AN ACT PROVIDING FOR THE DEVELOPMENT AND PROMOTION OF THE PHILIPPINE CREATIVE INDUSTRIES, AND APPROPRIATING FUNDS THEREFOR

Eighteenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-sixth day of July, two thousand twenty one.

[ REPUBLIC ACT NO. 11904, July 28, 2022 ]

AN ACT PROVIDING FOR THE DEVELOPMENT AND PROMOTION OF THE PHILIPPINE CREATIVE INDUSTRIES, AND APPROPRIATING FUNDS THEREFOR

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

CHAPTER I
PRELIMINARY PROVISIONS

Section 1. Short Title. — This Act shall be known as the "Philippine Creative Industries Development Act."

Section 2. Declaration of Policy. — It is the policy of the State to promote and support the development of Philippine creative industries by protecting and strengthening the rights and capacities of creative firms, artists, artisans, creators, workers, indigenous cultural communities, content providers, and stakeholders in the creative industries as defined in this Act.

To this end, the State shall establish a creative industries development council mandated to implement a long-term plan for the development and promotion of the Philippine creative industries, with programs aimed at creating opportunities and employment, nurturing human resources, ensuring financial-enabling mechanisms, and providing incentives to encourage and sustain Filipino excellence in the creative industries.

Section 3. Definition of Creative Industries. — As used in this Act, creative industries are trades involving persons, whether natural or juridical, that produce cultural, artistic, and innovative goods and services originating in human creativity, skill, and talent and having a potential to create wealth and livelihood through the generation and utilization of intellectual property.

Creative industries include those directly or indirectly involved in the creation, production and manufacturing, performance, broadcasting, communication and exhibition, or distribution and sale of works and other subject matter, in accordance with existing laws, rules and regulations on intellectual property rights protection.

Creative industries include the following domains, with a non-exhaustive list of industries belonging under each:

CHAPTER II
ORGANIZATION OF THE PHILIPPINE CREATIVE
INDUSTRIES DEVELOPMENT COUNCIL

Section 4. Creation of the Philippine Creative Industries Development Council. — The Philippine Creative Industries Development Council, herein referred to as the Council, is hereby created to spearhead the development and promotion of the creative industries of the Philippines.

The Council shall be composed of nineteen (19) members: ten (10) ex officio members and nine (9) regular members from the private sector.

Every regular member shall be appointed by the President of the Philippines from a list submitted by the DTI Secretary who, upon consultation with the other ex officio members of the Council and with the stakeholders engaged in each respective domain, shall nominate at least three (3) nominees for every regular member seat: Provided, That each of the nominees shall come from the private sector and must have at least ten (10) years of experience in the development of the creative industry domain which the nominee belongs to: Provided, further, That each of the nominees shall have been endorsed by a business support organization or creative workers association relative to the creative industry domain sought to be represented.

The Council shall elect a co-chair among the nine (9) regular members.

The regular members of the Council shall serve for a term of six (6) years, unless sooner terminated due to death, resignation, or removal for cause, in which case their replacements shall serve only the unexpired portion of their respective terms.

Of the first set of regular members, five (5) shall hold office for a term of three (3) years and the remaining four (4) for a term of six (6) years to be determined by the President of the Philippines.

The regular members of the Council shall receive per diem every meeting in accordance with existing rules and regulations.

Section 5. Creative Workers' Welfare Standing Committee. — There is hereby created a Creative Workers' Welfare Committee, hereinafter referred to as the Committee, which shall be a standing committee of the Council. The Committee shall ensure that creative freelancers and creative workers have access to sustainable and dignified work in the creative industries.

Section 6. Meetings. — The Council shall meet at least once every quarter or as often as necessary at the call of the Chairperson or majority of the members. Members of the Council who cannot physically attend or vote at Council meetings can participate and vote through remote communication technologies including videoconferencing, teleconferencing, or other alternative modes of communication that allow them reasonable opportunities to participate. A majority of the incumbent members of the Council shall constitute a quorum to do business.

