REPUBLIC ACT NO. 10881 Lending Investor Financing Companies Foreign Ownership

1.No. 3023
2. No. 6395

Republic of the Philippines

Congress of the Philippines

Metro Manila

Sixteenth Congress

Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty – seventh day of July, two thousand fifteen.

[REPUBLIC ACT NO. 10881]

AN ACT AMENDING INVESTMENT RESTRICTIONS IN SPECIFIC LAWS GOVERNING ADJUSTMENT COMPANIES, LENDING COMPANIES, FINANCING COMPANIES AND INVESTMENT HOUSES CITED IN THE FOREIGN INVESTMENT NEGATIVE LIST AND FOR OTHER PURPOSES.

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

SECTION 1. Declaration of Policy. – It is the policy of the State to attract and promote investments from foreign individuals, partnerships, corporations and governments, including their political subdivisions, in activities that significantly contribute to industrialization, socioeconomic development and sustainable inclusive growth.

Given the country’s development objectives and the need to increase investments to achieve these, amending the limitations on foreign investments or participation in certain activities listed in the Foreign Investment Negative List as provided for in specific laws, becomes necessary.

SEC. 2. Definition of Investment. – As used in this Act, investment shall refer to equity participation in any enterprise organized or existing under the laws of the Philippines and duly recorded in the Stock Transfer Book, or its equivalent, of the enterprise.

SEC. 3. Lifting of Nationality Requirements. – The nationality requirements for adjustment companies as provided in Presidential Decree No. 612, investment houses as provided in Presidential Decree No. 129, lending companies as provided in Republic Act No. 9474 and financing companies as provided in Republic Act No. 8556 are hereby repealed, subject to the provisions of this Act and the Constitution.

SEC. 4. Adjustment Companies. – Section 332 of Presidential Decree No. 612, otherwise known as “The Insurance Code”, as amended by Republic Act No. 10607, is hereby amended to read as follows:

“SEC. 332. No person, partnership, association, or corporation shall act as an adjuster, as herein earlier defined, unless authorized so to act by virtue of a license issued or renewed by the Commissioner pursuant to the provisions of this Code.”

SEC. 5. Lending Companies. –  Section 6 of Republic Act No. 9474, otherwise known as the “ Lending Company Regulation Act of 2007”, is hereby amended to read as follows:

SEC. 6. Citizenship Requirements. – A lending company may be owned up to one hundred percent ( 100% ) by foreign nationals: Provided, however, That where the loan is secured by land, a lending company more than forty percent ( 40% ) of whose capital is owned by foreign nationals, may bid and take part in any sale of such land as a consequence of such mortgage, avail of enforcement proceedings, take possession, and transfer their rights to qualified Philippine nationals for a period not exceeding five (5) years from actual possession: Provided, further,  That title to said land shall not be transferred to such lending companies: Provided, finally, That investments of a lending company shall be in accordance with the provisions of the Constitution.”

“SEC. 6. Financing Companies. – Section 6 of Republic Act No. 8556, otherwise known as the “Financing Company Act of 1998”, is hereby amended to read as follows:

“SEC. 6. Form of Organization and Capital Requirements. – Financing companies shall be organized in the form of stock corporations, may be owned -up to one hundred percent (100%) by foreign nationals, and shall have a paid – up capital of not less than ten million pesos (P10,000,000.00) in case the financing company is located in Metro Manila and other first class cities, five million pesos (P5,000,000.00) in other classes of cities and two million five hundred thousand pesos (P2,500,000.00) in municipalities: Provided, That the Securities and Exchange Commission may adjust said minimum paid – up levels as it deems warranted by its prudential oversight requirements and consistent with the objectives of this Act: Provided, however, That financing companies duly existing and in operation before the effectivity of this Act shall comply with the minimum capital requirement within one (1) year from the date of the said effectivity: and Provided, further, That where land is concerned, the financing company shall comply with the constitutional provision on foreign ownership of land.”

SEC. 7. Investment Houses. – Section 5 of Presidential Decree No. 129, as amended by Republic Act No. 8366, otherwise known as “The Investment Houses Law”, is hereby amended to read as follows:

“SEC. 5. Citizenship Requirements. – An Investment House may be owned up to one hundred percent (100%) by foreign nationals. Foreign nationals may become members of the board of directors to the extent of the foreign participation in the equity of said enterprise.”

SEC. 8. Regulatory Powers of the Bangko Sentral ng Pilipinas. – Nothing in this Act shall preclude the Bangko Sentral ng Pilipinas from Exercising its powers and authorities over financing companies, lending companies and investment houses pursuant to existing laws.

SEC. 9. Separability Clause. – If any of the provisions of this Act is declared invalid, the other provisions not affected thereby shall remain in full force and effect.

SEC. 10. Repealing Clause. – All statutory laws, orders, issuances, rules and regulations and / or parts thereof which are inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 11. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.

Approved,

 

FELICIANO BELMONTE JR.                                  FRANKLIN M. DRILON
   Speaker of the House                                         President of the Senate
of Representatives

This Act which is a consolidation of Senate Bill No. 3023 and House Bill No. 6395 was finally passed by the Senate and the House of Representatives on February 3, 2016 and May 23, 2016, respectively.

MARILYN B. BARUA – YAP                                                                           OSCAR G. YABES
      Secretary General                                                                               Secretary of the Senate
House of Representatives

Approved:

 

BENIGNO S. AQUINO III

President of the Philippines
Lapsed into law on July 17, 2016. Without the signature of the President. In accordance with Article VI, Section 27.(1)

Republic Act No. 101273

Republic of the Philippines
Congress of the Philippines
Metro Manila
Fifteenth Congress
Second Regular Session

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

REPUBLIC ACT NO. 10173

AN ACT PROTECTING INDIVIDUAL PERSONAL INFORMATION IN INFORMATION AND COMMUNICATIONS SYSTEMS IN THE GOVERNMENT AND THE PRIVATE SECTOR, CREATING FOR THIS PURPOSE A NATIONAL PRIVACY COMMISSION, AND FOR OTHER PURPOSES

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

CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title. – This Act shall be known as the “Data Privacy Act of 2012″.

SEC. 2. Declaration of Policy. – It is the policy of the State to protect the fundamental human right of privacy, of communication while ensuring free flow of information to promote innovation and growth. The State recognizes the vital role of information and communications technology in nation-building and its inherent obligation to ensure that personal information in information and communications systems in the government and in the private sector are secured and protected.

SEC. 3. Definition of Terms. – Whenever used in this Act, the following terms shall have the respective meanings hereafter set forth:

(a) Commission shall refer to the National Privacy Commission created by virtue of this Act.

(b) Consent of the data subject refers to any freely given, specific, informed indication of will, whereby the data subject agrees to the collection and processing of personal information about and/or relating to him or her. Consent shall be evidenced by written, electronic or recorded means. It may also be given on behalf of the data subject by an agent specifically authorized by the data subject to do so.

(c) Data subject refers to an individual whose personal information is processed.

(d) Direct marketing refers to communication by whatever means of any advertising or marketing material which is directed to particular individuals.

(e) Filing system refers to any act of information relating to natural or juridical persons to the extent that, although the information is not processed by equipment operating automatically in response to instructions given for that purpose, the set is structured, either by reference to individuals or by reference to criteria relating to individuals, in such a way that specific information relating to a particular person is readily accessible.

(f) Information and Communications System refers to a system for generating, sending, receiving, storing or otherwise processing electronic data messages or electronic documents and includes the computer system or other similar device by or which data is recorded, transmitted or stored and any procedure related to the recording, transmission or storage of electronic data, electronic message, or electronic document.

(g) Personal information refers to any information whether recorded in a material form or not, from which the identity of an individual is apparent or can be reasonably and directly ascertained by the entity holding the information, or when put together with other information would directly and certainly identify an individual.

(h) Personal information controller refers to a person or organization who controls the collection, holding, processing or use of personal information, including a person or organization who instructs another person or organization to collect, hold, process, use, transfer or disclose personal information on his or her behalf. The term excludes:

(1) A person or organization who performs such functions as instructed by another person or organization; and

(2) An individual who collects, holds, processes or uses personal information in connection with the individual’s personal, family or household affairs.

(i) Personal information processor refers to any natural or juridical person qualified to act as such under this Act to whom a personal information controller may outsource the processing of personal data pertaining to a data subject.

(j) Processing refers to any operation or any set of operations performed upon personal information including, but not limited to, the collection, recording, organization, storage, updating or modification, retrieval, consultation, use, consolidation, blocking, erasure or destruction of data.

(k) Privileged information refers to any and all forms of data which under the Rules of Court and other pertinent laws constitute privileged communication.

(l) Sensitive personal information refers to personal information:

(1) About an individual’s race, ethnic origin, marital status, age, color, and religious, philosophical or political affiliations;

(2) About an individual’s health, education, genetic or sexual life of a person, or to any proceeding for any offense committed or alleged to have been committed by such person, the disposal of such proceedings, or the sentence of any court in such proceedings;

(3) Issued by government agencies peculiar to an individual which includes, but not limited to, social security numbers, previous or cm-rent health records, licenses or its denials, suspension or revocation, and tax returns; and

(4) Specifically established by an executive order or an act of Congress to be kept classified.

SEC. 4. Scope. – This Act applies to the processing of all types of personal information and to any natural and juridical person involved in personal information processing including those personal information controllers and processors who, although not found or established in the Philippines, use equipment that are located in the Philippines, or those who maintain an office, branch or agency in the Philippines subject to the immediately succeeding paragraph: Provided, That the requirements of Section 5 are complied with.

This Act does not apply to the following:

 (a) Information about any individual who is or was an officer or employee of a government institution that relates to the position or functions of the individual, including:

(1) The fact that the individual is or was an officer or employee of the government institution;

(2) The title, business address and office telephone number of the individual;

(3) The classification, salary range and responsibilities of the position held by the individual; and

(4) The name of the individual on a document prepared by the individual in the course of employment with the government;

(b) Information about an individual who is or was performing service under contract for a government institution that relates to the services performed, including the terms of the contract, and the name of the individual given in the course of the performance of those services;

(c) Information relating to any discretionary benefit of a financial nature such as the granting of a license or permit given by the government to an individual, including the name of the individual and the exact nature of the benefit;

(d) Personal information processed for journalistic, artistic, literary or research purposes;

(e) Information necessary in order to carry out the functions of public authority which includes the processing of personal data for the performance by the independent, central monetary authority and law enforcement and regulatory agencies of their constitutionally and statutorily mandated functions. Nothing in this Act shall be construed as to have amended or repealed Republic Act No. 1405, otherwise known as the Secrecy of Bank Deposits Act; Republic Act No. 6426, otherwise known as the Foreign Currency Deposit Act; and Republic Act No. 9510, otherwise known as the Credit Information System Act (CISA);

(f) Information necessary for banks and other financial institutions under the jurisdiction of the independent, central monetary authority or Bangko Sentral ng Pilipinas to comply with Republic Act No. 9510, and Republic Act No. 9160, as amended, otherwise known as the Anti-Money Laundering Act and other applicable laws; and

(g) Personal information originally collected from residents of foreign jurisdictions in accordance with the laws of those foreign jurisdictions, including any applicable data privacy laws, which is being processed in the Philippines.

SEC. 5. Protection Afforded to Journalists and Their Sources. – Nothing in this Act shall be construed as to have amended or repealed the provisions of Republic Act No. 53, which affords the publishers, editors or duly accredited reporters of any newspaper, magazine or periodical of general circulation protection from being compelled to reveal the source of any news report or information appearing in said publication which was related in any confidence to such publisher, editor, or reporter.

SEC. 6. Extraterritorial Application. – This Act applies to an act done or practice engaged in and outside of the Philippines by an entity if:

(a) The act, practice or processing relates to personal information about a Philippine citizen or a resident;

(b) The entity has a link with the Philippines, and the entity is processing personal information in the Philippines or even if the processing is outside the Philippines as long as it is about Philippine citizens or residents such as, but not limited to, the following:

(1) A contract is entered in the Philippines;

(2) A juridical entity unincorporated in the Philippines but has central management and control in the country; and

(3) An entity that has a branch, agency, office or subsidiary in the Philippines and the parent or affiliate of the Philippine entity has access to personal information; and

(c) The entity has other links in the Philippines such as, but not limited to:

(1) The entity carries on business in the Philippines; and

(2) The personal information was collected or held by an entity in the Philippines.

CHAPTER II
THE NATIONAL PRIVACY COMMISSION

SEC. 7. Functions of the National Privacy Commission. – To administer and implement the provisions of this Act, and to monitor and ensure compliance of the country with international standards set for data protection, there is hereby created an independent body to be known as the National Privacy Commission, winch shall have the following functions:

(a) Ensure compliance of personal information controllers with the provisions of this Act;

(b) Receive complaints, institute investigations, facilitate or enable settlement of complaints through the use of alternative dispute resolution processes, adjudicate, award indemnity on matters affecting any personal information, prepare reports on disposition of complaints and resolution of any investigation it initiates, and, in cases it deems appropriate, publicize any such report: Provided, That in resolving any complaint or investigation (except where amicable settlement is reached by the parties), the Commission shall act as a collegial body. For this purpose, the Commission may be given access to personal information that is subject of any complaint and to collect the information necessary to perform its functions under this Act;

(c) Issue cease and desist orders, impose a temporary or permanent ban on the processing of personal information, upon finding that the processing will be detrimental to national security and public interest;

(d) Compel or petition any entity, government agency or instrumentality to abide by its orders or take action on a matter affecting data privacy;

(e) Monitor the compliance of other government agencies or instrumentalities on their security and technical measures and recommend the necessary action in order to meet minimum standards for protection of personal information pursuant to this Act;

(f) Coordinate with other government agencies and the private sector on efforts to formulate and implement plans and policies to strengthen the protection of personal information in the country;

(g) Publish on a regular basis a guide to all laws relating to data protection;

(h) Publish a compilation of agency system of records and notices, including index and other finding aids;

(i) Recommend to the Department of Justice (DOJ) the prosecution and imposition of penalties specified in Sections 25 to 29 of this Act;

(j) Review, approve, reject or require modification of privacy codes voluntarily adhered to by personal information controllers: Provided, That the privacy codes shall adhere to the underlying data privacy principles embodied in this Act: Provided, further, That such privacy codes may include private dispute resolution mechanisms for complaints against any participating personal information controller. For this purpose, the Commission shall consult with relevant regulatory agencies in the formulation and administration of privacy codes applying the standards set out in this Act, with respect to the persons, entities, business activities and business sectors that said regulatory bodies are authorized to principally regulate pursuant to the law: Provided, finally. That the Commission may review such privacy codes and require changes thereto for purposes of complying with this Act;

(k) Provide assistance on matters relating to privacy or data protection at the request of a national or local agency, a private entity or any person;

(l) Comment on the implication on data privacy of proposed national or local statutes, regulations or procedures, issue advisory opinions and interpret the provisions of this Act and other data privacy laws;

(m) Propose legislation, amendments or modifications to Philippine laws on privacy or data protection as may be necessary;

(n) Ensure proper and effective coordination with data privacy regulators in other countries and private accountability agents, participate in international and regional initiatives for data privacy protection;

(o) Negotiate and contract with other data privacy authorities of other countries for cross-border application and implementation of respective privacy laws;

(p) Assist Philippine companies doing business abroad to respond to foreign privacy or data protection laws and regulations; and

(q) Generally perform such acts as may be necessary to facilitate cross-border enforcement of data privacy protection.

SEC. 8. Confidentiality. – The Commission shall ensure at all times the confidentiality of any personal information that comes to its knowledge and possession.

SEC. 9. Organizational Structure of the Commission. – The Commission shall be attached to the Department of Information and Communications Technology (DICT) and shall be headed by a Privacy Commissioner, who shall also act as Chairman of the Commission. The Privacy Commissioner shall be assisted by two (2) Deputy Privacy Commissioners, one to be responsible for Data Processing Systems and one to be responsible for Policies and Planning. The Privacy Commissioner and the two (2) Deputy Privacy Commissioners shall be appointed by the President of the Philippines for a term of three (3) years, and may be reappointed for another term of three (3) years. Vacancies in the Commission shall be filled in the same manner in which the original appointment was made.

The Privacy Commissioner must be at least thirty-five (35) years of age and of good moral character, unquestionable integrity and known probity, and a recognized expert in the field of information technology and data privacy. The Privacy Commissioner shall enjoy the benefits, privileges and emoluments equivalent to the rank of Secretary.

The Deputy Privacy Commissioners must be recognized experts in the field of information and communications technology and data privacy. They shall enjoy the benefits, privileges and emoluments equivalent to the rank of Undersecretary.

The Privacy Commissioner, the Deputy Commissioners, or any person acting on their behalf or under their direction, shall not be civilly liable for acts done in good faith in the performance of their duties. However, he or she shall be liable for willful or negligent acts done by him or her which are contrary to law, morals, public policy and good customs even if he or she acted under orders or instructions of superiors: Provided, That in case a lawsuit is filed against such official on the subject of the performance of his or her duties, where such performance is lawful, he or she shall be reimbursed by the Commission for reasonable costs of litigation.

SEC. 10. The Secretariat. – The Commission is hereby authorized to establish a Secretariat. Majority of the members of the Secretariat must have served for at least five (5) years in any agency of the government that is involved in the processing of personal information including, but not limited to, the following offices: Social Security System (SSS), Government Service Insurance System (GSIS), Land Transportation Office (LTO), Bureau of Internal Revenue (BIR), Philippine Health Insurance Corporation (PhilHealth), Commission on Elections (COMELEC), Department of Foreign Affairs (DFA), Department of Justice (DOJ), and Philippine Postal Corporation (Philpost).

CHAPTER III
PROCESSING OF PERSONAL INFORMATION

SEC. 11. General Data Privacy Principles. – The processing of personal information shall be allowed, subject to compliance with the requirements of this Act and other laws allowing disclosure of information to the public and adherence to the principles of transparency, legitimate purpose and proportionality.

Personal information must, be:

(a) Collected for specified and legitimate purposes determined and declared before, or as soon as reasonably practicable after collection, and later processed in a way compatible with such declared, specified and legitimate purposes only;

(b) Processed fairly and lawfully;

(c) Accurate, relevant and, where necessary for purposes for which it is to be used the processing of personal information, kept up to date; inaccurate or incomplete data must be rectified, supplemented, destroyed or their further processing restricted;

(d) Adequate and not excessive in relation to the purposes for which they are collected and processed;

(e) Retained only for as long as necessary for the fulfillment of the purposes for which the data was obtained or for the establishment, exercise or defense of legal claims, or for legitimate business purposes, or as provided by law; and

(f) Kept in a form which permits identification of data subjects for no longer than is necessary for the purposes for which the data were collected and processed: Provided, That personal information collected for other purposes may lie processed for historical, statistical or scientific purposes, and in cases laid down in law may be stored for longer periods: Provided, further, That adequate safeguards are guaranteed by said laws authorizing their processing.

The personal information controller must ensure implementation of personal information processing principles set out herein.

SEC. 12. Criteria for Lawful Processing of Personal Information. – The processing of personal information shall be permitted only if not otherwise prohibited by law, and when at least one of the following conditions exists:

(a) The data subject has given his or her consent;

(b) The processing of personal information is necessary and is related to the fulfillment of a contract with the data subject or in order to take steps at the request of the data subject prior to entering into a contract;

(c) The processing is necessary for compliance with a legal obligation to which the personal information controller is subject;

(d) The processing is necessary to protect vitally important interests of the data subject, including life and health;

(e) The processing is necessary in order to respond to national emergency, to comply with the requirements of public order and safety, or to fulfill functions of public authority which necessarily includes the processing of personal data for the fulfillment of its mandate; or

(f) The processing is necessary for the purposes of the legitimate interests pursued by the personal information controller or by a third party or parties to whom the data is disclosed, except where such interests are overridden by fundamental rights and freedoms of the data subject which require protection under the Philippine Constitution.

SEC. 13. Sensitive Personal Information and Privileged Information. – The processing of sensitive personal information and privileged information shall be prohibited, except in the following cases:

(a) The data subject has given his or her consent, specific to the purpose prior to the processing, or in the case of privileged information, all parties to the exchange have given their consent prior to processing;

(b) The processing of the same is provided for by existing laws and regulations: Provided, That such regulatory enactments guarantee the protection of the sensitive personal information and the privileged information: Provided, further, That the consent of the data subjects are not required by law or regulation permitting the processing of the sensitive personal information or the privileged information;

(c) The processing is necessary to protect the life and health of the data subject or another person, and the data subject is not legally or physically able to express his or her consent prior to the processing;

(d) The processing is necessary to achieve the lawful and noncommercial objectives of public organizations and their associations: Provided, That such processing is only confined and related to the bona fide members of these organizations or their associations: Provided, further, That the sensitive personal information are not transferred to third parties: Provided, finally, That consent of the data subject was obtained prior to processing;

(e) The processing is necessary for purposes of medical treatment, is carried out by a medical practitioner or a medical treatment institution, and an adequate level of protection of personal information is ensured; or

(f) The processing concerns such personal information as is necessary for the protection of lawful rights and interests of natural or legal persons in court proceedings, or the establishment, exercise or defense of legal claims, or when provided to government or public authority.

SEC. 14. Subcontract of Personal Information. – A personal information controller may subcontract the processing of personal information: Provided, That the personal information controller shall be responsible for ensuring that proper safeguards are in place to ensure the confidentiality of the personal information processed, prevent its use for unauthorized purposes, and generally, comply with the requirements of this Act and other laws for processing of personal information. The personal information processor shall comply with all the requirements of this Act and other applicable laws.

SEC. 15. Extension of Privileged Communication. – Personal information controllers may invoke the principle of privileged communication over privileged information that they lawfully control or process. Subject to existing laws and regulations, any evidence gathered on privileged information is inadmissible.

