FIFTEENTH CONGRESS OF THE REPUBLIC) 
',"-'. 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
H} 
SEfD 29 P!.l:57 
SENATE 
Senate Bill No. 2549 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Pursuant to the constitutional guarantee on freedom of expression and on the 
principle of giving priority to arts and culture to foster patriotism and nationalism, 
accelerate social progress, and promote total human liberation and development, the 
State shall promote and support the development and growth of the local film industry 
as an aesthetic and cultural medium for a better understanding and appreciation of 
Filipino social values and national identity and as an indispensable economic partner in 
nation-building. 
Moreover, the film industry has become a significant social institution that exerts 
tremendous influence in the lives of our people and serves as a vital tool for socio-
cultural changes in our society. There is thus a need for the government to integrate 
and rationalize all existing and planned policies and programs designed to encourage 
the preservation, growth, development and upgrading of the art and science of film 
making in the country, to the end that the film industry will not only be viable and 
profitable commercial endeavor intended for public entertainment, but an h,strument to 
enhance the quality of life thru examination of the human and social conditions, 
c;ontribute to the dignity and nobility of the human spirit, accelerate the artistic, scientific 
and socio-cultural advancement of the nation, promote patriotism, nationalism, total 
human liberation and development, and reinforce the national endeavor of social and 
economic development and progress for the Philippines. 
Furthermore, there is a need to continue supporting the declared State policy to 
provide support and assistance to the local film industry, specifically for the purpose of 
achieving sound, effective and progressive integration and correlation of the business, 
economic and commercial functions and operations of the said industry, thereby making 
the said industry a truly dynamic and vigorous instrument for national cultural growth 
and development and vital social institution which will enhance the artistic, scientific and 
socio-cultural heritage of the nation. 
The immediate passage of this bill is thus earnestly requested. 
OY EJERCITO ESTRAD~ 
Senator 
/ 


. :,." 
( 
FIFTEeNTH CONGRESS OF THE REPUBLIC) 
~F'FtCE ()~ r r ,t 
~)' (nFL p"~ 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 2 5 4 9 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
Hl 
SE!" 29 P 4 :57. 
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: 
Section 1. Short Title. - This Act shall be known as the "Local Film Industry 
Development Act of 2010". 
Section 2. State Policy. - Pursuant to the constitutional guarantee on freedom of 
expression and on the principle of giving priority to arts and culture to foster patriotism 
and nationalism, accelerate social progress, and promote total human liberation and 
development, the state shall promote and support the development and growth of the 
local film industry as an aesthetic and cultural medium for a better understanding and 
appreciation of Filipino social values and national identity and as an indispensable 
economic partner in nation-building. 
To achieve this end, the State shall formulate and implement policies and 
programs to upgrade the art and craft of film making and encourage the production of 
films for commercial purposes, intended for public entertainment, that seek to enhance 
the quality of life, examine the human and social conditions and contribute to the dignity 
and nobility of the human spirit 
Section 3. Creation of the Philippine Film Commission. - To implement the policies 
and attain the objectives enunciated in this Act, the Film Development Council of the 
Philippines (FDCP) created under Republic Act 9167 is hereby reorganized into the 
Philippine Film Commission hereinafter referred to as "Commission". The Commission 
shall be an independent agency. It shall render an annual report of its activities and 
achievements to the President and to the Congress and shall have its principal offices in 
Metropolitan Manila. 
Section 4. Composition of the Commission. - The Commission shall be composed of 
a Chairperson and seventeen (17) members, eight (8) of whom shall be regular 
members while the other nine (9) shall be in an ex-officio capacity: Provided, That only 
the regular members are entitled to vote, while the Chairperson shall vote 'only in case 
of tie: Provided further,That the Chairperson shall be appointed by the President from 
the lists of nominees submitted to him by the regular members; Provided finally, That 
1 


the Chairperson shall be a person of proven administrative proficiency, independence, 
knowledgeable of the technical and artistic aspects of the film production and fully 
committed to the promotion and development of the Philippine Cinema as art. 
