FOR PERIOD OF AMENDMENTS FIFTEENTH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) Second Regular Session )

SENATE S.B. No. 3071

(In substitution of Senate Bill Nos. 1064 and 2930, taking into consideration the speech of Senator Guingona III entitled “Design Council of the Philippines” dated August 9, 2011)

Prepared Jointly by the Committee on Trade and Commerce, Local Government, Ways and Means, Economic Affairs, and Finance with Senators Villar and Guingona III as authors

thereof

“AN ACT PROMOTING COMPETITIVE FILIPINO DESIGN, PROVIDING FOR THE PURPOSE A NATIONAL DESIGN POLICY AND RE-ENGINEERING AND RENAMING THE PRODUCT DEVELOPMENT AND DESIGN CENTER OF THE PHILIPPINES (PDDCP) AS THE DESIGN CENTER OF THE PHILIPPINES 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 “Philippine Design 1  Competitiveness Act of 2011” 2  

SECTION 2. Statement of Policy. – It is the declared policy of the State to enhance the 3  competitiveness and innovativeness of Philippine products and services to drive sustainable 4  economic growth. 5  

The State shall also endeavor to promote an economy and society driven by creativity, 6  design and innovation that are responsive to our fast-changing times, while being reflective 7  of the Filipino culture and identity. It shall also advocate the protection of the ideas and 8  innovations of its local talents. 9  

The State shall also promote the adaptation of design principles, such as creativity, 10  efficiency, user-centeredness, and sustainability, in government processes and public 11  programs, so that it may channel and use its resources to deliver its services more efficiently 12  and effectively. 13  

SECTION 3. Purpose and Objectives. - The State shall promote and strengthen the 14  Philippine design industry to achieve the following purpose: 15  

a. “Establish a national design policy, which shall be an integrated, forward-16  thinking and long-range direction and strategy for the Philippine design 17  industry; 18  

b. Build and promote design awareness to the public by making good design 19  accessible to everyone through different activities and events; 20  

c. Create demand for good design by integrating design into other industries 21  and aspects of society, thereby extending its impact economically, socially 22  and environmentally; 23  

d. Cultivate capabilities and resources of Filipino designers to produce 24  world-class designs and innovations; so that we may 25  

e. Leverage Filipino design for global competitiveness, consequently 26  establishing a distinct and strategic national brand that reflects our country’s 27  culture, heritage and traditions; 28  

f. Incorporate design solutions to government processes and public 29  development problems, thereby making design a priority component in 30  national development and social innovation; and 31  

g. Ultimately, create an environment and culture that values and drives 32  innovation so that the Philippines may leverage our raw materials, natural 33  resources, and creativity to stay ahead of the curve.” 34  

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SECTION 4. Reengineering the Product Development and Design Center of the 36  Philippines and Strengthening its Mandate. – The Product Development and Design 37  

Center of the Philippines (PDDCP) is hereby reengineered and renamed into the Design 38  Center of the Philippines, herein referred to as the Design Center. 39  

The Design Center is mandated to be the primary policy, planning, coordinating, 40  implementing, regulating, and administrative entity of the executive branch of government 41  that will promote and develop the Philippine design industry. 42  

As the national center for design, it will spearhead the creation and implementation of the 43  National Design Policy, with a vision to create a culture of design-driven innovation in the 44  Philippines. 45  

To effectively carry out this mandate, the Design Center shall exercise the following powers 46  and functions: 47  

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1. Create the National Design Policy 49  - Formulate the National Design Policy, herein referred to as NDP, aligning it with 50  

the Government’s economic agenda; 51  - Continuously formulate 5-year-plans that are in line with the general NDP, but 52  

reflective of the changing conditions in both the domestic and international 53  environments; 54  

- Coordinate, monitor, and assess the implementation of the NDP, and, when 55  necessary, update the NDP in the light of changing market conditions in both the 56  domestic and international environments; 57  

- Establish dialogue with designers and industry stakeholders to encourage them 58  to actively engage with the crafting and implementation of the design policy; 59  