CHAPTER IV
RIGHTS OF THE DATA SUBJECT

SEC. 16. Rights of the Data Subject. – The data subject is entitled to:

(a) Be informed whether personal information pertaining to him or her shall be, are being or have been processed;

(b) Be furnished the information indicated hereunder before the entry of his or her personal information into the processing system of the personal information controller, or at the next practical opportunity:

(1) Description of the personal information to be entered into the system;

(2) Purposes for which they are being or are to be processed;

(3) Scope and method of the personal information processing;

(4) The recipients or classes of recipients to whom they are or may be disclosed;

(5) Methods utilized for automated access, if the same is allowed by the data subject, and the extent to which such access is authorized;

(6) The identity and contact details of the personal information controller or its representative;

(7) The period for which the information will be stored; and

(8) The existence of their rights, i.e., to access, correction, as well as the right to lodge a complaint before the Commission.

Any information supplied or declaration made to the data subject on these matters shall not be amended without prior notification of data subject: Provided, That the notification under subsection (b) shall not apply should the personal information be needed pursuant to a subpoena or when the collection and processing are for obvious purposes, including when it is necessary for the performance of or in relation to a contract or service or when necessary or desirable in the context of an employer-employee relationship, between the collector and the data subject, or when the information is being collected and processed as a result of legal obligation;

(c) Reasonable access to, upon demand, the following:

(1) Contents of his or her personal information that were processed;

(2) Sources from which personal information were obtained;

(3) Names and addresses of recipients of the personal information;

(4) Manner by which such data were processed;

(5) Reasons for the disclosure of the personal information to recipients;

(6) Information on automated processes where the data will or likely to be made as the sole basis for any decision significantly affecting or will affect the data subject;

(7) Date when his or her personal information concerning the data subject were last accessed and modified; and

(8) The designation, or name or identity and address of the personal information controller;

(d) Dispute the inaccuracy or error in the personal information and have the personal information controller correct it immediately and accordingly, unless the request is vexatious or otherwise unreasonable. If the personal information have been corrected, the personal information controller shall ensure the accessibility of both the new and the retracted information and the simultaneous receipt of the new and the retracted information by recipients thereof: Provided, That the third parties who have previously received such processed personal information shall he informed of its inaccuracy and its rectification upon reasonable request of the data subject;

(e) Suspend, withdraw or order the blocking, removal or destruction of his or her personal information from the personal information controller’s filing system upon discovery and substantial proof that the personal information are incomplete, outdated, false, unlawfully obtained, used for unauthorized purposes or are no longer necessary for the purposes for which they were collected. In this case, the personal information controller may notify third parties who have previously received such processed personal information; and

(f) Be indemnified for any damages sustained due to such inaccurate, incomplete, outdated, false, unlawfully obtained or unauthorized use of personal information.

SEC. 17. Transmissibility of Rights of the Data Subject. – The lawful heirs and assigns of the data subject may invoke the rights of the data subject for, which he or she is an heir or assignee at any time after the death of the data subject or when the data subject is incapacitated or incapable of exercising the rights as enumerated in the immediately preceding section.

SEC. 18. Right to Data Portability. – The data subject shall have the right, where personal information is processed by electronic means and in a structured and commonly used format, to obtain from the personal information controller a copy of data undergoing processing in an electronic or structured format, which is commonly used and allows for further use by the data subject. The Commission may specify the electronic format referred to above, as well as the technical standards, modalities and procedures for their transfer.

SEC. 19. Non-Applicability. – The immediately preceding sections are not applicable if the processed personal information are used only for the needs of scientific and statistical research and, on the basis of such, no activities are carried out and no decisions are taken regarding the data subject: Provided, That the personal information shall be held under strict confidentiality and shall be used only for the declared purpose. Likewise, the immediately preceding sections are not applicable to processing of personal information gathered for the purpose of investigations in relation to any criminal, administrative or tax liabilities of a data subject.

CHAPTER V
SECURITY OF PERSONAL INFORMATION

SEC. 20. Security of Personal Information. – (a) The personal information controller must implement reasonable and appropriate organizational, physical and technical measures intended for the protection of personal information against any accidental or unlawful destruction, alteration and disclosure, as well as against any other unlawful processing.

(b) The personal information controller shall implement reasonable and appropriate measures to protect personal information against natural dangers such as accidental loss or destruction, and human dangers such as unlawful access, fraudulent misuse, unlawful destruction, alteration and contamination.

(c) The determination of the appropriate level of security under this section must take into account the nature of the personal information to be protected, the risks represented by the processing, the size of the organization and complexity of its operations, current data privacy best practices and the cost of security implementation. Subject to guidelines as the Commission may issue from time to time, the measures implemented must include:

(1) Safeguards to protect its computer network against accidental, unlawful or unauthorized usage or interference with or hindering of their functioning or availability;

(2) A security policy with respect to the processing of personal information;

(3) A process for identifying and accessing reasonably foreseeable vulnerabilities in its computer networks, and for taking preventive, corrective and mitigating action against security incidents that can lead to a security breach; and

(4) Regular monitoring for security breaches and a process for taking preventive, corrective and mitigating action against security incidents that can lead to a security breach.

(d) The personal information controller must further ensure that third parties processing personal information on its behalf shall implement the security measures required by this provision.

(e) The employees, agents or representatives of a personal information controller who are involved in the processing of personal information shall operate and hold personal information under strict confidentiality if the personal information are not intended for public disclosure. This obligation shall continue even after leaving the public service, transfer to another position or upon termination of employment or contractual relations.

(f) The personal information controller shall promptly notify the Commission and affected data subjects when sensitive personal information or other information that may, under the circumstances, be used to enable identity fraud are reasonably believed to have been acquired by an unauthorized person, and the personal information controller or the Commission believes (bat such unauthorized acquisition is likely to give rise to a real risk of serious harm to any affected data subject. The notification shall at least describe the nature of the breach, the sensitive personal information possibly involved, and the measures taken by the entity to address the breach. Notification may be delayed only to the extent necessary to determine the scope of the breach, to prevent further disclosures, or to restore reasonable integrity to the information and communications system.

(1) In evaluating if notification is unwarranted, the Commission may take into account compliance by the personal information controller with this section and existence of good faith in the acquisition of personal information.

(2) The Commission may exempt a personal information controller from notification where, in its reasonable judgment, such notification would not be in the public interest or in the interests of the affected data subjects.

(3) The Commission may authorize postponement of notification where it may hinder the progress of a criminal investigation related to a serious breach.

CHAPTER VI
ACCOUNTABILITY FOR TRANSFER OF PERSONAL INFORMATION

SEC. 21. Principle of Accountability. – Each personal information controller is responsible for personal information under its control or custody, including information that have been transferred to a third party for processing, whether domestically or internationally, subject to cross-border arrangement and cooperation.

(a) The personal information controller is accountable for complying with the requirements of this Act and shall use contractual or other reasonable means to provide a comparable level of protection while the information are being processed by a third party.

(b) The personal information controller shall designate an individual or individuals who are accountable for the organization’s compliance with this Act. The identity of the individual(s) so designated shall be made known to any data subject upon request.

CHAPTER VII
SECURITY OF SENSITIVE PERSONAL
INFORMATION IN GOVERNMENT

SEC 22. Responsibility of Heads of Agencies. – All sensitive personal information maintained by the government, its agencies and instrumentalities shall be secured, as far as practicable, with the use of the most appropriate standard recognized by the information and communications technology industry, and as recommended by the Commission. The head of each government agency or instrumentality shall be responsible for complying with the security requirements mentioned herein while the Commission shall monitor the compliance and may recommend the necessary action in order to satisfy the minimum standards.

SEC. 23. Requirements Relating to Access by Agency Personnel to Sensitive Personal Information. – (a) On-site and Online Access – Except as may be allowed through guidelines to be issued by the Commission, no employee of the government shall have access to sensitive personal information on government property or through online facilities unless the employee has received a security clearance from the head of the source agency.

(b) Off-site Access – Unless otherwise provided in guidelines to be issued by the Commission, sensitive personal information maintained by an agency may not be transported or accessed from a location off government property unless a request for such transportation or access is submitted and approved by the head of the agency in accordance with the following guidelines:

(1) Deadline for Approval or Disapproval – In the case of any request submitted to the head of an agency, such head of the agency shall approve or disapprove the request within two (2) business days after the date of submission of the request. In case there is no action by the head of the agency, then such request is considered disapproved;

(2) Limitation to One thousand (1,000) Records – If a request is approved, the head of the agency shall limit the access to not more than one thousand (1,000) records at a time; and

(3) Encryption – Any technology used to store, transport or access sensitive personal information for purposes of off-site access approved under this subsection shall be secured by the use of the most secure encryption standard recognized by the Commission.

The requirements of this subsection shall be implemented not later than six (6) months after the date of the enactment of this Act.

SEC. 24. Applicability to Government Contractors. – In entering into any contract that may involve accessing or requiring sensitive personal information from one thousand (1,000) or more individuals, an agency shall require a contractor and its employees to register their personal information processing system with the Commission in accordance with this Act and to comply with the other provisions of this Act including the immediately preceding section, in the same manner as agencies and government employees comply with such requirements.

CHAPTER VIII
PENALTIES

SEC. 25. Unauthorized Processing of Personal Information and Sensitive Personal Information. – (a) The unauthorized processing of personal information shall be penalized by imprisonment ranging from one (1) year to three (3) years and a fine of not less than Five hundred thousand pesos (Php500,000.00) but not more than Two million pesos (Php2,000,000.00) shall be imposed on persons who process personal information without the consent of the data subject, or without being authorized under this Act or any existing law.

(b) The unauthorized processing of personal sensitive information shall be penalized by imprisonment ranging from three (3) years to six (6) years and a fine of not less than Five hundred thousand pesos (Php500,000.00) but not more than Four million pesos (Php4,000,000.00) shall be imposed on persons who process personal information without the consent of the data subject, or without being authorized under this Act or any existing law.

SEC. 26. Accessing Personal Information and Sensitive Personal Information Due to Negligence. – (a) Accessing personal information due to negligence shall be penalized by imprisonment ranging from one (1) year to three (3) years and a fine of not less than Five hundred thousand pesos (Php500,000.00) but not more than Two million pesos (Php2,000,000.00) shall be imposed on persons who, due to negligence, provided access to personal information without being authorized under this Act or any existing law.

(b) Accessing sensitive personal information due to negligence shall be penalized by imprisonment ranging from three (3) years to six (6) years and a fine of not less than Five hundred thousand pesos (Php500,000.00) but not more than Four million pesos (Php4,000,000.00) shall be imposed on persons who, due to negligence, provided access to personal information without being authorized under this Act or any existing law.

SEC. 27. Improper Disposal of Personal Information and Sensitive Personal Information. – (a) The improper disposal of personal information shall be penalized by imprisonment ranging from six (6) months to two (2) years and a fine of not less than One hundred thousand pesos (Php100,000.00) but not more than Five hundred thousand pesos (Php500,000.00) shall be imposed on persons who knowingly or negligently dispose, discard or abandon the personal information of an individual in an area accessible to the public or has otherwise placed the personal information of an individual in its container for trash collection.

b) The improper disposal of sensitive personal information shall be penalized by imprisonment ranging from one (1) year to three (3) years and a fine of not less than One hundred thousand pesos (Php100,000.00) but not more than One million pesos (Php1,000,000.00) shall be imposed on persons who knowingly or negligently dispose, discard or abandon the personal information of an individual in an area accessible to the public or has otherwise placed the personal information of an individual in its container for trash collection.

SEC. 28. Processing of Personal Information and Sensitive Personal Information for Unauthorized Purposes. – The processing of personal information for unauthorized purposes shall be penalized by imprisonment ranging from one (1) year and six (6) months to five (5) years and a fine of not less than Five hundred thousand pesos (Php500,000.00) but not more than One million pesos (Php1,000,000.00) shall be imposed on persons processing personal information for purposes not authorized by the data subject, or otherwise authorized under this Act or under existing laws.

The processing of sensitive personal information for unauthorized purposes shall be penalized by imprisonment ranging from two (2) years to seven (7) years and a fine of not less than Five hundred thousand pesos (Php500,000.00) but not more than Two million pesos (Php2,000,000.00) shall be imposed on persons processing sensitive personal information for purposes not authorized by the data subject, or otherwise authorized under this Act or under existing laws.

SEC. 29. Unauthorized Access or Intentional Breach. – The penalty of imprisonment ranging from one (1) year to three (3) years and a fine of not less than Five hundred thousand pesos (Php500,000.00) but not more than Two million pesos (Php2,000,000.00) shall be imposed on persons who knowingly and unlawfully, or violating data confidentiality and security data systems, breaks in any way into any system where personal and sensitive personal information is stored.

SEC. 30. Concealment of Security Breaches Involving Sensitive Personal Information. – The penalty of imprisonment of one (1) year and six (6) months to five (5) years and a fine of not less than Five hundred thousand pesos (Php500,000.00) but not more than One million pesos (Php1,000,000.00) shall be imposed on persons who, after having knowledge of a security breach and of the obligation to notify the Commission pursuant to Section 20(f), intentionally or by omission conceals the fact of such security breach.

SEC. 31. Malicious Disclosure. – Any personal information controller or personal information processor or any of its officials, employees or agents, who, with malice or in bad faith, discloses unwarranted or false information relative to any personal information or personal sensitive information obtained by him or her, shall be subject to imprisonment ranging from one (1) year and six (6) months to five (5) years and a fine of not less than Five hundred thousand pesos (Php500,000.00) but not more than One million pesos (Php1,000,000.00).

SEC. 32. Unauthorized Disclosure. – (a) Any personal information controller or personal information processor or any of its officials, employees or agents, who discloses to a third party personal information not covered by the immediately preceding section without the consent of the data subject, shall he subject to imprisonment ranging from one (1) year to three (3) years and a fine of not less than Five hundred thousand pesos (Php500,000.00) but not more than One million pesos (Php1,000,000.00).

(b) Any personal information controller or personal information processor or any of its officials, employees or agents, who discloses to a third party sensitive personal information not covered by the immediately preceding section without the consent of the data subject, shall be subject to imprisonment ranging from three (3) years to five (5) years and a fine of not less than Five hundred thousand pesos (Php500,000.00) but not more than Two million pesos (Php2,000,000.00).

SEC. 33. Combination or Series of Acts. – Any combination or series of acts as defined in Sections 25 to 32 shall make the person subject to imprisonment ranging from three (3) years to six (6) years and a fine of not less than One million pesos (Php1,000,000.00) but not more than Five million pesos (Php5,000,000.00).

SEC. 34. Extent of Liability. – If the offender is a corporation, partnership or any juridical person, the penalty shall be imposed upon the responsible officers, as the case may be, who participated in, or by their gross negligence, allowed the commission of the crime. If the offender is a juridical person, the court may suspend or revoke any of its rights under this Act. If the offender is an alien, he or she shall, in addition to the penalties herein prescribed, be deported without further proceedings after serving the penalties prescribed. If the offender is a public official or employee and lie or she is found guilty of acts penalized under Sections 27 and 28 of this Act, he or she shall, in addition to the penalties prescribed herein, suffer perpetual or temporary absolute disqualification from office, as the case may be.

SEC. 35. Large-Scale. – The maximum penalty in the scale of penalties respectively provided for the preceding offenses shall be imposed when the personal information of at least one hundred (100) persons is harmed, affected or involved as the result of the above mentioned actions.

SEC. 36. Offense Committed by Public Officer. – When the offender or the person responsible for the offense is a public officer as defined in the Administrative Code of the Philippines in the exercise of his or her duties, an accessory penalty consisting in the disqualification to occupy public office for a term double the term of criminal penalty imposed shall he applied.

SEC. 37. Restitution. – Restitution for any aggrieved party shall be governed by the provisions of the New Civil Code.

CHAPTER IX
MISCELLANEOUS PROVISIONS

SEC. 38. Interpretation. – Any doubt in the interpretation of any provision of this Act shall be liberally interpreted in a manner mindful of the rights and interests of the individual about whom personal information is processed.

SEC. 39. Implementing Rules and Regulations (IRR). – Within ninety (90) days from the effectivity of this Act, the Commission shall promulgate the rules and regulations to effectively implement the provisions of this Act.

SEC. 40. Reports and Information. – The Commission shall annually report to the President and Congress on its activities in carrying out the provisions of this Act. The Commission shall undertake whatever efforts it may determine to be necessary or appropriate to inform and educate the public of data privacy, data protection and fair information rights and responsibilities.

SEC. 41. Appropriations Clause. – The Commission shall be provided with an initial appropriation of Twenty million pesos (Php20,000,000.00) to be drawn from the national government. Appropriations for the succeeding years shall be included in the General Appropriations Act. It shall likewise receive Ten million pesos (Php10,000,000.00) per year for five (5) years upon implementation of this Act drawn from the national government.

SEC. 42. Transitory Provision. – Existing industries, businesses and offices affected by the implementation of this Act shall be given one (1) year transitory period from the effectivity of the IRR or such other period as may be determined by the Commission, to comply with the requirements of this Act.

In case that the DICT has not yet been created by the time the law takes full force and effect, the National Privacy Commission shall be attached to the Office of the President.

SEC. 43. Separability Clause. – If any provision or part hereof is held invalid or unconstitutional, the remainder of the law or the provision not otherwise affected shall remain valid and subsisting.

SEC. 44. Repealing Clause. – The provision of Section 7 of Republic Act No. 9372, otherwise known as the “Human Security Act of 2007″, is hereby amended. Except as otherwise expressly provided in this Act, all other laws, decrees, executive orders, proclamations and administrative regulations or parts thereof inconsistent herewith are hereby repealed or modified accordingly.

SEC. 45. Effectivity Clause. – This Act shall take effect fifteen (15) days after its publication in at least two (2) national newspapers of general circulation.

Approved,

(Sgd.) FELICIANO BELMONTE JR.                                           (Sgd.) JUAN PONCE ENRILE
Speaker of the House                                                                                President of the Senate
of Representatives

This Act which is a consolidation of Senate Bill No. 2965 and House Bill No. 4115 was finally passed by the Senate and the House of Representatives on June 6, 2012.

(Sgd.) MARILYN B. BARUA-YAP                                                  (Sgd.) EMMA LIRIO-REYES
Secretary General                                                                                       Secretary of the Senate
House of Representatives

Approved: AUG 15 2012

(Sgd.) BENIGNO S. AQUINO III
President of the Philippines

Republic Act No. 7353

 

Republic of the Philippines
Congress of the Philippines
Metro Manila
Fifth Regular Session

Begun and held in Metro, Manila, on Monday, the twenty- second day of July, nineteen hundred and ninety-one.

REPUBLIC ACT NO. 7353

AN ACT PROVIDING FOR THE CREATION, ORGANIZATION AND OPERATION OF RURAL BANKS, AND FOR OTHER PURPOSES

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

Sec. 1. This Act shall be known and cited as the “Rural Act of 1992.”

Sec. 2. The State hereby recognizes the need to promote comprehensive rural development with the end in view of attaining acquitable distribution of opportunities, income and wealth; a sustained increase in the amount of goods and services produced by the nation of the benefit of the people; and in expanding productivity as a key raising the quality of life for all, especially the underprivileged.

Towards these ends, the State hereby encourages and assists in the establishment of rural banking system designed to make needed credit available and readily accessible in the rural areas on reasonable terms.

Sec. 3. In furtherance of this policy, the Monetary Board of the Central Bank of the Philippines shall formulate the necessary rules and regulations governing the establishment and operation of rural banks for the purpose of providing adequate credit facilities to farmers and merchants, or to cooperatives of such farmers and merchants and in general, the people of the rural communities, and to supervise the operation of such banks.

Sec. 4. No rural bank shall be operated without a Certificate of Authority from the Monetary Board of the Central Bank. Rural banks shall be organized in the form of stock corporations. Upon consultation with the rural banks in the area, duly established cooperatives and corporations primarily organize to hold equities in rural banks may organize a rural bank and/or subscribe to the shares of stock of any rural bank: Provided, That a cooperative or corporation owning or controlling the whole or majority of the voting stock of the rural bank shall be subject to special examination and to such rules and regulations as the Monetary Board may prescribe. With exception of shareholdings of corporations organized primarily to hold equities in rural banks as provided for under Section 12-C of Republic Act 337, as amended, and of Filipino-controlled domestic banks, the capital stock of any rural bank shall be fully owned and held directly or indirectly by citizens of the Philippines or corporations, associations or cooperatives qualified under Philippine laws to own and hold such capital stock: Provided, That any provisions of existing laws to own and hold such capital stock: Provided, That any provision of existing laws to the contrary notwithstanding, stockholdings in a rural bank shall be exempt from any ownership ceiling for a period of ten (10) years from the approval of this Act: Provided, further, That any such exemption shall require the approval of the Monetary Board. If subscription of private shareholders to the capital stock of rural cannot be secured or is not available, or insufficient to meet the normal credit needs of the locality, the Land Bank of the Philippines, the Development Bank of the Philippines, or any government-owned or controlled bank or financial institution, on representation of the said private shareholders but subject to the investment guidelines, policies and procedures of the bank or financial institution and upon approval of the Monetary Board of the Central Bank, shall subscribe to the capital stock of such rural bank, which shall be paid in full at the time of subscription, in an amount equal to the fully paid subscribe and unimpaired capital of the private stockholders or such amount as the Monetary Board may prescribed as may be necessary to promote and expand rural economic development: Provided, however, That such shares of stock subscribe by the Land Bank of the Philippines, the Development Bank of the Philippines or any government-owned or controlled bank or financial institution may be sold at any time at market value to private individuals who are citizens of the Philippines: Provided, finally, That in the sale of shares of stock subscribed by the Land Bank of the Philippines, the Development bank of the Philippines or any government-owned or controlled bank or financial institution, the registered stockholders shall have the right of preemption within one (1) year from the date of offer in proportion to their respective holdings, but in the absence of such buyer, preference, however, shall be given to residents of the locality or province where the rural bank is located.