The eight (8) regular members shall be as follows: 
1. A regular representative of the Directors' Guild of the Philippines, Inc; 
2. A regular representative of the Nagkakaisang Manggagawa ng Pelikulang 
Pilipino; 
3. A regular representative of the Mowelfund; 
4. A regular representative of the Actors' Guild of the Philippines, Inc.; 
5. A regular representative from the National Cinema Association of the 
Philippines; 
6. A regular representative from the academe; 
7. A regular representative from the local film producers. 
8. A regular representative from the Independent Film cooperative. 
The nine (9) members who shall be ex-officio members of the Commission are 
the following: 
1. The Secretary of the Department of Trade and Industry or his/her duly 
designated regular representative; 
2. The Secretary of the Department of Education or his/her duly designated 
regular representative; 
3. The Secretary of the Department of Tourism or his/her duly deSignated 
regular representative; 
4. The Secretary of the Department of Foreign Affairs or his/her duly designated 
regular representative; 
5. The Secretary of the Department of Interior and Local Government or his/her 
duly designated regular representative; 
6. The Secretary of the Department of Finance or his/her duly designated 
regular representative; 
7. The Director General of the Film Academy of the Philippines or his/her duly 
deSignated regular representative; 
8. The President of the Cultural Center of the Philippines or his/her duly 
deSignated regular representative; 
9. The head of the Cinema Committee of the National CommiSSion for Culture 
and the Arts or his/her duly designated regular representative. 
Section 5. Term of Office. - The Chairperson and the eight (8) regular members shall 
hold office for a term of three (3) years, unless sooner removed by the Commission: 
2 


• 
Provided, That they shall be eligible for reappointment after the expiratio~ of their terms: 
Provided further, That if a member fails to complete his/her term, the person appointed 
to fill the vacancy shall serve only the unexpired portion of the vacated term whom 
he/she succeeds; Provided finally, That such service of the unexpired portion shall not 
be counted as a term. 
Section 6. Powers and Functions. - The Commission shall have the following powers 
and functions: 
1. To coordinate :all programs and policies of government departments and 
agencies that are related to the development of the local film industry 
2. To establish and implement a Cinema Evaluation System in accordance with the 
criteria set forth in this Act; 
3. To develop and implement an incentive and reward system for the producers 
based on merit to encourage the production of quality films; 
4. To promote, organize, encourage or support a more scientific system in which 
local films can be marketed locally and internationally; 
5. To develop and promote programs to enhance the skills and expertise of Filipino 
film artists, technicians and workers through continuous craft and technical 
upgrading as well as attitude training; 
6. To set up and operate a one-stop shop to assist foreign and local producers 
making films in the country; 
7. To develop and implement a two-pronged program that will encourage the 
production of quality films; 
8. To encourage, support and coordinate the holding of national and regional film 
festivals exclusively of Filipino films; 
9. To establish, organize, operate and maintain international film festivals, 
exhibitions and similar activities, including an ASEAN film festival and market; 
10. To encourage and facilitate participation in international film festivals and to 
ensure the continuous presence of Philippine films in international markets. 
11. To invest funds and other assets in such activities or undertakings that shall 
directly or indirectly promote development of the film industry, including the 
production of films, and other terms and conditions as it may deem wise and 
desirable; 
12. To ensure the establishment of a film archive in order to conserve and protect 
film negatives and/or prints as part of the nation's historical, cultural and artistic 
heritage; 
13. To take measures to acquire for 'safeguarding and preservation any part or all of 
the national film production, including the institution of mandatory deposit 
systems which is hereby expressly authorized; 
14. To set up mechanics to address the welfare and working conditions of local film 
workers, a concern to be implemented in coordination with the Mowelfund and 
the Nagkakaisang Manggagawa ng Pelikulang Pilipino; 
3 


15. To promote the establishment of cinema clubs in barangays and schools in 
coordination with the Department of Education and the Commission on Higher 
Education and to develop elective courses related to film at the coll~giate levels 
as part of a film audience development program; 
16. To prescribe the procedures for the exercise of its powers and functions as well 
as the performance of its duties and responsibilities; 
17. To determine the Commission's organizational structure and staffing pattern and 
appoint its officers and employees in accordance with Civil Service laws, rules, 
and regulations; 
18. To promote the development and growth of the independent film movement; 
19. To acquire, manage and hold such real and personal property as may be 
necessary to carry out the purpose and objectives of this Act; and 
20. To perform such other functions as may be necessary to carry out the provisions 
of this Act. 
Section 7. Meetings. - The Commission shall meet at least (>nce a month or as often as 
necessary at the call of the Chairperson or majority of the members. A majority of the 
regular members of the Commission shall constitute a quorum to do business. The 
members of the Commission shall be entitled to honoraria based on existing 
government accounting and auditing rules and regulations. 
