Establishment of the Film Development Council of the Philippines
- Creation of the Film Development Council of the Philippines (the Council) under the Office of the President.
- Abolishment of the Film Development Foundation of the Philippines, Inc. and the Film Rating Board.
Powers and Functions of the Council
- Establish and implement a Cinema Evaluation System.
- Develop incentive and reward systems to encourage quality film production.
- Organize and maintain local and international film festivals and exhibitions.
- Promote the local film industry’s growth and domestic and foreign market participation.
- Enhance skills and expertise of Filipino talents in film production.
- Prescribe procedures for its operations and determine organizational structure.
- Acquire and manage real and personal property necessary for film development.
- Invest funds to promote industry development and film production.
- Ensure establishment of a film archive to conserve cultural heritage.
- Perform other functions as necessary to implement the Act.
Composition of the Council
- Composed of one Chairperson and 10 members: 3 regular and 7 ex-officio members.
- Chairperson must have proven administrative skills and knowledge of technical and artistic film aspects.
- Chairperson and regular members appointed by the President.
- Ex-officio members include Secretaries of Trade and Industry, Education, Film Academy Chairperson, Cultural Center President, and others.
- Regular members represent filmmakers, theater owners, and academe.
Term of Office
- Chairperson and regular members serve 3 years, eligible for reappointment but no more than two consecutive terms.
- Vacancies filled only for the unexpired term.
Meetings
- Council meets at least once a month or as needed.
- Majority constitutes a quorum.
- Members receive honoraria per government rules.
Chairperson’s Role
- Acts as Chief Executive Officer with overall administrative supervision.
- Holds rank and salary equal to an Undersecretary.
Executive Director
- Appointed by the Council upon Chairperson's recommendation.
- Salary comparable to equivalent government rank.
- Coterminus with Chairperson unless removed for cause.
Functions of the Chairperson
- Executes Council policies, plans, and programs.
- Supervises operations and internal affairs.
- Establishes internal organization and procedures.
- Recommends appointments and disciplinary actions.
Cinema Evaluation Board (Board)
- Composed of a Chairperson and 30 members (20 from film industry, 10 from other sectors).
- Members appointed by the President from nominees by the Council.
- Serving two-year terms with eligibility for reappointment, max two consecutive terms.
- Quorum requires Chairperson (or designate) plus 11 members.
- Members receive honoraria for film evaluations.
- Members must avoid conflicts of interest in grading films.
Cinema Evaluation System
- Board formulates standards and criteria for evaluating films.
- Criteria include Direction, Screenplay, Cinematography, Editing, Production Design, Music Scoring, Sound, and Acting Performances.
- Evaluation focuses on excellence and totality of film-making art.
Grading of Films
- Films must premiere in the Philippines with no prior commercial release.
- Only feature films at least 80 minutes long intended for theatrical or paid exhibition qualify.
- Films submitted 7 days before playdate; evaluation done within 5 working days.
- Grading is final and binding; no alterations or suggestions on films allowed by the Board or Council.
- Reconsideration possible within 24 hours to the Board en banc; decision final within 48 hours.
Privileges of Graded Films
- Films with grade "A" or "B" receive amusement tax incentives.
- Grade "A" films get 100% amusement tax refund; grade "B" films get 65%, with remaining 35% to the Council.
Amusement Tax Deduction and Remittance
- Theater operators must withhold and remit amusement tax within 30 days after exhibition.
- Failure to remit within prescribed time incurs 5% monthly surcharge.
Enforcement Powers of the Council
- Can impose administrative fines up to ₱100,000 for violations.
- Can initiate criminal/administrative prosecutions.
- Power to issue subpoenas and enlist DOJ or Solicitor General assistance.
- May close theaters refusing tax remittance for up to 15 days.
- Establish Local Regulatory Councils for compliance assistance.
- Deputize law enforcement for enforcement assistance.
Funding
- Included in Office of the President’s program and funded via the General Appropriations Act.
- May use 35% amusement tax from grade "B" films to augment expenses.
- May impose reasonable fees for services.
- Funds managed according to government accounting rules.
Acceptance of Donations
- Council may accept donations excluding from movie producers and distributors.
- Donations automatically appropriated per donor’s specification or Council-approved uses.
- Donations tax-exempt and deductible for donors.
Assistance from Other Government Agencies
- Council may request assistance from government offices and agencies.
Implementing Rules and Regulations
- Council must issue implementing rules within 90 days after enactment.
Transitory Provisions
- Incumbent officials and employees of abolished organizations continue duties for up to 6 months.
- Preferential treatment for reappointment of laid-off personnel.
- Transfer of assets and obligations from abolished bodies to the Council.
Annual Reporting
- Council to submit annual report within 90 days after fiscal year-end to the President and Congress.
Repealing and Amending Provisions
- Repeals Executive Order No. 811 and amends Executive Order 1051 and provisions of the Local Government Code.
- Supersedes contradictory laws and regulations.
Separability Clause
- Invalidity of any provision does not affect the rest of the Act.
Effectivity
- Act takes effect 15 days after publication in the Official Gazette and two national newspapers.