TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
tl)* SSMfCtar}»
25 AUG-7 f<24
SENATE
S. No. 1166
RECEIVED BY:
Introduced by SENATOR MARK A. VILLAR
AN ACT
PROMOTING AND SUPPORTING THE DEVELOPMENT AND GROWTH OF THE 
PHILIPPINE FILM INDUSTRY, CREATING FOR THIS PURPOSE THE 
PHILIPPINE FILM COMMISSION, AND DEFINING ITS POWERS AND 
FUNCTIONS
EXPLANATORY NOTE
Under Article XIV, Section 15 of the 1987 Constitution, arts and letters shall 
enjoy the patronage of the State, and it shall conserve, promote, and popularize the 
nation's historical and cultural heritage and resources, as well as artistic creations. 
Under Section 16, all the country's artistic and historic wealth constitutes the cultural 
treasure of the nation and shall be under the protection of the State which may 
regulate its disposition.
In that regard, Philippine cinema has been a cornerstone of the country's 
identity for over a century. It plays a unique role in instilling Filipino culture and 
showcasing it on a global platform. The local film industry also provides livelihood and 
economic opportunities for Filipinos, making it a viable source of employment and 
income.
The Film Development Council of the Philippines was created in 2002 by 
Republic Act No. 9167. However, after more than twenty (20) years since its 
enactment, numerous social events and technological advancements have arisen 
challenging and hindering its growth. In fact, data shows that the total gross of the 
Philippines' box office has not returned to pre-pandemic levels.1
See Philippine Yearly Box Office <https://www.boxofficemojo.com/year/?area=PH>.


Thus, this bill seeks to revitalize and bolster support in the film industry for 
them to be not only at par, but also competitive with other countries.
Specifically, the bill reorganizes the Film Development Council of the Philippines 
into an independent agency to be called the "Philippine Film Commission". With the 
right investments focusing on building infrastructure to support local talent and with 
an improved commission leading the way, the industry could become an even more 
vibrant contributor to local and international arts. In doing so, this will inspire Filipinos 
around the world, which will bring a sense of representation, pride, and 
accomplishment.
In view of the foregoing, the approval of this measure is earnestly sought.
MARK A. VILLAR


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 1166
^cnatf
a{ tl)f g:fCiCtiU-jp
25 AUG-7 P6 24
RECEIVED BY:
Introduced by Senator MARK A. VILLAR
AN ACT
PROMOTING AND SUPPORTING THE DEVELOPMENT AND GROWTH OF THE 
PHILIPPINE FILM INDUSTRY, CREATING FOR THIS PURPOSE THE 
PHILIPPINE FILM COMMISSION, AND DEFINING ITS POWERS AND 
FUNCTIONS
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assem bled:
1 
SECTION 1. Short Title. - This Act shall be known as the "Local Film Industry
2 
Development Act'.
3 
SEC. 2. Declaration of Policy. - Pursuant to the constitutional guarantee on
4 
freedom of expression and on the principle of giving priority to arts and cultures to
5 
foster patriotism and nationalism, accelerate social progress, and promote total human
6 
liberation and development, the State shall promote and support the development and
7 
growth of the local film industry as an aesthetic and cultural medium for a better
8 
understanding and appreciation of Filipino social values and national identity and as
9 
an indispensable economic partner in nation-building.
10 
Towards this end, the State shall formulate and implement policies and
11 
programs to upgrade the art and craft of filmmaking and encourage the production of
12 
films for commercial purposes, intended for public entertainment, that seek to
13 
enhance the quality of life, examine the human and social conditions, and contribute
14 
to the dignity and nobility of the human spirit.
15 
SEC. 3. Creation of the Philippine Film Commission. - To implement the policies
16 
and attain the objectives enunciated in this Act, the Film Development Council of the