Sec. 5. All members of the Board of Directors of the rural bank shall be citizens of the Philippines at the time of their assumption to office: Provided, however, That nothing in this Act shall be construed as prohibiting any appointive or elective public official from serving as director, officer, consultant or in any capacity in the bank.

No Director or officer of any rural bank shall, either directly or indirectly, for himself or as the representative or agent of another borrow any of the deposits or funds of such banks, nor shall he become a guarantor, indorser, or surety for loans from such bank to others, or in any manner be an obligor for money borrowed from the bank or loaned by it except with the written approval of the majority of the directors of the bank, excluding the director concerned. Any such approval shall be entered upon the records of the corporation and a copy of such entry shall be transmitted forthwith to the appropriate supervising department. The director/officer of the bank who violates the provisions of this section shall be immediately dismissed from his office and shall be penalized in accordance with Section 26 of this Act.

The Monetary Board may regulate the amount of credit accommodations that may be extended directly to the directors, officers or stockholders of rural banks of banking institutions. However, the outstanding credit accommodations which a rural bank may extend to each of its stockholders owning two percent (2%) or more of the subscribed capital stock, its directors, or officers shall be limited to an amount equivalent to the respective outstanding deposits and book value of the paid-in capital contributions in the bank.

Sec. 6. Loans or advances extended by rural banks organized and operated under this Act shall be primarily for the purpose of meeting the normal credit needs of farmers, fishermen or farm families owning or cultivating land dedicated to agricultural production as well as the normal credit needs of cooperatives and merchants. In granting of loans, the rural bank shall give preference to the application of farmers and merchant whose cash requirements are small.

Loans may be granted by rural banks on the security of lands without Torrens Title where the owner of private property can show five (5) years on more peaceful, continuous and uninterrupted possession in concept of owner; or of portions of friar land estates or other lands administered by the Bureau of Lands that are covered by sales contracts and the purchase have paid at least five (5) years installment thereon, without the necessity of prior approval and consent by the Director of lands; or of portions of other estates under the administration of the Department of Agrarian Reform or other government agency which are likewise covered by sales contracts and the purchasers have paid at least five (5) years installment thereon, without the necessity of prior approval and consent of the Department of Agrarian Reform or corresponding government agency; or of homesteads or free patent lands pending the issuance of titles but already approved, are issued, the provisions of any law or regulations to the contrary notwithstanding: Provided, That when the corresponding titles are issued, the same shall be delivered to the Register of Deeds of the province where such lands are situated to the annotation of the encumbrance: Provided, further, That in the case of lands pending homestead of free patent titles, copies of notices for the presentation of the final proof shall also be furnished the creditor rural bank and, if the borrower applicants fail to present the final proof within thirty (30) days from date of notice, the creditor rural bank may do so for them at their expense: Provided, furthermore, That the applicant for homestead or free patent has already made improvements on the land and the loan applied for is to be used for further development of the same or for other productive economic activities: Provided, finally, That the appraisal and verification of the status of a land is a full responsibility of the rural bank and any loan granted on any land which shall be found later to be within the forest zone shall be for the sole account of the rural bank.

The foreclosure of mortgage covering loans granted by rural banks and executions of judgment thereon involving real properties levied upon by a sheriff shall be exempt from the publications in newspaper now required by law where the total amount of loan, excluding interest due and unpaid, does not exceed One hundred thousand pesos (P100,000) or such amount as the Monetary Board may prescribe as may be warranted by prevailing economic conditions. It shall be sufficient publication in such cases if the notices of foreclosure and execution of judgment are posted in the most conspicuous area of the municipal building, the municipal public market, the rural bank, the barangay hall, the barangay public market, if any, where the land mortgaged is situated during the period of sixty (60) days immediately preceding the public auction or execution of judgment. Proof of publication as required herein shall be accomplished by an affidavit of the sheriff or officer conducting the foreclosure sale or execution of judgment and shall be attached with the records of the case: Provided, That when a homestead or free patent is foreclosed, the homesteader or free patent holder, as well as his heirs shall have the right to redeem the same within one (1) year from the date of the registration of the foreclosure in the case of land covered by a Torrens Title: Provided, finally, That in any case, borrowers, especially those who are mere tenants, need only to secure their loans with the procedure corresponding to their share.

A rural bank shall be allowed to foreclose lands mortgaged to it: Provided, That said lands shall be covered under Republic Act No. 6657.

Sec. 7. With the view to ensuring the balanced rural economic growth and expansion, rural banks may, within limits and conditions fixed by the Monetary Board, devote a portion of their loanable funds to meeting the normal credit needs of small business enterprises: provided, That loans shall not exceed fifteen percent (15%) of the net worth of a rural bank of such amount as the Monetary Board may prescribe as may be warranted by prevailing economic conditions, and of essential enterprises or industries, other than those which are strictly agricultural in nature.

Sec. 8. To provide supplemental capital to any rural bank until it has accumulated enough capital of its own or stimulate private investments in rural banks, the Land Bank of the Philippines or any government-owned or controlled bank or financial institution shall subscribe within thirty (30) days to the capital stock of any rural bank from time to time in an amount equal to the total equity investment of the private shareholders which shall be paid in full at the time of the subscription of such amount as may be necessary to promote and expand rural economic development: Provided, however, That shares of stock issued to the Land Bank of the Philippines, the Development Bank of the Philippines or any government-owned or -controlled bank or financial institution, may, pursuant to this section, at any time, be paid off at par and retired in whole or in part if the rural bank has accumulated enough capital strength to permit retirement of such shares; or if an offer is received from private sources to replace the equity investment of the Land Bank of the Philippines, the Development Bank of the Philippines or any government-owned or –controlled bank or financial institution with an equivalent investment or more in the equity of such bank. In case of retirement of stock or replacement of equity investment of the Land Bank of the Philippines, the Development Bank of the Philippines or any government-owned or –controlled bank or financial institution, the registered private shareholders of the rural bank shall have the right of preemption within one (1) year from the date of offer in proportion to their respective holdings.

Stock held by the Land Bank of the Philippines, the Development Bank of the Philippines or by any government-owned or –controlled bank or financial institution, under the terms of this section, shall be made preferred only as to assets upon liquidation and without power to vote and shall share in dividend distribution from the date of issuance in the amount of four percent (4%) on the first and second years, six percent (6%) on the third and fourth years, eight percent (8%) on the fifth and sixth years, ten percent (10%) on the seventh and eighth years and twelve percent (12%) on the ninth to the fifteen years without preference: Provided, however, That is such stock of the Land Bank of the Philippines, the Development bank of the Philippines or any government-owned or –controlled bank or financial institution is sold to private shareholders, the same may be converted into common stock of the class provide for in Section 10 hereof: Provided, further, That pending the amendment of Articles of Incorporation of the rural bank, if necessary, for the purpose of reflecting the conversion into common stock of preferred stock sold to private stockholders, the transfer shall be recorded by the rural bank in the stock and transfer book and such shareholders shall thereafter enjoy all the rights and privileges of common stockholders. The preferred stocks so transferred shall be surrendered and cancelled and the corresponding common stocks shall be issued.

The corporate secretary of the rural bank shall submit to the Central Bank and the Securities and Exchange Commission a report on every transfer of preferred stock to private shareholders, and such report received by the Securities and Exchange Commission shall form part of the corporate records of rural bank. When all the prepared shares of stock of a rural bank have been sold to private shareholders, the Articles of Incorporation of the rural bank shall be amended to reflect the conversion of the preferred shares of stock into common stock. For this purpose, the President, the corporate secretary, and a majority of the Board of Directors, shall be filed with the Securities and Exchange Commission, which shall attach the same to the original Articles of Incorporation on file with said office.

The Securities and Exchange Commission shall not register and amended Articles of Incorporation unless accompanied by the Certificate of Authority required under Section 9 of Republic Act No. 337, as amended.

All supervised past due and restructured past due loans, including those covered under existing rehabilitation programs of the Central Bank, and fifty percent (50%) of non-supervised past due and restructured past due loans including accrued interest thereon on rural banks organized under Republic Act No. 720, as amended, as of December 31, 1986, shall be converted into preferred stocks, of the rural bank and issued in favor of the Land Bank of the Philippines, the Development Bank of the Philippines or any government-owned or –controlled bank or financial institution: Provided, That penalties thereon are hereby warned except accrued interest on arrearages: Provided, further, That rural banks that prefer to settle their arrearages under a plan or payment or a combination of both plan of payment and conversion may do so in accordance with existing regulations and provisions of this Act: Provided, furthermore, That rural banks shall match these preferred stocks with private equity in equal annual installments over a period of fifteen (15) years to begin three (3) years after conversion: Provided, finally, That the Central Bank, the Land Bank of the Philippines, the Development Bank of the Philippines and any government-owned and –controlled bank or financial institution shall continue to rediscount subject to their respective programs, policies and guidelines against papers evidencing a loan granted by a rural bank in order to achieve the declared policy and promote the objectives of this Act.

Sec. 9. The Land Bank of the Philippines, the Development Bank of the Philippines, or any government-owned or –controlled bank or financial institution may obtain from any source as may be authorized under existing laws and regulations such amount as it may require for the purpose of subscribing to the shares of stock of rural bank: as provided in Section 13 of this Act.

Sec. 10. Stock certificates shall be issued to represent the contributions to capital stock of the rural bank by the Government through the Land Bank of the Philippines, the Development Bank of the Philippines or through any government-owned or –controlled bank or financial institutions, and by qualified persons under such terms and conditions as the Monetary Board mat prescribe. The powers of the Monetary Board over rural banks shall extend to prescribing the amount, value and class of stock issued by any rural bank, organized under this Act.

Sec. 11. The power to supervise the operation of any rural bank by the Monetary Board as herein indicated shall consists in placing limits to the maximum credit allowed to any individual borrower; in prescribing the interest rate; in determining the loan period and loan procedures; in indicating the manner in which technical assistance shall be extended to rural banks; in imposing a uniform accounting system and manner of keeping the accounts and records of rural banks; in instituting periodic surveys of loan and lending procedures, audits, test-check of cash and other transactions of the rural banks; and, in general in supervising the business operations of the rural banks.

The Central bank shall have the power to enforce the laws, orders, instructions, rules and regulations promulgated by the Monetary Board applicable to rural banks; to require rural banks, their directors, officers and agents to conduct and manage the affairs of the rural banks in a lawful and orderly manner, and, upon proof that the rural bank of its Board of Directors, or officers are conducting and managing the affairs of the banking in a manner contrary to the laws, orders, instructions, rules and regulations promulgated by the Monetary Board or in a manner substantially prejudicial in the interest of the Government, depositors or creditors, to take over the management of such bank when specifically authorized to do so by the Monetary Board after due hearing process until a new board of directors and officers are elected and qualified without prejudice to the prosecution of the persons for such violations under the provisions of Sections 32, 33 and 34 of Republic Act No. 265, as amended.

The management of the rural bank by the Central Bank shall be without expense to the rural bank, except such as is actually necessary for its operation, pending the election and qualification of a new board of directors and officers to take place of those responsible for the violations or acts contrary to the interest of the Government, depositors or creditors.

The director and the examiners of the department of the Central Bank charged with the supervision of rural banks are hereby authorized to administer oaths to any director, officer or employee of any rural bank or to any voluntary witness and to compel the presentation of all books, documents, papers or records necessary in his or their judgment to ascertain the facts relative to the true condition of any rural bank or to any loan

Sec. 12. In addition to the operations especially authorized in this Act, any rural bank may:

a. Accept saving and time deposit;

b. Open current or checking accounts, provided the rural bank has net assets of at least Five million (P5,000,000) subject to such guidelines as may be established by the Monetary Board:

c. Act as correspondent for other financial institutions;

d. Act as a collection agent;

e. Act as official depositary of municipal, city or provincial funds in the municipality, city or province where it is located, subject to such guidelines as may be established by the Monetary Board;

f. Rediscount paper with the Philippine National Bank, the Land Bank of the Philippines, the Development Bank of the Philippines, or any other banking institution, including its branches and agencies. Said institution shall specify the nature of paper deemed acceptable for rediscount, as well as the rediscount rate to be charged by any of these institutions;

g. Offer other banking service as provided in Section 72 of Republic Act No. 337, as amended, and

h. Extend financial assistance to public and private employees in accordance with the provisions of Section 5 of Republic Act No. 3779, as amended.

With written permission of the Monetary Board of the Central bank, any rural bank may act as trustee over estates or properties of farmer and merchants.

Nothing in this section shall be construed as precluding a rural bank from performing, with prior approval of the Monetary Board, all the services authorized and mortgage banks, of for commercial banks, under an expanded banking authority as provided in Section 21-B of the same Act.

Sec. 13. Subject to such guidelines as may be established by the Monetary, rural banks may invest in equities of the allied undertakings are hereinafter enumerated: Provided, That: (a) the total investment in equities shall not exceed twenty- five percent (25%) of the net worth of the rural bank; (b) the equity investment in any single enterprise shall be limited to fifteen percent (15%) of the net worth of the rural bank; and (c) the equity investment of the rural bank in any single enterprise shall remain a minority holding in that enterprise: Provided, further, That equity investment shall not be permitted in non-related activities.

Allied undertaking shall include:

a. banks, financial institutions and non-bank financial intermediaries;

b. Warehousing and other post-harvested facilities;

c. Fertilizer and agricultural chemical and pesticides distribution;

d. Farm equipment distribution;

e. Trucking an transportation of agricultural products;

f. Marketing and agricultural products;

g. Leasing; and Other undertakings as may be determined by the Monetary Board.

Sec. 14. The Land Bank of the Philippines, the Development Bank of the Philippines or any government-owned or –controlled bank or financial institution shall, within sixty (60) days of certification of the Monetary Board, which shall be final, extend to a rural bank a loan or loans from time to time repayable in ten (10) years, with concessional rates of interest, against security which may be offered by any stockholders or stockholders of the rural bank: Provided:

a. That the Monetary Board is convinced that the resources of the rural bank are inadequate to meet the legitimate credit requirements of the locality wherein the rural bank is established.;

b. That there is a dearth of private capital in the said locality; and

c. That it is not possible for the stockholders of the rural bank to increase the paid-up capital thereof.

Sec. 15. All rural banks created and organized under the provisions of this Act shall be exempt from the payment of all taxes, fees and charges of whatever nature and description, except the corporate income tax and local taxes, fees and charges, for a period of five (5) years from the date of commencement of operations.

All rural banks in operation as of the date of approval of this Act shall be exempt from the payment of all taxes, fees and charges of whatsoever nature and description, except the corporate income tax and local taxes, fees and charges, for a period of five (5) years from the approval of this Act.

Sec. 16. In an emergency or when a financial crisis is imminent, the Central Bank may give a loan to any rural bank against assets of the rural bank which may be considered acceptable by a concurrent vote of at least four (4) members of the Monetary Board.

In normal times the Central bank may rediscount against paper evidencing a loan granted by a rural bank to any of its customers which can be liquefied for a period of three hundred sixty (360) days: Provided, however, That for the purpose of implementing a nationwide program of agricultural and industrial development, rural banks are hereby authorized, under such terms and conditions as the Central bank shall prescribe, to borrow, on a medium – or long-term basis, funds that the Central Bank or any other government financing institution shall borrow from the Development Bank of the Philippines or other international or foreign-lending institutions for the specific purpose of financing the abovestated agricultural and industrial program. Repayment of loans obtained by the Central Bank of the Philippines or any other government financing institutions from said foreign-lending institutions under this section shall be guaranteed by the Republic of the Philippines.

Sec. 17. Deposits of rural banks with government-owned or –controlled financial institutions like the Land Bank of the Philippines, the Development Bank of the Philippines, and the Philippine national Bank are exempted from the Single Borrower’s Limit imposed by the General Banking Act.

In areas where there are no government banks, rural banks may deposit in private banks more than the amount prescribed by the Single Borrower’s Limit subject to Monetary Board regulations.

Sec. 18. To encourage consolidation and mergers of rural banks, if there are five (5) or more rural banks within the region that merge and consolidate within three (3) years from the enactment of this Act, the merged or consolidated entity will be given the following incentives for a period of seven (7) years:

a. Its deposit liabilities shall be subjected to only one-third (1/3) of reserves normally required for rural banks;

b. Its reserve requirement can all be maintained under interest-bearing government securities but kept unencumbered with government financial institutions or the Central Bank; and

c. It shall have unrestricted branching right within the region, free from any assessment or surcharge required in setting up a branch but under coordination with the Central bank which will have to assess that there are qualified personnel, control and procedures to operate the branch.

Sec. 19. The Central Bank of the Philippines shall extend technical assistance to any rural bank in the process of organization or during the course of operations whenever it is requested to do so or whenever the Monetary Board deems it necessary to preserve, protect and promote the objectives of this Act: Provided, however, That said assistance shall be without cost or obligation on the part of the rural bank.

Sec. 20. Any city or municipal trial court in his capacity as notary public ex officio shall administer the oath to or acknowledgement the instruments of any rural bank and to borrowers or mortgagors, fee from all charges, fees and documentary stamp tax, collectible under existing laws, relative to any loan or transaction not exceeding Fifty thousand pesos (P50,000), or such amount as the Secretary of Finance, upon recommendation of the Monetary Board may prescribe as may be necessary to promote and expand the rural economy.

Sec. 21. Any Register of Deeds shall accept from any rural bank and its borrowers and mortgagors for registration, free from all charges, fees and documentary stamp tax, collectible under existing laws, any instrument, whether voluntary or involuntary, relating to loans or transaction extended by a rural bank in an amount not exceeding Fifty thousand pesos (P50,000): Provided, however, That charges, if any, shall be collectible on the amount in excess of Fifty thousand pesos (P50,000); and that in instruments related to assignments of several mortgage consolidated in a single deed, if any, shall be levied only on the amount in excess of Fifty thousand pesos (P50,000) of the consideration in the assignments of each mortgage, of such amount as the Secretary of Finance, upon recommendation of the Monetary Board may prescribe as may be necessary to promote and expand the rural economy.

Sec. 22. Any rural bank organized under this Act may, pursuant to regulations promulgated for the purpose by the Monetary Board, be required to contribute to the Central Bank an annual fee to help defray the cost of maintaining the appropriate supervising department within the central bank in an amount to be determined by the Monetary Board but in no case to exceed one-fortieth of one percent (1/40 of 1%) of its average total assets during the preceding year, as shown on its end-of-month balance sheets, after deducting its cash on hand and amounts due from banks, including the Central Bank.

Sec. 23. Every individual acting as officer or employee of a rural bank and handling funds or securities amounting to Five thousand pesos (P5,000) or more than one (1) year, shall be covered by an adequate bond as determined by the Monetary Board; and the bylaws of the rural bank may also provide for the bonding of other employees or officers of rural banks.

Sec. 24. For the purpose of carrying out the objectives of this Act, the Central Bank is authorized to require the services and facilities of any department or instrumentality of the Government or any officer or employee of any such department or government instrumentality.

Sec. 25. Rural banks organized and operated under the provisions of this Act shall act as agents of the Philippine National Bank, the Land Bank of the Philippines and the Development Bank of the Philippines in places where these banks have no offices, subject to accreditation guidelines.

Sec. 26. Without prejudice to any prosecution under any law which may have been violated a fine of not more than ten thousand pesos (P10,000) or imprisonment of not less than six (6) months but not more than ten (10) years, or both, at the discretion of the court, shall imposed upon:

a. Any officer, employee, or agent of a rural bank who shall:

1. Make fake entries in any bank report or statement thereby affecting the financial interest of or causing damage to, the bank or any person;

2. Without order of a court of competent jurisdiction, disclose any information relative to the funds or properties in the custody of the bank belonging to private individuals, corporations, or any other entity;

3. Accept gifts, fees or commission or any other form of remuneration in connection with the approval of a loan from said bank; or

4. Overvalue or aid in overvaluing any security for the purpose of influencing in any way the action of the bank on any loan; or

5. Appear and sign as guarantor, indorser, or surety for loans granted; or

6. Violate any of the provisions of this Act.

b. Any applicant for a loan from, or borrower of a rural bank who shall:

1. Misuse, misapply, or divert the proceeds of the loan obtained by him from its declared purpose; or

2. Fraudulently overvalue property offered as security for loan from said bank; or

3. Give out or furnish false misrepresentation of material facts for the purpose of obtaining, renewing, or increasing a loan or extending the period thereof; or

4. Attempt to defraud the said bank in the event of court action to recover a loan; or

5. Offer any officer, employee, or agent of a rural bank as a gift, fee, commission, or other form of compensation in order to influence such bank personality in approving an application; or

6. Dispose or encumber the property or the crops offered as security for the loan.

c. Any examiner, or officer or employee of the Central Bank of the Philippines or other department, bureau, office, branch or agency of the Government who is assigned to examine, supervise, assist or render technical services to rural banks and who shall connive or aid in the commission of the same.

Sec. 27. Any municipal trial court judge or register of deeds who shall demand or accept, directly or indirectly, any gift, fee, commission or other form of compensation in connection with the service, or the registration of documents required to be as provided in Section 20 and by said register of deeds as proposed in Section 21 of this Act, shall be punished by One thousand pesos (P1,000) or by imprisonment for not more than one (1) year, or both, at the discretion of the court.

Sec. 28. Any bank not organized under this Act and any person, association, or corporation doing the business of banking, not authorized under this Act which shall use the words “Rural Bank” as part of the name or title of such bank or of such person, association, or corporations, shall be punished by a fine of not less than Fifty pesos (P50) for each day during which said words are so used.