Section 8. The Chairperson. - The Chairperson shall be the Chief Executive Officer 
and shall exercise overall administrative supervision to ensure the effective and efficient 
implementation of the pOlicies lay down by the Commission. The Chairperson shall have 
the same rank and salary as an Undersecretary of a Department as provided for in the 
Salary Standardization Law. 
Section 9. Functions of the Chairperson. - The Chairperson shall have the following 
functions: 
1. Execute and administer the policies, plans and programs approved by the 
CommiSSion; 
2. Direct and supervise the operations and internal affairs of the Commission; 
3. Establish the internal organization and administrative procedures of the 
Commission; 
4. Recommend to the Commission the appointment, transfer or detail, 
suspension, dismissal for cause of its subordinate officials and employees; 
and 
5. Such other functions, which the Commission may assign from time to time. 
Section 10. The Executive Director. - The Chairpersol1 shall be assisted by an 
Executive Director to be appOinted by the Commission upon the recommendation of the 
Chairperson. The Executive Director shall have a salary comparable to that equivalent 
rank under the Revised Compensation and Position Classification System and shall be 
co-terminus with the Chairperson unless sooner removed for cause. 
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Section 11. Cinema Evaluation Board. - The Commission will absorb the Cinema 
Evaluation Board of the FDCP, hereinafter referred to as the "CEB", which shall 
evaluate and grade films submitted to the Commission, subject to the following: 
a) Composition, Qualifications and Appointment - The CEB shall be composed of 
a Soard Chairperson and twenty (20) members, ten (10) of whom shall come 
from the film industry, and the other ten (10) from the arts, academe, business 
and such other sectors as the Commission may choose to identify. The 
Chairperson of the Commission shall appoint the members of the CEe from 
among thirty (30) submitted by the members of the Commission: Provided, That 
the persons appointed to the CES should be knowledgeable of the artistic and 
technical aspects of film making and fully committed to the promotion and 
development of cinematographic art along world class standards and global 
marketability. 
. 
b) Term of Office - The CES Chairperson and members shall serve for a term of 
two (2) years and shall be eligible for re-appointment for a second term: 
Provided, That no member shall serve for more than two (2) consecutive terms: 
Provided further, if any member fails to complete a term, the person appointed to 
fill the vacancy shall serve only for the unexpired portion of the term of the 
person whom he/she succeeds, unless re-appointed: Provided finally, That the 
service of the unexpired portion shall not be counted as a term. In the initial 
apPOintments, the CES Chairperson and the twenty (20) members shall hold 
office for two (2) years. 
c) Participation - No member of the CEa shall participate in the grading of a film in 
which he or she or any member of his or her family or any relative within the 
fourth degree of consanguinity or affinity shall have financial or any other interest: 
Provided, That such member shall disclose fully at the time of 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. 
Section 12. Cinema Evaluation System. - The CES shall formulate and establish a set 
of standards and criteria and procedures for the Cinema Evaluation System, subject to 
the approval of the Commission, primarily based on but not limited to the following: 
direction; screenplay; cinematography; editing; production design; musical scoring, 
sound and acting. 
Section 13. Grading of Films. - The grading of films by the CEB shall be subject to the 
following provisions: 
(a) Pre-qualification procedures and reqUirements - The Commission shall prescribe 
pre-qualification procedures and requirements for application for grading: 
Provided, That only films whose premiere showing shall be held in the 
Philippines, and those which have not had any theatrical release, free television 
broadcast, cable broadcast or video release in any commercial medium 
anywhere in the world shall be qualified for evaluation by the board; Provided 
further, That the CES should evaluate and grade only films that are intended for 
theatrical and other forms or exhibition that will charge admission fees and which 
are at least eighty (80) minutes in length and that the producer shall submit 
his/her film for grading at least seven (7) days before its scheduled day of play 
date. 
(b) Evaluation Period - A film shall be reviewed, evaluated and graded by the CES 
within five (5) working days after submission of the application. The CEB shall 
transmit its decision to the Commission within twenty four (24) hours from the 
5 


• 
rendering of the decision. The' Commission shall inform the producer of the 
CEB's decision not later than twenty four (24) hours upon receipt therewith. 
(c) Grading of Firms - The CEB shall review and grade a film submitted for grading. 