1 
Philippines (FDCP) created under Republic Act No. 9167, is hereby reorganized into
2 
the "Philippine Film Commission", hereinafter referred to as the "Commission". The
3 
Commission shall be an independent agency. It shall render an annual report of its
4 
activities and achievements to the President and Congress of the Philippines.
5 
SEC. 4. Composition of the Commission. - The Commission shall be composed
6 
of a Chairperson and seventeen (17) members, eight (8) of whom shall be regular
7 
members while nine (9) shall be in 
capacity; Provided, That only the regular
8 
members are entitled to vote, while the Chairperson shall vote only in case of a tie;
9 
Provided, further. That the Chairperson shall be appointed by the President from the
10 
list of nominees submitted to him by the regular members; Provided, finally. That the
11 
Chairperson shall be a person of proven administrative proficiency, independence,
12 
knowledgeable of the technical and artistic aspects of film production and fully
13 
committed to the promotion and development of the Philippine Cinema as an art.
14 
The eight (8) regular members shall be as follows:
15 
(a) A regular representative of the Directors' Guild of the Philippines, Inc.;
16 
(b) A regular representative of the Nagkakaisang Manggagawa ng Peiikuiang
17 
Piiipino (NMPP);
18 
(c) A regular representative of the Movie Workers Welfare Foundation
19 
(Mowelfund);
20 
(d) A regular representative of the Actors' Guild of the Philippines, Inc.;
21 
(e) A regular representative from the National Cinema Association of the
22 
Philippines;
23 
(f) A regular representative from the academe;
24 
(g) A regular representative from the local film producers; and
25 
(h) A regular representative from an independent film cooperative.
26 
The nine (9) members who shall be ex-officio members of the Commission are
27 
the following:
28 
(a) The Secretary of the Department of Trade and Industry (DTI) or his or her
29 
duly designated regular representative;
30 
(b) The Secretary of the Department of Education (DepEd) or his or her duly
31 
designated regular representative;


1 
(c) The Secretary of the Department of Tourism (DOT) or his or her duly
2 
designated regular representative;
3 
(d) The Secretary of the Department of Foreign Affairs (DFA) or his or her duly
4 
designated regular representative;
5 
(e) The Secretary of the Department of Interior and Local Government (DILG)
6 
or his or her duly designated regular representative;
7 
(f) The Secretary of the Department of Finance (DOF) or his or her duly
8 
designated regular representative;
9 
(g) The Director General of the Film Academy of the Philippines (FAP) or his or
10 
her duly designated regular representative;
11 
(h) The President of the Cultural Center of the Philippines (CCP) or his or her
12 
duly designated regular representative; and
13 
(i) The Head of the Cinema Committee of the National Commission for Culture
14 
and the Arts (NCCA) or his or her duly designated regular representative.
15 
SEC. 5. Term of Office. - The Chairperson and the eight (8) regular members
16 
shall hold office for a term of three (3) years, unless sooner removed by the
17 
Commission; Provided, That they shall be eligible for reappointment after the
18 
expiration of their terms; Provided, further. That if a member fails to complete the
19 
term, the person appointed to fill the vacancy shall serve only the unexpired portion
20 
of the vacated term whom the latter succeeds; Provided, finaiiy. That such service of
21 
the unexpired portion shall not be counted as a term.
22 
SEC. 6. Powers and Functions. - The Commission shall have the following
23 
powers and functions:
24 
(a) To coordinate all programs and policies of government departments and
25 
agencies that are related to the development of the local film industry;
26 
(b) To establish and implement a Cinema Evaluation System, in accordance
27 
with the criteria set forth in this Act;
28 
(c) To develop and implement an incentive and reward system for 
the
29 
producers based on merit to encourage the production of quality films;
30 
(d) To promote, organize, encourage, or support a more scientific system in
31 
which local films can be marketed locally and internationally;