Sec. 29. The Monetary Board of the Central Bank shall submit a report to the Congress of the Philippines as the end of each calendar year of all the rules and regulations promulgated by it in accordance with the provisions of this Act, as well as its other actuations in connection with rural banks, together with an explanation of its reasons therefor.

Sec. 30. If any provision or section of this Act or the application thereof to any person or circumstances is held invalid, the other provisions or sections of this Act, and the application of such provision or section to other persons or circumstances, shall not be affected thereby.

Sec. 31. Republic Act No. _____, as amended, is hereby repealed. The provisions of Republic Act No. 265, as amended, and Republic Act No. 337, as amended, insofar as they are applicable and not in conflict with any provision of this Act, are hereby made a part of this Act.

Sec. 32. This Act shall take effect upon its approval.

Approved,

(Sgd.) NEPTALI A. GONZALES
President of the Senate

(Sgd.) RAMON V. MITRA
Speaker of the House
of Representatives

This Act which is a consolidation of House Bill No. 28736 and Senate Bill No. 1554 was finally passed by the House of Representatives and the Senate on January 22, 1992.

(Sgd.) ANACLETO D. BADOY, JR.
Secretary of the Senate

(Sgd.) CAMILO L. SABIO
Secretary General
House of Representatives

Approved : APR 02, 1992

(Sgd.) CORAZON C. AQUINO
President of the Philippines

 

Republic Act No. 10574 Rural Bank Act of 1992

Republic of the Philippines
Congress of the Philippines
Metro Manila
Fifteenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday; the twenty-third day of July, two thousand twelve.

REPUBLIC ACT NO. 10574

AN ACT ALLOWING THE INFUSION OF FOREIGN EQUITY IN THE CAPITAL OF RURAL BANKS, AMENDING REPUBLIC ACT NO. 7353, OTHERWISE KNOWN AS “THE RURAL BANK ACT OF 1992″, AS AMENDED, AND FOR OTHER PURPOSES

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

SECTION 1. Section 4 of Republic Act No. 7353, as amended, is hereby amended to read as follows:

“SEC. 4. No rural bank shall be operated without a Certificate of Authority from the Monetary Board of the Bangko Sentral ng Pilipinas. Rural banks shall be organized in the form of stock corporations. No less than forty percent (40%) of the voting stocks of a rural bank shall be owned by citizens of the Philippines or corporations or associations organized under the laws of the Philippines at least sixty percent (60%) of whose capital is owned by such citizens. Non-Filipino citizens may own, acquire or purchase up to sixty percent (60%) of the voting stocks in a rural bank. The percentage of foreign-owned voting stocks shall be determined by the citizenship of the individual or corporate stockholders of the rural bank. Upon consultation with the rural banks in the area, duly established cooperatives and corporations primarily organized to hold equities in rural banks may organize a rural bank and/or subscribe to the shares of stock of any rural bank: Provided, That a cooperative or corporation owning or controlling the whole or majority of the voting stock of the rural bank shall be subject to special examination and to such rules and regulations as the Monetary Board may prescribe. If subscription of private shareholders to the capital stock of a rural bank cannot be secured or is not available, or insufficient to meet the normal credit needs of the locality, the Land Bank of the Philippines, the Development Bank of the Philippines, or any government-owned or -controlled bank or financial institution, on representation of the said private shareholders but subject to the investment guidelines, policies and procedures of the bank or financial institution and upon approval of the Monetary Board of the Bangko Sentral ng Pilipinas, shall subscribe to the capital stock of such rural bank, which shall be paid in full at the time of subscription, in an amount equal to the fully paid subscribed and unimpaired capital of the private stockholders or such amount as the Monetary Board may prescribe as may be necessary to promote and expand rural economic development: Provided, however, That such shares of stock subscribed by the Land Bank of the Philippines, the Development Bank of the Philippines or any government-owned or -controlled bank or financial institution may be sold at any time at adjusted book value: Provided, finally, That in the sale of shares of stock subscribed by the Land Bank of the Philippines, the Development Bank of the Philippines or any government-owned or -controlled bank or financial institution, the registered stockholders shall have the right of preemption within one (1) year from the date of offer in proportion to their respective holdings, but in the absence of such buyer, preference, however, shall be given to residents of the locality or province where the rural bank is located.”

SEC. 2. Section 5 of Republic Act No. 7353, as amended, is hereby amended to read as follows:

“SEC. 5. Non-Filipino citizens may become members of the Board of Directors of a rural bank but their participation in the Board shall be limited to their proportionate share in the equity of the rural bank: Provided, however, That at least one (1) independent director shall be elected to the Board of Directors.

“No director or officer of any rural bank shall, either directly or indirectly, for himself or as the representative or agent of another, borrow any of the deposits or funds of such banks, nor shall he become a guarantor, endorser, or surety for loans from such bank to others, or in any manner be an obligatory for money borrowed from the bank or loaned by it except with the written approval of the majority of the directors of the bank, excluding the director concerned. Any such approval shall be entered upon the records of the corporation and a copy of such entry shall be transmitted forthwith to the appropriate supervising department. The director/officer of the bank who violates the provisions of this section shall be immediately dismissed from his office and shall be penalized in accordance with Section 26 of this Act.

“The Monetary Board may regulate the amount of credit accommodations that may be extended directly to the directors, officers or stockholders of rural banks of banking institutions. However, the outstanding credit accommodations which a rural bank may extend to each of its stockholders owning two percent (2%) or more of the subscribed capital stock, its directors, or officers shall be limited to an amount equivalent to the respective outstanding deposits and book value of the paid-in capital contributions in the bank.”

SEC. 3. Section 6 of Republic Act No. 7353 is hereby amended to read as follows:

“SEC. 6. Loans or advances extended by rural banks organized and operated under this Act shall be primarily for the purpose of meeting the normal credit needs of farmers, fishermen or farm families owning or cultivating land dedicated to agricultural production as well as the normal credit needs of cooperatives and merchants.

“Loans may be granted by rural banks on the security of lands without Torrens Title where the owner of private property can show five (5) years or more of peaceful, continuous and uninterrupted possession in concept of owner; or of portions of friar land estates or other lands administered by the Bureau of Lands that are covered by sales contracts and the purchasers have paid at least five (5) years installment thereon, without the necessity of prior approval and consent by the Director of Lands; or of portions of other estates under the administration of the Department of Agrarian Reform or other governmental agency which are likewise covered by sales contracts and the purchasers have paid at least five (5) years installment thereon, without the necessity of prior approval and consent of the Department of Agrarian Reform or corresponding governmental agency; or of homesteads or free patent lands pending the issuance of titles but already approved, the provisions of any law or regulations to the contrary notwithstanding: Provided, That when the corresponding titles are issued, the same shall be delivered to the Register of Deeds of the province where such lands are situated for the annotation of the encumbrance: Provided, further, That in the case of lands pending homestead or free patent titles, copies of notices for the presentation of the final proof shall also be furnished the creditor rural bank and, if the borrower applicants fail to present the final proof within thirty (30) days from date of notice, the creditor rural bank may do so for them at their expense: Provided, furthermore, That the applicant for homestead or free patent has already made improvements on the land and the loan applied for is to be used for further development of the same or for other productive economic activities: Provided, finally, That the appraisal and verification of the status of a land is a full responsibility of the rural bank and any loan granted on any land which shall be found later to be within the forest zone shall be for the sole account of the rural bank.

“The foreclosure of mortgages covering loans granted by rural banks and executions of judgment thereon involving real properties levied upon by a sheriff shall be exempt from the publications in newspapers now required by law where the total amount of loan, excluding interest due and unpaid, does not exceed One hundred thousand pesos (P100,000) or such amount as the Monetary Board may prescribe as may be warranted by prevailing economic conditions. It shall be sufficient publication in such cases if the notices of foreclosure and execution of judgment are posted in the most conspicuous area of the municipal building, the municipal public market, the rural bank, the barangay hall, and the barangay public market, if any, where the land mortgaged is situated during the period of sixty (60) days immediately preceding the public auction or execution of judgment. Proof of publication as required herein shall be accomplished by an affidavit of the sheriff or officer conducting the foreclosure sale or execution of judgment and shall be attached with the records of the case: Provided, That when a homestead or free patent is foreclosed, the homesteader or free patent holder, as well as his heirs shall have the right to redeem the same within one (1) year from the date of foreclosure in the case of land not covered by a Torrens Title or one (1) year from the date of the registration of the foreclosure in the case of land covered by a Torrens Title: Provided, finally, That in any case, borrowers, especially those who are mere tenants, need only to secure their loans with the produce corresponding to their share.

“A rural bank shall be allowed to foreclose lands mortgaged to it including lands covered by Republic Act No. 6657 (Comprehensive Agrarian Reform Law of 1988), as amended: Provided, That said lands shall be subject to the retention limits provided under Republic Act No. 6657.

“Rural banks which are not qualified to acquire or hold land in the Philippines shall be allowed to bid and take part in foreclosure sales of real property mortgaged to them, as well as to avail of enforcement and other proceedings, and accordingly to take possession of the mortgaged property, for a period not exceeding five (5)-years from actual possession: Provided, That in no event shall title to the property be transferred to such rural bank. In case the rural bank is the winning bidder, it shall, during the said five (5)-year period, transfer its rights to a qualified Philippine national, without prejudice to a borrower’s rights under applicable laws. Should a rural bank be not able to transfer such property within the five (5)-year period, the rural bank shall be penalized one-half (1/2) of one percent (1%) per annum of the price at which the property was foreclosed until the rural bank is able to transfer the property to a qualified Philippine national.”

SEC. 4. Section 8 of Republic Act No. 7353 is hereby amended to read as follows:

“To provide supplemental capital to any rural bank until it has accumulated enough capital of its own or stimulate private investments in rural banks, the Land Bank of the Philippines, the Development Bank of the Philippines or any government-owned or -controlled bank or financial institution shall subscribe within thirty (30) days to the capital stock of any rural bank from time to time in an amount equal to the total equity investment of the private shareholders which shall be paid in full at the time of the subscription or such amount as may be necessary to promote and expand rural economic development: Provided, however, That shares of stock issued to the Land Bank of the Philippines, the Development Bank of the Philippines or any government-owned or -controlled bank or financial institution, may, pursuant to this section, at any time, be bought at adjusted book value.

“Stocks held by the Land Bank of the Philippines, the Development Bank of the Philippines or by any government-owned or -controlled bank or financial institution, under the terms of this section, shall be made preferred only as to assets upon liquidation and without the power to vote and shall share in dividend distributions from the date of issuance in an amount based on the lending benchmark approved by the Bangko Sentral ng Pilipinas plus the prevailing non-prime spread of the government financial institution: Provided, however, That if such stock of the Land Bank of the Philippines, the Development Bank of the Philippines or any government-owned or -controlled bank or financial institution is sold to private shareholders, the same may be converted into common stock of the class provided for in Section 10 hereof: Provided, further, That pending the amendment of the Articles of Incorporation of the rural bank, if necessary, for the purpose of reflecting the conversion into common stock of preferred stock sold to private shareholders, the transfer shall be recorded by the rural bank in the stock and transfer book and such shareholders shall thereafter enjoy all the rights and privileges of common stockholders. The preferred stocks so transferred shall be surrendered and cancelled and the corresponding common stocks shall be issued.

“x x x.”

SEC. 5. The Bangko Sentral ng Pilipinas, consistent with Section 11 of Republic Act No. 7353, shall prescribe the necessary rules and regulations on the amendments of the Rural Banks Act of 1992 in consultation with various stakeholders as well as disseminate this information to allow entry of foreign equity into our rural bank system to revitalize the rural banking industry and improve access of banking services to the rural areas in the country.

The implementing rules and regulations shall be published within ninety (90) days from the publication of this Act in two (2) newspapers of general circulation in the Philippines.

SEC. 6. Separability Clause. – If, for any reason, any provision of this Act is declared invalid or unconstitutional, the remaining provisions not affected thereby shall continue to be in force and effect.

SEC. 7. Repealing Clause. – All laws, decrees, executive orders, proclamations, rules and regulations, and other issuances, or parts thereof, which are inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 8. Effectivity Clause. – This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) newspapers of general circulation, whichever is earlier.

Approved,

(Sgd.) JUAN PONCE ENRILE
President of the Senate

(Sgd.) FELICIANO BELMONTE JR.
Speaker of the House
of Representatives

This Act which is a consolidation of House Bill No. 5360 and Senate Bill No. 3282 was finally passed by the House of Representatives and the Senate on February 4, 2013 and January 30, 2013, respectively.

(Sgd.) EDWIN B. BELLEN
Acting Senate Secretary

(Sgd.) MARILYN B. BARUA-YAP
Secretary General
House of Representatives

Approved: MAY 24 2013

(Sgd.) BENIGNO S. AQUINO III
President of the Philippines

 

Republic Act No. 9173

Republic of the Philippines
Congress of the Philippines
Metro Manila

Twelfth Congress
Second Regular Session

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

REPUBLIC ACT NO. 9173
October 21, 2002

AN ACT PROVIDING FOR A MORE RESPONSIVE NURSING PROFESSION, REPEALING FOR THE PURPOSE REPUBLIC ACT NO. 7164, OTHERWISE KNOWN AS “THE PHILIPPINE NURSING ACT OF 1991” AND FOR OTHER PURPOSES

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

ARTICLE I

Title

Section 1. Title. – This Act shall be known as the “Philippine Nursing Act of 2002.”

ARTICLE II

Declaration of Policy

Sec. 2. Declaration of Policy. It is hereby declared the policy of the State to assume responsibility for the protection and improvement of the nursing profession by instituting measures that will result in relevant nursing education, humane working conditions, better career prospects and a dignified existence for our nurses.

The State hereby guarantees the delivery of quality basic health services through an adequate nursing personnel system throughout the country.

ARTICLE III

Organization of the Board of Nursing

Section 3. Creation and Composition of the Board. – There shall be created a Professional Regulatory Board of Nursing, hereinafter referred to as the Board, to be composed of a Chairperson and six (6) members. They shall be appointed by the president of the Republic of the Philippines from among two (2) recommendees, per vacancy, of the Professional Regulation Commission, hereinafter referred to as the Commission, chosen and ranked from a list of three (3) nominees, per vacancy, of the accredited professional organization of nurses in the Philippines who possess the qualifications prescribed in Sec. 4 of this Act.

Sec. 4. Qualifications of the Chairperson and Members of the Board. – The Chairperson and Members of the Board shall, at the time of their appointment, possess the following qualifications:

(a) Be a natural born citizen and resident of the Philippines;

(b) Be a member of good standing of the accredited professional organization of nurses;

(c) Be a registered nurse and holder of a master’s degree in nursing, education or other allied medical profession conferred by a college or university duly recognized by the Government: Provided, That the majority of the members of the Board shall be holders of a master’s degree in nursing: Provided, further, That the Chairperson shall be a holder of a master’s degree in nursing;

(d) Have at least ten (10) years of continuous practice of the profession prior to appointment: Provided, however, That the last five (5) years of which shall be in the Philippines; and

(e) Not have been convicted of any offense involving moral turpitude; Provided, That the membership to the Board shall represent the three (3) areas of nursing, namely: nursing education, nursing service and community health nursing.

Sec. 5. Requirements Upon Qualification as Member of the Board of Nursing. – Any person appointed as Chairperson or Member of the Board shall immediately resign from any teaching position in any school, college, university or institution offering Bachelor of Science in Nursing and/or review program for the local nursing board examinations or in any office or employment in the government or any subdivision, agency or instrumentality thereof, including government-owned or controlled corporations or their subsidiaries as well as these employed in the private sector. He/she shall not have any pecuniary interest in or administrative supervision over any institution offering Bachelor of Science in Nursing including review classes.

Sec. 6. Term of Office.. – The Chairperson and Members of the Board shall hold office for a term of three (3) years and until their successors shall have been appointed and qualified: Provided, That the Chairperson and members of the Board may be re-appointed for another term.

Any vacancy in the Board occurring within the term of a Member shall be filled for the unexpired portion of the term only. Each Member of the Board shall take the proper oath of office prior to the performance of his/her duties.

The incumbent Chairperson and Members of the Board shall continue to serve for the remainder of their term under Republic Act No. 7164 until their replacements have been appointed by the President and shall have been duly qualified.

Sec. 7. Compensation of the Board Members. – The Chairperson and Members of the Board shall receive compensation and allowances comparable to the compensation and allowances received by the Chairperson and members of other professional regulatory boards.

Sec. 8. Administrative Supervision of the Board, Custodian of its Records, Secretariat and Support Services. – The Board shall be under the administrative supervision of the Commission. All records of the Board, including applications for examinations, administrative and other investigative cases conducted by the Board shall be under the custody of the Commission. The Commission shall designate the Secretary of the Board and shall provide the secretariat and other support services to implement the provisions of this Act.

Sec. 9. Powers and Duties of the Board. – The Board shall supervise and regulate the practice of the nursing profession and shall have the following powers, duties and functions:

(a) Conduct the licensure examination for nurses;

(b) Issue, suspend or revoke certificates of registration for the practice of nursing;

(c) Monitor and enforce quality standards of nursing practice in the Philippines and exercise the powers necessary to ensure the maintenance of efficient, ethical and technical, moral and professional standards in the practice of nursing taking into account the health needs of the nation;

(d) Ensure quality nursing education by examining the prescribed facilities of universities or colleges of nursing or departments of nursing education and those seeking permission to open nursing courses to ensure that standards of nursing education are properly complied with and maintained at all times. The authority to open and close colleges of nursing and/or nursing education programs shall be vested on the Commission on Higher Education upon the written recommendation of the Board;

(e) Conduct hearings and investigations to resolve complaints against nurse practitioners for unethical and unprofessional conduct and violations of this Act, or its rules and regulations and in connection therewith, issue subpoena ad testificandum and subpoena duces tecum to secure the appearance of respondents and witnesses and the production of documents and punish with contempt persons obstructing, impeding and/or otherwise interfeming with the conduct of such proceedings, upon application with the court;

(f) Promulgate a Code of Ethics in coordination and consultation with the accredited professional organization of nurses within one (1) year from the effectivity of this Act;

(g) Recognize nursing specialty organizations in coordination with the accredited professional organization; and

(h) Prescribe, adopt issue and promulgate guidelines, regulations, measures and decisions as may be necessary for the improvements of the nursing practice, advancement of the profession and for the proper and full enforcement of this Act subject to the review and approval by the Commission.

Sec. 10. Annual Report. – The Board shall at the close of its calendar year submit an annual report to the President of the Philippines through the Commission giving a detailed account of its proceedings and the accomplishments during the year and making recommendations for the adoption of measures that will upgrade and improve the conditions affecting the practice of the nursing profession.

Sec. 11. Removal or Suspension of Board Members. – The president may remove or suspend any member of the Board after having been given the opportunity to defend himself/herself in a proper administrative investigation, on the following grounds;

(a) Continued neglect of duty or incompetence;

(b) Commission or toleration of irregularities in the licensure examination; and

(c) Unprofessional immoral or dishonorable conduct.

ARTICLE IV

Examination and Registration

Sec. 12. Licensure Examination. – All applicants for license to practice nursing shall be required to pass a written examination, which shall be given by the Board in such places and dates as may be designated by the Commission: Provided, That it shall be in accordance with Republic Act No. 8981, otherwise known as the “PRC Modernization Act of 2000.”

Sec. 13. Qualifications for Admission to the Licensure Examination. – In order to be admitted to the examination for nurses, an applicant must, at the time of filing his/her application, establish to the satisfaction of the Board that:

(a) He/she is a citizen of the Philippines, or a citizen or subject of a country which permits Filipino nurses to practice within its territorial limits on the same basis as the subject or citizen of such country: Provided, That the requirements for the registration or licensing of nurses in said country are substantially the same as those prescribed in this Act;

(b) He/she is of good moral character; and

(c) He/she is a holder of a Bachelor’s Degree in Nursing from a college or university that complies with the standards of nursing education duly recognized by the proper government agency.

Sec. 14. Scope of Examination. – The scope of the examination for the practice of nursing in the Philippines shall be determined by the Board. The Board shall take into consideration the objectives of the nursing curriculum, the broad areas of nursing, and other related disciplines and competencies in determining the subjects of examinations.

Sec. 15. Ratings. – In order to pass the examination, an examinees must obtain a general average of at least seventy-five percent (785%) with a rating of not below sixty percent (60%) in any subject. An examinees who obtains an average rating of seventy-five percent (75%) or higher but gets a rating below sixty percent (60%) in any subject must take the examination again but only in the subject or subjects where he/she is rated below sixty percent (60%). In order to pass the succeeding examination, an examinees must obtain a rating of at least seventy-five percent (75%) in the subject or subjects repeated.

Sec. 16. Oath. – All successful candidates in the examination shall be required to take an oath of profession before the Board or any government official authorized to administer oaths prior to entering upon the nursing practice.

Sec. 17. Issuance of Certificate of Registration/Professional License and Professional Identification Card. – A certificate of registration/professional license as a nurse shall be issued to an applicant who passes the examination upon payment of the prescribed fees. Every certificate of registration/professional license shall show the full name of the registrant, the serial number, the signature of the Chairperson of the Commission and of the Members of the Board, and the official seal of the Commission.

A professional identification card, duly signed by the Chairperson of the Commission, bearing the date of registration, license number, and the date of issuance and expiration thereof shall likewise be issued to every registrant upon payment of the required fees.

Sec. 18. Fees for Examination and Registration. – Applicants for licensure and for registration shall pay the prescribed fees set by Commission.

Sec. 19. Automatic Registration of Nurses. – All nurses whose names appear at the roster of nurses shall be automatically or ipso facto registered as nurses under this Act upon its effectivity.

