Draft substitute bill (15 January 2020)

Special Committee on Creative Industry and Performing Arts

Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. ______

----------------------------------------------------------------------------------------------------------------

Introduced by Representatives Victor A. Yap, Carlos O. Cojuanco, Christopher V.P. De

Venecia, Jose Francisco “Kiko” B. Benitez, Lucy Torres-Gomez, Rosanna “Ria”
Vergara, Sharon S. Garin, Stella Luz A. Quimbo, Lianda B. Bolilia, Cristal L. Bagatsing,
Aloy Lim, Ma. Lourdes T. Arroyo, Alfred C. Delos Santos, Edward Vera Perez Maceda;
John Marvin “Yul Servo” C. Nieto, Joy Myra S. Tambunting, Evelina G. Escudero,
Xavier Jesus D. Romualdo, Kristine Singson-Meehan, Juan Miguel Macapagal Arroyo,
Anna Marie Villaraza-Suarez, Marlyn “Len” B. Alonte, Deogracias Victor “DV” B.
Savellano, Lorenz R. Defensor, Joey Sarte Salceda, Ronnie L. Ong, Rufus B.
Rodriguez, Loren Legarda, Ann K. Hoffer, Rose Marie “Baby” J. Arenas, Angelica
Natasha Co, Claudine Diana D. Bautista, and Sol Aragones

----------------------------------------------------------------------------------------------------------------

AN ACT PROVIDING FOR THE PROMOTION AND DEVELOPMENT OF THE

PHILIPPINE CREATIVE INDUSTRIES AND PROVIDING FUNDS THEREFOR

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

Congress assembled:

1 Section 1. Short Title. – This Act shall be known as the ‘Philippine Creative
2Industries Act.’  

3 TITLE I 
4 DECLARATION OF PRINCIPLES AND DEFINITIONS 

Page 1 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1 SECTION 2. Declaration of Policy. – ARTICLE XIV, SECTION 15 OF THE

21987 PHILIPPINE CONSTITUTION PROVIDES THAT “ARTS AND LETTERS SHALL
3ENJOY THE PATRONAGE OF THE STATE” AND THAT THE “STATE SHALL
4CONSERVE, PROMOTE, AND POPULARIZE THE NATION’S HISTORICAL AND
5CULTURAL HERITAGE AND RESOURCES, AS WELL AS ARTISTIC CREATIONS.

6It is hereby declared the policy of the State to promote and support the development of
7the Philippine creative industries, to protect and strengthen the rights of creative firms,
8artists, artisans, creators, and content providers, and to cultivate all economic activities
9having their origin in creative skill and talent through the use of intellectual property, in
10pursuance of the Constitution's emphasis on technology, arts, and culture, by nurturing
11creative industry human resources, creating employment, and providing incentives to
12encourage and sustain entrepreneurship in the creative industries FOR ECONOMIC,
13SOCIAL, AND CULTURAL DEVELOPMENT TOWARDS NATION BUILDING.

14FOR THIS PURPOSE, THE STATE SHALL ESTABLISH A PHILIPPINE CREATIVE

15INDUSTRY DEVELOPMENT COUNCIL THAT WILL DRAFT AND IMPLEMENT A
16LONG-TERM PROGRAM FOR CREATIVE INDUSTRY DEVELOPMENT AND
17PROMOTION, ESTABLISH FINANCIAL ENABLING MECHANISMS FOR PHILIPPINE
18CREATIVE INDUSTRIES, NURTURE THE CREATIVE INDUSTRY HUMAN
19RESOURCES, CREATE EMPLOYMENT, AND PROVIDE INCENTIVES TO
20ENCOURAGE AND SUSTAIN ENTREPRENEURSHIP AND THE ARTS.

21 SECTION 3. Definition of Creative Industries. As used in this Act, the term

22‘creative industries’ shall refer to those industries involving persons, whether natural or
23juridical, that produce cultural, artistic, and innovative goods, products, and services,
24where such goods, products, and services originate in individual creativity, skill, and
25talent and that have a potential for wealth and through the generation and exploitation of
26intellectual property.

27 It includes industries directly or indirectly involved in the creation, production and

28manufacturing, performance, broadcasting, communication and exhibition, or
29distribution and sale of works and other subject matter, [as protected by] SUBJECT TO
30intellectual property rights PROTECTION.

31Creative industries shall include the following DOMAINS, AS DEFINED, WITH A NON-
32EXHAUSTIVE LIST OF industries BELONGING IN EACH DOMAIN:

33 1. Traditional Cultural Expressions refers to tangible products and intangible

34 customs, practices and expressions of Traditional Filipino Culture such as
35 heritage, arts and crafts, gastronomy; Cultural Festivals and Celebrations;
36 2. Performing Arts and Live Creative Experiences refers to predesigned, real-time
37 artistic performances and “experiences” aimed at specific audiences occurring in
38 real-time, with management and technical services provided to amplify the
39 occasion, such as live music, theater, dance, opera, circus, [and] puppetry, AND
40 CREATIVE EXPERIENCES;