1 
(e) To develop and promote programs to enhance the skills and expertise of
2 
Filipino film artists, technicians, and workers through continuous craft and technical
3 
upgrading, as well as attitude training;
4 
(f) To set up and operate a one-stop shop to assist foreign and local producers
5 
in making films in the country;
6 
(g) To develop and implement a two-pronged program that will encourage the
7 
production of quality films;
8 
(h) To encourage, support, and coordinate the holding of national and regional
9 
film festivals exclusively of Filipino films;
10 
(i) To establish, organize, operate, and maintain international film festivals,
11 
exhibitions, and similar activities, including an ASEAN film festival and market;
12 
(j) To encourage and facilitate participation in international film festivals and
13 
ensure the continuous presence of Philippine films in international markets;
14 
(k) To invest funds and other assets in such activities or undertakings that shall
15 
directly or indirectly promote the development of the film industry, including the
16 
production of films, and other terms and conditions as it may deem wise and desirable;
17 
(I) To ensure the establishment of a film archive in order to conserve and
18 
protect film negatives and/or prints as part of the nation's historical, cultural, and
19 
artistic heritage;
20 
(m) To take measures to acquire for safeguarding and preservation of any part
21 
or all of the national film production, including the institution of mandatory deposit
22 
systems, which is hereby expressly authorized;
23 
(n) To set up mechanics to address the welfare and working conditions of local
24 
film workers, a concern to be implemented in coordination with the Mowelfund and
25 
the NMPP;
26 
(o) To promote the establishment of cinema clubs in barangays and schools, in
27 
coordination with the DepEd and the Commission on Higher Education (CHED), and
28 
to develop elective courses related to film at the collegiate levels as part of a film
29 
audience development program;
30 
(p) To prescribe the procedures for the exercise of its powers and functions, as
31 
well as the performance of its duties and responsibilities;


1 
(q) To determine the Commission's organizational structure and staffing
2 
pattern, and appoint its officers and employees in accordance with civil service laws,
3 
rules, and regulations;
4 
(r) To promote the development and growth of the independent film
5 
movement;
6 
(s) To acquire, manage, and hold such real and personal properties, as may be
7 
necessary to carry out the purposes and objectives of this Act; and
8 
(t) To perform such other functions as may be necessary to carry out the
9 
provisions of this Act.
10 
SEC. 7. Meetings. - The Commission shall meet at least once a month or as
11 
often as necessary at the call of the Chairperson or the majority of the members. A
12 
majority of the regular members of the Commission shall constitute a quorum to do
13 
business. The members of the Commission shall be entitled to honoraria in accordance
14 
with government accounting and auditing rules and regulations.
15 
SEC. 8. The Chairperson. - The Chairperson shall be the Chief Executive Officer
16 
and shall exercise overall administrative supervision to ensure the effective and
17 
efficient implementation of the policies laid down by the Commission. The Chairperson
18 
shall have the same rank and salary as an Undersecretary of a Department as provided
19 
for under Republic Act No. 11466 or the "Salary Standardization Law of 2019".
20 
SEC. 9. Functions of the Chairperson. - The Chairperson shall have the following
21 
functions:
22 
(a) Execute and administer the policies, plans, and programs approved by the
23 
Commission;
24 
(b) Direct and supervise the operations and internal affairs of the Commission;
25 
(c) Establish the internal organization and administrative procedures of the
26 
Commission;
27 
(d) Recommend to the Commission the appointment, transfer, detail,
28 
suspension, and dismissal for cause of its subordinate officials and employees; and
29 
(e) Such other functions as the Commission may assign from time to time.
30 
SEC. 10. The Executive Director. - The Chairperson shall be assisted by the
31 
Executive Director to be appointed by the Commission, upon the recommendation of
32 
the Chairperson. The Executive Director shall have a salary comparable to that


1 
equivalent rank under Republic Act No. 6758 or the "Compensation and Position
2 
Classification Act of 1989", and shall be co-terminus with the Chairperson unless
3 
sooner removed for cause.
4 
SEC. 11. Cinema Evaluation Board. - The Commission shall absorb the Cinema
5 
Evaluation Board of the FDCP (CEB), which shall evaluate and grade films submitted
6 
to it.
7 
The CEB shall be composed of a Board Chairperson and twenty (20) members,
8 
ten (10) of whom shall come from the film industry, and the other ten (10) from the
9 
arts, academe, business, and such other sectors as the Commission may choose to
10 
identify. The Chairperson of the Commission shall appoint the members of the CEB
11 
from among thirty (30) nominees submitted by the members of the Commission;
12 
Provided, That the persons appointed to the CEB should be knowledgeable of the
13 
artistic and technical aspects of filmmaking and fully committed to the promotion and
14 
development of cinematographic art along world-class standards and global
15 
marketability.
16 
The CEB Chairperson and members shall serve for a term of two (2) years and
17 
shall be eligible for re-appointment for a second term; Provided, That no member shall
18 
serve for more than two (2) consecutive terms; Provided, further. That if any member
19 
fails to complete a term, the person appointed to fill the vacancy shall serve only for
20 
the unexpired portion of the term of the former, unless reappointed; Provided finally,
21 
That the service of the unexpired portion shall not be counted as a term. In the initial
22 
appointments, the CEB Chairperson and the twenty (20) members shall hold office for
23 
two (2) years.
24 
No member of the CEB shall participate in the grading of a film in which they,
25 
or any family member, or relative within the fourth degree of consanguinity or affinity,
26 
have financial or any other interest; Provided, That such member shall disclose fully
27 
at the time of inhibition, the nature of interest, including actual or potential conflict of
28 
interest, and the reasons thereof.
29 
SEC. 12. Cinema Evaluation System. - The CEB shall formulate and establish a
30 
set of standards, criteria and procedures for the Cinema Evaluation System, subject
31 
to the approval of the Commission, primarily based on, but not limited to, the