Sec. 20. Registration by Reciprocity. – A certificate of registration/professional license may be issued without examination to nurses registered under the laws of a foreign state or country: Provided, That the requirements for registration or licensing of nurses in said country are substantially the same as those prescribed under this Act: Provided, further, That the laws of such state or country grant the same privileges to registered nurses of the Philippines on the same basis as the subjects or citizens of such foreign state or country.

Sec. 21. Practice Through Special/Temporary Permit. – A special/temporary permit may be issued by the Board to the following persons subject to the approval of the Commission and upon payment of the prescribed fees:

(a) Licensed nurses from foreign countries/states whose service are either for a fee or free if they are internationally well-known specialists or outstanding experts in any branch or specialty of nursing;

(b) Licensed nurses from foreign countries/states on medical mission whose services shall be free in a particular hospital, center or clinic; and

(c) Licensed nurses from foreign countries/states employed by schools/colleges of nursing as exchange professors in a branch or specialty of nursing;

Provided, however, That the special/temporary permit shall be effective only for the duration of the project, medical mission or employment contract.

Sec. 22. Non-registration and Non-issuance of Certificates of Registration/Professional License or Special/Temporary Permit. – No person convicted by final judgment of any criminal offense involving moral turpitude or any person guilty of immoral or dishonorable conduct or any person declared by the court to be of unsound mind shall be registered and be issued a certificate of registration/professional license or a special/temporary permit.

The Board shall furnish the applicant a written statement setting forth the reasons for its actions, which shall be incorporated in the records of the Board.

Sec. 23. Revocation and suspension of Certificate of Registration/Professional License and Cancellation of Special/Temporary Permit. – The Board shall have the power to revoke or suspend the certificate of registration/professional license or cancel the special/temporary permit of a nurse upon any of the following grounds:

(a) For any of the causes mentioned in the preceding section;

(b) For unprofessional and unethical conduct;

(c) For gross incompetence or serious ignorance;

(d) For malpractice or negligence in the practice of nursing;

(e) For the use of fraud, deceit, or false statements in obtaining a certificate of registration/professional license or a temporary/special permit;

(f) For violation of this Act, the rules and regulations, Code of Ethics for nurses and technical standards for nursing practice, policies of the Board and the Commission, or the conditions and limitations for the issuance of the temporarily/special permit; or

(g) For practicing his/her profession during his/her suspension from such practice;

Provided, however, That the suspension of the certificate of registration/professional license shall be for a period not to exceed four (4) years.

Sec. 24. Re-issuance of Revoked Certificates and Replacement of Lost Certificates. – The Board may, after the expiration of a maximum of four (4) years from the date of revocation of a certificate, for reasons of equity and justice and when the cause for revocation has disappeared or has been cured and corrected, upon proper application therefor and the payment of the required fees, issue another copy of the certificate of registration/professional license.

A new certificate of registration/professional license to replace the certificate that has been lost, destroyed or mutilated may be issued, subject to the rules of the Board.

ARTICLE V

Nursing Education

Section 25. Nursing Education Program. – The nursing education program shall provide sound general and professional foundation for the practice of nursing.

The learning experiences shall adhere strictly to specific requirements embodied in the prescribed curriculum as promulgated by the Commission on Higher Education’s policies and standards of nursing education.

Sec. 26. Requirement for Inactive Nurses Returning to Practice. – Nurses who have not actively practiced the profession for five (5) consecutive years are required to undergo one (1) month of didactic training and three (3) months of practicum. The Board shall accredit hospitals to conduct the said training program.

Sec. 27. Qualifications of the Faculty. – A member of the faculty in a college of nursing teaching professional courses must:

(a) Be a registered nurse in the Philippines;

(b) Have at least one (1) year of clinical practice in a field of specialization;

(c) Be a member of good standing in the accredited professional organization of nurses; and

(d) Be a holder of a master’s degree in nursing, education, or other allied medical and health sciences conferred by a college or university duly recognized by the Government of the Republic of the Philippines.

In addition to the aforementioned qualifications, the dean of a college must have a master’s degree in nursing. He/she must have at least five (5) years of experience in nursing.

ARTICLE VI

Nursing Practice

Sec. 28. Scope of Nursing. – A person shall be deemed to be practicing nursing within the meaning of this Act when he/she singly or in collaboration with another, initiates and performs nursing services to individuals, families and communities in any health care setting. It includes, but not limited to, nursing care during conception, labor, delivery, infancy, childhood, toddler, preschool, school age, adolescence, adulthood, and old age. As independent practitioners, nurses are primarily responsible for the promotion of health and prevention of illness. A members of the health team, nurses shall collaborate with other health care providers for the curative, preventive, and rehabilitative aspects of care, restoration of health, alleviation of suffering, and when recovery is not possible, towards a peaceful death. It shall be the duty of the nurse to:

(a) Provide nursing care through the utilization of the nursing process. Nursing care includes, but not limited to, traditional and innovative approaches, therapeutic use of self, executing health care techniques and procedures, essential primary health care, comfort measures, health teachings, and administration of written prescription for treatment, therapies, oral topical and parenteral medications, internal examination during labor in the absence of antenatal bleeding and delivery. In case of suturing of perineal laceration, special training shall be provided according to protocol established;

(b) establish linkages with community resources and coordination with the health team;

(c) Provide health education to individuals, families and communities;

(d) Teach, guide and supervise students in nursing education programs including the administration of nursing services in varied settings such as hospitals and clinics; undertake consultation services; engage in such activities that require the utilization of knowledge and decision-making skills of a registered nurse; and

(e) Undertake nursing and health human resource development training and research, which shall include, but not limited to, the development of advance nursing practice;

Provided, That this section shall not apply to nursing students who perform nursing functions under the direct supervision of a qualified faculty: Provided, further, That in the practice of nursing in all settings, the nurse is duty-bound to observe the Code of Ethics for nurses and uphold the standards of safe nursing practice. The nurse is required to maintain competence by continual learning through continuing professional education to be provided by the accredited professional organization or any recognized professional nursing organization: Provided, finally, That the program and activity for the continuing professional education shall be submitted to and approved by the Board.

Sec. 29. Qualification of Nursing Service Administrators. – A person occupying supervisory or managerial positions requiring knowledge of nursing must:

(a) Be a registered nurse in the Philippines;

(b) Have at least two (2) years experience in general nursing service administration;

(c) Possess a degree of Bachelors of Science in Nursing, with at least nine (9) units in management and administration courses at the graduate level; and

(d) Be a member of good standing of the accredited professional organization of nurses;

Provided, That a person occupying the position of chief nurse or director of nursing service shall, in addition to the foregoing qualifications, possess:

(1) At least five (5) years of experience in a supervisory or managerial position in nursing; and

(2) A master’s degree major in nursing;

Provided, further, That for primary hospitals, the maximum academic qualifications and experiences for a chief nurse shall be as specified in subsections (a), (b), and (c) of this section: Provided, furthermore, That for chief nurses in the public health nursing shall be given priority. Provided, even further, That for chief nurses in military hospitals, priority shall be given to those who have finished a master’s degree in nursing and the completion of the General Staff Course (GSC): Provided, finally, That those occupying such positions before the effectivity of this Act shall be given a period of five (5) years within which to qualify.

ARTICLE VII

Health Human Resources Production, Utilization and Development

Sec. 30. Studies for Nursing Manpower Needs, Production, Utilization and Development. – The Board, in coordination with the accredited professional organization and appropriate government or private agencies shall initiate undertake and conduct studies on health human resources production, utilization and development.

Sec. 31. Comprehensive Nursing Specialty Program. – Within ninety (90) days from the effectivity of this Act, the Board in coordination with the accredited professional organization recognized specialty organizations and the Department of Health is hereby mandated to formulate and develop a comprehensive nursing specialty program that would upgrade the level of skill and competence of specialty nurse clinicians in the country, such as but not limited to the areas of critical care, oncology, renal and such other areas as may be determined by the Board.

The beneficiaries of this program are obliged to serve in any Philippine hospital for a period of at least two (2) years and continuous service.

Sec. 32. Salary. – In order to enhance the general welfare, commitment to service and professionalism of nurses the minimum base pay of nurses working in the public health institutions shall not be lower than salary grade 15 prescribes under Republic Act No. 6758, otherwise known as the “Compensation and Classification Act of 1989”: Provided, That for nurses working in local government units, adjustments to their salaries shall be in accordance with Sec. 10 of the said law.

Sec. 33. Funding for the Comprehensive Nursing Specialty Program. – The annual financial requirement needed to train at least ten percent (10%) of the nursing staff of the participating government hospital shall be chargeable against the income of the Philippine Charity Sweepstakes Office and the Philippine Amusement and Gaming Corporation, which shall equally share in the costs and shall be released to the Department of Health subject to accounting and auditing procedures: Provided, That the department of Health shall set the criteria for the availment of this program.

Sec. 34. Incentives and Benefits. – The Board of Nursing, in coordination with the Department of Health and other concerned government agencies, association of hospitals and the accredited professional organization shall establish an incentive and benefit system in the form of free hospital care for nurses and their dependents, scholarship grants and other non-cash benefits. The government and private hospitals are hereby mandated to maintain the standard nurse-patient ratio set by the Department of Health.

ARTICLE VIII

Penal and Miscellaneous Provisions

Sec. 35. Prohibitions in the Practice of Nursing. – A fine of not less than Fifty thousand pesos (P50,000.00) nor more than One hundred thousand pesos (P100,000.00) or imprisonment of not less than one (1) year nor more than six (6) years, or both, upon the discretion of the court, shall be imposed upon:

(a) any person practicing nursing in the Philippines within the meaning of this Act:

(1) without a certificate of registration/professional license and professional identification card or special temporary permit or without having been declared exempt from examination in accordance with the provision of this Act; or

(2) who uses as his/her own certificate of registration/professional license and professional identification card or special temporary permit of another; or

(3) who uses an invalid certificate of registration/professional license, a suspended or revoked certificate of registration/professional license, or an expired or cancelled special/temporary permits; or

(4) who gives any false evidence to the Board in order to obtain a certificate of registration/professional license, a professional identification card or special permit; or

(5) who falsely poses or advertises as a registered and licensed nurse or uses any other means that tend to convey the impression that he/she is a registered and licensed nurse; or

(6) who appends B.S.N./R.N. (Bachelor of Science in Nursing/Registered Nurse) or any similar appendage to his/her name without having been conferred said degree or registration; or

(7) who, as a registered and licensed nurse, abets or assists the illegal practice of a person who is not lawfully qualified to practice nursing.

(b) any person or the chief executive officer of a judicial entity who undertakes in-service educational programs or who conducts review classes for both local and foreign examination without permit/clearance from the Board and the Commission; or

(c) any person or employer of nurses who violate the minimum base pay of nurses and the incentives and benefits that should be accorded them as specified in Sections 32 and 34; or

(d) any person or the chief executive officer of a juridical entity violating any provision of this Act and its rules and regulations.

ARTICLE IX

Final Provisions

Sec. 36. Enforcement of this Act. – It shall be the primary duty of the Commission and the Board to effectively implement this Act. Any duly law enforcement agencies and officers of national, provincial, city or municipal governments shall, upon the call or request of the Commission or the Board, render assistance in enforcing the provisions of this Act and to prosecute any persons violating the same.

Sec. 37. Appropriations. – The Chairperson of the Professional Regulation Commission shall immediately include in its program and issue such rules and regulations to implement the provisions of this Act, the funding of which shall be included in the Annual General Appropriations Act.

Sec. 38. Rules and Regulations. – Within ninety (90) days after the effectivity of this Act, the Board and the Commission, in coordination with the accredited professional organization, the Department of Health, the Department of Budget and Management and other concerned government agencies, shall formulate such rules and regulations necessary to carry out the provisions of this Act. The implementing rules and regulations shall be published in the Official Gazette or in any newspaper of general circulation.

Sec. 39. Reparability Clause. – If any part of this Act is declared unconstitutional, the remaining parts not affected thereby shall continue to be valid and operational.

Sec. 40. Repealing Clause. – Republic Act No. 7164, otherwise known as the “Philippine Nursing Act of 1991” is hereby repealed. All other laws, decrees, orders, circulars, issuances, rules and regulations and parts thereof which are inconsistent with this Act are hereby repealed, amended or modified accordingly.

Sec. 41. Effectivity. – This act shall take effect fifteen (15) days upon its publication in the Official Gazette or in any two (2) newspapers of general circulation in the Philippines.

Approved:

FRANKLIN DRILON
President of the Senate

JOSE DE VENECIA JR.
Speaker of the House of Representatives

This Act, which originated in the House of Representative was finally passed by the House of Representatives and the Senate on October 15, 2002 and October 8, 2003 respectively.

OSCAR G. YABES
Secretary of Senate

ROBERTO P. NAZARENO
Secretary General
House of Represenatives

Approved: October 21, 2002

GLORIA MACAPAGAL-ARROYO
President of the Philippines

Republic Act No. 3846

REPUBLIC ACT NO. 3846

AN ACT PROVIDING FOR THE REGULATION OF RADIO STATIONS AND RADIO COMMUNICATIONS IN THE PHILIPPINE ISLANDS, AND FOR OTHER PURPOSES

Sec. 1. No person, firm, company, association or corporation shall construct, install, establish, or operate a radio station within the Philippine Islands without having first obtained a franchise therefor from the Philippine Legislature; Provided however, That no franchise from the Legislature shall be necessary for the construction, installation, establishment or operation of a broadcasting station, an amateur station, an experimental station, a training station, a station on board a mobile vessel, train, or aircraft, or a private station in a place without any means of communication.

Sec. 2. The construction or installation of any station shall not be begun, unless a permit therefor has been granted by the Secretary of Commerce and Communications. No station shall be operated except under and in accordance with the provisions of a license issued therefor by the Secretary of Commerce and Communications. The license shall state the dates between which the station may be operated. If a renewal is desired, the licensee shall submit an application to the Secretary of Commerce and Communication at least two (2) months before the expiration date of the license to be renewed. The Secretary of Commerce and Communication shall determine the period for which each license is issued; Provided, that no license shall be issued for a longer period than three (3) years.

Sec. 3. The Secretary of Commerce and Communication is hereby empowered to regulate the establishment, use, and operation of all radio stations and of all forms of radio communications and transmissions within the Philippine Islands and to issue such rules and regulations as may be necessary. In addition to the above, he shall have the following specific powers and duties:

(a) He shall classify radio stations and prescribe the nature of service to be rendered by each class and by each station within any class;

(b) He shall assign call letters and assign frequencies for each station licensed by him and for each station established by virtue of a franchise granted by the Philippine Legislature and specify the stations to which each such frequency may be used;

(c) He shall make rules and regulations to prevent and eliminate interference between stations and to carry out the provisions of this Act and the provisions of International Radio Regulations: Provided however, that changes in the frequencies or in the authorized power, or in the character of omitted signals, or in the type of the power supply, or in the hours of operation of any licensed station, shall not be made without first giving the station a hearing;

(d) He may establish areas or zones to be served by any station;

(e) He may make special rules and regulations applicable to radio stations engaging in chain broadcasting;

(f) He may make general rules and regulations requiring stations to keep records of traffic handled, distress, frequency watches, programs, transmissions of energy, communications or signs;

(g) He may conduct such investigations as may be necessary in connection with radio matters and hold hearings, summon witnesses, administer oaths and compel the production of books, logs, documents and papers;

(h) He may prescribe rules and regulations to be observed by radio training schools; he may supervise the course and method of instruction therein, and he may refuse to admit to examinations for radio operators’ licenses graduates of any radio school not complying with the regulations;

(i) He shall prescribe rates of charges to be paid to the Government for the inspection of stations, for the licensing of stations, for the examination of operators, for the licensing of operators, for the renewal of station or operator licenses, and for such other services as may be rendered;

(j) He is hereby empowered to approve or disapprove any application for the construction, installation, establishment or operation of a radio station;

(k) He may approve or disapprove any application for renewal of station or operator license: Provided however, that no application for renewal shall be disapproved without giving the licensee a hearing;

(l) He may, at his discretion, bring criminal actions against violators of the radio law or the regulations; or simply suspend or revoke the offender’s station or operator’s licenses; or refuse to renew such licenses; or just reprimand and warn the offenders;

(m) The location of any station, and the power and kind or type of apparatus to be used shall be subject to his approval;

(n) He shall prescribe rules and regulations to be observed by stations for the handling of SOS messages and distress traffic: Provided, that such rules and regulations shall not conflict with the provisions of the International Radio Regulations.

Sec. 4. No radio station license shall be transferred to any person, firm, company, association or corporation without express authority of the Secretary of Commerce and Communications, and no license shall be granted or transferred to any person who is not a citizen of the United States of America or of the Philippine Islands; or to any firm or company which is not incorporated under the laws of the Philippine Islands or any state or territory of the United States of America; or to any company or corporation twenty percent (20%) of whose capital stock may be voted by aliens or their representatives, or by a foreign government or its representatives, or by any company, corporation, or association organized under the laws of a foreign country.

Sec. 5. The privileges granted in any station license shall not be exclusive.

Sec. 6. The President of the United States of America, or the Governor-General of the Philippine Islands, in time of war, public peril, calamity, or disaster, may cause the closing of any radio station in the Philippine Islands; or may authorize the temporary use or possession thereof by any department of the Government upon just compensation to the owners.

Sec. 7. A person to whom or through whom a message has been submitted for transmission shall not willfully publish or divulge the contents, substance, purport, effect, or meaning thereof to any unauthorized person; and no person not being authorized by the sender or the addressee shall intercept any message or communication and willfully divulge or publish the contents, substance, purport, effect, or meaning of such intercepted message or communication to any person; and no person not being entitled thereto shall receive, or assist in receiving, any message or communications and use the same or any information therein contained for his benefit or for the benefit of another not entitled thereto; and no person having received such intercepted message or communication, or having become acquainted with the contents, substance, purport, effect, or meaning of the same or any part thereof, knowing that such information was so obtained, shall divulge or publish the contents, substance, purport, effect, or meaning of the same or any part thereof, or use the same or any information therein contained for his own benefit or for the benefit of another not entitled thereto: Provided, that this section shall not apply to the transmitting, receiving, divulging, publishing or utilizing the contents of any message or communication broadcasted or transmitted by amateurs or others for the use of the general public or relating to ships in distress.

Sec. 8. The Secretary of Commerce and Communication is hereby authorized to create a Radio Regulation Sec. , Division, or Office, which shall take charge of carrying out the provisions of this Act and of the regulations prescribed by him, or to delegate temporarily the duties herein conferred upon him and the enforcement of the regulations prescribed by him, to any bureau or office under his department, subject to his general supervision and control.

Sec. 9. The provisions of this Act shall not apply to radio stations of the United States Government and those of the Philippine Government. Foreign mobile stations temporarily located within the Philippine Islands shall be exempt from the provisions of this Act: Provided, however, That they shall be subject to the provisions of the International Radiotelegraph Regulations.

Sec. 10. The powers vested in and the duties imposed upon the Director of Posts by Act Numbered Thirty-three hundred and ninety-six are hereby transferred to the Secretary of Commerce and Communication, who is hereby empowered to include in the general radio regulations under this Act, regulations governing radio apparatus compulsory required on vessels of Philippine registry by Act Numbered Thirty-three hundred and ninety-six, notwithstanding the fact that such regulations may be different from those specifically provided in said Act Numbered Thirty-three hundred and ninety-six: Provided however, that such regulations shall not be inconsistent with the provisions of the International Convention for the Safety of Life at Sea: Provided further, that this section or any part thereof shall not be construed as in any way affecting the provisions of Act Numbered Thirty-three hundred and ninety-six making compulsory the installation of radio apparatus on certain vessels and penalizing violations thereof.

Sec. 11. Act Numbered Thirty-two hundred and seventy-five, entitled, “An Act to Amend Article One of Chapter Fifty-two and Sec. Twenty-seven hundred and fifty-seven of the Administrative Code, Providing for the Effective Radio Control,” is hereby repealed: Provided however, that such repeal shall not affect any act done, or any right accrued, or any suit or proceeding had or commenced in any criminal or civil cause, prior to said repeal.

Sec. 12. Any person who shall violate any mandatory or prohibitory provision of this Act, or any mandatory or prohibitory provision of the regulations prescribed by the Secretary of Commerce and Communication under this Act, or any mandatory or prohibitory provision of the International Radio Regulations, upon conviction thereof by a court of competent jurisdiction, shall be punished by a fine of not more than three hundred pesos or by imprisonment for not more than three months, or both, for each and every offense.

Sec. 13. Any firm, company, corporation or association failing or refusing to observe or violating any provision of this Act, or any provision of the regulations prescribed by the Secretary of Commerce and Communication under this Act, or any provision of the International Radio Regulations, shall be punished by a fine of not more than one thousand pesos for each and every offense.

Sec. 14. This Act shall take effect three months

Republic Act No. 754

REPUBLIC ACT NO. 754

REPUBLIC ACT NO. 754  – AN ACT TO REGULATE THE PRACTICE OF CHEMISTRY IN THE PHILIPPINES, AND FOR OTHER PURPOSES

 

ARTICLE I
Organization of Board

Section 1.    Definitions. — Unless otherwise specified the following terms used in this Act shall mean:

(a)    Chemistry. — Chemistry may be defined as the science which studies the properties of matter; the changes in composition which substances undergo; the energy involved in; and the conditions necessary for the transformation of matter.

Scope of Chemistry. — The analysis, synthesis, preparation, and manufacture of chemical, biochemical and mineral products and materials; the sale of chemicals, chemical apparatus, and chemical equipment; consultation work on problems related to change of matter, and/or to chemical or physico-chemical process or processes.

(b)    Chemist. — Any person, who for fee, salary or other compensation or reward to himself or to another person renders professional service requiring the use and application of chemical knowledge, and/or chemical or physico-chemical processes.

(c)    Board. — The Board of Examiners for Chemists created by this Act.

(d)    Registration. — The authority given a chemist to practice chemistry.

