J

oe PRESEN

SIXTEENTH CONGRESS )

REPUBLIC OF THE PHILIPPINES )

FIRST REGULAR SESSION ) fs * RECEIVED. "%
{© owe 11 JUL 2013

HOUSE OF REPRESENTATIVES \ S Ne
\ 2

Introduced by Representative Rufus B. Rodrigugzand/
Representative Maximo B. Rodriguez, Jr.

tine
House Bill No., 135 2
EXPLANATORY NOTE

Under Section 21, Article Il of the 1987 Constitution, it is the policy of the
State to promote comprehensive rural development.

On the other hand, paragraph (2), Section 1 of Article XII of the
fundamental law of the land provides that “The State shall promote
industrialization and full employment based on sound agricultural development...
through industries that make full and efficient use of human and natural
resources..." Paragraph 3 of the above-mentioned Article likewise states that “in
the pursuit of these goals, all regions of the country shall be given an optimum
opportunity to develop”.

The geographical location of the Philippines is a focal point for
manufacture, industrial and shipping services considering that it serves as the
bridge between Northeast and Southeast Asia. The Subic Bay Metropolitan
Authority (SBMA), itself a special economic and free-port area, is a major center
for trade, commerce, manufacture and industry.

Along this line, this bill seeks to establish the legal framework and
mechanism for the integration, coordination and creation of a publishing hub in
SBMA. Thus, through the bill, a special economic zone for the book publishing
industry shall be established in SBMA, to be known as the Philippine Book
Publishing Industry Development Center, otherwise known as the Book City. The
Book City shall be allotted a one hundred (100) hectares at SBMA, located at
Olongapo City and Subic, Zambales, the specific metes bound of which shall be
more particularly defined in a presidential proclamation that shall be issued for
this purpose.

The Book City is envisioned to house among others the following facilities:
(a) The offices of the National Library; (b) the offices of the National Book
Development Board (NBDB) created under R.A. No. 8047; (c) The Book
Development Academy; (d) The Book Publishing Expo Center; (e) The Book
Publishing Convention Center; (f) The Book City Hostel; (g) The Publishing
Recreation Center; (h) The National Paper Recycling Plant; and (i) The offices,



plants and warehouses of the publishers, printers, book traders or booksellers
and other related activities including their bookstores, if any.

Through the Book City, it is envisioned that publishing will be an
indispensable element of the national economy and an industry of national
interest and importance that must be hamessed as an engine of socio-economic
and industrial growth to provide investment, foreign exchange and employment,
and an enhanced sense of national pride, for all Filipinos.

It must be pointed out that as provided for in Section 2 of R.A. No. 8047,
otherwise known as the Book Publishing Industry Development Act, it is declared
as a state policy that the book publishing industry has a significant role in
national development, considering that books which are its products are
instrumental in the citizenry's intellectual, technical and cultural development —
the basic social foundation for the economic and social growth of the country.
Books are the most effective and economical tools for achieving educational
growth, for imparting information and for recording, preserving, and
disseminating the nation’s cultural heritage

Accordingly, is hereby declared a policy of the State to promote the
continuing development of the book publishing industry, with the active
participation of the private sector, to ensure an adequate supply of affordable
quality-produced books not only for the domestic but also for the export market

In pursuance of these policies, this bill encourages, promotes, induces
and accelerates a sound and balanced industrial, economic, and social
development of the book publishing industry in order to make the Philippine
publishing industry globally competitive and world class. Moreover, the
establishment of the Book City will provide more jobs to the people especially
those in the rural areas, increase their productivity and their individual and family
income, and thereby improve the level and quality of their living condition through
the establishment, among others, of book publishing development center and
through measures that shall effectively attract legitimate and productive private
investments.

It is also envisioned that the Book City reinvigorates the publishing and
printing industries supportive of the global publishing community and those in
related industries.

Moreover, the establishment of an economic zone devoted to the
development of publishing, printing, and sale of books will also pave the way for
the development of electronic media as well as diversification of the digital
publications such as e-book and interactive CDRoms to spur renewed interest in
reading in the next generations.

