
NATIONAL DESIGN POLICY

DESIGN AWARPNE:

a. Formulate the National Design Policy, herein referred to as NDP, aligning it
with the Government's economic agenda;

b. Continuously formulate five (5) year-plans that are in line with the general
NDP, but reflective of the changing conditions in both the domestic and
international environments

¢. Coordinate, monitor, and assess the implementation of the NDP, and, when
necessary, update the NDP in the light of changing market conditions in both
the domestic and international environments;

d. Establish «© evaluation system through which the results of the NDP (as well
4s singular projects and programs) could be assessed and improved;

€. Collaborate internationally with similar design policy advisory bodies of other
countries and gain insights and investigate on how successful design practices

jin other countries can be transferred and adapted in the context of Filipino

creative and knowledge-based industries as well as transition to the

conceptual-based economy;

f. Establish dialogue with designers to encourage them to actively engage in the
implementation of design policy;
g. Provide a forum for design stakeholders on current and emerging issues in the

design profession;

h. Promote the design profession and the value of design;

i. Build awareness of the importance of design to the public, through local and
international exhibitions, conference, competitions, community and school

acti

ies, and other design-related events;
j. Promote awareness on protection of intellectual property rights;
k. Establish more public creative zones and environments in Metro Manila and

other central hubs in different regions across the country;

DESIGN INTEGRATION

1. Create networks and establish venues where all industries could interact in

design dialogues and workshops. thereby promoting knowledge exchange,

capability +-velopment and collaborative content creation;


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m. Identify and encourage public and private collaborations regarding design,
competitiveness, governance, and innovation to promote networking, business,
and partner ship opportunities;

DESIGN FOR Di VELOPMENT

n. Conduct design-led approaches and competitions for the design industry to
help government solve socio-economic and environmental challenges;

0. Actively push for the use of design and innovation in government offices and
departments, with the objective of coming up with programs and processes
that will enable the government to simplify and streamline systems, so it can
deliver its services more effectively and efficiently;

p. Maintain a standard of sustainable design in all projects that are undertaken by
the Design Center;

q. Employ design as a fundamental tool for communicating a strong, singular
identity of ‘ae country;

(DESIGN AND IN YOVATION

Create a skill development, mentoring and support system for individuals,
corporations, partnerships or associations, particularly SMEs, who want to
benefit from the strategic use of good design in business administration,
commerce, trade and other enterprises; and

5. Undertake research and development on the different design strengths and
assets of the Philippines (i.e. manipulation and development of raw materials
that are indigenous to the country) so we can be able to come up with globally
relevant yet uniquely Filipino innovations.

SEC. 5. Creation of the Design Advisory Council. - There shall be created a Design
Advisory Council, herein referred to as the DAC, which shall be a public-private
“partnership that w I serve as an Advisory Council to the Design Center. The DAC
shall advise the Design Center in the formulation and implementation of policies that
will enhance the quality of competitiveness of Philippine products and services and
shall support the Philippine government in its efforts to enhance the level of
innovation and creativity in Philippine industries.

SEC. 6. Powers and Functions of the Design Advisory Council. - The DAC shall
advocate and promote the strategic role of design in strengthening sustainability of
Philippine socioeconomic growth and competitiveness. It shall exercise the following

powers and functions:


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Provide advice and insights imperative in pursuing the mandate of the Design
Center by effectively representing the collective views of both the public and
the private sectors;

Advocate for full consideration of design’s contribution to program
effectiveness and innovation in government policy decisions;

Review anc promote policies where design is a key component;

Act as a iaison among the professional design, design education and
‘government design stakeholders;

Provide advice and guidance to design education institutions on the
development and standardization of course syllabus ensuring the propagation

of high quality education in design in all regions across the country,

SEC. 7. Composition of the Design Advisory Council, - The DAC shall be composed

of fifteen (15) members, from the following government departments or offices:

Department of Trade and Industry (DTI)

a. Secretary of the DTI

b. Center for International Trade Expositions and Missions (CITEM)
©. Intellec ual Property Office (IPO)

2. National C. mmission for Culture and the Arts (NCCA)
3. Department of Tourism (DOT)

4.
5.
6.