1 
following: direction, screenplay, cinematography, editing, production design, musical
2 
scoring, sound, and acting.
3 
SEC. 13. Grading of Films. - The grading of films by the CEB shall be subject
4 
to the following provisions:
5 
(a) Pre-qualification Procedures and Requirements - The Commission shall
6 
prescribe pre-qualification procedures and requirements for application for grading;
7 
Provided, That only films whose premiere showing shall be held in the Philippines, and
8 
those which have not had any theatrical release, free television broadcast, cable
9 
broadcast or video release in any commercial medium anywhere in the world, shall be
10 
qualified for evaluation by the Board; Provided, further. That the CEB should evaluate
11 
and grade only films that are intended for theatrical and other forms of release or
12 
exhibition that will charge admission fees, and which are at least eighty (80) minutes
13 
in length, and that the producer shall submit the film for grading at least seven (7)
14 
days before its scheduled day of a play date.
15 
(b) Evaluation Period - A film shall be reviewed, evaluated and graded by the
16 
CEB within five (5) working days after submission of the application. The CEB shall
17 
transmit its decision to the Commission within twenty-four (24) hours from the
18 
rendering of the decision. The Commission shall inform the producer of the CEB's
19 
decision not later than twenty-four (24) hours upon receipt.
20 
(c) Grading of Films - The CEB shall review and grade a film submitted for
21 
grading. The CEB and the Commission shall, at any time, neither be allowed to cut,
22 
delete, shorten or modify in any manner films being graded by the CEB, nor shall they
23 
be allowed to suggest cuts or deletions or any other form of modification, to the
24 
filmmakers and pre-requisites for earning the CEB grading. Such grading shall be given
25 
due weight and consideration by the Movie and Television Review and Classification
26 
Board (MTRCB), the Optical Media Board (0MB), the DTI and other government
27 
agencies for the graded film's viewing, reproduction, exportation and other purposes.
28 
(d) Reconsideration to the Board En Banc-The action taken by the CEB on the
29 
film submitted for evaluation and grading may be reconsidered upon motion to the
30 
CEB en bancW\t\\\w twenty-four (24) hours from receipt of notice of said action, and
31 
the CEB en bane shall render its decision within forty-eight (48) hours from its receipt