The Philippines through the representation of Philippine Educational
Publishers Association (PEPA) is a member of the International Publishers


Association (IPA), Asia Pacific Publishers Association (APPA) and Asean Book
Publishers Association (ABPA). Thus, a Book City would facilitate trade
relationship among member-countries.

Finally, this bill if quickly passed into law will turn the Philippines into a

publishing hub in Asia and the Pacific Region. a

RUFUS B. RODRIGUEZ

a a JR.


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

52
House Bill No,_ 1852

AN ACT
PROVIDING FOR THE LEGAL FRAMEWORK AND MECHANISMS FOR THE
CREATION, OPERATION, ADMINISTRATION, AND COORDINATION OF THE
PHILIPPINE BOOK PUBLISHING INDUSTRY DEVELOPMENT CENTER,
OTHERWISE KNOWN AS THE “BOOK CITY”, CREATING FOR THE
PURPOSE, THE BOOK PUBLISHING ENTERPRISE ZONE AUTHORITY
(BPEZA) 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 and cited as “Book City Act
of 2013”.

THE POLICY, PURPOSES, INTENTS AND OBJECTIVES.

SEC. 2. Declaration of Policy. — It is the policy of the State that publishing is an
indispensable element of the national economy and an industry of national
interest and importance, such that it must be harnessed as an engine of socio-
economic and industrial growth to provide investment, foreign exchange and
employment, and an enhanced sense of national pride, for all Filipinos.

It is recognized that the book publishing industry has a significant role in
national development, considering that books which are the book publishing
industry has a significant role in national development, considering that books
which are its products are instrumental in the citizenry's intellectual, technical and
cultural development — the basic social foundation for the economic and social
growth of the country. Books are the most effective and economical tools for
achieving educational growth, for imparting information and for recording,
preserving, and disseminating the nation’s cultural heritage.

Accordingly, is hereby declared a policy of the State to promote the
continuing development of the book publishing industry, with the active
participation of the private sector, to ensure an adequate supply of affordable
quality-produced books not only for the domestic but also for the export market.


In pursuance of these policies, this bill encourages, promotes, induces
and accelerates a sound and balanced industrial, economic, and social
development of the book publishing industry in order to make the Philippine
publishing industry globally competitive and world class. Moreover, the
establishment of the Book City will provide more jobs to the people especially
those in the rural areas, increase their productivity and their individual and family
income, and thereby improve the level and quality of their living condition through
the establishment, among others, of book publishing development center and
through measures that shall effectively attract legitimate and productive private
investments

SEC. 3. Purposes, Intents and Objectives. — It is the purpose, intent and
objective of this Act:

(a) To establish the legal framework and mechanism for the integration,
coordination and creation of a publishing hub in SBMA;

(b) To encourage the transfer and/or putting up of offices, establishments
and plants engaged in the book publishing industry and related
business or activities in the Book City, where highly trained workers
and efficient services will be available not only for domestic enterprises
but also for international enterprises;

(c) To promote the flow of investors, both local and foreign, into publishing
industry which would generate employment opportunities and establish
backward and forward linkages among industries in and around the
Book City;

(d) To stimulate the repatriation of Filipino capital by providing attractive
climate and incentives for publishing business activity;

(e)To promote financial and industrial cooperation between the
Philippines and industrialized countries, particularly the Asia Pacific
through technology transfer and investment in the publishing industry
that will modemize the country's publishing sector and improve
productivity levels by utilizing new technological and managerial know-
how and become globally competitive; and

(f) To vest the special publishing economic zones on certain areas thereof
with the status of a separate customs territory within the framework of
the Constitution and the national sovereignty and territorial integrity of
the Philippines.

SEC. 4. Definition of Terms. — For purposes of this Act, the following
definitions shall apply to the following terms:

(a) Book City — refers to the special economic zone for the book publishing
industry created in Section 5 of this Act.

(b) Book Development - refers to a condition not only for having more
output in book production and development but also different kinds of
outputs that were previously produced, as well as changes in the
technical and institutional arrangements by which output is produced
and distributed.