The CEB and the Commission shall, at any time neither be allowed to cut, delete, 
shorten or modify in any manner films being graded by the CEB, nor shall they 
be allowed to suggest cuts or deletion or any other form of modification to the film 
makers and pre requisites for earning the CEB grading. Such grading' shall be 
given due weight and consideration by the Movie and Television Review and 
Classification Board (MTRCB), the Optical Media Board (OMB), the -Department 
of Trade and Industry (DTI) and other government agencies for the graded film's 
viewing, reproduction, exportation and other purposes. 
(d) Reconsideration to the Board En Banc - The action taken by the CEB on the film 
submitted for evaluation and grading may be reconsidered upon motion to the 
CEB en bane within twenty four (24) hours from receipt of notice of said action, 
and the CEB en banc shall render its decision within forty eight (48) hours from 
its receipt of the motion for reconsideration. The CEB en banc must be 
composed of at least majority of the CEB. 
(e) Finality of Grading - The grading submitted by the CEB en banc to the 
Commission shall be final. 
Section 14. Privileges of Graded Films. -
Films which have obtained an "A" or "B" 
grading from the Commission pursuant to Sections 11 and 12 of this Act shall be 
entitled to the following privileges: 
Amusement Tax Reward. - A grade "A" or "B" shall entitle the producer to an 
incentive equivalent to the amusement tax imposed and collected on the graded films 
by cities and municipalities in Metro Manila and other highly urbanized and independent 
component cities in the Philippines pursuant to Sections 140 and 151 of the Republic 
Act No. 7160 at the following rates: 
1. For grade "A" Films - Eighty (80%) percent of the amusement tax collected 
on such films. The remaining twenty (20%) percent shall accrue to the funds 
of the Commission; and 
2. For grade "B" Films· Sixty five (65%) percent of the amusement tax collected 
on such films. The remaining thirty five (35%) percent shall accrue to the 
funds of the Commission:' Provided, That thirty (30%) percent of the 
amusement tax rebates shall accrue to the talents and workers inVOlved in the 
film that was graded A or B, with the other seventy (70%) percent accruing to 
the film producer. 
Section 15. Amusement Tax Deduction and Remittances. - All revenues from the 
amusement tax on the graded film which may otherwise accrue to the cities and 
municipalities in M~tro Manila and highly urbanized and independent comporient cities 
in the Philippines pursuant to Sections 140 of the Republic Act No. 7160 during the 
period the graded film is exhibited, shall be deducted and withheld by the'proprietors, 
operators or lessees of theaters or cinemas and remitted within thirty (30) days from the 
termination of the exhibition to the Commission which shall reward the corresponding 
amusement tax to the producers and the talents and workers of the graded film within 
fifteen (15) days from receipt thereof. 
Proprietors, operators or lessees of theaters or cinemas who fail to remit 
amusement tax proceeds within the prescribed period shall be liable to a surcharge 
6 


equivalent to five (5%) percent of the amount due for each month of delinquency which 
shall be paid to the Commission. 
Section 16. Enforcement. - For purposes of implementing the previous Section, the 
Commission may: 
1. Impose administrative fines and penalties of not more than One hundred 
thousand pesos (Php100,OOO.00) for the violation of any of the provisions of this 
Act and/or its implementing rules and regulations issued by the Commission. 
2. Cause or initiate the criminal or administrative prosecution of violators of this act 
and its implementing rules and regulations. 
3. Cause the closure of any theater or cinema that fails or unreasonably refuse to 
remit tax collected on the graded film for a period not exceeding fifteen (15) days 
after which such period shall automatically be lifted without prejudice to the right 
of the Commission to cause or initiate criminal or administrative prosecution 
against the erring theater or cinema owners pursuant to paragraph Z of this 
section. 
4. Call upon representatives of the different government agencies and other various 
organizations in the movie industry to help ensure compliance with the provisions 
of this act and its implementing rules and regulations. 
For this purpose, the Commission may constitute regional sub-commissions in 
the cities and municipalities throughout the country composed of representatives 
from the government and from the private sector as may be appropriate to 
implement the purposes and objectives of this Act and its implementing rules and 
regulations and they shall serve without compensation and only for such period 
of time as the Commissioner shall determine; 
5. To deputize any law enforcement agency and instrumentality of the government 
for assistance for the implementation and enforcement of its functions and 
orders. 
