Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

EXPLANATORY NOTE
Article XIV of the 1987 Constitution provides that:

Section 14. The State shall foster the preservation,
enrichment, and dynamic evolution of a Filipino national culture
based on the principle of 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.

Section 16. All the country’s attistic and historic wealth
constitutes the cultural treasure of the ndtion and shall be under the
protection of the State which may regulate its disposition.

In his book, The End of National Cinema, University of the Philippines
Assistant Professor Patrick Campos claims thatat the turn of the 21s century, the
Philippine Cinema has lost its national identity due to globalization.

According to a study conducted by the National Statistical Coordination
Board in 2011, the number of films produced in the Philippine Movie Industry has
halved over the past decade. From 1960 to 1999, the Philippines produced an
average of about 140 movies each year which means that local films accounted for
20% of the domestic market. However, from 2000 to 2009, local film output fell to
an average of 73 films annually which represents only 11% of the domestic
market. The rise of independent film production has kept the industry from
declining further as independent films have accounted for more than half the total
movies made in the Philippines.

Foreign films, particularly those trom Hollywood, pose a big threat to the
local film industry. These films have huge commercial appeal and thus preferred
by moviegoers. Furthermore, locally produced films usually get bypassed in favor
of commercially viable Hollywood releases, Since theaters are concerned in
making profits, more often than not, they tend to prioritize showing Hollywood
films at the cost of limiting the viewing for local films



This bill seeks to promote the Philippine film industry by establishing
Support measures to safeguard its artistic and economic development, First, this
bill seeks to establish an annual film quota that requires all theatrical venues to
exhibit only Filipino films for a period of twenty-eight days, specifically from June
1 to 14 and from December 18 to 31 every year. The bill also guarantees all Filipino
films a full week's run in all commercial theaters. Filipino films shall also enjoy
booking priority on “payday playdates

Ifenacted, this measure will encourage the production of quality films that
will re-awaken Filipinos to our rich cultural heritage. Furthermore, it will advance
the role of Philippine cinema as a driving force for the Philippine economy. Thus,
the approval of this measure is earnestly sought.

‘ALFRED VARGAS


Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No, 2015

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

AN ACT
PROMOTING THE PHILIPPINE FILM INDUSTRY THROUGH AN ANNUAL FILM
QUOTA AND OTHER SUPPORT MEASURES

Be it enacted by the Senate and the House of Representatives of the Philippines
in Congress assembled:

SECTION 1. Title, - This Act shall be known, cited and referred to as the
“Philippine Film Industry Promotion Act.”

SECTION 2, Declaration of Policy. -\tis hereby declared that the State shall
sive priority to the arts and culture to foster in Filipinos an authentic and dynamic
sense of humanity, patriotism and nationalism. The State shall foster the
preservation enrichment, and dynamic evolufion of a Filipino national culture
based on the principle of unity in diversity!in a climate of free artistic and
intellectual expression, 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 and develop its disposition, A vital and integral part of this cultural
treasure is the Philippine cinema industry, which the State endeavors to constantly
maintain, strengthen, and improve according to global standards, but always with
due regard for contemporary Filipino cultural values. By ensuring an assured
space in the annual calendar for the exclusive exhibition of Filipino films and
providing other support measures, the State aims to develop the cinema industry
in terms of artistry, technical excellence, universal appeal, and a profound sense of
the Filipino spirit, all with the due regard for the artistic, moral, educational and
economic well-being of directors, writers, actors, producers, crew, theater owners
and operators, distributors, suppliers and allied industries, and other
stakeholders, and particularly the Filipino movie audience

SECTION 3. Definition of Terms, For purposes of this Act, the following
terms shall mean:

a. Filipino Film means a film -
i Which is wholly or mainly produced in the Philippines;

ii, All'the studio scenes of which have been photographed
or filmed in the Philippines; and


|
|
iii, Which has been produced bya company incorporated
in the Philippines

b. Film ~ A series of pictures projected in a screen in rapid
succession, with objects shown in successive positions slightly
changed so as to produce the optical effect of a continuous
picture in which the objects move, whether the picture be
black and white or colored, silent or with accompanying
sound, on whatever medium and with whatever mechanism,
equipment, and/or technology they are projected, and in
whatever material device they are preserved or recorded for
instant projection, for the purpose of this Act the material in
which the motion picture is contained, preserved, or recorded,
forms an integral part of the film subject of this Act.