(c) Book Publishing — refers to process of choosing and making books
dealing with everything known to the human spirit philosophy, religious
beliefs, intellectual ideas, the physical world, all the arts and the
sciences.

(d) Publishing Special Economic Zones ~ refers to the one hundred (100)
hectares at Subic Bay Metropolitan Authority, located at Olongapo
City, Subic, Zambales and Bataan, allotted for the Philippine Book
Publishing Industry Development Center, under Sections 5 and 6 of
this Act.

(e) Publishing Export Processing Zone — refers to a specialized industrial
estate locates physically and/or administratively outside customs
territory, predominantly oriented to export production. Enterprises
located in export processing zones are allowed to import capital
equipment and raw materials free from duties, taxes and other import
restrictions

() Related Activities — refers to the domestic manufacturing industries
which have direct bearing on the long-term viability of the book
publishing industry.

THE BOOK CITY

SEC. 5. Creation of the Book City. — In pursuant of the foregoing
declared policies, there is hereby established a special economic zone for the
book publishing industry in Subic Bay Metropolitan Authority (SBMA), to be
known as the Philippine Book Publishing Industry Development Center,
otherwise and herein known as the Book City. The Book City shall be allotted a
one hundred (100) hectares at SBMA, located at Olongapo City and Subic,
Zambales and Bataan, the specific metes bound of which shall be more
particularly defined in a presidential proclamation that shall be issued for this
purpose.

SEC. 6. The Book City. - The Book City is envisioned to house among
others the following facilities: (a) The offices of the National Library; (b) the
offices of the National Book Development Board (NBDB) created under R.A. No.
8047; (c) The Book Development Academy; (d) The Book Publishing Expo
Center; (e) The Book Publishing Convention Center; (f) The Book City Hostel; (g)
The Publishing Recreation Center; (h) The National Paper Recycling Plant; and
(i) The offices, plants and warehouses of the publishers, printers, book traders or
booksellers and other related activities including their bookstores, if any.

THE BOOK PUBLISHING ENTERPRISE ZONE AUTHORITY
SEC. 7. The Book Publishing Enterprise Zone Authority. - Attached
for purposes of policy coordination and administrative supervision to the
Department of Trade and Industry, shall be a body corporate known as the Book
Publishing Enterprise Zone Authority (BPEZA), which shall own, manage, or
supervise the Book City established under this Act, and its principal office shall
be located at SBMA, Olongapo City, Subic, Zambales and Bataan


SEC. 8. Administration. - The BPEZA shall be governed by a Bpard of
Directors (the "BPEZA Board”), composed of eleven (11) directors, five ex-officio
members representing the Government and six (6) directors, coming from the
private sector as follows:

a) The five (5) ex-officio members are (i) Undersecretary for Tourism
Development of the Department of Tourism; (ii) the Administrator of the Book
Publishing Enterprise Authority (BPEZA); (iii) the Undersecretary for Plans and
Programs of the Department of Public Works (DPWH); (iv) the Undersecretary
for Plans and Programs of the Department of Interior and Local Government
(DILG); and (v) the Undersecretary of the Department of Trade and Industry.

b) Six (6) directors to be appointed by the President of the Philippines
from the nominees of (i) the Philippine Educational Publishers Association
(PEPA), representing the book publishers; (ii) the Book Printers Association of
the Philippines (BPAP), representing the printers; (iii) the National Book
Suppliers Association of the Philippines (NBSP), representing the book supplier;
(iv) the Legal Writers Association of the Philippines, representing the writers and
authors; (v) the Philippine Book Federation (PhilBook), representing the related
activities and players in the publishing industry; (vi) Book Exporters Association
of the Philippines (BEAP), representing the book exporters and traders.

The appointed directors must be Filipino, engaged in the management of
business in the sectors they represent for at least (10) years, except in the case
of the author or writer who must be recognized author or writer for at least five (5)
years and have demonstrable expertise in their respective industries or sectors.

The appointed directors shall serve for a term of four (4) years with one re-
appointment.