- Establish an evaluation system through which the results of the NDP (as well as 60  singular projects and programs) could be assessed and improved. 61  

2. Implement the National Design Policy 62  - Spearhead the implementation of the NDP, with the purpose of achieving its 63  

goals, as expounded in Section 9 of this bill. The NDP goals that the Design 64  Center is expected to achieve can be broadly classified into the following 65  categories: 66  

o Design Awareness & Culture 67  o Design Education 68  

o Design Promotion 69  o Design Support & Protection 70  o Design Integration into Government 71  

- Part of carrying out this policy, the Center must regularly publish and report on all 72  of its activities and programs through an official website. This shall serve as 73  central hub of information for the country’s design industry, and will keep the local 74  and international public up-to-date with the Philippine design scene. This must 75  also be accomplished to uphold the value of government transparency: all 76  information on the agency’s activities must be made accessible and 77  understandable, so that the citizens may see where their money is being spent, 78  and if it is being spent efficiently. 79  

3. Research and Development 80  - Perform country mapping for the Philippine design industry, in order to obtain 81  

extensive and thorough information on the details and demographics of where 82  our nation is in terms of design awareness and capabilities. This should also 83  identify our strengths and assets, and therefore help craft the priority action steps 84  and sub-industries that we should highlight in the NDP; 85  

- Develop and maintain a creative research and development program on trends 86  and technologies pertaining to the design, development, and improvement of 87  Philippine products and services, including those created by small and medium 88  enterprises (SMEs); 89  

- Create a skill development, mentoring and support system for individuals, 90  corporations, partnerships, or associations, particularly Small and Medium-sized 91  Enterprises (SMEs), who want to benefit from the strategic use of good design in 92  business administration, commerce, trade, and other enterprises; and 93  

- Continually undertake research and development on manipulation and 94  development of indigenous raw materials, so we can be able to come up with 95  first-in-the-world and uniquely Filipino innovations. 96  

4. International Relations 97  - Collaborate internationally with similar design policy advisory bodies of other 98  

countries to establish long-term partnerships, exchange knowledge, and gain 99  insights on how successful design practices in other countries can be transferred 100  and adapted in the context of our local industry. 101  

SECTION 5: Creation of the Design Advisory Council. – There shall be created a Design 102  Advisory Council, herein referred to as DAC, which shall be a public-private partnership that 103  will serve as an Advisory Council to the Design Center. The DAC shall advise the Design 104  Center in the formulation and implementation of policies that will enhance the quality and 105  competitiveness of Philippine products and services and shall support the Philippine 106  Government in its efforts to enhance the level of innovation and creativity in Philippine 107  industries. 108  

SECTION 6: Powers and Functions of the Design Advisory Council. – The Design 109  Advisory Council shall advocate and promote the strategic role of design in strengthening 110  

sustainability of Philippine socio-economic growth and competitiveness. It shall exercise the 111  following powers and functions: 112  

a. Provide advice and insights imperative in pursuing the mandate of the Design Center 113  by effectively representing the collective views of both the public and the private 114  sectors; 115  

b. Advocate for full consideration of design’s contribution to program effectiveness and 116  innovation in government policy decisions; 117  

c. Review and promote policies where design is a key component; 118  d. Act as a liaison among the professional design, design education and government 119  

design stakeholders; 120  e. Provide advice and guidance to design education institutions on the development and 121  

standardization of course syllabus ensuring the propagation of high quality education 122  in design in all regions across the country; 123  

f. Promulgate government regulations relevant to the implementation of the NDP. 124  

SECTION 7: Composition of the Design Advisory Council. - “The DAC shall be 125  composed of eighteen (18) members. Nine (9) of its members shall be representatives from 126  the following government departments or offices: 127  

1. Department of Trade and Industry (DTI) 128  a. Secretary of DTI 129  b. Center for International Trade Expositions and Missions (CITEM) 130  c. Intellectual Property Office (IPO) 131  

