THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
e 
1 
5 AUG 23 P2:5,: 
Second Regular Session 
1 
SENATE 2091 <,y 
E ;  
S.B. No. 
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HECElVEDBY: 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The 1987 Constitution, Article II, Section 16 states that: 
The State shall protect and promote the right to health of the people and 
instill health consciousness among them. 
Furthermore, the same article states that: 
The State shall protect and advance the right of the people to a balanced 
and healthful ecology in accord with the rhythm and harmony of nature. 
This bill seeks to implement these policies by minimizing the amount of used and 
discarded computers discarded as garbage. At the same time, this bill addresses Section 15 of 
the same Article I[ of the Constitution - 
The State shall protect and advance the right of the people to a balanced 
and healthful ecology in accord with the rhythm and harmony of nature. 
Like many other developing countries, the Philippines still pales in comparison to other 
nations in terms of personal computer (PC) penetration index. This index measures the ratio of 
the number of PCs installed relative to the country's population. 
Data culled from the 
International Data Corporation showed that the number of PCs installed in the Philippines last 
year reached only 1.37 million, which is barely two percent, of the total Philippine population. 
However, although we have a only a few computers in proportion to our population, 1.37 million 
computers, when thrown as garbage, would still pose a big environmental and health problem. 
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Since these computers may eventually be discarded by their owners and replaced with 
faster and more advanced machines, this bill seeks to establish a grant and fee program to 
encourage and promote the recycling of used computers and to promote the development of a 
national infrastructure for the recycling of used computers. 


THIRTEENTH CONGRESS OF THE REPUBLIC ) 
5 
AUG 23 PZ ‘5 
OF THE PHILIPPINES 
1 
Second Regular Session 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
TO ESTABLISH A GRANT AND FEE PROGRAM TO ENCOURAGE AND PROMOTE THE 
RECYCLING OF USED COMPUTERS AND TO PROMOTE THE DEVELOPMENT OF A 
NATIONAL INFRASTRUCTURE FOR THE RECYCLING OF USED COMPUTERS 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
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Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the “National Computer 
Recycling Act of 2005.’’ 
SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State to 
protect and advance the right of the people to a balanced and healthful ecology in accord with the 
rhythm and harmony of nature. The state shall also protect and promote the right to health of the 
people and instill health consciousness among them. To this end, the state shall endeavor to 
establish a computer recycling program that would minimize the dumping of non-biodegradable 
and/or hazardous waste from computer parts. 
SECTION 3. Definition of Terms. - For purposes of this Act -- 
(1) “Secretary‘’ means the Secretary of the Department of Environment and 
Natural Resources. 
(2) “Cathode Ray Tube” means a vacuum tube or picture tube used to convert an 
electronic signal into a visual image; 
(3) “Central Processing Unit” includes a case and all of its contents, such as the 
primary printed circuit board and its components, additional printed.circuit boards, one or 
more disc drives, a transformer, interior wire, and a power cord; 
u 
(4) “Computer” means an electronic, magnetic, optical, electrochemical, or other 
high speed data processing device performing logical, arithmetic, or storage functions, 


and may include both a central processing unit and a monitor, but such term does not 
include an automated typewriter or typesetter, a portable hand held calculator, or other 
similar device; 
(5) “Hazardous waste” means substances that are without any safe commercial, 
industrial, agricultural or economic usage and are shipped, transported or brought from 
the country of origin for dumping or disposal into or in transit through any part of the 
territory of the Philippines. It shall also refer to by-products, side-products, process 
residues, spent reaction media, contaminated plant or equipment or other substances from 
manufacturing operations, and as consumer discards of manufactured products. 
(6) “Monitor” means a separate visual display component of a computer, whether 
sold separately or together with a central processing unit, and includes a cathode ray tube 
or liquid crystal display, its case, interior wires, and circuitry, cable to the central 
processing unit, and power cord; and 
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(7) “Non-profit organization” means an organization incorporated as an entity 
paying no dividends, governed by trustees who receive no compensation, and devoting all 
its income, whether fees or gifts, donation, subsidies or other forms of philanthropy, to 
the accomplishment and promotion of the purposes enumerated in its Articles of 
Incorporation. 
SECTION 4. Fee. - 
(a) REQUIREMENT - Effective one hundred eighty (180) days after the transmittal to 
the Congress of the results of the study conducted under section 7(a), the Secretary shall require 
that a fee be assessed on the sale (including a sale through the Internet or a catalogue) to an end- 
user of any computer, monitor, or other electronic device designated by the Secretary under 
subsection (c). The Secretary shall establish procedures for the collection of such fee. The 
requirement under this subsection shall not apply to a sale by an end-user to a subsequent end- 
user. 
(b) Fee Amount- The amount of the fee required under subsection (a) shall- 