The appointed directors including the designated ex-officio members shall
elect among them a Chairperson, preferably coming from the private sector,
while the Vice-Chairperson, shall come from a government representative.

The BPEZA'’s powers, business and property shall be exercised,
conducted and held by the BPEZA Board. The BPEZA Chairperson shall be the
Chief Executive Officer of the Board while the BPEZA Administrator shall
implement the actions required by the BPEZA in her/his capacity as the chief
operating officer.

SEC. 9. BPEZA Administrator. - The BPEZA shall have an Administrator
who must be a Filipino, must be at least thirty five (35) years of age and not more
than fifty-five (55) at the time of the appointment, have a postgraduate degree in
business, law, tourism or public administration, and have demonstrated expertise
in any of those fields. He/she must have been engaged in a managerial capacity
for at least five (5) years prior to his/her appointment

SEC. 10. Meetings of the Board, - The BPEZA Board shall meet at least
once a month at the BPEZA's principal office unless the BPEZA Board had
previously agreed in writing to meet at another location,


SEC. 11. General Powers and Functions of the BPEZA. ~ The BPEZA
Board shall have the general powers of a body corporate, which includes the
power of succession, to sue and be sued in such corporate name, to acquire,
hold and dispose of real and personal property, to adopt, amend and repeal it by
laws, and to enter into contracts of every kind. In relation to its functions, it shall
also specifically have the power to:

a.

—_

Enter into, make, perform and carry out contracts of every class,
kind, description which are necessary or incidental to the
realization of its purposes with any person, firm or corporation,
private or public, and with foreign government entities;

. Contract loans, indebtedness and credit, issue commercial

papers and bonds, in any local and or convertible foreign
currency from any international financial institutions, foreign
government entities, and local or foreign private commercial
banks or similar institutions under terms and conditions
prescribed by law, rules and regulations;

. Execute any deed of guarantee, mortgage, pledge, trust or

assignment of any property for the purpose of financing the
programs and projects deemed vital for the early attainment of
its goals and objectives, subject to the provisions of Article VII,
Section 20 and Article XII, Section 2, paragraphs (4) and (5) of
the Constitution;

|. Construct, own, lease, operate and maintain public utilities as

well as infrastructure facilities;

Receive donations, grants, bequests and assistance of all kinds
from local and foreign governments and private sectors and
utilize the same;

Exercise eminent domain;

Develop policies, plans and programs for submission to the
Board for the development and operation of the Book City;
Register, regulate and monitor enterprises in BPEZA;
Coordinate with local government units and exercise general
supervision over the development, plans, and activities and
operations of the BPEZA; and

Review proposal for the establishment of other BPEZA,
whenever feasible, in other regions or cities throughout the
count

ry
The BPEZA shall be deemed a government infrastructure corporation
under the provisions of the Administrative Code of 1987 (Executive Order No.
292, Book IV, Chapter 13, Section 58).

SEC. 12. Powers and Functions of the BPEZA Administrator. - The
BPEZA Administrator shall coordinate the policies, plans and programs
concerning BPEZA. As such, he or she shall provide overall supervision over and
general direction to the development of BPEZA. He or she shall determine the


structure and the staffing pattern and personnel complement of the BPEZA and
establish offices, when necessary, all subject to the approval of the BPEZA
Board.

In addition, he or she shall have the following specific powers and

responsibilities:

a. Coordinate with the Philippine National Police in safeguarding all
lands, buildings, records, monies, credits and other properties and
tights of investors within the BPEZA;

b, Ensure that all revenues of the BPEZA are collected and applied in
accordance with the law;

¢. Submit to the Board the ongoing and proposed projects, work and
financial programs, annual budget of receipts, and expenditures of the
BPEZA;

d. Acquire jurisdiction, as he or she may deem proper, over the protest,
complaints, and claims of the residents and enterprises in a BPEZA
concerning administrative matters;

e. Recommend to the Chairperson the grant, approval, refusal,
amendment or termination of the BPEZA franchises, licenses, permits,
contracts, and agreements in accordance with the policies set by the
BPEZA;

f. Require owners of houses, buildings, or other structures constructed
without the necessary permit whether constructed on public or private
lands, to remove or demolish such houses, buildings, structures within
sixty (60) days after notice and upon failure of such owner to remove
or demolish such house, building, structure within said period, the
BPEZA Administrator or his/her authorized representative may
summarily cause its removal or demolition at the expense of the
owner, any existing law, decree, executive order and other issuances
or part thereof to the contrary withstanding;

g. Subject to the approval of the Chairperson of the BPEZA, issue rules
and regulations to implement the provisions of this Act.