Section 7. Mandate, Powers, and Functions of the Council. — The Council shall exercise the following powers and functions:

A. PLANNING AND POLICY FORMULATION

B. PRIVATE SECTOR PARTICIPATION

C. MARKETING AND PROMOTION

D. CAPACITY-BUILDING

E. OTHER FUNCTIONS

In the exercise of its powers and functions, the Council shall, at all times, coordinate and synergize its plans and programs with the national government agencies (NGAs) that have existing mandates in the various creative industry domains that are defined in Section 3 of this Act, as well as with NGAs that may be similarly mandated under future legislation or government reorganization, including but not limited to the following:

To this end, the Council may invite the NGAs to present their plans, proposals, and programs during its regular meetings.

CHAPTER III
THE PHILIPPINE CREATIVE INDUSTRIES
DEVELOPMENT PLAN

Section 8. The Philippine Creative Industries Development Plan. — The Council, in coordination with the NGAs referred to in the preceding section, shall formulate the Philippine Creative Industries Development Plan, hereinafter referred to as the Plan, that sets forth the objectives, targets, strategies, and activities on the development and promotion of Philippine creative industries. The Plan must be submitted to the President of the Philippines for approval within one (1) year after the effectivity of this Act and is subject to mandatory review every three (3) years.

The Plan shall include a three-year, six-year, and ten-year development timeline for its vision, mission, goals, and milestones.

The Plan shall include the following components, among others, as may later be determined by the Council:

Section 9. Secretariat to the Philippine Creative Industries Development Council. — A Secretariat to the Council shall be established within the DTI, herein referred to as the Secretariat, to be headed by an Executive Director IV (Salary Grade 29) who shall be appointed by the President of the Philippines.

The Executive Director IV shall be at least thirty (30) years of age at the time of appointment; must possess good moral character; be a person of proven integrity; is a holder of a college degree in a related field of discipline; a person of proven administrative proficiency, independence, experience, knowledge, and commitment to the promotion and development of the Philippine creative industries; and who has served in a position of leadership for at least ten (10) years in at least one (1) creative industry domain prior to the date of appointment.

The Executive Director IV shall be assisted by two (2) Deputy Executive Directors IV (Salary Grade 28) and an Administrative Staff consisting of at least one (1) of each of the following officers and employees:

The Deputy Executive Directors shall have the same qualifications for appointment as the Executive Director.

The President of the Philippines shall appoint the Executive Director and the Deputy Executive Directors from a list of at least five (5) nominees submitted by the Council.

The Executive Director and the Deputy Executive Directors shall serve for a term of three (3) years, with reappointment for another term. In case of death, resignation, or removal for cause, their replacements shall serve only the unexpired portion of their respective terms.

Within one hundred twenty (120) days after the effectivity of this Act, the Council shall determine the organizational structure, staffing pattern, and compensation system of the Secretariat, including the duties, qualifications, responsibilities, and functions of its officers and staff members, and submit the same to the Department of Budget and Management (DBM) for approval. The officers and employees of the Secretariat shall be appointed in accordance with civil service laws, rules, and regulations.

Section 10. Duties and Functions of the Executive Director. — The Executive Director shall exercise the following duties and functions:

CHAPTER IV
SUPPORT FOR THE CREATIVE INDUSTRIES

Section 11. Infrastructure Support. — Entities from the creative industries may avail of shared service facilities from the DTI and the infrastructure support programs under Republic Act No. 11293, otherwise known as the "Philippine Innovation Act."

Further, the Council shall create subsidized rental schemes for studios and venues and provide co-working spaces and other similar facilities and hardware that may be utilized by multiple creative industry stakeholders towards the creation, cultivation, and promotion of their goods or services: Provided, That a preference for MSMEs shall be observed and practiced in the provision of such support.

Shared service facilities refer to machinery, equipment, tools, systems, accessories and other auxiliary items, skills, and knowledge that are being provided by the DTI under a combined and collective system to its target beneficiaries. The DTI shall promulgate guidelines on availing its shared facilities, including the manner of selecting its beneficiaries, in coordination with the Council.

Section 12. Research and Development (R&D) and Innovation Support. — Entities from the creative industries may avail of the research and development support program of the DOST that provides financial support to research projects addressing the industry needs through science and technology interventions, accelerating the transfer and commercialization of generated technologies, and strengthening the capability of human resources and institutions to undertake research and development. Research grants may be availed of by government research and academic institutions as well as local companies and startups, subject to the evaluation and approval of the DOST.