Section 17. Film Endowment Board. - There is hereby created a Film Endowment 
Board hereinafter referred to as the FEB which shall provide subsidy for the production 
of worthwhile screenplays and films submitted to the FEB for consideration, subject to 
the following: 
. 
a. Composition, Qualifications and Appointment - The FEB shall be composed 
of a Board Chairperson and seven (7) members, four (4) of whom shall come 
from the film industry, and the other three (3) from the arts, academe, 
business and other sectors as the Commission may choose to identify. The 
Chairperson of the Commission shall appoint the members of the FEB from 
among fifteen (15) nominees submitted by the members of the Commission, 
Provided that the persons appointed to the FEB should be kn~wledgeable of 
the artistic and technical aspects of filmmaking and fully committed to the 
promotion and development of cinematographic art along world class 
standards and local and global marketability. 
b. Term of Office - The FEB Chairperson and members shall serve for a term of 
two (2) years and shall be eligible for re-appointment for a second term; 
Provided, That no member shall serve for two (2) consecutive terms; 
Provided further, That if any member fails to complete a term, the person 
appointed to fill the vacancy shall serve only for the unexpired portion of the 
term of the person whom he/she succeeds, unless re-appointed: Provided 
7 


• 
finally, That the servic;:e of the unexpired portion shall not be counted as a 
term. The FEB Chairperson and the seven (7) members shall hold office for 
two (2) years. 
c. Participation - No member of the FEB shall participate in approving of funding 
for a film in which he or she or any member of his or her family or any relative 
within the fourth degree of consanguinity or affinity shall have financial or any 
other interest: Provided, That such member shall disclose fully at the time of 
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. 
Section 18. Film Endowment Evaluation System. - The FEB shall formulate and 
establish a set of standards and criteria and procedures for the Film Endowment Fund 
Evaluation System, subject to the approval of the Commission, based on but not limited 
to the following: the aesthetic value of the screenplay submitted; the marketability of the 
film product; and its integral cultural personality. 
' 
Section 19. Endowment Funding for Films. - The endowment funding for films by the 
FEB shall be subje~t to the following provisions: 
a. Pre-qualification procedures and requirements -
The Commission shall 
prescribe pre-qualification procedures and requirements for application for 
endowment funding: Provided, That only original screenplays which have not 
yet been produced and which when filmed are at least eighty (80) minutes in 
length or only films whose premiere showing shall be held in the Philippines, 
and those which have not had any theatrical release, free television 
broadcast, cable broadcast or video release in any commercial medium 
anywhere in the world shall be qualified for evaluation by the board. 
b. Evaluation period - A submitted screenplay or film shall be evaluated and 
approved for funding within thirty (30) days after submission. The FEB shall 
transmit it to the Commission within twenty four (24) hours from the rendering 
of the decision. The Commission shall inform the filmmaker or scriptwriter of 
the FEB's decision not later than one (1) week upon receipt herewith. 
c. Finality of endowment fund decision - The evaluation submitted by the FEB 
en banc to the Commission shall be final. 
d. Copyright and distribution - Once the Commission approves a project for 
funding, the applicant receives an agreement that includes the Commission's 
policies on copyright, distribution, credits, 
and 
other matters. The 
Commission reserves the right to place additional conditions or stipulations 
deemed necessary or appropriate on an endowment award. Unless 
specifically provided otherwise, the following policies will apply to projects 
and to the use of materials produced or distributed with endowment funds. 
1. 
Ownership, copyright, distribution, exhibition, and use rights for all 
projects developed or distributed with endowment funds shall be 
vested in the producer, writer, artist, or other originator of the work 
provided that the Commission will require the applicant to assign a 
share of all rights including copyright in the work to the Commission 
as security for its investment. The Commission will take a fifty (50%) 
percent share of such rights, with fifty (50%) percent to be retained 
by the applicant. The Commission will require repayment of its 
endowment funding no later than one (1) year, at which time the 
Commission will assign its share of the copyright and other rights 
back to the applicant or its assignee. In order to secure repayment of 
8 


the Commission's development funding, applicant will not be able to 
assign, license or otherwise transfer any rights to the work without 
the prior written approval of the Commission. 
2. 
Five DVD prints shall become property of the Commission. The 
Commission reserves the non-exclusive right to distribute or exhibit 
its copy for non-commercial purposes, as it deems appropriate. 
3. 
The Commission reserves a royalty-free, non-exclusive, and 
irrevocable rights to reproduce, publish, or otherwise use these 
materials for government purposes and to authorize others to do so. 
All projects developed through a Commission endowment, including associated 
publicity or promotional materials, shall carry a statement indicating that it was funded 
by the Commission. There shall also be a disclaimer statement to the effect that the 
views expressed therein are not necessarily those of the Commission. The project must 
be promoted as a Philippine work at film festivals and in markets abroad. In co-
productions, the Philippine nationality of the produced film must be mentioned together 
with any others. 