SEC. 13. Capitalization. ~ The national government shall appropriate the
‘sum of Five Hundred Million Pesos for the capitalization of the BPEZA.

SEC. 14. Registration. — Business enterprises within the Book City shall
register with them BPEZA to avail of all incentives and benefits provided for in
this Act.

SEC. 15. Civil Dispute Resolution. — The BPEZA shall establish a civil
dispute mediation office to assist in the resolution of civil disputes within the Book
City where one of the parties to the dispute is a non-resident alien. No civil
dispute in a BPEZA involving a non-resident alien may be filed in court without
having undergone mediation proceedings under this Section. The BPEZA shall
charge reasonable fees for civil dispute mediation.


SEC. 16. Labor Dispute Resolution. — To resolve disputes between
workers and employers for any violation of the Labor Code (Presidential Decree
No. 442, as amended), the BPEZA shall establish a labor dispute resolution
office to mediate between workers and employers. The BPEZA shall charge
reasonable fees for labor dispute resolution.

In order to promote a stable investment climate and realizing the critical
role publishing industry plays in the Philippine economy, employees and
enterprises operating within the Zone shall be prohibited from engaging in strikes
or strike-related activity within five years from the establishment of the enterprise

The Department of Labor and Employment and the National Labor
Relations Commission shall not acquire jurisdiction over any complaints arising
from a violation of the Labor Code or its rules and regulations from an enterprises
locates and operating within a Book City unless such a complaint has undergone
labor dispute resolution with the BPEZA.

SEC. 17. One-Stop Shop Processing. — At the Book City, the BPEZA
shall establish an office where an investor or enterprise or company can obtain
all necessary permits and licenses from all national and local government offices.
All government agencies shall assign representatives at Book City to coordinate
with the BPEZA for the issuances of such permits and licenses.

SEC. 18. Privately-owned Companies at BPEZA. — Privately owned
corporations and companies at Book City shall operate autonomously and
independently of the BPEZA, but shall nevertheless be monitored by the BPEZA
for the implementation of incentives.

BPEZA INVESTMENT INCENTIVES

SEC. 19. Fiscal and Non-Fiscal Incentives. — \mportations of capital
goods into the Book City for the use by a BPEZA registered enterprises within
the City shall be imported without duties; Provided that no importations of foreign
capital goods shall be allowed where competitive products with significant
Philippine component are available in the domestic market.

Purchase of local goods and services by BPEZA registered enterprises for
use within the Book City shall be value-added tax zero-rated

BPEZA registered enterprises shall be entitled to an income tax holiday for
five years from the start of its operations. Such income tax holiday may be
extended for up to an additional five years if the BPEZA registered enterprise
undertakes a major expansion or upgrade of its facilities. The additional facilities
shall be computed in proportion of the cost of the expansion or upgrade in
relation to the total assets of the enterprise.

After the expiration of the income tax holiday, BPEZA registered
enterprises shall also be entitled, in lieu of all national and local taxes, a tax on
gross income at a rate of two percent to three percent (2 to 3%), depending on
the amount of investment and the number of persons employed.

One-third of the proceeds of such tax shall be remitted to the affected
local governments, one-sixth to the Book Academy for its administrative


operations, one-sixth to BPEZA, one-sixth shall be remitted to the national
government and the remaining one-sixth shall be placed in the Book Academy
Trust Fund to be used specifically for the support and promotion of Filipino
authors and editors especially in science and technology, literature and in subject
areas wherein locally authored books are either few or non-existent.