Page 2 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1 3. Audio and Audiovisual Media refers to recorded and live audio and audiovisual
2 content, distributed via broadcast media (television frequencies, radio
3 frequencies, cable and satellite broadcasts, etc.), digital content streaming
4 platforms and in cinema theaters, such as film, television, edutainment, radio,
5 and other broadcasting;
6 4. Digital Interactive Media refers to digital software programs, mobile applications
7 and games created for and operated on inter-active digital devices where user
8 input is essential to the experience, such as software AND MOBILE APPS, video
9 games, COMPUTER GAMES, MOBILE GAMES, and digitalized creative content;
10 5. Creative Services refers to demand-driven commercial creative service work
11 done on behalf of commissioning clients for complete creative output or partial
12 outsourcing work, such as [architectural,] advertising AND MARKETING, creative
13 research and development, cultural, and recreational services;
14 6. Design refers to the process of envisioning and planning the creation of symbols
15 (graphics, images), products (industrial, aesthetic), spaces and places,
16 interactive user experiences, and systems/eco-systems, at the heart of which is
17 creating solutions that address a need or a problem, such as ARCHITECTURE,
18 URBAN, LANDSCAPE, interior, graphic, fashion, furniture, ACCESSORIES,
19 jewelry, [and] toys, AND INDUSTRIAL DESIGN;
20 7. Books, Publishing and Printed Media refers to the creation, publication, and
21 distribution of artistic, journalistic and commercial literature in traditional physical
22 print and equivalent digital form, such as books, comics, press, and other
23 [publications] PRINTED MEDIA;
24 8. VISUAL ARTS REFERS TO THE CREATION, PROMOTION, DISTRIBUTION,
25 AND PRESERVATION OF WORKS THAT ARE PRIMARILY VISUAL IN
26 NATURE, INCLUDING PAINTINGS, DRAWINGS, SCULPTURES,
27 PHOTOGRAPHY, ANTIQUES, AND ART TOYS.
28 9. Cultural Sites refers to physical locations of significance to preserving and
29 promoting Philippine Culture, such as archeological sites, museums, libraries,
30 and CULTURAL exhibitions; and
31 10. Other such domains and industries as the Council may determine.
32  TITLE II [III]
33 ORGANIZATION OF THE PHILIPPINE CREATIVE INDUSTRY DEVELOPMENT
34 COUNCIL
35 
36 SECTION 4. The Philippine Creative Industry Development Council – There
37is hereby created a Philippine Creative Industry Development Council, herein referred to
38as the Council, which shall be administratively attached to DTI. [and shall be in charge
39of implementing the Philippine Creative Industry Development Plan.]
40

Page 3 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1The Council shall be composed of a Chairperson and fourteen (14) members, six (6) of
2whom shall be regular members FROM THE PRIVATE SECTOR while the other NINE
3(9) [eight (8)] shall serve in an ex-officio capacity.
4 
5The NINE (9) [eight (8)] members who shall be ex-officio members of the Council are:
6
7 1) Secretary of the Department of Trade and Industry (DTI), AS CHAIRPERSON
8 [or his or her duly authorized representative who is at least the rank of
9 Undersecretary];
10
11 2)    Secretary of the Department of Education (DepEd) [, or his or her duly
12 authorized representative who is at least the rank of Undersecretary];
13
14 3)    Secretary of the Department of Science and Technology (DOST) [, or his or her
15 duly authorized representative who is at least the rank of Undersecretary];
16
17 4)   Chairman of the National Commission for Culture and the Arts (NCCA) [, or his
18 or her duly authorized representative who is at least the rank of Undersecretary];
19
20 5)   Director General of the Intellectual Property Office of the Philippines (IPOPHL) [,
21 or his or her duly authorized representative who is at least the rank of
22 Undersecretary];
23
24 6) SECRETARY OF THE COMMISSION ON HIGHER EDUCATION (CHED);
25
26 [6]   Secretary of the National Economic Development Authority (NEDA), or his or
27 her duly authorized representative who is at least the rank of Undersecretary;]
28
29 7) [7]]   Secretary of the Department of Tourism (DOT) [, or his or her duly
30 authorized representative who is at least the rank of Undersecretary];
31
32 8) [8]] Secretary of the Department of Information and Communication
33 Technology (DICT) [, or his or her duly authorized representative who is at least
34 the rank of Undersecretary]; and
35
36 9) Executive Director of the Council.
37 
38THE EX OFFICIO MEMBERS OF THE COUNCIL, EXCEPT THE EXECUTIVE
39DIRECTOR, SHALL DESIGNATE THEIR RESPECTIVE PERMANENT ALTERNATE
40WHO SHALL BE THE NEXT-IN-RANK OFFICIALS WHOSE ACTS SHALL BE
41CONSIDERED AS THE ACTS OF THEIR PRINCIPALS. THE COMPOSITION OF THE
42COUNCIL MAY BE CHANGED IF THE NEED ARISES BY A MAJORITY VOTE OF ALL
43THE MEMBERS.
44
45THE EX OFFICIO MEMBERS OF THE COUNCIL SHALL PROMULGATE A
46SCREENING AND SELECTION PROCESS FOR THE NOMINEES OF

Page 4 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1REPRESENTATIVES OF THE CREATIVE INDUSTRY DOMAINS AS DEFINED IN

2SECTION 3 OF THIS ACT WHICH SHALL BE SUBMITTED TO THE PRESIDENT FOR
3THE APPOINTMENT IN THE COUNCIL AS REGULAR MEMBERS.
4
5THE SIX (6) REGULAR MEMBERS SHALL BE REPRESENTATIVES FROM
6CREATIVE INDUSTRY DOMAINS, AS DEFINED IN SECTION 3 OF THIS ACT. EACH
7OF THEM SHALL BE APPOINTED BY THE PRESIDENT OF THE PHILIPPINES
8SHALL COME FROM THE PRIVATE SECTOR AND HAVE WORKED EXTENSIVELY
9IN THE CREATIVE INDUSTRIES FOR AT LEAST TEN (10) YEARS. THE COUNCIL
10SHALL ELECT A CO-CHAIR AMONG THE SIX (6) REGULAR MEMBERS.
11
12THE REGULAR MEMBERS OF THE COUNCIL SHALL SERVE FOR A TERM OF SIX
13(6) YEARS, UNLESS SOONER SEPARATED FROM SERVICE DUE TO DEATH,
14VOLUNTARY RESIGNATION, OR REMOVAL FOR CAUSE. IN CASE OF DEATH,
15RESIGNATION, OR REMOVAL FOR CAUSE, THEIR REPLACEMENTS SHALL
16SERVE ONLY THE UNEXPIRED PORTION OF THE RESPECTIVE TERMS. OF THE
17FIRST SET OF REGULAR MEMBERS, THREE (3) SHALL HOLD OFFICE FOR A
18TERM OF THREE (3) YEARS AND THE REMAINING THREE FOR A TERM OF SIX
19(6) YEARS.
20
21THE MEMBERS OF THE COUNCIL, EXCEPT THE EX OFFICIO MEMBERS, SHALL
22EACH RECEIVE PER DIEM AT RATES TO BE DETERMINED BY THE DBM IN
23ACCORDANCE WITH EXISTING RULES AND REGULATIONS: PROVIDED,
24HOWEVER, THAT THE TOTAL PER DIEM COLLECTION EACH MONTH SHALL NOT
25EXCEED THE EQUIVALENT PER DIEM FOR FOUR (4) MEETINGS. UNLESS AND
26UNTIL THE PRESIDENT OF THE PHILIPPINES HAS FIXED A HIGHER PER DIEM
27FOR THE MEMBERS OF THE COUNCIL, SUCH PER DIEM SHALL NOT BE MORE
28THAN TEN THOUSAND PESOS (P10,000.00) FOR EVERY COUNCIL MEETING.
29
30[The six (6) regular members shall be representatives from creative industries.]
31
32[The Council may create ad hoc committees or technical working groups representing
33and consisting of different creative industries and appropriate government agencies to
34discuss specific issues relative to each creative industry and recommend or advise
35policies or programs to the Council.]

