OPM Development Act of 2014 (House Bill No. 4218)

HOUSE BILL No. 4218

INTRODUCED BY: REP. TEDDY BRAWNER BAGUILAT

AN ACT PROVIDING FOR THE PROMOTION, PROTECTION AND DEVELOPMENT OF THE PHILIPPINE MUSIC INDUSTRY AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. – This Act shall be known as the “OPM Development Act of 2014.”

SECTION 2. Declaration of Policy. – It is hereby declared the policy of the State to support original Filipino Music and guard against preferential treatment of foreign music in the Philippines to the detriment of the Philippine Music Industry.

SECTION 3. Definition of Terms. – As used in this Act:

(a) “Accreditation” shall mean the in-depth assessment of an artist-performer guild or artist-composer guild with particular focus on whether it is able to look after and promote the welfare of its members.

(b) “Artist” shall refer to any person who acts, composes, conducts, creates, dances, delivers, declaims, plays, sings or otherwise performs a musical composition.

(c) “Broadcast” shall refer to either wire or wireless transmission of sounds and/or images to the general public.

(d) “Broadcasting Organization” shall refer to proprietorships duly authorized to engage in broadcasting activities.

(e) “Equity Fees” shall refer to fees collected as remuneration for the displacement of Filipino performers by foreign performers.

(f) “Lead Artist” shall refer to the artist/s top billing a performance.

(g) “Minor Artist” shall refer to back-up singers, dancers, musicians or any other artist in a performance other than the Lead Artists.

(h) “Original Pilipino Music or OPM” shall refer to a musical composition originally created, composed or performed by a Filipino.

(i) “Performance” shall refer to the live or recorded staging of an artist’s talents.

(j) “Performance Workers” shall refer to crewmembers or any person who works, helps or assists in the staging of a performance, other than an artist.

(k) “Performer” shall refer to an artist belonging to any of the following classes or categories: singer, musician, theater actor, dancer and other similar classes or categories.

SECTION 5. Strengthening the National Committee on Music. – The National Committee on Music (“NCM”), under the Subcommission on the Arts of the National Commission for Culture and the Arts (“Commission”), shall have the following additional powers and functions:

(a) Provide guidelines and regulate all domestic and foreign producers and events or concert organizers intending to bring into the Philippines foreign artists who will present or stage a public performance of musical works;

(b) Determine the amount of and collect equity fees, which shall be adjusted from time to time, from all foreign lead artists, minor artists and performance workers in accordance with this Act;

(c) Devise a system of and grant Tax Credits to Broadcast Organizations in accordance with this Act;

(d) Review and provide for a system of payment of royalties to Filipino creators and owners of original musical works; and

(e) Devise and administer an Accreditation System for artist-performer and artist-composer guilds.

SECTION 6. Accreditation of Guilds. – The NCM shall accredit only one guild per category or class of performer or artiest. The accreditation given to guild pursuant to this Act shall be valid for only two (2) years and may be renewed yearly thereafter.

SECTION 7. Permanent Seats in the Executive Council of the NCM. – One representative from any of the duly-accredited performers’ guilds and one representative from the duly-accredited composer’s guild shall each have a permanent seat in the Executive Council of the NCM. The said representatives to the Executive Council shall be chosen by the Commission.

SECTION 7. Reciprocal Equity Fees. – The Equity fee chargeable to a foreign lead artist, minor artist and performance worker shall be equivalent to the amount being charged to a Filipino lead artist, minor artist and performance worker in the country of origin or registered country of the said artist or performance workers.

SECTION 8. Equity Fund. – The income from equity fee shall be constituted into a Fund to be exclusively used for the benefit of local performers who are members of any of the performers’ guilds duly-accredited by the NCM. The fund shall be collected, administered and managed by the NCM in accordance with its rules.

SECTION 9. Tax Credits. – All broadcasting organizations broadcasting a minimum of four (4) Original Filipino Music in every clock hour of a program shall be entitled to a tax credit, the amount of which and the rules governing therefor shall be provided by the NCM in consultation with the Bureau of Internal Revenue.

SECTION 10. Implementing Rules and Regulations. – The Commission shall issue Rules and Regulations implementing this Act within thirty (30) days from the effectivity hereof.

SECTION 11. Separability Clause. – If any section or part of this Act is held unconstitutional or invalid, the other sections or provision shall remain in full force and effect.

SECTION 11. Repealing Clause. – All laws, decrees, executive orders, rules and regulations, issuance or any part thereof, insofar as they are inconsistent with the provisions of this Act, are deemed repealed.

SECTION 12. Effectivity. – This act shall take effect fifteen (15) days after its publication in at least two (2) newspapers of general circulation.

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