2. National Commission for Culture and the Arts (NCCA) 132   3. Department of Tourism (DOT) 133   4. National Economic Development Authority (NEDA) 134   5. Department of Education (DepEd) 135   6. Department of Foreign Affairs (DFA) – Cultural Office 136   7. Department of Science and Technology (DOST) 137   138  The other nine (9) remaining members of the DAC shall come from the organized 139  associations involved in the sector, academic community engaged in design courses and 140  representatives of the private sectors including but not limited to visual communications, 141  industrial design, interior design, information design, new media and technology, fashion 142  design, environmental design and similar areas. All nine (9) private sector members shall be 143  appointed by the President. 144  

The Council shall be co-chaired by the Secretary of the DTI and a representative from the 145  cluster of private sector members of the DAC to be appointed by the President. 146  

The Executive Director of the Design Center, and two (2) other members from the business 147  sector who are citizens of the Philippines, of good moral character and are recognized 148  experts in any of the fields of art and design shall be ex officio members, Provided that the 149  business sector members are to be appointed by the President of the Philippines, with a 150  term of six (6) years, upon recommendation of the Chairman of the Council. 151  

The presence of ten (10) members shall constitute a quorum and all decisions of the Council 152  shall require the concurrence of the majority of such quorum. The representatives of the 153  private sector shall receive a reasonable per diem for every meeting attended. The ex officio 154  members shall receive commutable representation and travelling allowances. 155  

The Design Center shall act as the Secretariat of the Council. 156  

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SECTION 8. Powers and Functions of the Executive Director of the Design Center. – 159  The Design Center shall have an Executive Director, who shall be appointed by the 160  President, and shall execute, administer and implement the policies, plans and measures 161  approved by the Council and perform such other functions as may be necessary to carry out 162  specific responsibilities in connection with said plans and measures. 163  

A quarterly report of the accomplishments of the Center shall be submitted by the Executive 164  Director to the Council. The Council shall submit an annual report to the President of the 165  Philippines, not later than one month after the end of each year. 166  

The annual report shall be regularly published in the Center’s website. 167  

SECTION 9. The National Design Policy. – The National Design Policy shall serve as the 168  state’s strategy in promoting design as a driving force towards a sustainable economic 169  growth and development and a catalyst for increasing the competitiveness of the country in 170  the global market. The NDP shall be created to meet the following goals: 171  

172  A. BUILD AND PROMOTE DESIGN AWARENESS TO THE PUBLIC 173  

- Make good design more accessible to everyone 174  - Help people recognize good design and its value, importance and impact by creating 175  

public design programs and activities (exhibitions, showcases, competitions, 176  conventions, etc.) 177  

- Establish public design centers and creative zones/environments in vital central hubs 178  in different regions across the country. 179  

B. CREATE DEMAND FOR GOOD DESIGN 180  - Set standards for great Filipino design, as well as encourage designers to 181  

continuously aim to produce breakthrough, innovative creations, by recognizing and 182  awarding industry achievers; 183  

- Cultivate a demand for good design across all sectors (i.e. business, education, 184  government) – by creating programs and partnerships that will encourage them to 185  employ and invest in good design (i.e. business – for competitive advantage, 186  government – for more effective communication of services); 187  

- Create networks and establish avenues where all industries could interact in design 188  dialogues and workshops, thereby promoting cross-disciplinary knowledge 189  exchange, capability development, collaborative content creation, and therefore, 190  greater innovation; 191  

- Nurture an environment that encourages public and private collaborations regarding 192  design, competitiveness, governance and innovation. 193  

C. CULTIVATE CAPABILITIES AND RESOURCES OF FILIPINO DESIGNERS 194  - Elevate design education and design research in the Philippines to global standards 195  

of excellence; 196  - Develop strong partnerships with design academe and design education institutions 197  

in order to further develop the capabilities of students, teachers and professionals 198  D. LEVERAGE FILIPINO DESIGN FOR GLOBAL COMPETITIVENESS 199  

- Create a strong branding strategy for Philippine design, in order to establish a distinct 200  and recognizable identity for Philippine products and services 201  

