HOUSE OF EPRI

TATIVES

RECEIVED
Republic of the Philippines - 4 JUL 2016

HOUSE OF REPRESENTATIVE:

Queson City a
SEVENTEENTH CONGRESS
First Regular Sess 57 eaaseanen oar
HOUSE BILL NO.. BILLS AND INDEX SERVICE

EXPLANATORY NOTE

More than a source of entertainment, our locally produced films are a mirror of
the society. How we grow as a nation is essentially reflected by our local films. More
importantly, the Filipino movie industry is a potent tool for educating the public and is
likewise a catalyst for public opinion.

Films are part and parcel of our heritage. They are what the 1987
Constitution recognizes as the nation’s artistic and historic wealth. This is one reason
why the fundamental law provided in Article XIV, Section 14 that “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.”

In the same vein, the succeeding section provides “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.”

These tenets are the inspiration of this proposed measure.

Recently, some of our Filipino filmmakers have made waves in the arena of
filmmaking both locally and abroad. Several of their cinematic works were critically
acclaimed while actors and directors have been recognized internationally. The
Filipino film has made its mark in the prestigious Cannes International Film Festival,
Venice International Film Festival, and the British Independent Film Awards.

Brillante Mendoza is one of the most celebrated Filipino film directors being
awarded the Best Director, Prix de la mise en scéne, for his 2009 film “Kinatay” in
the Cannes Film Festival. This is just one of the many awards he received from
international bodies for his film creations.

Last May 2016, Jaclyn Jose starred in Brillante Mendoza's Palme d'Or-
nominated film “Ma’Rosa” where she won the Cannes Film Festival Award for Best
Actress. This is a historic feat because Jose is the first Southeast Asian to be
conferred with the award,


For its part, the Philippines, through the annual Cinemalaya Philippine
Independent Film Festival and other indie film festivals that screen short films and
full-length titles, have been instrumental in encouraging the creation of locally
produced independent films. These efforts have put Philippine cinemas back to their
glory days as some critics remark.

To further build on the gains of the Filipino film industry, this bill seeks to
provide incentives to all our local filmmakers who have been awarded the best film
prize or its equivalent including those that merited recognition for technical
excellence in respected international film competitions or cinema festivals. This bill
also proposes to fully exempt the acclaimed film from taxes which pertain to its
screening and commercial exhibition including those levied by local government
units.

Considering all the advantages that our local film industry can acquire from
this bill, the immediate approval of this measure is earnestly sought.

an

LUI MUND “LRAY” F. VILLAFUERTE, JR.

V


Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

AN ACT SUPPORTING THE PRODUCTION OF PHILIPPINE
INDEPENDENT FILMS BY PROVIDING INCENTIVES TO
FILMMAKERS WHO ARE GIVEN HONORS IN NOTABLE
INTERNATIONAL FILM COMPETITIONS

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

SECTION 1. Short title. - This act shall be known as the
“Philippine Independent Film Incentives Act of 2016.”

SECTION 2. Declaration of Policy. — It is the policy of the State
to promote and support the development and growth of the local film
industry, in general, and the production of independent films, in
particular. The State shall endeavour to discover, encourage, and honor
the cinematic works of Filipino filmmakers that boldly articulate and
freely interpret the Filipino experience with fresh insights and artistic
integrity

SECTION 3. Grants for Award-Winning Films. — To achieve this
law's purpose, Philippine independent films that have been awarded the
best film prize or its equivalent including those that merited recognition
for technical excellence in respected international film competitions or
cinema festivals shall be given the following incentives.

3.1 A grant of Five Million Pesos (P5,000,000.00) to the film
production or entity that produces the award winning full-length feature
or documentary film;


3.2 A grant of Three Million Pesos (P3,000,000.00) to the film
production or entity that produces the award winning short feature or
documentary film;

3.3 Full tax exemption relevant to the screening of the film and its
commercial exhibition, including those levied by local government units;

3.4 The award-winning film shall be obtain an automatic rating of
an “A" film being granted by the Cinema Evaluation Board pursuant to
Republic Act 9167 or the act creating the Film Development Council of
the Philippines.

SECTION 4. Eligibility for Grants. — To be eligible for a grant
under Section 3.1., films must be made by Filipino filmmakers who have
not yet directed more than three (3) full-length commercial feature films.
The total production budget for the full-length feature or documentary
film should not exceed Three Million Pesos (P3,000,000.00). The film
length should be between 90 to 120 minutes.

To be eligible for a grant under Section 3.2., the film must be made
by a Filipino filmmaker. The total production budget for the short feature
or documentary film should not exceed One Million Pesos
(P1,000,000.00). The film length should not be more than 20 minutes.

All films should not have been produced by commercial producers
to guarantee the filmmakers’ creative control over the film

SECTION 5. Implementing Agency. — The National Commission
for Culture and the Arts (NCCA) is hereby authorized and directed to
adopt a system to implement and carry out the provisions of this act. The
NCCA shall, within sixty (60) days from effectivity of this Act, promulgate
rules and regulations to carry out and enforce the provision of this Act.

SECTION 6. Appropriations. — A special fund amounting to Fifty
Million Pesos (P50,000,000.00) which shall be sourced from the funds of
the Philippine Amusement and Gaming Corporation (PAGCOR) is
hereby created. Other amounts as may be necessary to carry out the
provisions of this Act, are hereby authorized to be appropriated from the
National Treasury.

Section 7. Implementing Rules and Regulations. - The Film
Development Council, the Bureau of Internal Revenue, the National
Commission for Culture and the Arts, the Department of the Interior and

2


Local Government, the Cultural Center of the Philippines, the various
local government leagues, and representatives from the local film
industry shall, within ninety (90) days after the approval of this Act, issue
the necessary rules and regulations to implement the provisions hereto.

SECTION 8. Separability Clause. — If any provision or part hereof
is held invalid or unconstitutional, the remainder of the act or the
provision not otherwise affected shall remain valid and subsiding

SECTION 9. Repealing Clause. — Any law, presidential decree or
issuance, executive order, letter of instruction, administrative order, rule
or regulation contrary to or inconsistent with the provision of this Act, is
hereby repealed, modified or amended accordingly.

SECTION 10. Effe Clause. — This Act shall take effect
fifteen (15) days after its publication in at least two (2) newspapers of
general circulation.

Approved,