Section 2.    Creation and composition of the Board. — Within thirty days after the approval of this Act, there shall be created a Board of Examiners for Chemist, to be composed of a Chairman and two members who shall be appointed by the President of the Philippines, upon the recommendation of the Commissioner of Civil Service from among registered chemists of recognized standing in the Philippines as may be certified by the bona fide national professional organization or association of chemists in the Philippines and possessing the qualifications prescribed in section four of this Act: Provided, That the first Board of Examiners for Chemists to be created pursuant to this Act shall each be issued a certificate of registration as chemist without prior examination in accordance with the provisions of this Act.

Section 3.    Powers vested in the Board. — The Board of Examiners for Chemists is vested with authority conformably with the provisions of this Act, to administer the provisions thereof, to issue, suspend and revoke certificates of registration for the practice of chemistry and to administer oaths.

(a)    In carrying into effect the provisions of this Act, the Board, may, under the hand of its Chairman and the seal of the Board, subpoena witnesses and compel their attendance, and also may require the production of books, documents, and papers, in a case involving the revocation of registration or the practice without registration. Any member of the Board may administer oaths or affirmations to witnesses appearing before the Board. If any person shall refuse to obey a subpoena so issued or shall refuse to testify or produce any book, document, or other paper, the Board may present a petition to the Court of First Instance, setting forth the facts, and thereupon such court shall, in a proper case, issue its subpoena to such person, requiring his attendance before such court and thereto testify or produce such books, documents, or papers, as may be deemed necessary and pertinent by the Board. Any person failing or refusing to obey the subpoena or order of said court may be proceeded against in the same manner as for refusal to obey other subpoena or order of the court.

(b)    The Board shall exercise the powers conferred upon it by this Act, shall study the conditions affecting the practice of chemistry, in all parts of the Philippines, as well as courses in chemistry leading to Baccalaureate degrees, and shall make recommendations to the Commissioner of Civil Service who shall take appropriate action thereon, calculated to improve the ethical and educational standards in the practice of chemistry.

(c)    Unless authorized by the Boards of Examiners concerned in the exercise of the powers vested in them by law, no chemical laboratory or factory using chemical or physico-chemical process shall operate without obtaining a license from the Board of Examiners for Chemists.

Section 4.    Qualifications of Board members. — Each member of the Board shall at the time of his appointment be:

(1)    A citizen of the Philippines and resident thereof.

(2)    At least thirty years of age.

(3)    A duly registered chemist in the Philippines, who has at least ten years experience along chemical work previous to his appointment.

(4)    Not a member of the faculty of any school, college or university where a regular course in chemistry is taught, nor have pecuniary interest in such institution. The members of the first Board of Examiners for Chemists appointed under this Act, shall be considered registered or licensed for the purpose thereof, and shall be issued upon payment of ten pesos a certificate of registration in accordance with the provisions of this Act.

Section 5.    Term of office. — The members of the Board shall hold office for a term of three years after their appointment or until their successors shall have been appointed and have duly qualified. The members of the first Board appointed under this Act shall hold office for the following terms: One member for one year, one member for two years and one member for three years. Vacancies shall be filled for the unexpired term only. Each member of the Board shall qualify by taking the proper oath of office prior to entering upon the performance of his duties.

Section 6.    Executive Officer and Secretary of the Board. — The Commissioner of Civil Service shall be the executive officer of the Board, shall conduct the examination given by the Board. The Secretary of the Boards of Examiners appointed under Republic Act Numbered Five hundred forty-six shall also be the Secretary of the Board of Examiners for Chemists. All records and minutes of the deliberations of the Board, including examination papers, shall be kept by the Bureau of Civil Service under direct custody of the Secretary.

Section 7.    Removal of Board members. — The President of the Philippines may remove any member of the Board for continuous neglect of duty or incompetency or for unprofessional or dishonorable conduct, after having given the member concerned an opportunity to defend himself in the proper administrative investigation.

Section 8.    Compensation of Board. — The members of the Board shall each receive a compensation of not exceeding ten pesos for each applicant granted a certificate of registration as chemist without examination. Any chemist in the service of the Republic of the Philippines appointed as member of the Board shall also receive the compensation herein provided. All fees shall be received by the officer designated by competent authority as collecting officer for the Bureau of Civil Service, and such officer shall pay all authorized expenses of the Board, including the compensation provided for by this Act for the members of the Board.

Section 9.    Annual report. — The Board shall submit an annual report to the President of the Philippines after the close of each fiscal year, giving detailed account of its proceedings during the year and making such recommendations as it may deem proper.

ARTICLE II
Registration and Examination

Section 10.    Inhibition against the practice of chemistry. — Unless exempt from registration, or not subject to the requirements of this Act as provided in section twenty-four hereof, no person shall practice or offer to practice as a chemist in the Philippines, without having previously obtained a certificate of registration from the Board.

Section 11.    Exemption from registration. — Registration shall not be required of the following classes of persons:

(a)    Chemists from other countries called in for consultations or for a project not requiring more than six month’s residence in the Philippines in any twelve months’ period: Provided, That such chemists are legally qualified to practice chemistry in their own state or country in which the requirements and qualifications for obtaining a certificate of registrations are not lower than those specified in this Act.

(b)    Foreigners employed as technical officers, professors or consultants in such special branches of chemistry as may, in the judgment of the President of the Philippines, be necessary and indispensable for the country: Provided, however, That they are internationally recognized experts and that they do not engage in private practice.

Section 12.    Examination required. — Except as otherwise specifically allowed under the provisions of this Act, all applicants for registration as chemist shall be required to undergo an examination as provided in this Act.

Section 13.    Qualifications for examination. — Any person applying for examination and for a certificate, shall, prior to admission to examination, establish to the satisfaction of the Board that:

(a)    He is at least twenty-one years of age and a citizen of the Philippines.

(b)    He is of good reputation and moral character.

(c)    He has graduated in chemistry from a school, college or university recognized by the Government after completing a resident collegiate course leading to the degree of Bachelor of Science Chemistry, of not less than four years or its equivalent Bachelor’s degree with at least sixty university units in chemistry. Two and a half years of practical experience in chemistry may be considered a sufficient equivalent for every year of college education.

Applicants below twenty-one years of age may be allowed to take the examination, but the certificate of registration shall be withheld until the candidate has reached the age of twenty-one years.

Section 14.    Holding of examination. — Examination shall be given twice a year and on such working days and place as the Board may fix with the approval of the Commissioner of Civil Service. Written or printed notice of such examinations shall be published in newspapers and copies mailed to each candidate who has filed his name and address with the Secretary of the Board, at least thirty days prior to the date of the first day of examination.

Section 15.    Scope of Examination. — The examination shall cover the following minimum requirements:

I.    General chemistry

II.    Analytical chemistry

II.    Industrial chemistry

IV.    Allied subjects

V.    Specialization. — Choice of any branch of chemistry from an advance standpoint, either applied, analytical, or theoretical.

It shall be the duty of the Board to prepare the program of examination to be submitted to the President of the Philippines through the Commissioner of Civil Service for approval and to publish the same as approved at least six months before the date of the examination wherein it is to be used. Any alteration or amendment that the Board may later wish to introduce in said program shall also be approved by the President of the Philippines and published at least six months before the date of the examination.
Section 16.    Rules and regulations. — The Board shall, with the approval of the President of the Philippines and with the advice and consent of the Commissioner of Civil Service, adopt rules and regulations governing the examination and standards to be attained in them, and shall promulgate such rules and regulations as may be necessary to carry the provisions of this Act into effect.

Section 17.    Report of rating. — The Board shall, within one hundred twenty days after the date of the completion of the examination, report the ratings obtained by each candidate to the Commissioner of Civil Service, who shall submit such ratings with his recommendations, to the President for approval.

Section 18.    Issuance of certificates. — Upon payment of the registration fee as provided in this Act, the Board shall issue a certificate of registration as chemist to any applicant, who, in the opinion of the Board and after approval by the President of the Philippines has satisfactorily met all the requirements specified in this Act.

Within three years after the approval of this Act, the Board shall, upon application, issue a certificate of registration as chemist without examination to persons who have been graduated in chemistry or its equivalent and have been in the practice as such graduate for at least five years, prior to the enactment of this Law.

A certificate of “Chemical Technician” may, in the discretion of the Board, be issued upon application to those who are not holders of the degree of Bachelor of Science in Chemistry or its equivalent, but have been practicing chemistry for five years or more prior to filing of application.

All certificates of registration issued under this Act, shall show the full name of the registrants; shall have serial numbers; shall be signed by all the members of the Board; shall be attested by the Secretary of the Board; and shall be authenticated by the official seal of the Board.

Section 19.    Fee for examination and registration. — Every applicant for examination shall pay an application fee of thirty-five pesos and every applicant for registration shall pay a registration fee of ten pesos; Provided, That applicants for registration without examination as chemists shall pay a fee of fifty pesos, and as chemical technicians, thirty pesos each.

Section 20.    Suspension and revocation of certificate. — The Board shall have the power, upon proper notice and hearing, to suspend or revoke any certificate of registration of any registrant for the use or perpetration of any fraud or deceit in obtaining a certificate of registration, or for gross negligence or incompetency, or for unprofessional or dishonorable conduct.

Section 21.    Reissue of revoked certificate and replacement of lost certificate. — After the expiration of one year from the date of revocation of a certificate of registration, and after the payment of the required fee, the Board may, for reasons it may deem sufficient, entertain an application for a new certificate of registration from a person whose certificate has been revoked.

A new certificate of registration to replace a certificate lost, destroyed, or mutilated may be issued, subject to the rules of the Board and upon payment of a fee of ten pesos.

ARTICLE III
Sundry provisions, relative to the practice of chemistry

Section 22.    Penal provisions. — Any person who shall practice or offer to practice chemistry in the Philippines without being registered or exempted from registration in accordance with the provisions of this Act, or any person presenting or attempting to use as his own, the certificate of registration of another, or any person who shall give any false or fraudulent evidence of any kind to the Board or to any member thereof in obtaining a certificate of registration, or any person who shall falsely impersonate any registrant of like or different name, or any person who shall attempt to use a revoked or suspended certificate of registration, or any person who shall in connection with his name or otherwise assume, use or advertise any title or description tending to convey the impression that he is a chemist without holding a valid certificate of registration, or any person who shall violate any provision of this Act, or any person or corporate body who shall violate the rules and regulations of the Board or orders promulgated by it duly approved by the President of the Philippines upon the recommendation of the Commissioner of Civil Service for the purpose of carrying out the provisions of this Act, shall upon conviction, be sentenced to a fine of not less than one hundred pesos nor more than one thousand pesos or to suffer imprisonment for a period of not exceeding three months or both, in the discretion of the court.

Section 23.    Application to firms or corporations. — A firm or copartnership, or corporation, or an association, may engage in the practice of chemistry in the Philippines, provided only that such practice is carried on by chemists holding valid certificates of registration issued by the Board.

In case a firm, copartnership, corporation, association, society or company, the manager, administrator or the person who has charge of the management or administration of the business shall be held personally liable for the violation of this Act.

Section 24.    Act not affecting other profession. — Any person who has passed the corresponding Board examination for the practice of a profession already regulated by existing law, shall not be subject to the provisions of this Act if in the practice thereof he has to perform work or services regulated by this Act.

ARTICLE IV
Final provisions

Section 25.    Reciprocity requirements. — No foreign chemist shall be admitted to examination, or be given a certificate of registration or be entitled to any of the rights and privileges under this Act, unless the country or state of which he is a subject or citizen permits Filipino chemists to practice within its territorial limits on the same basis as the subjects or citizens of said country or State.

Section 26.    All laws, parts of laws, orders, ordinances, or regulations in conflict with the provisions of this Act, are hereby repealed.

Section 27.    This Act shall take effect upon its approval.

Approved: June 18, 1952

Republic Act No. 9266

REPUBLIC ACT NO. 9266

AN ACT PROVIDING FOR A MORE RESPONSIVE AND COMPREHENSIVE REGULATION FOR THE REGISTRATION, LICENSING AND PRACTICE OF ARCHITECTURE, REPEALING FOR THE PURPOSE REPUBLIC ACT NO. 545, AS AMENDED, OTHERWISE KNOWN AS “AN ACT TO REGULATE THE PRACTICE OF ARCHITECTURE IN THE PHILIPPINES,” AND FOR OTHER PURPOSES.

ARTICLE I

GENERAL PROVISION

Section 1. Short Title. – This Act shall be known as “The Architecture Act of 2004.”

Sec. 2. Statement of Policy. – The State recognizes the importance of architects in nation building and development. Hence, it shall develop and nurture competent, virtuous, productive and well-rounded professional architects whose standards of practice and service shall be excellent, qualitative, world-class and globally competitive through inviolable, honest, effective and credible licensure examinations and through regulatory measures, programs and activities that foster their professional growth and development.

Sec. 3. Definition of Terms. – As used in this Act, the following terms shall be defined as follows:

(1) “Architecture” is the art, science or profession of planning, designing and constructing buildings in their totality taking into account their environment, in accordance with the principles of utility, strength and beauty;

(2) “Architect” means a person professionally and academically qualified, registered and licensed under this Act with a Certificate of Registration and Professional Identification Card issued by the Professional Regulatory Board of Architecture and the Professional Regulation Commission, and who is responsible for advocating the fair and sustainable development, welfare and cultural expression of society’s habitat in terms of space, forms and historical context;

(a) “Architect-of-record” means the architect registered and licensed under this Act, who is directly and professionally responsible for the total design of the project for the client and who shall assume the civil liability for the plans, specifications and contract documents he/she has signed and sealed;

(b) “Architecture-in-charge of construction” means an architect registered and licensed under this Act, who is directly and professionally responsible and liable for the construction supervision of the project; and

(c) “Consulting Architect” means the architect registered and licensed or permitted to practice under this Act, who is professionally and academically qualified and with exceptional or recognized expertise or specialization in any branch of architecture;

(3) “General Practice of Architecture” means the act of planning and architectural designing, structural conceptualization, specifying, supervising and giving general administration and responsible direction to the erection, enlargement or alterations of buildings and building environments and architectural design in engineering structures or any part thereof; the scientific, aesthetic and orderly coordination of all the processes which enter into the production of a complete building or structure performed through the medium of unbiased preliminary studies of plans, consultations, specifications, conferences, evaluations, investigations, contract documents and oral advice and directions regardless of whether the persons engaged in such practice are residents of the Philippines or have their principal office or place of business in this country or another territory, and regardless of whether such persons are performing one or all these duties, or whether such duties are performed in person or as the directing head of an office or organization performing them;

(4) “Scope of the Practice of Architecture” encompasses the provision of professional services in connection with site, physical and planning and the design, construction, enlargement, conservation, renovation, remodeling, restoration or alteration of a building or group of buildings. Services may include, but are not limited to:

(a) planning, architectural designing and structural conceptualization;

(b) consultation, consultancy, giving oral or written advice and directions, conferences, evaluations, investigations, quality surveys, appraisals and adjustments, architectural and operational planning, site analysis and other pre-design services;

(c) schematic design, design development, contract documents and construction phases including professional consultancies;

(d) preparation of preliminary, technical, economic and financial feasibility studies of plans, models and project promotional services;

(e) preparation of architectural plans, specifications, bill of materials, cost estimates, general conditions and bidding documents;

(f) construction and project management, giving general management, administration, supervision, coordination and responsible direction or the planning, architectural designing, construction, reconstruction, erection, enlargement or demolition, renovation, repair, orderly removal, remodeling, alteration, preservation or restoration of buildings or structures or complex buildings, including all their components, sites and environs, intended for private or public use;

(g) the planning, architectural lay-outing and utilization of spaces within and surrounding such buildings or structures, housing design and community architecture, architectural interiors and space planning, architectural detailing, architectural lighting, acoustics, architectural lay-outing of mechanical, electrical, electronic, sanitary, plumbing, communications and other utility systems, equipment and fixtures;

(h) building programming, building administration, construction arbitration and architectural conservation and restoration;

(i) all works which relate to the scientific, aesthetic and orderly coordination of all works and branches of the work, systems and process necessary for the production of a complete building or structure, whether for public or private use, in order to enhance and safeguard life, health and property and the promotion and enrichment of the quality of life, the architectural design of engineering structures or any part thereof; and

(j) all other works, projects and activities which require the professional competence of an architect, including teaching of architectural subjects and architectural computer-aided design.

(5) “Structural Conceptualization” means the act of conceiving, choosing and developing the type, disposition, arrangement and proportioning of the structural elements of an architectural work giving due consideration to safety, cost-effectiveness, functionality and aesthetics;

(6) “Architectural Firm” means a sole proprietorship, a partnership or a corporation registered with the proper government agencies;

(7) “Authorship” refers to the author or authors of a set of architectural plans or specifications who are in charge of their preparation, whether made by them personally or under their immediate supervision;

(8) “Board” refers to the Professional Regulatory Board of Architecture;

(9) “Commission” means the Professional Regulation Commission;

(10) “Service Agreement” means a duly notarized written contract or equivalent public instrument stipulating the scope of services and guaranteeing compensation of such services to be rendered by an architect registered and licensed under this Act;

(11) “Integrated and Accredited Professional Organization” means the existing official national organization of all architects of the Philippines in which all registered Filipino architects shall be members without prejudice to membership in other voluntary professional associations;

(12) “Continuing Professional Development” refers to a sustaining and progressive learning process that maintains, enhances, or increases the knowledge and continuing ability of architects;

(13) “DTI” shall mean the Department of Trade and Industry; and

(14) “SEC” shall mean the Securities of Exchange Commission.

ARTICLE II
PROFESSIONAL REGULATORY BOARD OF ARCHITECURE

Sec. 4. Creation and Composition of the Professional Regulatory Board. – There is hereby created a Professional Regulatory Board of Architecture, hereinafter referred to as the Board, a collegial body under the supervision and administrative control of the Professional Regulation Commission, hereinafter referred to as the Commission, to be composed of a chairman and two (2) members appointed by the President of the Philippines from a lists of three (3) recommendees chosen from a list of five (5) nominees for each position submitted to the Commission by the integrated and the accredited professional organization of architects. The Board shall be organized not later than six (6) months from the effectivity of this Act.

Sec. 5. Qualifications of Members of the Professional Regulatory Board. – Each member shall have at the time of his/her appointment, possess the following qualifications:

(a) be a citizen and resident of the Philippines;

(b) be a holder of a degree in Bachelor of Science in Architecture conferred by a school, college or university in the Philippines or abroad that is recognized and/or accredited by the Commission on Higher Education (CHED);

(c) be an architect with a valid Certificate of Registration and Professional Identification Card and active practitioner of architecture for at least ten (10) years on the date of his/her appointment;

(d) not be a member of the faculty of any good school, college, university or review institution where a regular course or review course in architecture is taught, nor have pecuniary interest in such institution. No former member of the faculty of any school, institute, university or review center where architecture is taught can become a member of the Board unless he/she had officially resigned from such an institution and has completely stopped teaching, advising or reviewing activities for at least five (5) years prior to the nomination; and

(e) Has never been convicted of any crime involving moral turpitude.

Sec. 6. Term of Office. – The members of the Board shall hold office for a term of three (3) years after appointment or until their successors shall have been appointed and duly qualified. Any vacancy occurring within the term of a member shall be filled for the unexpired portion of the term only. Each member of the Board may be reappointed for one full term of three (3) years. Of the members of the Board first appointed under this Act, one (1) member shall be appointed and hold office as chairman for three (3) years, one (1) member for two (2) years, and one (1) member for one (1) year. Each member of the Board shall qualify by taking the proper oath prior to the performance shall qualify by taking the proper oath prior to the performance of their duties. Provided, That the incumbent members of the Board shall continue to serve for the remainder of their term as members of the herein created Professional Regulatory Board of Architecture until a new Board shall have been properly organized.

Sec. 7. Powers and Functions of the Board. – The Board shall exercise the following specific powers, functions and responsibilities:

(a) Prescribe and adopt the rules and regulations necessary for carrying out the provisions of this Act;

(b) Supervise the registration, licensure and practice of architects;

(c) Administer oaths in connection with the administration of this Act;

(d) Issue, suspend, revoke, or reinstate the Certificate of Registration and the professional Identification Card for the practice of the architecture profession;

(e) Adopt an official seal of the Board;

(f) Monitor the conditions affecting the practice of architecture and adopt such measures as may be deemed proper for the enhancement and maintenance of high professional, ethical and technical standards of the profession;

(g) Prescribe and/or adopt the Code of Ethical Conduct and Standards of Professional Practice;

(h) Hear and decide administrative cases involving violations of this Act, its implementing rules and regulations, the Code of Ethical Conduct and Standards of Professional Practice, and for this purpose, to issue subpoena ad testifcandum and subpoena duces tecum to secure the appearance of witnesses and the production of documents in connection therewith: Provided, That the decision of the Board shall, unless appealed to the Commission, become final and executory after fifteen (15) days from receipt of notice of judgment or decision. The decision of the Commission may be appealed to the Court of Appeals in accordance with the procedure under the Rules of Court;

(i) Prescribe guidelines for the Continuing Professional Development (CPD) program in consultation with the integrated and accredited professional organization of architects: Provided, That the attendance to said CPD shall not be a mandatory requirement for the renewal of a professional license;

(j) Prepare, adopt, issue or amend the syllabi of the subjects for examinations by determining and preparing questions which shall be within the scope of the syllabi of the subject for examination as well as administer, correct and release the results of the licensure examinations;

(k) Approve, issue, limit or cancel temporary or special permit to practice architecture;

(l) In coordination with the CHED, ensure that all higher educational instruction and offerings of architecture comply with the policies, standards and requirements of the course prescribed by the CHED in the areas of curriculum, faculty, library and facilities;

(m) To adopt a program for the full computerization of the licensure examination; and

(n) Discharge such other duties and functions as may be deemed necessary for the enhancement of the architecture profession and the upgrading, development and growth of the architecture education.

