AN ACT CREATING THE FILM DEVELOPMENT COUNCIL OF THE PHILIPPINES

Case Overview and Summary

This law creates the Film Development Council of the Philippines (the Council) under the Office of the President, with the following key provisions:

State Policy and Objectives (Section 1):
- Promote and support the development of the local film industry as a medium for uplifting aesthetics, cultural and social values, and understanding Filipino identity.
- Formulate policies and programs to upgrade filmmaking, encourage quality films for public entertainment that enhance life, examine human and social conditions, and contribute to human dignity.

Creation and Composition of the Council (Sections 2-4):
- The Film Development Foundation of the Philippines, Inc. (FDFPI) and the Film Rating Board (FRB) are abolished.
- The Council is composed of a Chairperson and 10 members (3 regular members and 7 ex-officio members from various government agencies and sectors).

Powers and Functions of the Council (Section 3):
- Establish and implement a Cinema Evaluation System.
- Develop incentive and reward system for quality film producers.
- Organize film festivals and promote the local film industry.
- Enhance skills and expertise of Filipino talents in film production.
- Determine organizational structure and staffing.
- Acquire and manage properties necessary for the Council's objectives.
- Invest funds to promote film industry development.
- Ensure establishment of a film archive.

Term of Office and Meetings (Sections 5-6):
- The Chairperson and regular members have a 3-year term, renewable for one additional term.
- The Council meets at least once a month, with a majority constituting a quorum.

Chairperson and Executive Director (Sections 7-9):
- The Chairperson is the Chief Executive Officer with overall administrative supervision.
- The Chairperson is assisted by an Executive Director appointed by the Council.

Cinema Evaluation Board (Section 10):
- A Cinema Evaluation Board is created to evaluate and grade films submitted to the Council.
- The Board has 31 members (1 Chairperson and 30 members from the film industry, arts, academe, and other sectors) appointed by the President.
- The Board members have a 2-year term, renewable for one additional term.

Cinema Evaluation System and Grading of Films (Sections 11-12):
- The Board establishes standards and criteria for the Cinema Evaluation System, based on direction, screenplay, cinematography, editing, production design, music scoring, sound, and acting performances.
- Films are graded "A" or "B" based on excellence in filmmaking.
- Grading procedures, including pre-qualification, evaluation period, reconsideration, and finality, are outlined.

Privileges of Graded Films (Sections 13-15):
- Grade "A" films receive 100% amusement tax incentive, and grade "B" films receive 65% amusement tax incentive from cities and municipalities.
- Theater operators must remit the amusement tax to the Council, which rewards the producers.
- The Council can impose fines up to ₱100,000, initiate prosecution, and enforce compliance through various measures.

Funding and Donations (Sections 16-17):
- The Council's funding comes from the annual General Appropriations Act and 35% of the amusement tax collected on grade "B" films.
- The Council can accept donations, except from movie producers and distributors, which are tax-exempt.

Implementing Rules, Transitory Provisions, and Reporting (Sections 18-21):
- The Council can request assistance from other government agencies.
- Implementing rules and regulations must be issued within 90 days.
- Incumbent officials and employees of FDFPI and FRB continue in a holdover capacity during the transition period of up to 6 months.
- The Council must submit an annual report to the President and Congress.