1 
of the motion for reconsideration. The CEB en bane must be composed of at least a
2 
majority of the CEB.
3 
(e) Finality of Grading - The grading submitted by the CEB en banc to the
4 
Commission shall be final.
5 
SEC. 14. Privileges of Graded Films. - Films which have obtained an "A" or "B"
6 
grading from the Commission, pursuant to Sections 11 and 12 of this Act, shall be
7 
entitled to Amusement Tax Reward. A grade "A" or "B" film shall entitle the producer
8 
to an incentive equivalent to the amusement tax imposed and collected on the graded
9 
films by cities and municipalities in Metro Manila and other highly urbanized and
10 
independent component cities in the Philippines pursuant to Sections 140 and 151 of
11 
Republic Act No. 7160 or the "Local Government Code of 1991" as amended at the
12 
following rates;
13 
(a) For Grade "A" Films - Eighty percent (80%) of the amusement tax is
14 
collected on such films. The remaining twenty percent (20%) shall accrue to the funds
15 
of the Commission; and
16 
(b) For Grade "B" Films - Sixty-five percent (65%) of the amusement tax
17 
collected on such films. The remaining thirty-five percent (35%) shall accrue to the
18 
funds of the Commission; Provided, That, thirty percent (30%) of the amusement tax
19 
rebates shall accrue to the talents and workers involved in the film that was graded
20 
"A" or "B", with the other seventy percent (70%) accruing to the film producer.
21 
SEC. 15. Amusement Tax Deduction and Remittances. - All revenues from the
22 
amusement tax on the graded film, which may otherwise accrue to the cities and
23 
municipalities in Metro Manila and highly urbanized and independent component cities
24 
in the Philippines pursuant to Sections 140 of Republic Act No. 7160, during the period
25 
the graded film is exhibited, shall be deducted and withheld by the proprietors,
26 
operators or lessees of theaters or cinemas and remitted within thirty (30) days from
27 
the termination of the exhibition to the Commission, which shall reward the
28 
corresponding amusement tax to the producers and the talents and workers of the
29 
graded film within fifteen (15) days from receipt thereof. Proprietors, operators, or
30 
lessees of theaters or cinemas who fail to remit amusement tax proceeds within the
31 
prescribed period shall be liable to a surcharge equivalent to five percent (5%) of the
32 
amount due for each month of delinquency, which shall be paid to the Commission.
8


1 
SEC. 16. Enforcement - For purposes of implementing the previous Section,
2 
the Commission may:
3 
(a) Impose administrative fines and penalties of not more than One hundred
4 
thousand pesos (Phpl00,000.00) for the violation of any of the provisions of this Act
5 
and/or its implementing rules and regulations (IRR).
6 
(b) Cause or initiate the criminal or administrative prosecution of violators of
7 
this Act and its IRR.
8 
(c) Cause the closure of any theater or cinema that fails or refuses to remit tax
9 
collected on the graded film for a period not exceeding fifteen (15) days, after which
10 
such period shall automatically be lifted without prejudice to the right of the
11 
Commission to cause or initiate criminal or administrative prosecution against the
12 
erring theater or cinema owners pursuant to the first paragraph of this Section.
13 
(d) Call upon representatives of the different government agencies and various
14 
organizations in the movie industry to help ensure compliance with the provisions of
15 
this Act and its IRR. For this purpose, the Commission may constitute regional sub-
16 
commissions in the cities and municipalities throughout the country composed of
17 
representatives from the government and the private sector, as may be appropriate
18 
to implement the purposes and objectives of this Act and its IRR, and they shall serve
19 
without compensation and only for such period as the Commissioner shall determine.
20 
(e) To deputize any law enforcement agency and instrumentality of the
21 
government for assistance in the implementation and enforcement of its functions and
22 
orders.
23 
SEC. 17. Film Endowment Board. - There is hereby created a Film Endowment
24 
Board (FEB), which shall provide subsidy for the production worthwhile screenplays
25 
and films submitted to the FEB for consideration.
26 
The FEB shall be composed of a Board Chairperson and seven (7) members,
27 
four (4) of whom shall come from the film industry, and the other three (3) from the
28 
arts, academe, business and other sectors as the Commission may choose to identify.
29 
The Chairperson of the Commission shall appoint the members of the FEB from among
30 
fifteen (15) nominees submitted by the members of the Commission; Provided, That
31 
the persons appointed to the FEB should be knowledgeable of the artistic and technical


