HOUSE F REPRESENTARNES

Oe RECEIVED
Republic of the Philippines 30am 2016
HOUSE OF REPRESENTATIVES DATE ee
Quezon City ae: Fs
SEVENTEENTH CONGRESS BY
First Regular Session REeISTA.ATION UNT
SERVICE
HOUSE BILL__ 590 as oe

Introduced by Representative Mariano Michael M. Velarde Jr.
¥ Party List|

EXPLANATORY NOTE

Having a cellular phone has become a necessity. Being the
most convenient means of communication, even parents
provide cellphone to their children in the elementary school.
Specially with the internet features of our cellphones, almost
every one holds on to their cellphone. In our country where
having a SIM card is very easy and affordable, anybody can
have one or sometimes two or more, Our SIM cards are
disposable, one user can change it anytime when lost or
whenever he wants to change his number.

With this, cellphones has been an accessory for theft and acts
of terrorism. Text scams until now are unstoppable and our
law enforcers are helpless since SIM cards are unregistered.
Reports of such crimes are archived since law enforces cannot

find leads to the SIM card owner.

This measure proposes to register existing and new cellphone
user’s. The mandatory SIM card registration will actually
protect every subscriber. One for example, being scammed, or

_your cellphone number being used in a scam. It is also a hope
_that this will end text scams and cellphones being used as

bomb detonators.

Therefore, we seek for the passage of this measure.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL 590

Introduced by Representative Mariano Michael M. Velarde Jr. (BUHAY
Party List)

AN ACT
REQUIRING THE REGISTRATION OF ALL USERS OF PRE-PAID
SUBSCRIBER IDENTITY MODULE (SIM) CARDS

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

SECTION 1. Short Title. - This Act shall be known as the “Subscriber
Identity Module (SIM) Card Registration Act”.

SEC. 2. Declaration of Policy. - The State recognizes the vital role of
information and communications technology in nation building.

The introduction of modern telecommunications technology with the view
of providing the widest information dissemination is greatly encouraged. The
possession of the most modern technology carries with it tremendous
responsibility. Thus, mechanism for its effective use for the good of all and not
for an illegal or malicious purpose to benefit a few must be installed.

Towards this end, the State shall require the registration of all users of
prepaid subscriber identity module (SIM) cards.

SEC. 3. Definition of Terms. ~ Whenever used in this Act:

3.1 Direet seller refers to a person or entity, whether natural or juridical,
which directly dispenses or sells a SIM card to an end user;

3.2 End user refers to any individual/subscriber who directly purchases
a SIM card from a direct seller for personal use;


3

3.3 Post paid mobile phone refers to a mobile phone, the service of
which is provided by a prior arrangement with a public
telecommunications entity, the user thereof is billed at the end of the
monthly billing cycle according the use of mobile service;

3.4 Prepaid mobile phone refers to a mobile phone for which credit is
purchased in advance of service use. The purchased credit is used to
pay for mobile phone services at the point the service is accessed or
consumed. If there is no available credit then access to the requested
service is denied;

3.5 Public Telecommunications Entity or PTE refers to any duly
enfranchised and authorized public telecommunications entity that
offers voice, short messaging system (SMS/text), mobile data, value-
added services (VAS) or any other telecommunications services to the
public for a fee;

3.6 SIM card refers to the Subscriber Identity Module (SIM), which is an
integrated circuit that securely stores the international mobile
subscriber identity and the related key used to identify and
authenticate subscribers on mobile telephony devices, such as mobile
phones and computers. A SIM is a removable plastic card into which a
circuit is embedded into a SIM circuit is embedded, and can be
transferred between different mobile service;

3.7 SIM card registration refers to the process of recording and
verifying mobile phone number and personal information of a
subscriber, by a PTE or other direct seller, including but not limited to
the subscriber’s photograph, name, date of birth, gender, address.

SEC. 4. Sale and Registration of SIM Cards. - Every direct seller shall
require the end user of a SIM card to present valid identification with photo to
ascertain his or her identity. The direct seller shall further require the end user
to accomplish and sign a control-numbered registration form issued by the
respective PTE of the SIM card purchased. The registration form shall include
an attestation by the end user that the person personally appearing before the
direct seller and the identification documents presented are true and correct


4
and that the person is one and the same who has accomplished and signed the
registration form.

Except in cases where the PTE is the direct seller, the accomplished
registration form must be submitted to the concerned PTE within fifteen (15)
days from the date of sale. The confidentiality clause in the SIM card
registration under Section 9 shall start to apply at the point of sale. The
confidentiality clause in the SIM Card registration under Section 9 hereof shall
start to apply at the point of sale.

An end user who does not produce valid identification with photo and
fails to accomplish a registration form in accordance with the preceding
paragraph shall be refused the sale of a SIM card by the direct seller. The direct
seller shall only issue the SIM card to the end user after compliance with the

requirements mentioned above and in the succeeding sections.

SEC. 5. Representative Registration of SIM Cards. - Any person who
wants to purchase a SIM card but cannot personally register with the direct
seller may, for valid reason, authorize another as his representative to register
in his behalf, subject to the following conditions: (1) that the representative is
authorized through a duly notarized Special Power of Attorney; and (2) that the
principal and his representative should present an original and a true and clear
copy of any of the valid identification cards with photo listed under Section 6 (a)
hereof.

In case the person intending to purchase is a minor, the parents or
guardian shall be required to give their express consent in writing, and submit
the same with the registration form and valid identification cards with photo of
both the minor and the parent or guardian.