Likewise, BPEZA registered enterprises shall be entitled to avail of
preferential rates for power, water and other public utilities for industrial
consumers.

The BPEZA in conjunction with the Bureau of Internal Revenue (BIR) and
the Bureau of Customs shall promulgate rules and regulations for the
implementation of this provision.

SEC. 20. Profit Remittance. - Without prior approval from the Bangko
Sentral ng Pilipinas (BSP), after tax profits and other earings of foreign
investments in enterprises in the Zone may be remitted outward in the equivalent
foreign exchange through any of the banks licensed by the Bangko Sentral ng
Pilipinas in the Book City provided such foreign investments in said enterprises
have been previously registered with the BSP.

SEC. 21. Lease of Land. — Consistent with the provisions of the Investor's
Lease Act (Republic Act No. 7652), lands and buildings in the Book City may be
leased to foreign investors for a period not exceeding fifty (50) years, renewable
once for a period of not more than twenty-five (25) years. The leasehold right
acquired under long-term contracts may be sold, transferred or assigned, subject
to the conditions set forth under the Investor's Lease Act.

SEC. 22. Visa Privileges. —- Any investor within the Book City whose
initial investment shall not be less than one hundred thousand dollars and his/her
spouse and dependent children under twenty-one years of age shall be granted
permanent resident status.

The BPEZA shall issue working visas renewable every two years to
foreign executives and other aliens, possessing highly-technical skills which no
Filipino within the Book City possesses, as certified by the Department of Labor
and Employment (DOLE). The names of aliens granted permanent resident
status and working visas by the BPEZA shall be reported to the Bureau of
Immigration within thirty (30) days after issuance thereof.

THE BOOK ACADEMY

SEC. 23. Book Academy. — There shall be established a Book Academy
of the Philippines, hereinafter referred to as the Academy to be headed by an
Executive Director, who shall be appointed by the President of the Philippines to
be chosen from the list of nominees submitted and recommended by the duly
recognized and accredited publishing associations.

The Academy shall be adequately staffed with qualified technical and
administrative personnel.


SEC. 24. Functions of the Academy. — The Academy shall have the

following functions:

(a) Maintain, develop and implement a continuing program of book writing,
publishing, editing, compiling, book selling and training career training
and development:

(b) Formulate programs and conduct trainings for writers, authors,
publishers, editors, compilers, book sellers and traders;

(c) Provide for the training and development of workers in the publishing
industry, in cooperation with TESDA, Department of Trade and
Industry (DTI) and state universities and colleges and the private
sector;

(d) Conduct workshops, seminars, conferences for various associations
involved in the book publishing industry domestically and
internationally;

(e) Source out scholarship programs, grants and other incentives for
personnel development;

(f) Conduct continuing studies and researches necessary for career
development; and

(g) Perform such other functions as may be necessary to carry out the
objectives of the Act.

SEC. 25. Academy Trust Fund. — A Book Academy Trust Fund is hereby
established exclusively for the support and promotion of Filipino authors and
editors especially in science and technology, literature and in subject areas
wherein locally authored books are either few or non-existent.

SEC. 26. Sources of Fund. — The contribution of the Fund shall be
sourced from government and private sectors as follows:

(a) The amount of Fifty Million Pesos (Php50,000,000.00) shall be taken

from the Philippine Amusement and Gaming Corporation (PAGCOR)
fund at five million pesos (Php5,000,000.00) per month for ten (10)
months.

(b) Another amount of Fifty Million Pesos (Php50,000,000.00) shall be
taken from the Philippine Charity Sweeptakes Office (PCSO) at five
million pesos (Php5,000,000.00) per month for ten (10) months.

(c) The private portion of the fund shall be raised from donations and other
conveyances including funds, materials, property and services, by
gratuitous title.

Provided, however, that, the interest drawn from the Fund shall be
‘awarded only after one (1) year from the organization of the Fund, and the grants
shall be awarded equitably among the authors based on their regional residence
or domicile.