Department of Education (DepEd)

. Commission on Higher Education (CHED)
. Department of Science and Technology (DOST)

The Executive Director of the Design Center shall be an ex-officio member of the

Council to be appointed by the President.
The other six (6) remaining members of the DAC shall come from the organized

associations involved in the sector, academic community engaged in design courses

and representatives of the private sector including but not limited to visual

communications, <rchitecture, industrial design, interior design, information design.

snew media and tec- nology, fashion design, environmental design and similar areas.

The representatives of the private sector shall be appointed by the President,

upon the recommendation of the Secretary of the DTI from the nominees to be

submitted by the organizations of the various design sectors.


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The Council shall be co-chaired by the Secretary of the DTI and the
representative from the private sector to be appointed by the President from among
the private sector appointees.

The presence of cight (8) members shall constitute a quorum and all decisions
of the Council shall require the concurrence of the majority of such quorum. The
members of the DAC shall receive per diems for every meeting attended at rates
allowed under existing rules and regulations. The DAC may meet not more than twice
a month, However. the Chairman may call a special meeting when the need arises.

The Design Center shall act as the Secretariat of the Council.

*SEC. 8. Powers wind Functions of the Executive Director of the Design Center. -
The Design Center shall have an Executive Director, who shall execute, administer

and implement the policies, plans and measures approved by the DAC and perform

stich other functions as may be necessary to carry out specific respons
connection with said plans and measures,

A quarterly report of the accomplishments of the Center shall be submitted by
the Executive Director to the DAC. The DAC shall submit an annual report to the
President of the Philippines, not later than one (1) month after the end of each year.
SEC. 9. The National Design Policy. - The NDP shall serve as the State’s strategy in
promoting design as a driving force towards a sustainable economic growth and
development and « catalyst for increasing the competitiveness of the country in the
*global market. Th. NDP shall be created to meet the following goals:

1, GLOBAL COMPETITIVENESS

1.1 Elevate Philippine designs and innovation toward global standards through
collaboration with international design organizations;

1.2 Enhance the competitiveness and innovation of Philippine products and
services making it more responsive to social needs while advocating for
economic and environmental sustainability;

1.3 Create a distinctive and recognizable identity for Philippine products
through global positioning and branding of Philippine designs,

1.4 Build the competitiveness and capabilities of Filipino designers through
continicus training, seminars and workshops, and collaborations with
Philipp se manufacturers;

1.5 Provide opportunities for Filipino designers to showcase their talent

locally & intemationally;


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2, INSTITU!IONALIZATION AND PROMOTION OF DESIGN
CULTURE NATIONWIDE
2.1 Encourage the creation of original designs in Philippine-made products
and services by blending native and heritage-based aesthetics indigenous
arts, crafts and materials and current global design trends;
2.2 Promote the understanding of diverse Philippine cultures so that it can be

translated into modem design concepts that enables an innovation process

that is uniquely Filipino;

2.3 Enhance the quality of Philippine products and services and productivity
of Philippine manufacturers through design;

24 Create design awareness among manufacturers and service providers,
particul rly SMEs, on the competitiveness brought about by original
designs;

2.5 Conduct programs that will challenge designers, design students and
ordinary citizens to actively engage in solving and mitigating socio-
economic and environmental problems through design-led approaches;

2.6 Establish networks and resources for knowledge exchange and capability
development leveraging on automation, computerized and web-based
services;

2.7 Encourage the collaboration and partnerships among local stakeholders of

the design industry such as industry associations, management of SMEs,

\¢ designers, academe, government agencies, and other private
organiz sions;
3. CREATION OF AN ENVIRONMENT TO CULTIVATE A CONSTANT
DEMAND FOR GOOD DESIGN
3.1 Ensure the balance of supply (designers) and demand (private and public
“organizations, whether local or international) of the design industry;
3.2 Promote an appreciation for good design not only among citizens, but also
Within business organi

tions and government institutions; and
3.3 Create linkages with the business sector, the educational sector,
government institutions, and the public in general to encourage them to
‘employ and invest in good design;
4. DESIGN FROTECTION


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4.1 Promote of Philippine designs through registration of Intellectual Property
Rights and through Technology Licensing Offices; and
4.2 Encourwge and facilitate a culture of creating and protecting intellectual
° propert. in the area of design;
DESIGN EDUCATION AND PROFESSIONAL DEVELOPMENT