Section 13. Digitalization of the Creative Industries. — Entities from the creative industries shall be granted access to digital services and digital training platforms. Technical and financial assistance programs shall also be provided to Filipino entities that endeavor to create digital content distribution platforms and other digital innovations benefitting the creative industries. Dedicated high-speed infrastructure and bandwidth shall be provided by the DICT and the National Telecommunications Commission to the entities, to ensure that such services, platforms, and programs are delivered efficiently to creative industry enterprises. The DICT shall promulgate guidelines to implement this program, including the manner of selecting its beneficiaries, in coordination with the Council.

Section 14. Creative Voucher System. — A Creative Voucher System shall be established to systematize the granting of support, aid, and other incentives to creative industry entities, with a preference towards MSMEs. To this end, creative vouchers shall be issued to stakeholders from business support organizations and creative workers associations in the creative industries, which entitle them to receive the support, aid, and incentives from the various government agencies. The Council shall promulgate guidelines to implement the Creative Voucher System.

Section 15. Creative Industries Investment Priority Plan. — The Council shall create a Creative Industries Investment Priority Plan (CIIPP) that contains a list of specific activities in the creative industries that may qualify for incentives. The CIIPP must be duly supported by the studies of existing and prospective demands for such products and services in light of the level and structure of income, production, trade, prices and relevant economic and technical factors of the regions as well as existing facilities.

Enterprises engaged in creative industry activities listed in the CIIPP may be entitled to applicable fiscal incentives as provided for under Republic Act No. 11534, otherwise known as the "Corporate Recovery and Tax Incentives for Enterprises Act", and non-fiscal support as contained in the Strategic Investment Priority Plan (SIPP), subject to the requirements and limitations set and determined by the BOI, in coordination with the Fiscal Incentives Review Board.

Section 16. Access to Credit and Financial Instruments. — Government-owned, -controlled, or -supported financial institutions shall give priority to creative industries in providing credit assistance and guarantee schemes, subject to the rules and regulations of the concerned financial institutions.

Section 17. Creative Instruction and Education. — The following NGAs shall establish a Creative Educational Plan and other policies, programs, and strategies geared towards human resource development, audience capacity-building, and consumer empowerment in the country's creative industries, in partnership with the private sector and the academe:

The DepEd, CHED, and TESDA shall also extend incentives to academic institutions that provide funds and/or grants for the research of their students and faculty on matters relating to the development and promotion of Philippine creative industries.

Section 18. Creative Industry Data and Information Management. — The Council and the Secretariat shall be in close coordination with the PSA and other relevant NGAs in the setting up of a satellite account for creative industries, as well as its data collection and management. The collection and management of data must be conducted diligently to maintain the accuracy of the country's national income accounting.

The Secretariat shall also develop and maintain a website that shall serve as the primary source of information on statistics, events, government programs, and benefits for Philippine creative industries. This shall involve the integration of any existing websites and content on programs implemented by the government for all creative industry domains in the country.

Section 19. The Creative Industry Development Fund. — There is hereby established a Special Account in the General Fund with the National Treasury to be called the Creative Industry Development Fund, herein referred to as the Fund. The purpose of the Fund is for research and development, trade promotion, human resource development in the creative industry, and for the welfare of artists, workers and other stakeholders through business support organizations and creative workers associations. The Fund shall be capitalized and administered by the Council in accordance with existing government budgeting, accounting and auditing rules and regulations. The Fund shall be sourced from the loans, contributions, grants, bequests, gifts, and donations, whether from local or foreign sources: Provided, That acceptance of grants, bequests, contributions and donations from foreign governments shall be subject to the approval of the President upon recommendation of the DFA Secretary: Provided, further, That such grants, bequests, contributions, and donations shall be deductible for income tax purposes in accordance with the provisions of the National Internal Revenue Code, as amended.

The program of expenditure for the programs, projects, and activities to be funded by the Fund shall be itemized on a project-to-project basis and submitted annually to Congress. In the identification and prioritization of specific programs, projects, and activities, the Council shall conduct prior consultation with the representatives of the creative industry.