Section 20. Funding. - In order to provide for the initial funding of the Commission, 
there is hereby created a Philippine Film Commission Fund Account to be deposited in 
the National Treasury which shall be included in the annual General Appropriations Act 
and shall be constituted from the proceeds from a speCial film commission tax of two 
pesos (Php 2.00) which is hereby levied on all admission tickets of movie houses in the 
Philippines for a period of twenty (20) years; 
To augment ,its operational expenses, the Commission may: 
1) Utilize the remaining twenty (20%) percent and thirty five (35%) percent of the 
amusement tax collected during the period grade "A" and "8" films are exhibited, 
as provided under Sections 14 and 15 hereof; and 
2) Impose reasonable fees and charges for services rendered: Provided, that the 
amount actually collected shall be deposited in the National Treasury as a 
special account in the General Fund and may be used to augment its 
maintenance and other operational expenses, and capital outlays except the 
purchase of motor vehicles, subject to existing accounting and budgeting rules 
and regulations; 
3) Secure funding from the Philippine Amusement and Gaming Corporation for the 
amount necessary to subsidize the production of thirty (30) films annually. 
Section 21. Authority to Accept Donations. - The Commission may accept donations, 
contributions, grants, bequest or gifts, in cash or in kind, from various sources, domestic 
or foreign, except from movie producers relevant to its functions. Said donations shall 
be deemed automatically appropriated for purposes specified by the donor or in the 
absence thereof, for the programs or projects as may be approved by the Commission 
subject to the usual government accounting and auditing rules and regulations: 
Provided, That cash donations shall not be used to fund the personal services 
requirements of the Commission. Any donation, contribution, subsidy or financial aid 
which may be made to the Commission shall be exempt from taxes of any kind and 
constitute allowable deduction in full from the income of the donors, contributors or 
givers for income tax purposes. 
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Section 22. Assistance from other Government Agencies. - The Commission may 
call on any department, bureau, office, agency or instrumentality of government for such 
direct assistance as may be needed in the performance of its functions. 
Section 23. Implementing rules and Regulations. - The Commission shall, within 
ninety (90) days after the approval of this Act, issue the necessary rules and regulations 
to implement the provisions hereof. 
Section 24. Transitory Provision. -
To provide continuity in the operation of the 
Commission, the incumbent officials and employees of FDCP and the CEB shall, in a 
holdover capacity, continue to perform their respective duties and responsibilities and 
shall receive their corresponding saiaries and benefits until such time that the 
organization of the Commission shall have been completed. The transition period shall 
not exceed six (6) months after effectivity of this Act. 
All officials of the FDCP and CEB shall be deemed resigned from services upon 
the organization of the Commission: Provided, That the officials and employees who 
shall be laid off shall be given preferential treatment in appointments to new pOSitions to 
which they may qualify under the new staffing pattern; Provided finally, 'That those who 
shall not be given new appointments shall be entitled to all compensation and benefits 
due them under existing laws. 
All books, assets, rights, privileges, records, obligations and liabilities of FDCP 
and CEB are hereby transferred to the Commission. 
Section 25. Organization Structure. - The organizational structure and staffing pattern 
of the Commission shall be established in coordination with the Department of Budget 
and Management (DBM) and in accordance with Civil Service laws, rules, and 
regulations. 
Section 26. Annual Report. - The Commission shall, within ninety (90) days after the 
end of every fiscal year, submit to Congress an annual report on its compliance with, or 
accomplishments under this act, together with its plans and recommendations to 
improve and develop its capability to enforce the provisions of this Act, and a complete 
accounting of transactions with respect to any funds received under this Act. 
Section 27. Repealing Clause. - Republic Act No. 9167, otherwise known as the Film 
Development Council of the Philippines Act, is hereby repealed. 
All other laws, decrees, orders, issuances, rules and regulations which are 
inconsistent with the provisions of this Act are hereby repealed, amended or modified 
accordingly. 
Section 28. Separability Clause. - If, for any reason, any proviSion of this Act, or any 
part thereof, is declared invalid or unconstitutional, all others sections or provisions not 
affected thereby shall remain in force and effect. 
Section 29. Effectivity. -
This Act shall take effect fifteen (15) days after publication in 
two (2) newspapers of national circulation. 
Approved, 
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