36 [SECTION 5. Term of Office – The six (6) regular members shall hold office for
37a term of seven (7) years without reappointment. Of the first set of appointees, the
38EXECUTIVE DIRECTOR [chairperson] shall hold office for seven (7) years and of the
39first six (6) regular members, three (3) shall hold office for a term of five (5) years and
40three (3) for a term of seven (7) years. In case a vacancy occurs before the expiration of
41the term of office, the appointment to such vacancy shall only be for the unexpired term
42of the predecessor.]

43 SECTION 5 [7]. Meetings – The Council shall meet regularly, at least once [a
44month] EVERY QUARTER, or as often as necessary at the call of the Chairperson or
45majority of the members. A majority of the INCUMBENT members of the Council shall

Page 5 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1constitute a quorum to do business. [The members of the Council shall be entitled to

2honoraria based on existing government accounting and auditing rules and regulations.]

3 SECTION 6 [8]. Mandate, Powers, and Functions of the Council. - The

4Council shall have the following powers and functions:

5 a. To define economic goals and key performance indicators for the creative
6 industries such as, but not limited to, value creation, contribution to gross
7 domestic product, job creation, export targets, and creative intellectual property
8 targets, as articulated in the Plan.
9 b. [To review all existing policies, plans, programs and projects of the government
10 and to formulate] and recommend national policies, plans, and programs in
11 support of creative industries, in coordination with non-government organizations
12 and business support organizations;]
13 c. [To generate and mobilize resources from domestic and foreign sources for the
14 implementation of the Plan, to receive and accept donations and other
15 conveyances including funds, materials and services, by gratuitous title, as well
16 as to rationalize the use and the equitable distribution of such resources to the
17 various creative industries;]
18 d. [To establish a secretariat under an Executive Director for the administrative and
19 day-to-day operations of the Commission;]
20 e. To CREATE A CLASSIFICATION OF [classify] the creative industries into sub-
21 sectors based on strategic considerations, and create technical panels, working
22 groups, or task forces that will assist the Council in the performance of its
23 functions, in coordination with the Philippine Statistics Authority for its integration
24 in the Philippine Standard Industry Classification;
25 f. [To ensure the promotion, marketing, distribution, and export of creative industry
26 output in both local and international markets in coordination with the Board of
27 Investments (BOI), Export Management Bureau (EMB), Foreign Service Trade
28 Corps (FSTC), and the Center for International Trade, Expositions, and Missions
29 (CITEM);]
30 g. [To develop and sustain cooperative exchanges, partnerships, and collaborations
31 among government agencies, creative entities, organizations, and associations,
32 both domestically and overseas, in coordination with the Department of Foreign
33 Affairs (DFA);]
34 h. [To formulate, oversee, and assess strategies, such as but not limited to
35 provision of incentives, in partnership with the Philippine National Commission for
36 UNESCO (UNACOM) and local government units, towards the establishment of
37 United Nations Educational, Scientific, and Cultural Organisation (UNESCO)
38 Creative Cities;]

Page 6 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1 i. To [formulate the] ISSUE GUIDELINES AND criteria in identifying the persons

2 and stakeholders in the creative industries who shall receive aid from the State in
3 times of national emergencies;
4 j. [To maintain a database of all relevant data and information regarding the
5 creative industries in conjunction with other government agencies such as the
6 Philippine Statistics Authority (PSA), and other such agencies that maintain any
7 related database;]
8 k. [To encourage persons in the creative industries to join business support
9 organizations in their respective fields;]
10 l. To [formulate a process of] ISSUE GUIDELINES FOR THE accreditation of
11 business support organizations AND CREATIVE ASSOCIATIONS that shall be
12 entitled to the programs of the Council under this Act;
13 m. [To maintain a database of accredited business support organizations in the
14 creative industries, in coordination with the Local Creative Industry Development
15 Councils (LCIDC), pursuant to Section 17 of this Act;]
16 n. [To establish a consultative mechanism for continuing dialogue between
17 government and business support organizations within the creative industries on
18 proper planning and evaluation of policies, programs and projects affecting its
19 stakeholders;]
20 o. [To conduct capacity-building programs and training for the LCIDC;]
21  
22 p. [To build national awareness of the creative industries through advocacy and
23 communication campaigns;]
24  
25 q. [To prepare and submit to the President through the Department of Budget and
26 Management (DBM) an estimate of the necessary expenditures during the next
27 fiscal year, on the basis of the reports and estimates submitted by the
28 Secretariat;]
29

30 r. To generate and mobilize resources from domestic and foreign sources for the
31 implementation of the Plan, to receive and accept donations and other
32 conveyances including funds, materials and services, by gratuitous title, as well
33 as to rationalize the use and the equitable distribution of such resources to the
34 various creative industries;

35 s. To develop and sustain cooperative exchanges, partnerships, and collaborations

36 WITH AND among government agencies, creative entities, organizations, and
37 associations, both domestically and overseas, WHETHER FROM THE PUBLIC
38 OR PRIVATE SECTOR, in coordination with the Department of Foreign Affairs
39 (DFA);

