Senate Bill 2049, principally authored and sponsored by Sen. Vicente Sotto III, creates a Film Development Council of the Philippines (FDCP) whose main task is to establish and implement an incentive system for movie producers and encourage them to produce quality film.
The measure also creates a 30-man Cinema Evaluation Board that would formulate a set of criteria on film evaluation, subject to the approval of the FDCP, and rate Filipino films submitted to it for review.
Films rated "A" by the board will be rewarded with a 100-percent rebate of the amusement tax collected on such films, and "B" films, 65 percent.
Senate President Franklin Drilon hailed the proposal as a major boost to the beleaguered local film industry, beset by high production costs and fierce competition from foreign films and unabated piracy.
"I am confident that this piece of legislation will help our local film producers cope with the high cost of production. But more importantly, it is my wish that the bill would encourage the production of quality films," Drilon said.
The Senate approval was witnessed by representatives of the movie industry, among them Esperidion Laxa, Eddie Romero, Marichu Maceda, Marilou Diaz Abaya, Laurice Guillen, Charlene Gonzales, Boots Anson-Roa, Ricky Davao and Boy Abunda.
Romero and Laxa cited the Senate for "finally" becoming receptive to the dire needs of the movie industry.
"We have waited 30 years for his. The last two Congresses, the House passed this measure, only to get snagged in the Senate," Romero said.
Laxa said that they are completely satisfied with the Senate action, adding that the movie industry is now setting its sight on the passage of an anti-piracy bill.
Sotto, chairman of the Senate committee on public information and mass media, said approval of the measure would foster the growth of the local film industry as medium for the upliftment of the people’s aesthetic, cultural and social values and for the better understanding and appreciation of the Filipino identity.
"The passage of the measure is the Senate’s contribution in stimulating more investments in quality films and in encouraging the industry to upgrade their efforts," Sotto said.