}

|

SECTION 4. Annual Film Quota. There is hereby established by an annual
film quota under which only Filipino films shall be publicly exhibited in all
commercial theaters in the Philippines as well as in all theatrical venues operated
by the Film Development Council of the Philippines (FDCP), the Cultural Center of
the Philippines (CCP) and the National Comm ion for the Culture and the Arts
(NCCA), and any such other cinematic venues, whether privately or government.
operated, for an annual period of twenty-eight (28) days, namely from the 1 to
14% of June, and from the 18" to the 31% of December. The aforesaid dates shall
be without prejudice to any such additional dates within the calendar year to be
determined by the President of the Philippines following the objectives of this Act.
Subject to the exception under Section 7, Presidential Decree No. 1986, in relation
to Section 3 of this Act, the exhibition of any film, trailer, or publicity material
pursuant to the annual film quota shall be subject to review, classification, and
enforcement by the Movie and Television Review and Classification Board
(MTRCB), Operators of movie theaters and sithilar venues shall give priority to
publicity materials of films intended for exhibition during the above quota sub-
periods as well as such other periods determined by the President of the
Philippines as stated above within two months before the respective first days
thereof

SECTION S. Guaranteed Week's Run and Playdate Prioring. All Filipino
films shall be guaranteed a full week's run, ie, seven (7) days, in all commercial
theaters and venues counted from opening day, regardless of box-office potential
or performance. In addition, all Filipino film shall enjoy booking priority on so-
called “payday playdates”, ic. exhibition release dates that fall on, or are close to,
the 15% or end of any calendar month.

SECTION 6. Organization of Film Festivals. The establishment herein of
the annual film quota shall be without prejudice i the organization of film festivals

and screenings to coincide with any or both of the sub-periods, or such additional
periods to be determined by the President of the'Philippines as stated above, under
Section 3 hereof, and consistent with the objectives of this Act. The said festivals
may be organized, consistent with their respective statutory mandates, by the


FDCP, CCP and NCA, singly/collectively and /or in collaboration with film industry
stakeholders, cultural associations, and educational institutions as well as with
other government agencies, such as but not limited to the MTRCB in regard to
content classification and audience sensitivity, and local government. units,
including any leagues or other aggrupations thereof; provided that: nothing herein
shall be construed to prevent local government units to singly or collectively
and/or in collaboration with the other entities, whether private or governmental,
to organize their own festivals to coincide with and take advantage of the film
quota established herein. The organizers of film festivals referred to in this section
shall have the authority, insofar as they are allowed by law, to formulate their own
rules and regulations, for the conduct thereof, the selection of entries and
Participants, the granting of awards and, incentives, the designation of
beneficiaries, sources of funds, and such other aspects of holding a film festival
whether national, regional, provincial or local jn scope; provided: that such rules
and regulations shall always ensure transparency in the selection and awarding
Process, as well as the prompt publication, both online and in print, of the box office
performance of all entries during any festival no later than seven after its
termination

SECTION 7. Implementing Rules and Regulations. The Chairpersons of
the FDCP, NCCA, and CCP, in coordination with the MTRCB, the Film Academy of
the Philippines, cinema-related guilds, local government units and other relevant
agencies, entities, institutions, and associations interested in the development of
the Philippine film industry shall promulgate the necessary rules and regulations
within one hundred twenty (120) days from the effectivity of date of this Act,
including any guidelines for any festivals or screening, applications and awards,
incentives, source of funds, and monitoring and compliance measures.

SECTION 8. Separability Clause. If any provision of the Act is declared
invalid, other parts or provisions hereof not affected thereby shall remain and
continue to be in full force and effect.

SECTION 9. Repealing Clause. All laws, decrees, executive orders,
presidential proclamations, rules and regulations or parts thereof contrary to or
inconsistent with the provisions of the Act are repealed or modified accordingly.

SECTION 10, Effectivity Clause. This Act shall take effect fifteen (15) days
after its publication in the Official Gazette and two (2) newspapers of general
circulation in the Philippines,

Approved,