Page 7 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1 t. TO ENTER INTO, MAKE, PERFORM AND CARRY OUT CONTRACTS OF

2 EVERY KIND AND DESCRIPTION WITH ANY PERSON, FIRM OR
3 ASSOCIATION OR CORPORATION, DOMESTIC OR FOREIGN;

4 u. TO ACQUIRE, UTILIZE OR DISPOSE OF, IN ANY MANNER RECOGNIZED BY

5 LAW, REAL OR PERSONAL PROPERTY IN THE PHILIPPINES OR
6 ELSEWHERE NECESSARY TO CARRY OUT THE PURPOSES OF THIS ACT;

7 v. TO RAISE OR BORROW, WITHIN THE LIMITATION PROVIDED BY LAW, AND

8 SUBJECT TO THE APPROVAL OR OPINION OF THE MONETARY BOARD OF
9 THE BANGKO SENTRAL NG PILIPINAS (BSP), AS THE CASE MAY BE,
10 ADEQUATE AND NECESSARY FUNDS FROM LOCAL OR FOREIGN
11 SOURCES, TO FINANCE ITS PROJECTS AND PROGRAMS UNDER THIS
12 ACT AND FOR THIS PURPOSE, TO ISSUE BONDS, PROMISSORY NOTES
13 AND OTHER FORMS OF SECURITIES, AND TO SECURE THE SAME BY A
14 GUARANTEE, PLEDGE, MORTGAGE, DEED OF TRUST OR AN
15 ASSIGNMENT OF ALL OR PART OF ITS PROPERTY OR ASSETS;

16 w. TO ADOPT, ALTER AND USE A CORPORATE SEAL; CONTRACT, LEASE,

17 BUY, ACQUIRE, OWN OR OTHERWISE DISPOSE OF PERSONAL AND/OR
18 REAL PROPERTY OF WHATEVER NATURE; SUE AND BE SUED; AND
19 OTHERWISE CARRY OUT ITS FUNCTIONS AND DUTIES AS PROVIDED FOR
20 IN THIS ACT;

21 x. TO DELEGATE, FROM TIME TO TIME, ANY OF THE POWERS OF THE

22 COUNCIL WHICH MAY BE LAWFULLY DELEGATED PURSUANT TO
23 EXISTING LAWS, TO THE EXECUTIVE DIRECTOR, OR IN HIS/HER
24 ABSENCE, TO ANY OF THE DEPUTY EXECUTIVE DIRECTORS, TO BE
25 AGENTS OF THE COUNCIL WITH SUCH POWERS AND UPON SUCH TERMS
26 AS MAY BE DEEMED FIT;

27 y. To promulgate such rules and regulations and exercise such other powers and
28 functions as may be necessary to effectively carry out the attainment of the
29 purposes and objectives of this Act.
30
31 TITLE III [II]
32 THE PHILIPPINE CREATIVE INDUSTRIES DEVELOPMENT PLAN
33 
34 SECTION 7 [4]. The Philippine Creative Industries Development Plan. -
35There is hereby established a Philippine Creative Industries Development Plan,
36hereinafter referred to as the Plan, which shall refer to a comprehensive set of
37objectives, targets, strategies, and activities focusing on the growth and development of
38Philippine creative industries [in the short-term, medium-term, and long-term]. THE
39PLAN SHALL BE PREPARED BY A COMMITTEE HEADED BY THE DTI, WITH THE
40NEDA AND REPRESENTATIVE ORGANIZATIONS OF THE NINE (9) CREATIVE
41INDUSTRY DOMAINS AS DEFINED IN SECTION 3 OF THIS ACT AS MEMBERS.
42THE PLAN SHALL BE SUBMITTED TO THE PRESIDENT OF THE PHILIPPINES

Page 8 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1WITHIN ONE (1) YEAR AFTER THE EFFECTIVITY OF THIS ACT FOR APPROVAL
2AND IS SUBJECT TO MANDATORY ANNUAL REVIEW.
3
4 The Plan shall [include] INCLUDE the following COMPONENTS [objectives],
5among other [objectives] COMPONENTS as may later be determined by the Council:
6 
7 1. [Review, promulgate, and ensure implementation of policies, plans, and
8 programs to nurture and develop Philippine creative industries] A REVIEW OF
9 THE EXISTING GOVERNANCE AND POLICY FRAMEWORK UNDER WHICH
10 THE PLAN WOULD BE IMPLEMENTED;
11 2. [Provide relevant and up-to-date] CURRENT data and [conduct] FINDINGS OF
12 scientific, interdisciplinary and policy-oriented research on technological
13 advancements, methodologies, distribution models, and product lines
14 PERTAINING to creative industries IN AID OF THE IMPLEMENTATION OF THE
15 PLAN;
16 3. [Identify and] ANALYSES [analyze] OF current and emerging trends and
17 changes in technology, trade, consumption, demography, and health that
18 impacts THE labor market FOR CREATIVE TALENT;
19 4. AREAS OF POSSIBLE [Promote] strategic investments in the creative industries;
20 5. [Provide f] Financial assistance PROGRAMS, investments schemes, loan
21 programs, and guarantees for micro, small, and medium enterprises (mSME) in
22 the creative industries;
23 6. [Provide t] Technical, technological, and financial assistance PROGRAMS for the
24 development, processing, commercialization and marketing of goods and
25 services generated by the creative industries;
26 7. TO IDENTIFY PROGRAMS THAT WILL PROMOTE stronger linkages and
27 collaborations between stakeholders in the creative industries and government;
28 8. [Provide] STRATEGIES THAT WILL ALLOW creative industries greater access
29 to both national and international markets [by] AND THAT WILL harness[ing]
30 their competitive advantages;
31 9. [Identify] Possible Special Economic Zones that would support the growth and
32 development of various creative industries in accordance with R.A. No. 7916, as
33 amended, as part of a digital-creative economy nexus;
34 10. T PROGRAMS THAT WILL Promote THE hiring and employment of workers in
35 the creative industries;
36 11. PROGRAMS THAT WILL [P]promote a strongER intellectual property [regime]
37 ECOSYSTEM among AND ACROSS creative industries;
38 12. [Develop] A comprehensive digital acceleration plan for Philippine creative
39 industries;
40 13. PROGRAMS THAT WILL [E]establish a coordinative relationship with the leading
41 national agency on Disaster Risk Management and Resilience to ensure that
42 players of the creative economy are covered, involved, and included in all
43 aspects of disaster management and resilience from planning to implementation;
44 AND

Page 9 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1 14. GUIDELINES, PROGRAMS, AND STRATEGIES FOR THE PROPER

2 MANAGEMENT OF THE CREATIVE INDUSTRY DEVELOPMENT FUND AS
3 PROVIDED FOR UNDER SECTION 18 OF THIS ACT.
4  
5 The Plan shall be updated and assessed on a regular basis.