- Increase opportunities for Filipino designers to showcase their talent locally and 202  internationally, through exhibitions, showcases, events, conventions, etc. 203  

- Assist remarkable industry achievers in representing the country in international 204  events/competitions, or in launching and expanding their product/service in the global 205  market, by provide government support 206  

- Create a strong skill development, mentoring and support system for SMEs who want 207  to benefit from the strategic use of good design as a competitive advantage 208  

E. INCORPORATE DESIGN SOLUTIONS TO GOVERNMENT PROGRAMS AND 209  DEVELOPMENT ISSUES 210  1. Design for Government 211  

- Employ design as a fundamental tool for communicating a strong, singular 212  identity of the country 213  

- Actively push for the integration of design and innovation in government offices 214  and departments, with the objective of coming up with programs and processes 215  that will enable the government to simplify and streamline its systems, so it can 216  deliver its services more effectively and efficiently 217  

- Develop a culture of creativity, innovation and efficiency in government 218  institutions by running basic design trainings and programs that will encourage 219  proactive and creative problem-solving through design approaches 220  

- Maintain a standard of sustainable design in all projects undertaken by the 221  Design Center 222  

2. Design for Development & Social Innovation 223  - Develop the government and the stakeholders’ capabilities to approach social 224  

and developmental problems with design solutions: solutions that are grounded in 225  principles of creativity, efficiency, user-centeredness, and sustainability 226  

- Scale successful design projects for national impact, by identifying best practices 227  in design for social innovation that are currently being implemented in small 228  communities, and seeing how these could be adapted in other communities and 229  regions 230  

- Encourage design for social innovation by conducting design-led approaches and 231  competitions for the design industry to help solve socio-economic and 232  environmental challenges 233  

- Promote public participation and collaboration by creating programs that will 234  empower citizens to take part in generating design solutions for problems/issues 235  within their own communities (i.e. competitions, challenges, etc.) 236  

F. CREATE AN ENVIRONMENT AND CULTURE THAT VALUES AND DRIVES 237  INNOVATION 238  

- Integrate Philippine culture, traditions and indigenous materials into the creation 239  of original designs and distinctly Filipino innovations; 240  

- Strategically leverage our country’s biodiversity by continually undertaking 241  research and development on the manipulation and development of raw materials 242  that are indigenous to the Philippines; 243  

- Establish strategic design sharing partnerships with design firms and institutions 244  from other countries to facilitate exchange of expertise and technology; 245  

- Put a premium on the value of Filipino ideas and innovations, by arming our 246  designers with proper knowledge and access to registration of intellectual 247  property rights, to ensure the protection of their creative outputs. 248  

SECTION. 10. Design Industries Linkages with the Educational System. – To ensure a 249  continuous supply of creative talents and to stimulate design creativity and innovation among 250  students at all levels of education, the Department of Education and the Commission on 251  Higher Education in consultation with and assistance of the Center shall formulate measures 252  to establish a stronger connection between arts, culture, education, training and to harness 253  potentials of the youth. 254  

SECTION 11. Appropriations Clause. – To carry out the provision of this Act, an additional 255  budget of fifty million pesos (Php 50,000,000.00) will be appropriated in addition to the 256  existing budget appropriated for the existing Design Center. 257  

The amount necessary for the effective implementation of the objectives of the Act shall be 258  incorporated to the annual regular budget of Design Center. 259  

SECTION 12. Repealing Clause. – Executive Order No. 133 is hereby amended 260  accordingly. All other laws, decrees, executive orders, rules and regulations, or parts thereof 261  as are inconsistent with this Act, are hereby repealed, amended or modified accordingly. 262  

SECTION 13. Separability Clause. – The provisions of this Act are hereby declared 263  separable and in the event any of its provisions declared unconstitutional, the other 264  provisions which are not affected thereby shall remain in force and effect. 265  

SECTION 14. Effectivity. - This Act shall take effect fifteen (15) days after publication in the 266  Official Gazette or in at least two (2) national newspapers of general circulation in the 267  country. 268  

Approved, 269