The policies, resolutions, rules and regulations, issued or promulgated by the Board shall be subject to review and approval of the Commission. However, the Board’s decisions, resolutions or orders rendered in administrative cases shall be subject to review only if on appeal.

Sec. 8. Administrative Supervision of the Board, Custodian of its Records, Secretariat and Support Services. – The Board shall be under the administrative supervision of the Commission. All records of the Board, including applications for examination, and administrative and other investigative cases conducted by the Board shall be under the custody of the Commission. The Commission shall designate the Secretary of the Board and shall provide the secretariat and other support services to implement the provisions of this Act.

Sec. 9. Grounds for Suspension or Removal of Members of the Board. – The President of the Philippines, upon the recommendation of the Commission, after giving the concerned member an opportunity to defend himself in a proper administrative investigation to be conducted by the Commission, may suspend or remove any member on the following grounds:

(a) Neglect of duty or incompetence;

(b) Violation of tolerance of the violation of this Act, or its implementing rules and regulations or the Code of Ethical Conduct and Standards of Professional Practice;

(c) Final judgment of crimes involving moral turpitude; and

(d) Manipulation or rigging of the architecture licensure examination results, disclosure of secret and confidential information in the examination questions prior to the conduct of the said examination or tampering of grades.

Sec. 10. Compensation and Allowances of the Board. – The chairman and members of the Board shall receive compensation and allowances comparable to that being received by the chairman and members of existing regulatory Boards under the Commission as provided for in the General Appropriations Act.

Sec. 11. Annual Report. – The Board shall submit an annual report to the Commission after the close of each year giving a detailed account of its proceedings during the year and making such recommendations as it may deem proper.

ARTICLE III
EXAMINATION, REGISTRATION AND LICENSURE

Sec. 12. Examination Required. – All applicants for registration for the practice of architecture shall be required to undergo a licensure examination to be given by the Board in such places and dates as the Commission may designate in accordance with the provisions of Republic Act No. 8981.

Sec. 13. Qualifications of Applicant for Examination. – Any person applying for examination shall establish to the satisfaction of the Board that:

(a) He/she is a Filipino citizen or a citizen of a foreign country qualified to take the examination as provided for in this Act;

(b) He/she is of good moral character;

(c) He/she is a holder of a degree of Bachelor of Science in Architecture conferred by a school, college, academy or institute duly recognized and/or accredited by the Commission on Higher Education (CHED) and in addition has a specific record of at least two (2) years or equivalent of diversified architectural experience duly certified by a registered/licensed architect: Provided, however, That an applicant holding a Master’s Degree in Architecture from a school, college, university or institute recognized by the government shall be credited one (1) year in his/her practical experience; and

(d) He/she has not been convicted of any criminal offensive involving moral turpitude.

Sec. 14. Subjects for Examination. – The licensure examination for architects shall cover, but are not limited to, the following subjects:

(1) History and Theory of Architecture; Principles of Planning and Architectural Practice;

(2) Structural Design, Building Materials, and Architectural Specifications, and Methods of Construction and Utilities;

(3) Urban Design and Architectural Interiors; and

(4) Architectural Design and Site Planning.

The Board, subject to the approval of the Commission, may revise or exclude any of the subjects and their syllabi, and add new ones as the need arises to conform to technological changes brought about by continuing trends in the profession.

Sec. 15. Rating in the Licensure Examination. – To be qualified as having passed the licensure examination for architects, a candidate must obtain a weighted general average of seventy percent (70%), with no grade lower than fifty percent (50%) in any given subject.

Sec. 16. Report of Ratings. – The Board shall submit to the Commission the ratings obtained by each candidate within thirty (30) calendar days after the examination, unless extended for just cause. Upon the release of the results of the examination, the Board shall send by mail the rating received by each examinee at his/her given address using the mailing envelope submitted during the examination.

Sec. 17. Oath. – All successful candidates in the examination shall be required to take an oath of profession before any member of the Board, any government official authorized by the Commission or any person authorized by law to administer oaths, prior to entering upon the practice of the profession.

Sec. 18. Issuance of Certificates of Registration and Professional Identification Card. – A Certificate of Registration and Professional Identification Card shall be issued to examinees who pass the licensure examination subject to payment of fees prescribed by the Commission. The Certificate of Registration shall bear the signature of the chairperson of the Commission and the chairman and members of the Board, stamped with the official seal, indicating that the person named therein is entitled to the practice of the profession with all the privileges appurtenant thereto. The said certificate shall remain in full force and affect until withdrawn, suspended or revoked in accordance with this Act.

A Professional Identification Card bearing the registration number, date of issuance, expiry date, duly signed by the chairperson of the Commission, shall likewise be issued to every registrant who has paid the prescribed fee.

Sec. 19. Roster of Architects. – A roster showing the names and place of business of all registered professional architects shall be prepared and updated by the Board and copies thereof shall be made available to any party as may be deemed necessary.

Sec. 20. Seal, Issuance and Use of Seal. – A duly licensed architect shall affix the seal prescribed by the Board bearing the registrant’s name, registration number and title “Architect” on all architectural plans, drawings, specifications and all other contract documents prepared by or under his/her direct supervision.

(1) Each registrant hereunder shall, upon registration, obtain a seal of such design as the Board shall authorize and direct. Architectural plans and specifications prepared by, or under the direct supervision of a registered architect shall be stampede with said seal during the life of the registrant’s certificate, and it shall be unlawful for any one to stamp or seal any documents with said seal after the certificate of the registrant named thereon has expired or has been revoked, unless said certificate shall have been renewed or re-issued.

(2) No officer or employee of this Republic. Chartered cities, provinces and municipalities, now or hereafter charged with the enforcement of law, ordinances or regulations relating to the construction or alteration of buildings, shall accept or approve any architectural plans or specifications which have not been prepared and submitted in full accord with all the provisions of this Act; nor shall any payments be approved by any such officer for any work, the plans and specifications for which have not been so prepared and signed and sealed by the author.

(3) It shall be unlawful for any architect to sign his/her name, affix his/her seal or use any other method of signature on architectural plans, specifications or other documents made under another architect’s supervision, unless the same is made in such manner as to clearly indicate the part or parts of such work actually performed by the former, and it shall be unlawful for any person, except the architect-of-record, to sign for any branch of work for any function of architectural practice, not actually performed by him/her. The architect-of-record shall be fully responsible for all architectural plans, specifications and other documents issued under his/her seal or authorized signature.

(4) Drawings and specifications duly signed, stamped or sealed, as instruments of service, are the intellectual properties and documents of the architect, whether the object for which they are made is executed or not, It shall be unlawful for any person, without the consent of the architect or author of said documents, to duplicate or to make copies of said documents for use in the repetition of and for other projects or buildings, whether executed partly or in whole.

(5) All architectural plans, designs, specifications, drawings and architectural documents relative to the construction of a building shall bear the seal and signature only of an architect registered and licensed under this Act together with his/her professional identification card number and the date of its expiration.

Sec. 21. Indication of Certificate of Registration/Professional Identification Card and Professional Tax Receipt. – The architect shall be required to indicate his/her Certificate of Registration and Professional Identification Card, its date of issuance and the duration of validity, including the professional tax receipt number, on the documents he/she signs, uses or issues in connection with the practice of his/her profession.

Sec. 22. Refusal to Issue Certificate of Registration and Professional Identification Card. – The Board shall not register and issue a Certificate of Registration and Professional Identification Card to any person who has falsely sworn or misrepresented himself/herself in his/her application for examination or to any person convicted by a court of competent jurisdiction of a criminal offense involving moral turpitude or guilty of immoral and dishonorable conduct or to any person of unsound mind. In the even of refusal to issue certificate for any reason, the Board shall give the applicant a written statement setting forth the reasons for such action, which statement shall be incorporated in the record of the Board: Provided, however, That registration shall not be refused and a name shall not be removed from the roster of architects on conviction for a political offense or for an offense which should not, in the opinion of the Board, either from the nature of the offense or from the circumstances of the case, disqualify a person from practicing under this Act.

Sec. 23. Suspension and Revocation of Certificates of Registration, Professional Identification Card or the Special/Temporary Permit. – The Board shall have the power, upon notice and hearing, to suspend or revoke the validity of a Certificate of Registration/Professional Identification Card, or shall cancel a special permit granted under this Act to an architect, on any ground mentioned under Sec. 22 hereof for the use of or perpetuation of any fraud or deceit in obtaining a Certificate of Registration and Professional Identification Card or special/temporary or dishonorable conduct; or for any cause specified hereunder: Provided, however, That such action of the Board shall be subject to appeal to the Commission whose decision shall be final if he/she:

(a) has signed and affixed or permitted to be signed or affixed his name or seal on architectural plans and designs, specification, drawings, technical reports, valuation, estimates, or other similar documents or work not prepared by him/her or not executed under his/her immediate supervision; or

(b) has paid money except the regular fees provided for to secure a Certificate of Registration; or

(c) has falsely impersonated a practitioner, or former practitioner of alike or different name or has practiced under an assumed, fictitious or corporate name other than that of the registered; or

(d) has aided or abetted in the practice of architecture any person not duly authorized to practice architecture in the Philippines; or

(e) has openly solicited projects by actually undertaking architectural services without a valid service agreement guaranteeing compensation of services to be rendered and/or has actually allowed himself/herself to be exploited by undertaking architectural services without a valid service agreement, both acts being prejudicial to other architects registered and licensed under this Act and inimical to the interests of the profession; or

(f) has violated any provision of this Act, its implementing rules and regulations, the Code of Ethical Conduct and Standards of Professional Practice.

The Board shall periodically examine the grounds for the revocation of the Certificate of Registration and Professional Identification Card and update these as necessary under the implementing rules and regulations.

Any person, firm or association, may prepare charges in accordance with the provisions of this Sec. against any registrant, or the Board may motu proprio investigate and/or take cognizance of act and practices constituting sufficient cause for suspension or revocation of the Certificate of Registration by proper resolution or order. Such charges shall be in writing and shall be sworn to by the person making them and shall be filed with the Secretary of the Board.

Sec. 24. Re-issuance or Replacement of Revoked or Lost Certificates of Registration Professional Identification Card or Special and Temporary Permit. – The Board may, after the expiration of two (2) years from the date of revocation of a Certificate of Registration, Professional Identification Card or special/temporary permit, and upon application and for reasons deemed proper and sufficient, reinstate the validity of a revoked Certificate of Registration and in so doing may, in its discretion, exempt the applicant from taking another examination.

A new Certificate of Registration or Professional Identification Card, temporary/special permit replace those which have been lost, destroyed, or mutilated, may be re-issued, subject to the rules promulgated by the Board and the Commission, upon payment of the required fees.

ARTICLE IV
PRACTICE OF ARCHITECTURE

Sec. 25. Registration of Architects Required. – No person shall practice architecture in this country, or engage in preparing architectural plans, specification or preliminary data for the erection or alteration of any building located within the boundaries of this country or use the title “Architect,” or display or use any title, sign, card, advertisement, or other device to indicate such person practices or offers to practice architecture, or is an architect, unless such person shall have received from the Board a Certificate of Registration and be issued a Professional Identification Card in the manner hereinafter provided and shall thereafter comply with the provisions of this Act.

A foreign architect or any person not authorized to practice architecture in the Philippines, who shall stay in the country and perform any of the activities mentioned in Sec.s 3 and 4 of this Act, or any other activity analogous thereto, in connection with the construction of any building/structure/edifice or land development project, shall be deemed engaged in the unauthorized practice of architecture.

Sec. 26. Vested Rights: Architects Registered When this Law is Passed. – All architects registered at the time this law takes effect shall automatically be registered under the provisions hereof, subject, however, to the provisions herein set forth as to future requirements.

Certificate of Registration held by such persons in good standing shall have the same force and effect as though issued after the passage of this Act.

Sec. 27. Reciprocity Requirements. – A person who is not a citizen of the Philippines at the time he/she applies to take the examination shall not be allowed to take the licensure examination unless he/she can prove, in the manner provided by the Rules of Court that, by specific provision of law, the country of which he/she is a citizen, subject or national either admits citizens of the Philippines to the practice of the same profession without restriction or allows them to practice it after passing an examination on terms of strict and absolute equality with citizens, subjects or national of the country concerned, including the unconditional recognition of prerequisite degrees/diplomas issued by the institutions of learning duly recognized for the purpose by the Government of the Philippines.

Sec. 28. Continuing Professional Development (CPD). – To promote public interest and to safeguard life, health and property, all practicing architects shall maintain a program of continuing professional organization shall have the responsibility of developing a continuing professional development program for architects. Other entities or organizations may become CPD providers upon accreditation by the Board.

Sec. 29. Prohibition in the Practice of Architecture and Penal Clause. – Any person who shall practice or offer to practice architecture in the Philippines without being registered/licensed and who are not holders of temporary or special permits in accordance with the provisions of this Act, or any person presenting or attempting to use as his/her own the Certificate of Registration/Professional Identification Card or seal of another or temporary or special permit, or any person who shall give any false or forged evidence o any kind to the Board or to any member thereof in obtaining a Certificate of Registration/Professional Identification Card or temporary or special permit, or any person who shall falsely impersonate any registrant of like or different name, or any person who shall attempt to use a revoked or suspended Certificate of Registration/Professional Identification Card or cancelled special/temporary permit, or any person who shall use in connection with his/her name or otherwise assume, use or advertise any title or description tending to convey the impression that he/she is an architect when he/she is not an architect, or any person whether Filipino or foreigner, who knowingly allows the use, adoption, implementation of plans, designs or specification made by any person, firm, partnership or company not duly licensed to engage in the practice of architecture, or any person who shall violate any of the provisions of this Act, its implementing rules and regulations, the Code of Ethical Conduct and Standards of Professional Practice, or any policy of the Board and the Commission, shall be guilty of misdemeanor and charged in court by the Commission and shall, upon conviction be sentenced to a fine of not less than One hundred thousand pesos (P100,000.00) but not more than Five Million pesos (P5,000,000,00) or to suffer imprisonment for a period not less than six (6) months or not exceeding six (6) years, or both, at the discretion of the Court.

Sec. 30. Prohibition in the Practice of Architecture. – Any person or entity, whether public or private, Filipino or foreigner, who/which shall entice, compel, coerce, require or otherwise force an architect registered and licensed under this Act to undertake/perform any service under the general practice of architecture as defined under this Act, without first executing a written contract/service agreement, shall be guilty of a misdemeanor and shall, upon conviction be sentenced to a fine of not less than Two hundred thousand pesos (P200,000.00) or to suffer imprisonment for a period not exceeding six (6) years, or both, at the discretion of the Court.

Sec. 31. Liability of Representatives of Non-Registered Persons. – It shall be unlawful for any person or firm or corporation to seek to avoid the provisions of this Act by having a representative or employee seek architectural work in their behalf, unless and until, such persons have duly qualified and are duly registered/licensed, otherwise, both those represented and representative, the employer and the employee shall be deemed guilty of violation of this Act. Solicitation of architectural work shall be construed as offering to practice architecture and shall be unlawful for any non-registered and unlicensed persons to do so.

Sec. 32. Signing of Architectural Plans, Specifications and Other Contract Documents. – It shall be unlawful for any architect to sign his/her name, affix his/her seal, or use any other method of signature or architectural plans, specifications or other contract documents made under another architect’s supervision, unless the same is made in such manner as to clearly indicate the part or parts of such work actually performed by the former; and shall be unlawful for any person, except the Architect-of record shall be fully responsible for all architectural plans, specifications, and other documents issued under his/her seal or authorized signature.

The Board shall make all the necessary rules and regulations with regards to the signing and sealing of drawings, specifications, reports, and other documents.

Sec. 33. Ownership of Plans, Specifications and other Contract Documents. – Drawings and specifications and other contract documents duly signed, stamped or sealed, as instruments of service, are the intellectual property and documents of the architect, whether the object for which they are made is executed or not. It shall be unlawful for any person to duplicate or to make copies of said documents for use in the repetition of and for other projects or buildings, whether executed partly or in whole, without the written consent of architect or author of said documents.

All architects shall incorporate this provision in all contract documents and other instruments of service.

Sec. 34. Non-Registered Person Shall Not Claim Equivalent Service. – Persons not registered as an architect shall not claim nor represent either services or work as equivalent to those of a duly qualified registered architect, or that they are qualified for any branch or functions of function of architectural practice, even though no form of the title “Architect” is used.

Sec. 35. Positions in Government Requiring the Services of Registered and Licensed Architects. – Within (3) years from the effectivity of this Act, all existing and proposed positions in the local and national government, whether career, permanent, temporary or contractual and primarily requiring the services of an architect shall be filled only by registered and licensed architects.

Sec. 36. Collection of Professional Fees. – It shall be unlawful for any unregistered person to collect a fee for architectural services except as an employee collecting a fee as representative of a Registered Architect.

Sec. 37. Limitation to the Registration of a Firm, Company, Partnership, Corporation or Association. – The practice of architecture is a professional service, admission to which shall be determined upon the basis of individual personal qualifications. However, a firm, company, partnership, corporation or association may be registered or licensed as such for the practice of architecture under the following conditions:

(a) Only Filipino citizens properly registered and licensed as architects under this Act may, among themselves, or together with allied technical professionals, form and obtain registration as a firm, company, partnership, association or corporation for the practice of architecture;

(b) Registered and licensed architects shall compose at least seventy-five percent (75%) of the owners, shareholders, members incorporators, directors, executive officers, as the case may be;

(c) Individual members of such firm, partnership association or corporation shall be responsible for their individual and collective acts as an entity and as provided by law; and

(d) Such firm, partnership, association or corporation shall be registered with the Securities and Exchange Commission and Board.

Sec. 38. Coverage of Temporary/Special Permits. – Foreign nationals who have gained entry in the Philippines to perform professional services as architects or consultants in foreign-funded or assisted projects of the government or employed or engaged by Filipino or foreign contractors or private firms, shall, before assuming the duties, functions and responsibilities as architects or consultants, secure a special/temporary permit from the Board subject to approval of the Commission. To practice his/her profession in connection with the project to which he/she was commissioned: Provided, That a foreign national or foreign firm, whose name or company name, with title architect, architectural consultant, design consultant, consultant or designer appear on architectural plans, specifications and other related construction documents, for securing buildings permits, licenses and government authority clearances for actual building project construction in the Philippines and advertisement and billboards for marketing purposes, shall be deemed practicing architecture in the Philippines, whether the contract for professional services is consummated in the Philippines or in a foreign country: Provided, further, That the following conditions are satisfied as follows:

(a) That he/she is a citizen or subject of a country which specifically permits Filipino professionals to practice his/her profession within their territorial limits, on the same basis as the subjects or citizens of such foreign state or country;

(b) That he/she is legally qualified to practice architecture in his/her own country, and that his/her expertise is necessary and advantageous to our country particularly in the aspects of technology transfer and specialization;

(c) That foreign nationals shall be required to work with a Filipino counterpart and shall also be responsible for public utilities and taxes due to the Philippine government, relative to their participation in, or professional services rendered to the project, in accordance with the established implementing rules and regulations providing for the procedure for the registration and/or issuance of temporary/special permits to foreign architects allowed by law to practice their profession in the Philippines by the Board of Architecture and the accredited professional organization; and

(d) Agencies, organizations or individuals, whether public or private, who secure the services of foreign professional authorized by law to practice in the Philippines for reasons aforementioned, shall be responsible for securing a special permit from the Professional Regulation Commission (PRC) and the Department of Labor and Employment (DOLE) pursuant to PRC and DOLE rules.

Sec. 39. Liability Insurance of a Person or Entity Allowed to Practice under a Temporary/Special Permit. – Foreign nationals, including former Filipinos wanting to engage in the general practice of architecture as defined in Sec. 3 (c) of this Act must secure locally their professional liability insurance or malpractice insurance or their acceptable equivalent in bond form commensurate with the nature and magnitude of their project involvement and their compensation the implementing rules and regulations for such a requirement for practice shall be implemented by the Board in consultation with the integrated and accredited professional organization of architects within six (6) months from the effectivity of this Act.

ARTICLE V
Final Provisions

Sec. 40. Integration of the Architecture Profession. – The Architecture profession shall be integrated into one (1) national organization which shall be accredited by the Board, subject to the approval by the Commission, as the integrated and accredited professional organization of architects: Provided, however, That such an organization shall be registered with the Securities and Exchange Commission, as a non-profit, non-stock corporation to governed by by-laws providing for a democratic election of its officials. An architect duly registered with the Board shall automatically become member of the integrated and accredited professional organization of architects and shall receive the benefits and privileges provided for in this Act upon payment of the required fees and dues. Membership in the integrated and accredited professional organization of architects shall not be a bar to membership in other associations of architects.

Sec. 41. Implementing Rules and Regulations. – Within sixty (60) days after the effectivity of this Act, the Board, subject to the approval of the Commission and in coordination with the integrated and accredited professional organization, shall adopt and promulgate such rules and regulations, Code of Ethical Conduct and Standards of Professional Practice, to carry out the provisions of this Act and which shall be effective fifteen (15) days following their publication in the Official Gazette or in two (2) major daily newspapers of general circulation.

Sec. 42. Appropriations. – The Chairperson of the Professional Regulation Commission shall immediately include in the Commission programs the implementation of this Act, the funding of which shall be included in the annual General Appropriations Act.

Sec. 43. Act Not Affecting Other Professionals. – This Act shall not be construed to affect or prevent the practice of any other legally recognized profession.