6  SECTION 8 [9]. Organization of the National Secretariat on Creative

7Industries. – The Council shall organize a NATIONAL [s]Secretariat to be headed by
8[an] THE Executive Director, WHO SHALL BE AN UNDERSECRETARY IN RANK,
9[who shall be] a Filipino citizen [and], a resident of the Philippines, and be at least thirty
10(30) years of age AT THE TIME OF HIS OR HER APPOINTMENT. The Executive
11Director shall possess good moral character, be of proven integrity, [and] be a holder of
12a college degree in a related field of discipline, AND BE A PERSON OF PROVEN
13ADMINISTRATIVE PROFICIENCY, INDEPENDENCE, EXPERIENCE, KNOWLEDGE,
14AND COMMITMENT TO THE PROMOTION AND DEVELOPMENT OF PHILIPPINE
15CREATIVE INDUSTRIES WITH AT LEAST TEN (10) YEARS OF COMPETENCE,
16EXPERTISE, AND LEADERSHIP IN AT LEAST ONE (1) SECTOR OF THE CREATIVE
17INDUSTRIES PRIOR TO THE DATE OF HIS/HER APPOINTMENT.

18THE EXECUTIVE DIRECTOR SHALL BE ASSISTED BY TWO (2) DEPUTY

19EXECUTIVE DIRECTORS AND AN ADMINISTRATIVE STAFF.

20THE INCUMBENT MEMBERS OF THE COUNCIL SHALL SUBMIT A LIST OF

21NOMINEES FOR EXECUTIVE DIRECTOR AND DEPUTY EXECUTIVE DIRECTORS
22TO THE PRESIDENT OF THE PHILIPPINES.

23The Council shall fix [its] THE NATIONAL SECRETARIAT’S staffing pattern, determine
24the duties, qualifications, responsibilities, and functions OF ITS OFFICERS AND STAFF
25MEMBERS, AND APPROVE [as well as] the compensation scheme for the positions to
26be created upon the recommendation of the Executive Director, SUBJECT TO THE
27APPROVAL OF THE DEPARTMENT OF BUDGET AND MANAGEMENT (DBM) AND
28THE CIVIL SERVICE COMMISSION (CSC). The staffing pattern shall be approved and
29prescribed by the Council within one hundred twenty (120) days from the approval of
30this Act.

31The Department of Trade and Industry and other related NGAs shall provide the
32technical staff complement for the Secretariat AS WELL AS THE PERMANENT
33OFFICE FOR THE SECRETARIAT WITHIN ONE (1) YEAR UPON THE EFFECTIVITY
34OF THIS ACT.
35
36
37 SECTION 9 [10]. POWERS AND DUTIES OF THE EXECUTIVE DIRECTOR.
38THE EXECUTIVE DIRECTOR SHALL HAVE THE FOLLOWING POWERS AND
39DUTIES:
40
41 1. TO DIRECT AND MANAGE THE AFFAIRS OF THE NATIONAL SECRETARIAT
42 IN ACCORDANCE WITH THE POLICIES OF THE COUNCIL;

Page 10 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1 2. TO ESTABLISH THE INTERNAL ORGANIZATION OF COUNCIL

2 SECRETARIAT UNDER SUCH CONDITIONS THAT THE COUNCIL MAY
3 PRESCRIBE;
4 3. TO SUBMIT AN ANNUAL BUDGET AND NECESSARY SUPPLEMENTAL
5 BUDGET TO THE COUNCIL FOR ITS APPROVAL;
6 4. TO ENSURE THE FAITHFUL AND PROPER IMPLEMENTATION OF THE
7 PLAN, AND TO RECOMMEND CHANGES THERETO FOR CONSIDERATION
8 OF THE COUNCIL;
9 5. To review all existing policies, plans, programs and projects of the government
10 and to formulate and recommend TO THE COUNCIL AND OTHER
11 GOVERNMENT AGENCIES, in coordination with GOVERNMENT AGENCIES,
12 non-government organizations and business support organizations, national
13 policies, plans, and programs THAT WILL SUPPORT THE [in support of]
14 creative industries;
15 6. To maintain a database of all relevant data and information regarding the
16 creative industries in conjunction with other government agencies such as the
17 Philippine Statistics Authority (PSA), and other such agencies that maintain any
18 related database;
19 7. [To generate and mobilize resources from domestic and foreign sources for the
20 implementation of the Plan, to receive and accept donations and other
21 conveyances including funds, materials and services, by gratuitous title, as well
22 as to rationalize the use and the equitable distribution of such resources to the
23 various creative industries;
24 8. To develop and sustain cooperative exchanges, partnerships, and collaborations
25 among government agencies, creative entities, organizations, and associations,
26 both domestically and overseas, in coordination with the Department of Foreign
27 Affairs (DFA);]
28 9. To maintain a database of accredited business support organizations AND
29 CREATIVE ASSOCIATIONS in the creative industries, in coordination with the
30 Local Culture and Arts Councils (LCAC), pursuant to Section 17 of this Act;
31 10. To encourage persons in the creative industries to join business support
32 organizations AND CREATIVE ASSOCIATIONS in their respective fields;
33 11. To establish [a consultative mechanism for] AND PROMOTE A CULTURE OF
34 continuing dialogue between government and business support organizations
35 AND CREATIVE ASSOCIATIONS within the creative industries on proper
36 planning and evaluation of policies, programs and projects affecting its
37 stakeholders;
38 12. To build national awareness of the creative industries through VARIOUS
39 STRATEGIES INCLUDING advocacy and communication campaigns;
40 13. To ensure the promotion, marketing, distribution, and export of creative industry
41 output in both local and international markets in coordination with the Board of
42 Investments (BOI), Export Management Bureau (EMB), Foreign Service Trade
43 Corps (FSTC), and the Center for International Trade, Expositions, and Missions
44 (CITEM);