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(1) be an amount sufficient to cover the costs of carrying out section S(a) and 
subsection (c) of this section; 
(2) be uniform- 
(A) for each comguter with a central processing unit and monitor 
integrated in a single device; 
(B) for each central processing unit; 
(C) for each monitor; and 
(D) for each class of other devices designated by the Secretary under 
subsection (c); 
(3) not exceed Five Hundred Pesos (P500.00) per computer, monitor, or other 
designated device; and 
(4) be clearly indicated on the label, external packing materials, or sales receipt of 
the computer, monitor, or device. 
(c) Administrative Costs- Persons required by the Secretary to collect a fee under this 
section may retain three percent (3%) of amounts so collected to pay the costs of administering 
the fee collection program. 
(d) Exempted Sales- The requirement of a fee under this section shall not apply to a sale 
of a used computer, monitor, or device by a nonprofit organization. 
(e) Additional Exemption- The Secretary may exempt from the requirement of a fee 
under this section any sale made under a contract or an arrangement that the Secretary 
determines is likely to result in the maximum reuse of significant components of the computer, 
monitor, or device, and the disposal of the remaining components-- 
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(1) in an environmentally sound and responsible manner; 
(2) without violation of any Philippine law; and 
(3) without reliance on funding from the government, when the computer, 
monitor, or device is no longer of use to the end-user. 
(0 Designation of Electronic Devices- The Secretary may designate additional electronic 
devices to which the fee under subsection (a) shall apply if those electronic devices-- 


(1) contain a significant amount of material that, when disposed of, would be 
hazardous waste; and 
(2) include one or more liquid crystal displays, cathode ray tubes, or circuit 
boards. 
SECTION 5. Grants. - 
(a) Uses of Fee Amounts- Amounts collected under section 4 shall be used, to the extent 
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provided in advance in appropriations Acts, by the Secretary for- 
(1) covering the costs of administration of this Act; and 
(2) making grants under subsection (b). 
Not more than ten percent (10%) of the funds available pursuant to this Act for any fiscal 
year may be used for costs described in paragraph (1). 
@) Grant Purposes- The Secretary shall make grants with funds collected under section 4 
to individuals or organizations (including units of local government) for-- 
(1) collecting or processing used computers, monitors, or other designated devices 
for recycling purposes; 
(2) reusing or reselling such computers, monitors, or devices, or components 
thereof; and 
(3) extracting and using, or selling for reuse, raw materials from such computers, 
monitors, or devices. 
(c) Eligibility- An individual or organization shall be eligible for a grant under subsection 
(b) only if the individual or organization provides assurances to the satisfaction of the Secretary 
that it will carry out the grant purposes in a manner that complies with all applicable Philippine 
environmental and health laws. 
(d) Selection Criteria- In selecting proposals for grants under subsection (b), the 
Secretary shall consider- 
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(1) the quantity of used computers, monitors, or other designated devices that will 
be diverted from landfills; 


(2) the estimated cost per unit of the collection, processing, reuse, or sale 
proposed; 
(3) the availability of, and potential for, markets for recycled materials; 
(4) the degree to which the proposal mitigates or avoids harmful environmental or 
health effects; 
(5) the degree to which the proposal employs innovative recycling technologies; 
and 
(6) the demonstrated history of the gant applicant in disposing of or providing for 
the reuse of computers, monitors, or devices in an environmentally sound and responsible 
manner without violation of any law. 
The Secretary shall ensure that grants are provided to a geographically diverse group of 
recipients. 
SECTION 6. Consultation. - 
In cairying out this Act, the Secretary shall consult with 
representatives of the computer manufacturing, retail, and recycling industries, waste 
management professionals, environmental and consumer groups, and other appropriate 
individuals and organizations (including units of local government). 
SECTION 7. Study And Reports. - 
(a) Study- Not later than six (6) months after the date of the enactment of this Act, the 
Secretary shall transmit to the Congress the results of a study that-- 
(1) identifies waste materials in used computers that may be hazardous to human 
health or the environment; 
(2) estimates the quantities of such materials that exist or will exist in the future, 
including a separate estimate of the quantities of such materials that are exported to the 
Philippines; 
(3) estimates the costs of transporting, collecting, and processing computers, 
monitors, and other designated devices; 
(4) describes current management of such waste materials; 


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(5) makes recommendations for the management of electronic products 
containing such waste materials at the end of their useful lives; and 
(6) estimates the demand for materials from recycled computers, and make 
recommendations for increasing the markets for such materials. 
(b) Reports- Not later than one (1) year after the date of the enactment of this Act, and 
annually thereafter for four (4) additional years, the Secretary shall transmit to the Congress a 
report on the status of computer recycling. Such report shall include a description of the amount 
of fees collected under section 4, and a description of the amount of administrative costs paid for 
and grants made under section 5 with funds collected through such fees. 
SECTION 8. Separability Clause. - If any provision or part thereof, is held invalid or 
unconstitutional, the remainder of the law of the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 9. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent 
with, the provisions of this Act is hereby repealed, modified or amended accordingly. 
SECTION 10. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved. 
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