Sec. 44. Enforcement of the Act. – It shall be the primary duty of the Commission and the Board to effectively enforce the provision of this Act. All duly constituted law enforcement agencies and officers of national, provincial, city or municipal government or of any political subdivision thereof, shall, upon the call or request of the Commission or the Board, render assistance in enforcing the provisions of this Act and to prosecute any person violating the provisions of the same. The Secretary of Justice or his duly designated representative shall act as legal adviser to the Commission and the Board and shall render legal assistance as may be necessary in carrying out the provisions of this Act.

Any person may bring before the Commission, Board or the aforementioned officers of the law, cases of illegal practice or violations of this Act committed by any person or party.

The Board shall assist the Commission, Board or the aforementioned officers of the law, cases of illegal practice or violations of this Act committed by any person or party.

The Board shall assist the Commission in filing the appropriate charges through the concerned prosecution office in accordance with law and the Rules of Court.

Sec. 45. Separability Clause. – If any clause, provision, paragraph or part hereof shall be declared unconstitutional or invalid, such judgment shall not affect, invalidate or impair any other part hereof, but such judgment shall be merely confined to the clause, provision, paragraph or part directly involved in the controversy in which such judgment has been rendered.

Sec. 46. Repealing Clause. – Republic Act No. 545, as amended by Republic Act No. 1581 is hereby repealed and all other laws, orders, rules and regulations or resolutions or part/s thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Sec. 47. Effectivity. – This Act shall take effect after fifteen 15 (5) days following its publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved:  March 17, 2004

Republic Act No. 4274

REPUBLIC ACT NO. 4274

REPUBLIC ACT NO. 4274 – AN ACT TO REGULATE THE PRACTICE OF MINING ENGINEERING, TO PROVIDE FOR LICENSING AND REGISTRATION OF PERSONNEL OF MINES AND QUARRIES, AND FOR OTHER PURPOSES

ARTICLE I

SECTION 1.    Title of Act. — This Act shall be known as the “Mining Engineering Law of the Philippines.”

SECTION 2.    Creation and Composition of the Board. — Within thirty days after the approval of this Act, there shall be created a Board of Examiners for Mining Engineers to be composed of three registered mining engineers, all to be appointed by the President of the Philippines.

SECTION 3.    Powers vested in the Board. — The Board of Examiners for Mining Engineers is vested with authority conformably with the provisions of this Act, to administer oaths, to issue, suspend and/or revoke certificates of registration for the practice of mining engineering, to investigate violations of this Act and for this purpose it may, under the hand of its Chairman and seal of the Board, issue subpoena for attendance of witnesses and subpoena duces tecum for production of documents and to discharge such other duties as the Board may deem necessary for the maintenance of efficient, ethical and technical standards of the mining engineering profession.

The Board shall exercise the powers conferred upon it by this Act, shall from time to time look into the conditions affecting the practice of mining engineering in the Philippines, and whenever necessary, recommend to the President of the Philippines, the adoption of such measures as may be deemed proper for the vigorous enforcement of this Act.

SECTION 4.    Qualifications of Board Members. — The members of the Board shall at the time of appointment:

(1)    Be a citizen of the Philippines;

(2)    Be a holder of the degree of Engineer of Mines, E.M.; Bachelor of Science in Mining Engineering, B.S.E.M., conferred by any engineering school or college, legally chartered and of good standing;

(3)    Be registered and legally qualified to practice mining engineering in the Philippines;

(4)    Has been engaged in the actual practice of mining engineering, metallurgical engineering and/or geology for at least ten years, five of which must be in the field of mining engineering;

(5)    Not to be member of the faculty of any school, college or university, where a regular course in mining engineering, geology and/or metallurgy is taught, nor have a pecuniary interest in such institution;

(6)    Recommended by the corresponding bona fide professional mining engineering society.

SECTION 5.    Terms of Office. — The members of the Board shall hold office for a term of three years after their appointment or until their successors shall have been appointed and duly qualified. The members of the first Board appointed under this Act shall hold office for the following terms: one member for one year, who shall be the Chairman, one member for two years, and one member for three years. The succeeding Chairman shall be the member with the shortest unexpired term. Vacancy shall be filled for the unexpired term only. Each member of the Board shall qualify by taking the proper oath of office prior to entering upon the performance of his duties.

SECTION 6.    Executive Officer and the Secretary of the Board. — The Commissioner of Civil Service shall be the Executive Officer of the Board and shall conduct the examination given by the Board. The Secretary of the Board of Examiners appointed under Act Numbered Four thousand seven shall also be the Secretary of the Board. All records and minutes of the deliberations of the Board, including the examination papers, shall be kept by the Civil Service Commission under the custody of the Commissioner of Civil Service.

SECTION 7.    Removal of the Board Members. — The President, thru his Executive Secretary, may remove any member of the Board for neglect of duty or incompetency, or for unprofessional or dishonorable, unethical conduct, after having given the member concerned an opportunity to defend himself in a proper administrative investigation to be conducted by the Office of the Civil Service Commissioner.

SECTION 8.    Compensation of the Board. — The members of the Board shall each receive as compensation the minimum sum of ten pesos for each applicant examined or registered without examination as mining engineer. A member of the Board who is at the same time a government employee shall receive the compensation provided herein in addition to his salary. All fees shall be received by the Civil Service Commission, which shall pay all authorized compensation and expenditure by the Board.

SECTION 9.    Rules and Regulations. — The Board may, subject to the approval of the President of the Philippines, adopt such rules and regulations as may be necessary to carry out the provisions of this Act.

SECTION 10.    Submission of Annual Report. — The Board shall submit an annual report to the President of the Philippines, through his Executive Secretary, after the close of each fiscal year, giving a detailed account of its proceedings during the year and making such recommendations as may be deemed proper.

ARTICLE II
Registrations and Examinations

SECTION 11.    Inhibition from Practising Mining Engineering. — No person shall practice or offer to practice mining engineering in the Philippines, without having been previously registered as a mining engineer under the provisions of this Act or granted a certificate of exemption under Section thirteen of this Act.

SECTION 12.    Definition of Terms. — A person shall be deemed to be practising mining engineering or rendering mining engineering service within the meaning and intent of this Act who shall, for a fee, salary or other reward or compensation, paid to him or through another person, or even without such compensation, render or offer to render by means of signs, cards, advertisements, written reports, and/or in any other manner offer to practice mining engineering in the form of consultation, investigation, mining reports, valuation and ore reserve calculation; take charge of, direct and/or supervise underground and/or surface mining, open-cuts, pits and/or quarries; shaft sinking, tunnelling, stopping, dredging, hydraulicking and sluicing for minerals and/or mineral products: provided, that the above functions are exercised in a responsible and independent capacity.

SECTION 13.    Exemption from Registration. — Registration shall not be required of the following persons:

(A)    Practitioners in mining engineering engaged by the Republic of the Philippines for consultation or for specific purposes regarding the mining industry: provided, that their practice shall be confined to such work only.

(B)    Foreigners employed by private firms as technical consultants in branches of mining engineering, for which the pertinent professional society certifies that no qualified Filipino is available, the Board may, at its discretion, allow them to practice without registration subject to the following conditions:

1.    That the applicant’s curriculum vitae shall be submitted to the Board on or before arrival in the country;

2.    That the applicant will not engage in private practice on his own account;

3.    That for every applicant one Filipino understudy who is registered under the provisions of this Act shall be employed by the private firm utilizing the services of such applicant for at least the duration of the alien expert’s tenure with said firm; and

4.    That the exemption shall be good only for six months renewable for another six months at the discretion of the Board: provided, that in case the applicant ceases to be employed in the categories provided in paragraphs (A) and (B) hereof, and engages in an occupation requiring registration as mining engineer, such person must be registered under the provisions of this Act: provided, further, that those falling under paragraphs (A) and (B) of this section should first secure a certificate of exemption from the Board: and, provided, finally, that each private firm shall be allowed a maximum of three consultants at any one time.

(C)    Practitioners who are registered mining engineers or are certified as mine, mill or quarry foreman under Act Numbered Two thousand nine hundred eighty-five, as amended, and under the rules and regulations promulgated thereunder, shall ipso-facto be recognized and registered under this Act, and shall be allowed to retain their certificates issued by the former Board of Examiners.

SECTION 14.    Examinations Required. — Unless exempt as specifically allowed under the provisions of this Act, all applicants for registration for the practice of mining engineering shall be required to undergo written examinations as provided in this Act.

SECTION 15.    Qualifications for Examinations. — In order to be admitted to be mining engineering examinations, an applicant shall establish to the satisfaction of the Board that:

(1)    He is at least twenty-one years of age: provided, that an applicant possessing all the other qualifications contained in this section who is under twenty-one years of age may be allowed to take the examinations on condition that he shall not be granted a certificate until after he attains twenty-one years of age;

(2)    If a foreigner, his country accords reciprocity with the Philippines;

(3)    He is of good reputation and moral character;

(4)    He has graduated with at least a bachelor of science degree in mining engineering, from a duly recognized school, college or university; or bachelor of science in any engineering course or in geology, plus at least five years of practical mining experience subject to evaluation by the Board: provided, that other engineering professions shall give this same privilege to graduates in mining engineering.

SECTION 16.    Qualifications of Applicants for Mine and/or Quarry Foreman. — Any person applying for a certificate of registration as mine and/or quarry foreman shall, prior to his admission for certification, establish to the satisfaction of the Board that:

(1)    He is at least twenty-one years of age;

(2)    If a foreigner, his country accords reciprocity with the Philippines;

(3)    He is of good reputation and moral character;

(4)    He has completed a mining and/or quarry course of instruction from a vocational or trade school or correspondence school of known standing or from any mining company training course or its equivalent; or

(5)    He has at least five years actual experience in mining and/or quarrying.

SECTION 17.    Date and Scope of Examination. — Examination for the practice of mining engineering shall be given on the second Monday of January and July of each year. Examinations shall cover questions relating to:

(a)    Mining engineering and economics, mining laws and ethics;

(b)    Metallurgy, ore dressing and assaying;

(c)    Geology and surveying;

(d)    Applied mathematics.

Provided, that, the relative weights of mining engineering and economics, mining laws and ethics shall be forty per cent; that of geology and surveying, twenty per cent; that of metallurgy, twenty per cent; and that of applied mathematics, twenty per cent.

SECTION 18.    Report of Examination Results. — The Board of Examiners for Mining Engineers, shall within ninety days after the examination, report the ratings obtained by each candidate to the Commissioner of Civil Service.

SECTION 19.    Issuance of Certificates. — The Board of Examiners for Mining Engineers shall, within one year only after the approval of this Act, receive applications for certificate of registration without examination as mining engineer, and may issue to any applicant who, on the date of approval of this Act, is:

(a)    A Filipino citizen or alien whose country of which he is a citizen accords reciprocity with the Republic of the Philippines;

(b)    Of good moral character; and

(c)    A graduate with the degree of Bachelor of Science in Mining Engineering (B.S.E.M.) obtained on or before nineteen hundred and forty-two from a duly recognized school, college or university and has been in actual practice of mining operation for a period of at least ten years; or a holder of any engineering degree or bachelor of science of any engineering degree obtained on or before nineteen hundred forty-two with at least fifteen years of actual mining experience, to be certified by former employer or employers and subject to evaluation by the Board as to its technological and supervisory nature or a holder of a master’s degree in mining engineering: provided, that the applicant has not been held responsible for any serious accident or charged with mismanagement, as certified by his present or former employer or employers, or accused and convicted of any serious crime in any court of law.

SECTION 20.    Contents of Certificate of Registration. — All certificates of registration shall state the full name of the registrant, shall have a serial number, and shall be signed by all members of the Board and the Commissioner of Civil Service as Executive Officer of the Board, and shall be attested by the official seal. Further, that issuance of the certificate of registration by the Board to a registrant shall be evidence that the person named therein is entitled to all the rights and privileges of a registered mining engineer or registered foreman, as the case may be, while said certificate remains unrevoked or unsuspended.

SECTION 21.    Fees for Examinations and Registration. — Every applicant for examination as mining engineer shall pay a minimum fee of fifty pesos: provided, however, that an applicant for registration as mining engineer without examination shall pay a minimum fee of one hundred pesos, and for mine and/or quarry foreman, twenty pesos.

SECTION 22.    Reprimand, Suspension and Revocation of Certificates. — The Board, after due hearing, shall have the power to reprimand any registrant, suspend or revoke his certificate of registration for any cause specified in this section, or for the use or perpetration of any fraud or deceit in obtaining such certificate, or for a gross negligence or incompetency in the practice of his occupation or profession, or for unprofessional, dishonorable, or immoral conduct: provided, however, that the decision of the Board in the exercise of this power shall be appealable, within thirty days after receipt of the decision of the Board, to the President of the Philippines whose decision shall be final.

It shall be sufficient for the revocation of the certificate issued under this Act on the ground of unprofessional or dishonorable conduct on the part of the registrant that he has:

(1)    Signed any technical report, mine valuation, mineral ore reserve estimate or other documents or works not prepared by him or under his supervision;

(2)    Represented himself as having taken charge of, undertaken or supervised the survey, valuation, mine tunnelling, shafting and quarrying, without having actually done so; or

(3)    Represented himself as having performed mining engineering service in connection with the planning of exploration, development, exploitation, mining of mineral products without actually having done so; or

(4)    Represented himself as having acted as superintendent of a mining operation without having done so.

Any person or persons, firm, association or corporation may prefer charges in accordance with the provisions of this section against any registrant, and the Board shall take cognizance within thirty days after receipt, and investigate the truth of the complaint. Such charges shall be in writing and shall be sworn to by the person making them and shall be filed with the Secretary of the Board.

SECTION 23.    Re-issue of Revoked Certificate and Replacement of Lost Certificate. — The Board may, after the expiration of two years from the date of revocation of a certificate of registration, for reasons it may deem sufficient, entertain any application for a new certificate of registration, from a person whose certificate has been revoked, in the same manner as an application for an original certificate and in so doing it may, in its discretion, exempt the applicant from the necessity of undergoing any examination. In like manner, the Board may reinstate suspendees upon application.

A new certificate of registration to replace any certificate lost, destroyed or mutilated may be issued subject to the rules prescribed by the Board.

ARTICLE III
Sundry Provisions Relative to the Practice of  Mining Engineering

SECTION 24.    Prohibitions in the Practice of Mining Engineering — Penal Provisions. — Any person who shall practice mining engineering in the Philippines as defined in this Act without a certificate of registration in accordance with the provisions of this Act, unless declared exempt from registration, or any person presenting or using as his own the certificate of registration of another, or any person who shall give any false or forged evidence, or any person who shall impersonate any registrant of like or different name, or any person who shall use a revoked or suspended certificate of registration, or any person who shall assume, use, or advertise any title or description tending to convey the impression that he is a mining engineer without having graduated as such, or is engaged in the mining engineering practice, without holding a valid certificate of registration from the Board shall, upon conviction, be sentenced to a fine of not less than one thousand pesos nor more than two thousand pesos or to suffer imprisonment for a period of not less than one year nor more than two years, or both, in the discretion of the court.

SECTION 25.    Personnel Required in Mineral Exploitation and/or Quarrying. — Every mining works, project, and/or quarrying operation shall have not less than the following complement of resident mining engineers and/or foremen duly registered under this Act:

(1)    Twenty-five persons but not more than fifty persons for the entire operation directly engaged in mining and/or quarrying operation, a registered foreman is required;

(2)    Over fifty persons but not more than one hundred persons for the entire operation directly engaged in mining and/or quarrying operation, one registered mining engineer and one registered foreman are required;

(3)    Twenty-five persons but not more than seventy-five persons per shift, directly engaged in mining and/or quarrying operation, one registered foreman per shift and one registered mining engineer for the entire operation;

(4)    Over seventy-five persons per shift, directly engaged in mining and/or quarrying operation, shall require a registered foreman and a registered mining engineer for each shift: provided, that all persons acting as mine superintendent or its equivalent, and the mine engineer, shall be registered mining engineers.

SECTION 26.    Posting of Certificates. — The owner, manager or other person in-charge of any mine, or quarry operation of a firm, co-partnership, company, corporation, or joint stock association, shall post or cause to be posted in a conspicuous place within the premises to such mines, the certificate of registration of mining engineers, mine and/or quarry foreman employed therein.

SECTION 27.    Roster of Mining Engineers. — A roster showing the names and places and/or addresses of all registered mining engineers or persons holding certificates of registration for mine and/or quarry foremen issued by the Board, shall be prepared by the Secretary of the Board commencing one year from the date this Act becomes effective, and shall keep up-to-date this roster annually. Copies of this roster shall be mailed to each person so registered upon request, placed on file with the Office of the President of the Philippines, Office of the Director of Mines, and with such other entities that may request this roster.

SECTION 28.    Foreign Reciprocity. — Except in the case of persons exempted under the provisions of this Act, no foreign mining engineer shall be granted any of the rights and privileges under Section fourteen of this Act, unless the country of which he is a subject permits Philippine mining engineers to practice within its territorial limits on the same basis as the subject or citizen of such country.

SECTION 29.    Enforcement of the Act by Officers of the Law. — It shall be the duty of all duly constituted officers of the law, of the National Government, or of any provincial, city or municipal government, to enforce the provisions of this Act and to prosecute any person violating the same. The legal officer of the Civil Service Commission shall act as the legal adviser of the Board, and render such legal assistance as may be necessary in carrying out the provisions of this Act.

SECTION 30.    Act not affecting Other Profession. — This Act shall not be construed to affect or prevent the practice of other legally established professions in the Philippines.

ARTICLE IV
Final Provisions

SECTION 31.    The sum of five thousand pesos is hereby appropriated annually to be disbursed by the Office of the President of the Philippines in accordance with the provisions of this Act, and to cover expenses incurred by the members of the Board during field inspections and investigations. All sums collected in accordance with this Act shall be paid to the National Treasury as part of the general funds thereof: provided, that during the first twelve months of the operation of this Act, any portion of the sum collected may be used for the purposes of this Act and to cover disbursements in excess of the amount appropriated herein.

SECTION 32.    If any section or sections of this Act shall be declared unconstitutional or invalid, it shall not invalidate the other sections hereof.

SECTION 33.    All laws, parts of laws, orders, ordinances, or regulations in conflict with the provisions of this Act shall be, and are hereby, repealed.

SECTION 34.    This Act shall take effect upon its approval.

Approved: June 19, 1965

Republic Act No. 9487

Republic of the Philippines
Congress of the Philippines
Metro Manila

Thirteenth Congress
Third Special Session

Begun and held in Metro Manila, on Monday, the nineteenth day of February, two thousand seven.

REPUBLIC ACT NO. 9487
June 20, 2007

AN ACT FURTHER AMENDING PRESIDENTIAL DECREE NO. 1869, OTHERWISE KNOWN AS PAGCOR CHARTER

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

Section 1. The Philippine Amusement and Gaming Corporation VAGCOR) franchise granted under Presidential Decree No. 1869, otherwise known as the PAGCOR Charter, is hereby further amended to read as follows:

(1) Sec. 10, Nature and Term of Franchise, is hereby amended to read as follows:

“Sec. 10. Nature and Term of Franchise. – Subject to the terms and conditions established in this Decree, the Corporation is hereby granted from the expiration of its original term on July 11, 2008, another period of twenty-five (25) years, renewable for another twenty-five (25) years, the rights, privileges and authority to operate and license gambling casinos, gaming clubs and other similar recreation or amusement places, gaming pools, i.e. basketball, football, bingo, etc. except jai-alai, whether on land or sea, within the territorial jurisdiction of the Republic of the Philippines: Provided, That the corporation shall obtain the consent of the local government unit that has territorial jurisdiction over the area chosen as the site for any of its operations.

“The operation of slot machines and other gambling paraphernalia and equipment, shall not be allowed in establishments open or accessible to the general public unless the site of these operations are three-star hotels and resorts accredited by the Department of Tourism authorized by the corporation and by the local government unit concerned.

“The authority and power of the PAGCOR to authorize, license and regulate games of chance, games of cards and games of numbers shall not extend to: (1) games of chance authorized, licensed and regulated or to be authorized, licensed and regulated by, in, and under existing franchises or other regulatory bodies; (2) games of chance, games of cards and games of numbers authorized, licensed, regulated by, in, and under special laws such as Republic Act No. 7922; and (3) games of chance, games of cards and games of numbers like cockfighting, authorized, licensed and regulated by local government units. The conduct of such games of chance, games of cards and games of numbers covered by existing franchises, regulatory bodies or special laws, to the extent of the jurisdiction and powers granted under such franchises and special laws, shall be outside the licensing authority and regulatory powers of the PAGCOR.”

(2) Sec. 3 (h) is hereby amended to read as follows:

“Sec. 3. Corporate Powers. –

“x x x

“(h) to enter into, make, conclude, perform, and carry out contracts of every kind and nature and for any lawful purpose which are necessary, appropriate, proper or incidental to any business or purpose of the PAGCOR, including but not limited to investment agreements, joint venture agreements, management agreements, agency agreements, whether as principal or as an agent, manpower supply agreements, or any other similar agreements or arrangements with any person, firm, association or corporation.”

Sec. 2. Repealing Clause. – All laws, decrees, executive orders, proclamations, rules and regulations and other issuances, or parts thereof which are inconsistent with the provisions of this Act, are hereby repealed, amended or modified.

Sec. 3. Effectivity Clause. – This Act shall take effect fifteen (15) days from the date of its publication, upon the initiative of the grantee, in at least two newspapers of general circulation in the Philippines.

Approved:

JOSE DE VENECIA JR.
Speaker of the House of Representatives

MANNY VILLAR
President of the Senate

This Act which originated in the House of Representatives was finally passed by the House of Representatives and the Senate on February 19, 2007 and February 7, 2007, respectively.

ROBERTO P. NAZARENO
Secretary General
House of Represenatives

OSCAR G. YABES
Secretary of Senate

Approved: JUN 20 2007

GLORIA MACAPAGAL-ARROYO
President of the Philippines