Page 11 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1 14. TO SUBMIT WITHIN THIRTY (30) DAYS AFTER THE CLOSE OF EACH
2 FISCAL YEAR AN ANNUAL REPORT, AND SUCH OTHER REPORTS AS MAY
3 BE REQUIRED, TO THE COUNCIL;
4 15. TO SUBMIT TO THE COUNCIL FOR ITS APPROVAL, POLICIES, SYSTEMS,
5 PROCEDURES, RULES, AND REGULATIONS THAT ARE ESSENTIAL TO
6 THE OPERATION OF THE COUNCIL SECRETARIAT;
7 16. TO RECOMMEND TO THE COUNCIL THE REMUNERATION AND OTHER
8 EMOLUMENTS OF ITS OFFICERS AND EMPLOYEES IN ACCORDANCE
9 WITH EXISTING LAWS ON COMPENSATION AND POSITION
10 CLASSIFICATION;
11 17. TO PERFORM SUCH OTHER DUTIES AS MAY BE ASSIGNED BY THE
12 COUNCIL OR WHICH ARE NECESSARY OR INCIDENTAL TO THE OFFICE.
13
14 [The Executive Director shall be assisted by two (2) Deputy Executive Directors
15and an administrative staff. The Department of Trade and Industry and other related
16NGAs shall provide the technical staff complement for the Secretariat.]

17  TITLE IV
18 STATE SUPPORT TO THE CREATIVE INDUSTRIES
19
20 SECTION 10. Infrastructure Support. - Entities from the creative industries may
21avail of Shared Service Facilities (SSF) from the Department of Trade and Industry and
22the infrastructure support programs under Republic Act No. 11293 or the Philippine
23Innovation Act. The Council shall also create subsidized rental schemes for studios and
24venues, and provide co-working spaces and other similar facilities and hardware as may
25be utilized by multiple creative industry stakeholders towards the creation, cultivation,
26and promotion of their goods or services.
27
28 SECTION 11. Digitization of the Creative Industries – [The Council shall
29provide access to digital services and digital training platforms for] MSMEs and
30freelancers in the creative industries SHALL BE GRANTED ACCESS TO DIGITAL
31SERVICES AND DIGITAL TRAINING PLATFORMS. [The Council shall also provide t]
32Technical and financial assistance PROGRAMS SHALL ALSO BE PROVIDED to
33Filipino entities that [shall] endeavor to create digital content distribution platforms
34benefitting the creative industries. Dedicated high-speed infrastructure and bandwidth
35SHALL BE PROVIDED BY THE DICT AND THE NATIONAL TELECOMMUNICATIONS
36COMMISSION (NTC) TO ENSURE THAT SUCH SERVICES, PLATFORMS, AND
37PROGRAMS ARE DELIVERED EFFICIENTLY TO CREATIVE INDUSTRY
38ENTERPRISES. [shall also be provided by the Council.]
39

40  SECTION 12. Creative Voucher System. - There is hereby established a

41Creative Voucher System that shall systematize the granting of support, aid, and other
42incentives to creative industry entities. To this end, [the Council shall issue] Creative
43Vouchers SHALL BE ISSUED to stakeholders from accredited business support
44organizations or CREATIVE associations in the creative industries, which shall entitle
45them to receive such support, aid, and incentives from the various government

Page 12 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1agencies. The implementation of the Creative Voucher System shall be subject to the
2guidelines, rules, and regulations that the Council shall provide.

3 SECTION 13. Creative Industries Investment Priority Plan. The Council shall
4create a Creative Industries Investment Priority Plan (CIIPP) which shall contain a listing
5of specific activities in the creative industries that can qualify for incentives. The CIIPP
6shall be duly supported by the studies of existing and prospective demands for such
7products and services in light of the level and structure of income, production, trade,
8prices and relevant economic and technical factors of the regions as well as existing
9facilities.
10
11The Board of Investments (BOI) or the leading national agency charged with the
12creation of the government’s investment priorities plan under Executive Order No. 226
13or successor legislation shall classify creative industry enterprises as preferred areas of
14investment under the Investment Priorities Plan (IPP) pursuant to the CIIPP issued by
15the Council, subject to other pertinent rules and regulations.
16
17 SECTION 14. TAXES AND DUTIES OF [Provision of Incentives to Investors
18in] Enterprises in the Creative Industries. – The following incentives shall be
19extended to enterprises or firms which are part of creative industries:
20 
21 [)     The Board of Investments (BOI) or the leading national agency charged with
22 the creation of the government’s investment priorities plan under Executive Order
23 No. 226 or successor legislation shall classify creative industry enterprises as
24 preferred areas of investment under the Investment Priorities Plan (IPP) pursuant
25 to the CIIPP issued by the Council, subject to other pertinent rules and
26 regulations;\
27  
28 b)     [The Bureau of Customs shall exempt c] A) Creative industry enterprises
29 SHALL BE EXEMPT from the payment of import duties for imported machines
30 and equipment, subject to THE PROVISIONS OF REPUBLIC ACT NO. 10863
31 AND OTHER pertinent rules and regulations;
32  
33 [C)]     B) DONATIONS MADE TO CREATIVE INDUSTRY ENTERPRISES
34 EXCLUSIVELY TO FINANCE BUSINESS EXPANSION PROGRAMS,
35 INCLUDING THE PURCHASE OF EQUIPMENT AND TECHNOLOGICAL
36 INNOVATIONS AND CAPACITY BUILDING PROGRAMS, SHALL BE
37 DEDUCTIBLE IN FULL FROM GROSS INCOME AND SHALL BE EXEMPT
38 FROM DONOR’S TAX, SUBJECT TO RULES AND REGULATIONS AS MAY BE
39 PROMULGATED BY THE DEPARTMENT OF FINANCE. [Expenses incurred
40 shall be allowed as deductible expenses for income tax purposes, subject to the
41 provisions of the National Internal Revenue Code of 1997, as amended:
42 Provided, that the deduction shall only apply to the taxable period, when the
43 expenses were incurred;]
44  