1 
aspects of film-making and fully committed to the promotion and development of
2 
cinematographic art alon with world class standards and local and global marketability.
3 
The FEB Chairperson and members shall serve for a term of two (2) years and
4 
shall be eligible for re-appointment for a second term; Provided, That no member shall
5 
serve for two (2) consecutive terms; Provided, further. That if any member fails to
6 
complete a term, the person appointed to fill the vacancy shall serve only for the
7 
unexpired portion of the term of the former, unless re-appointed; Provided, fmaiiy,
8 
That the service of the unexpired portion shall not be counted as a term. The FEB
9 
Chairperson and the seven (7) members shall hold office for two (2) years.
10 
No member of the FEB shall participate in approving funding for a film in which
11 
they or any family member or relative within the fourth degree of consanguinity or
12 
affinity, have financial or any other interest; Provided, That such member shall disclose
13 
fully at the time of inhibition, the nature of interest, including actual or potential
14 
conflict of interest and the reasons thereof.
15 
SEC. 18. Fiim Endowment Evaiuation System. - The FEB shall formulate and
16 
establish a set of standards, criteria and procedures for the Film Endowment Fund
17 
Evaluation System, subject to the approval of the Commission, based on, but not
18 
limited to, the following: the aesthetic value of the screenplay submitted, the
19 
marketability of the film product, and its integral cultural personality.
20 
SEC. 19. Endowment Funding for Fiims. - The endowment funding for films by
21 
the FEB shall be subject to the following provisions:
22 
(a) Pre-qualification Procedures and Requirements - The Commission shall
23 
prescribe pre-qualification procedures and requirements for application for
24 
endowment funding; Provided, That only original screenplays which have not yet been
25 
produced, and which when filmed are at least eighty (80) minutes in length, or only
26 
films whose premiere showing shall be held in the Philippines, and those which have
27 
not had any theatrical release, free television broadcast, cable broadcast or video
28 
release in any commercial medium anywhere in the world, shall be qualified for
29 
evaluation by the Board.
30 
(b) Evaluation Period - A submitted screenplay or film shall be evaluated and
31 
approved for funding within thirty (30) days after submission. The FEB shall transmit
32 
the same to the Commission within twenty-four (24) hours from the rendering of the
10


1 
decision. The Commission shall inform the filmmaker or scriptwriter of the FEB's
2 
decision not later than one (1) week upon receipt.
3 
(c) Finality of Endowment Fund Decision - The evaluation submitted by the FEB
4 
en bancto the Commission shall be final.
5 
(d) Copyright and Distribution - Once the Commission approves a project for
6 
funding, the applicant receives an agreement that includes the Commission's policies
7 
on copyright, distribution, credits, and other matters. The Commission reserves the
8 
right to place additional conditions or stipulations deemed necessary or appropriate
9 
on an endowment award. Unless specifically provided otherwise, the following policies
10 
will apply to projects and to the use of materials produced or distributed with
11 
endowment funds:
12 
(i) Ownership, copyright, distribution, exhibition and use rights for all
13 
projects developed or distributed with endowment funds shall be vested in the
14 
producer, writer, artist or other originators of the work; Provided, That the
15 
Commission will require the applicant to assign a share of all rights, including
16 
copyright in the work, to the Commission as security for its investment. The
17 
Commission will take a fifty percent (50%) share of such rights, with fifty
18 
percent (50%) to be retained by the applicant. The Commission will require
19 
repayment of its endowment funding no later than one (1) year, at which time
20 
it will assign its share of the copyright and other rights back to the applicant or
21 
its assignee. In order to secure repayment of the Commission's development
22 
funding, applicants will not be able to assign, license, or otherwise transfer any
23 
rights to the work without the prior written approval of the Commission.
24 
(ii) Five DVD prints shall become the property of the Commission. The
25 
Commission reserves the non-exclusive right to distribute or exhibit its copy for
26 
non-commercial purposes, as it deems appropriate.
27 
(iii) The Commission reserves a royalty-free, non-exclusive and
28 
irrevocable right to reproduce, publish, or otherwise use these materials for
29 
government purposes and to authorize others to do so. All projects developed
30 
through a Commission endowment, including associated publicity or
31 
promotional materials, shall carry a statement indicating that it was funded by
32 
the Commission. There shall also be a disclaimer statement to the effect that
11