5.1 Elevate design education and design research in the Philippines to global

standards of excellence;
5.2 Invest on appropriate infrastructure and technology to support design;
5.3 Establish an active collaboration among industry, professional designers,
and academe towards the development of the design profession;
5.4 Inculcate among the youth the value of good design in enhancing the
quality of human life by including design appreciation in the curriculum;
6, INSTITUTIONALIZATION OF DESIGN AS AN EFFECTIVE
PROBLEM-SOLVING TOOL
: 6.1 Conceyualize effective and sustainable design-related approaches to drive
‘economic growth and development;
6.2 Seek design solutions for issues related to social innovation and
environmental sustainability and protection;
6.3 Expand awareness on the benefits of the strategic use of good design in
business and government administration, trade and commerce, as well as,
in SMEs; and;

6.4 Encourage government to invest on activities geared towards increasing
the competitiveness of Philippine design and creative industries.
SEC. 10. Design Industries Linkages with the Educational System. - ‘To ensure a
continuous supply of creative talents and to stimulate design creativity and innovation
samong students at ill levels of education, the DepEd, the CHED, and the TESDA, in
consultation with and assistance of the Center, shall formulate measures to establish a
stronger connection between arts, culture, education and training, and to harness the
potentials of the youth.
SEC. 11. Appropriations. - The amount necessary to carry out the initial
implementation of this Act shall be charged against the current year’s appropriations
of the PDDCP. Thereafter, such sums as may be necessary for the continued
implementation of this Act shall be included in the annual General Appropriations
Act.


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SEC. 12. Implementing Rules and Regulations. - The DTI shall issue the
Implementing Rules and Regulations within sixty (60) days from the effectivity of
this Act.

SEC. 13. Repealing Clause. - Executive Order No. 133, s. 1987 is hereby amended
accordingly. All cther laws, decrees, executive orders, rules and regulations, or parts

thereof as are inc ~asistent with this Act, are hereby repealed, amended or modified

“accordingly

SEC. 14. Separability Clause. - The provisions of this Act are hereby declared
separable, and in the event any of its provisions is declared unconstitutional, the other
provisions which are not affected thereby shall remain in force and effect.

SEC. 15. Effectivity. - This Act shall take effect fifteen (15) days after publication in
the Official Gazette or in at least two (2) national newspapers of general circulation in
the country.

Approved,


House of Representatives
Committee Affairs Department
FACT SHEET
House Bill No. 5779 and 6513
PHILIPPINE DESIGN COMPETITIVENESS ACT OF 2013

Introduced by: REPS. JUAN EDGARDO M. ANGARA, JORGE “BOLET” BANAL AND CESAR V.

SARMIENTO

Committee Referral: COMMITTEE ON GOVERNMENT REORGANIZATION (Primary)
Cominittee Chairperson: Rep. Cesar G. Jalosjos
Committee Referral: COMMITTEE ON TRADE AND INDUSTRY (Secondary)
Committee Chairperson: Rep. Albert S. Garcia
COMMITTEE ON APPROPRIATIONS )Secondary)
Committee Chairperson: Rep. Jocelyn S. Limkaichong

OBJECTIVES:

* To institute the :nechanism for advancing Filipino design as a catalyst for further
growth and deve!pment

* ‘To provide a clear direction towards harnessing talents and integrating a design
Policy to propel innovation.

KEY PROVISIONS:

+ Renames the Product Development and Design Center of the Philippines, an
attached agency of the Departinent of Trade and Industry (DTI), into the Design
Center of the Philippines.

* Formulates a National Design Policy, which will be integrated into government
programs and policies.

* Creates the Design Advisory Council (DAC), a government and private sector
partnership that shall advise the Design Center in the formulation and
implementation of policies.

+ Provides that the DAC shall be composed of fifteen (15) members, nine (9) from the
government to ir clude representatives from the Department of Trade and Industry
(DTI), National C::mmission for Culture and the Arts (NCCA), Department of Tourism
“(DOT), Departinent of Education (DepEd), Commission on Higher Education
(CHED), Department of Science and Technology (DOST), Executive Director of the
Design Center who shall act as ex-officio of the Council and six (6) members from
the private sector, Particularly practitioners from the different design disciplines and
members of the academic community involved in the sector.

RELATED LEGISLATION

¢ Executive Order No. 133s. 1987