Page 13 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1 d)     Government owned, controlled and/or-supported financial institutions shall

2 give priority to creative industries in accessing credit assistance and guarantee
3 schemes;
4  
5 [e)     The Technical Education and Skills Development Agency (TESDA) shall
6 provide talent and skills training for entrepreneurs, workers, trainees, and
7 stakeholders in the creative industries; and
8
9 f) Commission on Higher Education (CHED) shall provide scholarships to
10 underprivileged but deserving college and post graduate students in courses
11 related to the creative industries.]
12
13 The eligibility of the creative industries for the incentives provided herein and in
14applicable laws shall be within the boundaries of a performance-based, time-bound, and
15transparent system of incentives.
16
17 SECTION 15. ACCESS TO CREDIT AND FINANCIAL INSTRUMENTS.
18Government owned, controlled and/or-supported financial institutions shall give priority
19to creative industries in accessing credit assistance and guarantee schemes, SUBJECT
20TO RULES AND REGULATIONS AS SUCH INSTITUTIONS MAY PROMULGATE.
21
22 SECTION 16. CREATIVE INSTRUCTION AND EDUCATION. THE
23FOLLOWING NATIONAL GOVERNMENT AGENCIES ARE HEREBY ENJOINED TO
24ESTABLISH A CREATIVE EDUCATIONAL PLAN AND OTHER POLICIES,
25PROGRAMS, AND STRATEGIES GEARED TOWARDS THE DEVELOPMENT OF
26THE COUNTRY’S HUMAN RESOURCES IN THE CREATIVE INDUSTRIES:
27
28 1. THE DEPARTMENT OF EDUCATION (DEPED) and the Commission On
29 Higher Education (CHED) shall, AMONG OTHERS, provide scholarships to
30 underprivileged but deserving basic education and college and post-graduate
31 students, respectively, enrolled in programs and courses related to the
32 creative industries. THE CHED SHALL ALSO IDENTIFY CREATIVE
33 CENTERS OF EXCELLENCE AND ESTABLISH CRITERIA FOR SUCH
34 IDENTIFICATION;
35
36 2. The Technical Education and Skills Development Authority (TESDA) shall,
37 AMONG OTHERS shall provide talent and skills training for entrepreneurs,
38 workers, trainees, and stakeholders in the creative industries, as well as
39 continuous education, talent and skills training, and capacity-building for
40 stakeholders in the creative industries.
41
42 SECTION 17. DATA AND INFORMATION MANAGEMENT. THE PHILIPPINE
43STATISTICS AUTHORITY (PSA) IS HEREBY ENJOINED TO INCORPORATE THE
44CREATIVE INDUSTRIES IN THE PHILIPPINE STANDARD INDUSTRIAL
45CLASSIFICATION (PSIC), AS WELL AS IN THE OTHER DATABASES IT MAINTAINS.
46THE COUNCIL AND THE NATIONAL SECRETARIAT SHALL BE IN CLOSE

Page 14 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1COORDINATION WITH THE PSA, AS WELL AS WITH OTHER NATIONAL

2GOVERNMENT AGENCIES, IN THE COLLECTION AND MANAGEMENT OF DATA
3RELEVANT TO THE CREATIVE INDUSTRIES. THE COLLECTION AND
4MANAGEMENT OF DATA SHALL ALSO BE CONDUCTED KEEPING IN MIND THE
5ACCURACY OF OUR COUNTRY’S NATIONAL INCOME ACCOUNTING.
6
7SECTION 18 [15]. The Creative Industry Development Trust Fund. - There is hereby
8established a Special Account in the General FUND with the National Treasury to be
9called the Creative Industry Development Trust Fund herein referred to as the Trust
10Fund. The purpose of the fund is for research and development, trade promotion, credit,
11human resource development in the creative industry and for the welfare of artists,
12workers and other stakeholders. The Trust Fund shall be capitalized, manageD, utilized,
13and accounted for in the manner provided under this Act. THE TRUST FUND SHALL
14BE SOURCED FROM THE FOLLOWING:
15
16 1. Upon approval of this ACT [law], THE AMOUNT OF ONE HUNDRED MILLION
17 PESOS (PHP 100,000,000.00) SHALL BE TAKEN FROM THE SHARE OF
18 THE NATIONAL GOVERNMENT IN THE GROSS INCOME OF THE [the Office
19 of the President, through] Philippine Amusement and Game Corporation
20 (PAGCOR) [shall allocate One Hundred Million Pesos (PHP 100,000,000.00)]
21 as initial funding for the Trust Fund for the implementation of this Act.
22 [Thereafter, the amount of not less than Two Hundred Million Pesos (PHP
23 200,000,000.00) shall be allocated every year for the next twenty (20) years for
24 the Trust Fund lodged in the Center.]
25 2. INCOME FROM SPECIALIZED PRODUCTS, SERVICES, AND ROYALTIES
26 PRODUCED BY THE COUNCIL;
27 3. LOANS, CONTRIBUTIONS, GRANTS, BEQUESTS, GIFTS, AND DONATIONS
28 WHETHER FROM LOCAL OR FOREIGN SOURCES, PROVIDED, THAT
29 ACCEPTANCE OF GRANTS, BEQUESTS, CONTRIBUTIONS AND
30 DONATIONS FROM FOREIGN GOVERNMENTS SHALL BE SUBJECT TO
31 THE APPROVAL OF THE PRESIDENT UPON RECOMMENDATION OF THE
32 EXECUTIVE DIRECTOR OF THE COUNCIL.
33 
34 The program of expenditure for the programs, projects and activities to be funded
35by the Trust Fund shall be itemized on a project to-project basis and submitted annually
36to Congress. In the identification and prioritization of specific programs, projects and
37activities, the Council shall conduct prior consultation with the representatives of the
38industry.
39
40 THE TRUST FUND SHALL BE VALID FOR FIVE (5) YEARS AND SHALL BE
41SUBJECT TO REVIEW OF THE COUNCIL. ANY REMAINING BALANCE
42THEREAFTER SHALL BE REVERTED TO THE GENERAL FUND.
43
44 [SECTION 16. Additional Creative Content Rights. - In addition to the rights
45and protection provided in R.A. No. 8293 otherwise known as the "Intellectual Property
46Code of the Philippines", this Act shall endow ownership to the creator of working