SEC. 27. Other Sources of Fund and Incentive. — Government-owned
and controlled corporations (GOCCS) are hereby authorized to give grants to the


Fund at their discretion, but not to exceed fifteen percent (15%) of their
unimpaired surplus.

Contribution to the Fund shall be deductible for income tax purposes in
accordance with the provision of Section 29 (h) (A) of Republic Act No. 8424,
otherwise known as the National Internal Revenue Code.

SEC. 28. Management of the Fund, - The Book Academy Trust Fund
shall be administered by the Book Academy Trust Fund Board composed of the
Chairperson of the BPEZA or its representative as Chairperson, and the
Executive Director of the Book Academy and well-known and recognized author,
to be chosen from a list of nominees duly recognized and accredited associations
of Filipino authors to be appointed by the President of the Philippines, as
members.

For the sound and judicious management of the Fund, the Trust Fund
Board shall appoint a government financial institution as portfolio manager of the
Fund, subject to the guidelines promulgated by the Board

SEC. 29. Guidelines on the Use of the Fund. — The Book Academy
Trust Fund Board shall prepare the implementing guidelines and decision-making
mechanisms, subject to the following:
(a) Unless otherwise stipulated by the private donor, only earnings of
private contribution shall be used for grants;
(b) No part of the seed capital of the Fund, including earnings thereof,
shall be used to underwrite overhead expenses for administration;
(c) There shall be an external auditor to perform an annual audit of the
Fund's performance; and
(d) The Fund shall be exempt from pre-audit by the Commission on Audit.

MISCELLANEOUS PROVISIONS

SEC. 30. Education in Publishing Industry. - The BPEZA shall work
closely with the Department of Education (DepEd) for the development of
educational programs for primary and secondary levels that assist in the creation
of culture and habit of reading, specifically through the enhancement and
production of educational materials on literature, history and culture, language
and science and technology.

The BPEZA shall also work closely with the Commission on Higher
Education (CHED) on the regulation of colleges and universities that grant
undergraduate and postgraduate degrees in publishing.

The Technical Education Skills Development Authority (TESDA) is hereby
mandated to develop programs that foster the development of skills of personnel
engaged in book publishing industry through in-service training programs and
formal degree and non-degree book publishing courses.

SEC. 31. Relationship with Economic Zone. - The BPEZA in
coordination with the SBMA and the Philippine Economic Zone Authority (PEZA)
shall promulgate rules and regulations to govern relationship between the


BPEZA created under this Act, and economic zones created under Republic Act
No. 7227, 7916, as amended, where the area comprising the economic zone
overlaps, falls within or encompasses that of an economic zone, provided, that
such rules and regulations shall consider the special nature and requirements of
the Book City in relation to other industries, establishments and operations in
economic zones.

SEC. 32. Other Investment Incentives. — The investment incentives
offered under this Act, shall be without prejudice to the availment of other
incentives provided under Republic Act No. 8047, otherwise known ad the Book
Industry Development Act and other rules and regulations issued and
promulgated by the National Book Development Board (NBDB) pursuant to said
Act, other laws, decrees or issuances provide for similar or identical benefits, the
beneficiary may elect to avail of the benefit provided under only one particular
law, decree or issuance.

SEC. 33. Implementing Rules and Regulations. - The BPEZA in close
coordination and consultation with the private sector, and other concerned
government agencies shall issue guidelines and prescribe rules and regulations
for the effective implementation of the provisions of this Act, within ninety (90)
days after the effectivity of this Act which shall be published in two newspapers of
general circulation. A copy of such guidelines, rules and regulations shall be
furnished the Congress of the Philippines.

SEC. 34. Separability Clause. — Any portion of this Act that may be
declared unconstitutional shall not have the effect of nullifying other portions or
provisions thereof as long as such remaining portions or provisions can stil
subsist and be given in their entirety.

SEC. 35. Repealing Clause. — All law, orders, decrees, rules and
regulations, and other issuances, or part thereof, inconsistent herewith are
hereby repealed or modified accordingly.

SEC. 36. Effectivity. — This Act shall take effect fifteen (15) days following
its publication in a newspaper of general circulation.

Approved.