The direct seller may deny the request for representative registration after
an assessment the reason given therefor is not valid or that the identification
cards or their true copies are not authentic or sufficient.

SEC. 6. Coverage of Registration. - All direct sellers are hereby
mandated to register pertinent data in a registration form devised for the
purpose, to include the following information and requirements:


a)

5

Full name and complete address of the end user appearing in a

valid government-issued identification document with photo. In view
thereof, SIM card end users shall be required to present the original
and submit a true and faithful reproduction or —_ photocopy of

any of the following government identification documents with photo:

1,
2.

Driver's license
Social Security Service/Government Service Insurance System

(SSS/GSIS) card

3.

PNW

13.
14.

Passport

Senior citizen’s card

Person with Disabilities card

National Bureau of Investigation (NBI) clearance

Police clearance

Firearms license

Voter’s identification card
‘Taxpayer's identification number (TIN)
Professional Regulation Commission (PRC) ID
Government office ID

School ID (in case of a minor)
Other government issued ID
The direct seller may make further inquiries or require the

submission of additional identification if necessary, and withhold the sale

of the SIM card pending compliance of the additional requirements.

b)

SEC.

Assigned cell phone number of SIM card(s) and its serial number.

7. Submission of Registration Form. - The registration form

mentioned in Section 6 of this Act shall be accomplished in triplicate, and shall

be forwarded by the direct seller to the concerned PTE. The concerned PTE

shall submit a copy of the duly accomplished registration form to the NTC

within fifteen (15) days from the date of sale or receipt of such form from their

respective direct sellers. The required registration form and the copies thereof

shall be certified by either, the President, General Manager, Treasurer,

Secretary or any other duly appointed officer of the PTE or direct seller, as the
case may be.


SEC. 8. Submission of Verified List of Dealers or Agents. - The Public
Telecommunications Entities (PTEs) shall submit to the National
Telecommunications Commission (NTC), within thirty (30) days from the date of
effectivity of this Act, a verified list of their current authorized
dealers/agents nationwide. Thereafter, the PTEs shall submit to the NTC, every

quarter of each year an updated list of the same.

SEC. 9. Confidentiality Clause. - Any information in SIM card
registration shall be treated as _ absolutely confidential, unless upon written
consent of the subscriber. Provided, That the waiver of absolute confidentiality
shall not be made as a condition for the approval of subscription agreements
with the PTEs.

SEC. 10. Disclosure of Information. ~ Notwithstanding the provisions
of Section 9 hereof, the PTEs shall be required to provide information contained
in the SIM card registration only upon order of a competent court upon finding
of probable cause that a particular number is used in the commission of a
crime or that it was utilized as a means to commit an unlawful act.

SEC. 11. SIM Card Register. - All Public Telecommunications Entities
are required to submit a SIM Card Register of their subscribers to the National
Telecommunications Commission every six (6) months of both postpaid and
prepaid mobile phone users, and maintain a record containing information
mentioned under Section 6 of this Act.

In case of loss or any change in the information after the acquisition of
the SIM card, the subscriber must notify the PTEs within thirty (30) days from
such loss or change. The concerned PTE in return must notify the NTC of such
loss or change in the information within fifteen (15) days from receipt of
notification from the subscriber.

All PTEs are required to keep the data of their subscribers and the NTC
shall see to it that this data is being kept with utmost confidentiality as
provided for under Section 9 of this Act and in accordance with existing laws.


7

SEC. 12. Registration of Existing Prepaid Mobile Phone Subscribers.
~ All existing mobile phone subscribers with prepaid SIM cards are required to
register with their respective PTE within one hundred eighty (180) days from
effectivity of this Act. An extension of not longer than one hundred twenty (120)
days upon a valid written request.

Failure to register within the prescribed period shall authorize the PTE to
automatically deactivate its services to the specific existing prepaid SIM card
subscriber.

SEC. 13. Penalties. - The following penalties shall be imposed for
violation of any provision of this Act;

(a) If the offense is committed by a PTE, the President and other executive
officers shall be held liable and the following penalties shall be imposed:

(1) First offense: A fine of Three hundred thousand pesos (P300,
000.00)

(2) Second offense: A fine of Five hundred thousand pesos (P500,
000.00)

(3) Third and subsequent offenses, a fine of One million pesos (P1,
000,000.00) for every offense.

(b) A penalty of suspension of its operation and a fine of Five thousand
pesos (P5,000.00) to Fifty Thousand Pesos (P50,000.00) shall be imposed on
any direct seller who fails to comply with the provisions of this Act.

SEC. 14. Implementing Rules and Regulations (IRR). — Within ninety
(90) days from the effectivity of this Act, the National Telecommunications
Commission, in coordination with concerned agencies, shall promulgate
the rules and regulations and other issuances as may be necessary, to
ensure the effective implementation of this Act.

SEC. 16. Separability Clause. ~ Should any part of this Act be declared
unconstitutional or invalid, other provisions hereof that are not affected thereby
shall continue to be in full force and _ effect.

SEC. 17. Repealing Clause. - All laws, decrees, executive orders,
proclamations, rules and regulations, and issuances, or parts thereof which are


8
inconsistent with the provisions of this Act, are hereby repealed, amended or

modified accordingly.

SEC. 18. Effectivity. - This Act shall take effect fifteen (15) days after
its complete publication in the Official Gazette or in any newspaper of general
circulation.

Approved,

REP. MARIANO MICHAEL M. VELARDE JR.