Page 15 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1drawings for industrial and fashion design; detailed sequence and shot guides for
2movies and games, original character, background, and tool designs, executable source
3codes for game and software; and such other forms of creative content in their beta
4testing and development, pre-distribution, or incomplete formats but capable of final
5production and reproduction.]
6
7 SECTION 19 [17]. Engagement with the Private Sector. - The Council shall, at
8all times, consult and coordinate with a] Accredited business support organizations and
9CREATIVE associations SHALL, AT ALL TIMES, BE CONSULTED AND
10COORDINATED WITH on the formulation and implementation of programs and policies
11concerning the creative industries, including the creation of jobs and the granting of aid
12during national emergencies. [The Council shall also have the power to promote] Public-
13Private Partnerships SHALL ALSO BE PROMOTED towards infrastructure development
14for creative industries, subject to the provisions of Republic Act No. 6957, as amended.
15
16 SECTION 20 [18]. [Creation of Local Creative Industry Development
17Councils] LOCAL CULTURE AND ARTS COUNCILS. - All local government units, in
18coordination with the Council and the Department of Interior and Local Government
19(DILG) shall establish a [Local Creative Industry Development Council (LCIDC)] A
20LOCAL CULTURE AND ART COUNCIL (LCAC), WHICH SHALL EXERCISE THE
21FOLLOWING FUNCTIONS AND POWERS IN ADDITION TO THOSE PROVIDED
22UNDER EXISTING STATUTES, MEMORANDUMS, AND OTHER ISSUANCES: [Each
23LCIDC shall coordinate with the Council for the implementation of programs and
24projects at the local level. The other functions and powers of the Local Councils shall
25include the following:]
26 a) Support the Council in all of its functions as provided in Section 6 of this Act;
27 b) Report to the Council any issues, developments, and the status of the
28 implementation of programs at the local level;
29 c) Regularly maintain and transmit to the Council a database of business
30 support organizations AND CREATIVE ASSOCIATIONS within the territorial
31 jurisdiction of the LGU where the LCAC is located;
32 d) Formulate, plan, coordinate, implement, and assess policies, programs,
33 activities, and projects for the promotion and development of the locality’s
34 creative industries, in coordination with the Council; and
35 e) Such other duties and functions as the Council may direct.
36 SECTION 21. One-Stop Registration Center. - Negosyo Centers in local
37government units, as provided for by Republic Act No. 10644, shall extend its services
38as a one-stop shop to assist creative industry mSMEs or entrepreneurs in availing
39government services that are applicable to the creative industries, including but not
40limited to, intellectual property registration, product and business registration, loans,
41grants and benefits programs. There shall be a special lane created in all Negosyo
42Centers for this purpose. 

Page 16 of 17
 Draft substitute bill (15 January 2020)
Special Committee on Creative Industry and Performing Arts

1 Negosyo Centers shall provide electronic means of access and registration, in

2accordance with the provisions of Republic Act No. 11032.
3
4 TITLE V OTHER PROVISIONS
5
6 SECTION 22 [20]. Annual Report. The Council shall submit to the President
7and to both Houses of Congress, not later than the 30th of April of every year following
8the effectivity of this Act, a report giving a detailed account of the effectivity and
9implementation of this act, and recommended legislation where applicable and
10necessary.
11
12 SECTION 23. MANDATORY REVIEW EVERY FIVE YEARS. – THIS ACT
13SHALL BE SUBJECT TO REVIEW AT LEAST ONCE VERY FIVE (5) YEARS OR AS
14OFTEN AS MAY BE DEEMED NECESSARY, WITH THE PRIMARY OBJECTIVE OF
15ENACTING NECESSARY REFORMS TO RESPOND TO EMERGING NEEDS AND
16DEVELOPMENTS IN THE CREATIVE INDUSTRY, WHICH MAY INCLUDE BUT IS
17NOT LIMITED TO A REVIEW OF EXISTING GOVERNANCE STRUCTURES.
18
19 SECTION 24 [21]. Appropriations. - The amount of Five Billion Philippine
20Pesos (Php5,000,000.000.00) shall be appropriated for the initial implementation of the
21Act. Thereafter, such sums as may be necessary for the continued implementation of
22the Act shall be included in the Annual General Appropriations Act.
23 
24 SECTION 25 [22]. Implementing Rules and Regulations. - Within sixty (60)
25days from the effectivity of this Act, the DTI Secretary, in consultation with other
26concerned government agencies, the industry representatives and non-government
27organizations, shall promulgate the necessary implementing rules and regulations for
28the effective implementation of this Act.
29
30 SECTION 26 [23]. Separability Clause. - If, for any reason, any portion or
31provision of this Act shall be held unconstitutional or invalid, the remaining provisions
32not affected thereby shall continue to be in full force and effect.
33
34 SECTION 27 [24]. Repealing Clause. - All laws, executive orders,
35proclamations, rules, regulations and other issuances or parts thereof which are
36inconsistent with the provisions of this Act are hereby repealed or amended accordingly.
37
38 SECTION 28 [25]. Effectivity. - This Act shall take effect fifteen (15) days after
39its publication in the Official Gazette or in any newspaper of general circulation.
40
Approved,

Page 17 of 17