Section 20. Public-Private Partnerships. — Public-private partnerships shall be promoted towards infrastructure development for creative industries, subject to the provisions of Republic Act No. 6957, as amended, otherwise known as the "Philippine Build-Operate-Transfer (BOT) Law."

Section 21. The Philippine Creative Cities Network. — There is hereby established a Philippine Creative Cities Network (PCCN) which is a permanent program of the Council that shall serve as an avenue of mutual support, exchange of ideas, and collaboration among the country's cities. The PCCN shall have the following objectives:

The PCCN shall be implemented in coordination with the DFA, UNACOM, the League of Cities of the Philippines, DTI and DILG.

Section 22. Local Culture and Arts Councils. — All LGUs, in coordination with the Council and the DILG, shall establish a Local Culture and Art Council (LCAC). The LCAC shall exercise the following functions and powers in addition to those provided under existing statutes, memoranda, and other issuances:

Section 23. One-Stop Registration Center. — The Negosyo Centers in LGUs established under Republic Act No. 10644, otherwise known as the "Go Negosyo Act,: shall extend its services as a one-stop shop to assist creative industry MSMEs or entrepreneurs in availing government services that are applicable to the creative industries, including intellectual property registration, product and business registration, loans, grants, and benefits programs. There shall be a special lane in all Negosyo Centers for this purpose.

The Negosyo Centers shall provide electronic means of access and registration for creative industry MSMEs or entrepreneurs, in accordance with the provisions of Republic Act No. 9485, as amended by Republic Act No. 11032 or the "Ease of Doing Business and Efficient Government Service Delivery Act of 2018".

Section 24. Philippine Creative Industries Month. — To promote the goods, products, and services of the Philippine creative industries, and to raise awareness on their role in nation-building and socioeconomic advancement, the celebration of "Philippine Creative Industries Month" shall be held for the whole month of September of every year.

The Secretariat is hereby mandated to ensure the successful annual celebration of the "Philippine Creative Industries Month" throughout the country, in partnership with the private sector and the academe. The mechanism, programs, and activities for the celebration shall be laid down as part of the implementing rules and regulations (IRR) of this Act.

All departments, agencies, and instrumentalities of the national government, including government-owned and -controlled corporations, LGUs, and the private sector, are directed to extend their full support and active participation in the programs and activities for this purpose.

CHAPTER V
FINAL PROVISIONS

Section 25. Annual Report. — The Council shall submit to the President of the Philippines and both Houses of Congress, not later than the 30th of April of every year following the effectivity of this Act, a report giving a detailed account of the implementation of this Act, including recommendations for legislation, if necessary.

Section 26. Mandatory Review. — This Act shall be reviewed at least once every five (5) years or as often as may be deemed necessary by the Congress of the Philippines, with the primary objective of enacting necessary reforms to respond to emerging needs and developments in the creative industry, which may include a review of existing governance structures.

Section 27. Appropriations. — The amount necessary for the immediate implementation of this Act shall be included in the annual General Appropriations Act.

Section 28. Implementing Rules and Regulations. — Within sixty (60) days from the effectivity of this Act, the DTI Secretary shall, in consultation with other concerned government agencies, the industry representatives and nongovernment organizations, promulgate the necessary rules and regulations for the effective implementation of this Act.

Section 29. Separability Clause. — If any provision of this Act is held invalid or unconstitutional, the other provisions not affected thereby shall remain in full force and effect.

Section 30. Repealing Clause. — All laws, presidential decrees, executive orders, rules and regulations and other issuances or parts thereof which are inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly.

Section 31. Effectivity. — This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in at least two (2) newspapers of general circulation in the Philippines.

Approved,

This Act which is a consolidation of House Bill No. 10107 and Senate Bill No. 2455 was passed by the House of Representatives anf the Senate of the Philippines on May 31, 2022 and May 30, 2022, respectively.

Approved: Lapsed into law on JUL 28 2022 without the signature of the President, in accordance with Article VI Section 27 (1) of the Constitution.

RODRIGO ROA DUTERTE
President of the Philippines