1 
the views expressed therein are not necessarily those of the Commission. The
2 
project must be promoted as a Philippine work at film festivals and in markets
3 
abroad. In co-productions, the Philippine nationality of the produced film must
4 
be mentioned together with the others.
5 
SEC. 20. Funding. - Tto provide for the initial funding of the Commission, there
6 
is hereby created a Philippine Film Commission Fund Account to be deposited in the
7 
National Treasury, which shall be included in the annual General Appropriations Act,
8 
and shali be constituted from the proceeds of a special film commission tax, which is
9 
hereby levied on all admission tickets of movie houses in the Philippines for a period
10 
of twenty (20) years.
11 
To augment its operational expenses, the Commission may:
12 
(a) Utilize the remaining twenty percent (20%) and thirty-five percent (35%)
13 
of the amusement tax collected during the period that grades "A" and "B" films are
14 
exhibited, as provided under Sections 14 and 15 hereof;
15 
(b) Impose reasonable fees and charges for services rendered; Provided, That
16 
the amount actually collected shall be deposited in the National Treasury as a special
17 
account in the General Fund, and may be used to augment its maintenance and other
18 
operational expenses and capital outlays, except the purchase of motor vehicles,
19 
subject to existing accounting and budgeting rules and regulations; and
20 
(c) Secure funding from the Philippine Amusement and Gaming Corporation
21 
(PAGCOR) for the amount necessary to subsidize the production of thirty (30) films
22 
annually.
23 
SEC. 21. Authority to Accept Donations. - The Commission may accept
24 
donations, contributions, grants, bequests, or gifts, in cash or in kind, from various
25 
sources, domestic or foreign, except from movie producers, relevant to its functions.
26 
Said donations shali be deemed automatically appropriated for purposes specified by
27 
the donor or in the absence thereof, for the programs or projects as may be approved
28 
by the Commission, subject to the usual government accounting and auditing rules
29 
and regulations; Provided, That cash donations shall not be used to fund the person
30 
also services requirements of the Commission. Any donation, contribution, subsidy, or
31 
financial aid which may be made to the Commission, shall be exempt from taxes of
12


1 
any kind and constitute an allowable deduction in full from the income of the donors,
2 
contributors, or givers for income tax purposes.
3 
SEC. 22. Assistance from other Government Agencies. - The Commission may
4 
call on any department, bureau, office, agency, or instrumentality of the government
5 
for assistance as may be needed in the performance of its functions, and upon the
6 
approval of the head of the concerned department, bureau, office, or agency.
7 
SEC. 23. Impiementing Ruies andReguiations. - The Commission shall, within
8 
ninety (90) days from the approval of this Act, issue the necessary rules and
9 
regulations to implement the provisions hereof.
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SEC. 24. Transitory Provision. - To provide continuity in the operation of the
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Commission, the incumbent officials and employees of FDCP and the CEB shall, in a
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holdover capacity, continue to perform their respective duties and responsibilities, and
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shall receive their corresponding salaries and benefits until such time that the
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organization of the Commission shall have been completed. The transition period shall
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not exceed six (6) months after the effectivity of this Act. All officials of the FDCP and
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CEB shall be deemed resigned from services upon the organization of the Commission;
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Provided, That the officials and employees who shall be laid off shall be given
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preferential treatment in appointments to new positions to which they may qualify
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under the new staffing pattern; Provided, finaiiy. That those who shall not be given
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new appointments shall be entitled to all compensation and benefits due them under
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existing laws. All books, assets, rights, privileges, records, obligations, and liabilities
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of FDCP and CEB are hereby transferred to the Commission.
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SEC. 25. Organizationai Structure. - The organizational structure and staffing
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pattern of the Commission shall be established in coordination with the Department
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of Budget and Management (DBM), and in accordance with civil service laws, rules,
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and regulations.
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SEC. 26. Annuai Report. - The Commission shall, within ninety (90) days after
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the end of every fiscal year, submit to Congress an annual report on its compliance
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with, and accomplishments under this Act, together with its 
plan and
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recommendations to improve and develop its capability to enforce the provisions of
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this Act, and a complete accounting of transactions with respect to any funds received
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28 under this Act.
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SEC. 27. Separability Clause. - If any provision of this Act is held 
unconstitutional or invalid, such holding shall not affect other provisions not affected 
thereby.
SEC. 28. Repealing Clause. - Republic Act No. 9167 is hereby repealed. All 
other laws, decrees, executive orders, issuances, rules, and regulations that are 
inconsistent with the provisions of this Act are hereby repealed or amended 
accordingly.
SEC. 29. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation.
Approved,
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