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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 8617

Introduced by the Honorable Precious Hipolito Castelo

EXPLANATORY NOTE

On March 11, 2020, the World Health Organization (WHO) declared Coronavirus Disease
2019 (COVID-19) as a global pandemic.

The following day, the Department of Health (DOH) announced that the COVID-19 alert level
has been raised to Code Red Sublevel 2, due to evidence of community transmission as the
number of cases rise in parts of the country, particularly in the National Capital Region (NCR).

President Rodrigo Duterte announced the imposition of “community quarantine” in NCR to
prevent the further spread of the contagion. It was later escalated to “enhanced community
quarantine” due to the surge of new cases. Stringent measures have been laid down. Classes
are suspended in all levels from March 15 to April 14, 2020. Land, domestic air and sea travel
to and from NCR have also been suspended during the same period. Likewise, offices under
the executive department were directed to implement a skeletal workforce arrangement as
work is temporarily suspended.

Subsequently, the President has declared a nationwide state of calamity for six (6) months in
order to tap into the government's calamity funds.

It cannot be overemphasized how important social distancing and isolation measures are to
combat the spread of COVID-19. Experts say that in order to “flatten the curve” or to prevent
the sudden surge of COVID-19 cases, it is necessary that everyone cooperate. As such, most
business establishments were forced to temporarily close down to prevent the mass gathering
of people. All are highly enjoined to stay at home.

Informal sector workers, self-employed individuals, peddlers, contractual workers, and other
workers under a “no work, no pay” arrangement are greatly affected since they are not assured
of any income during the quarantine period.

Thus, in order to alleviate the financial burden of Filipinos during the occurrence of this public
health crisis, it is the intent of this bill to have a 30-day “National Payment Holiday”.

A one-month waiver of payments to government financial institutions such as the Social
Security System (SSS), Government Service Insurance System (GSIS), Pag-IBIG Fund and
PhilHealth will go a long way for those struggling financially to survive. Such payments should
include loan amortizations and premium contributions.

There should also be a waiver on rentals for leased dwelling units such as apartments,
dormitories and condominiums, as well as commercial spaces in private establishments like
malls. The law on contracts under the Civil Code of the Philippines exempts an obligor from
liability on account of “fortuitous event” or force majeure, which refers not only to events that


are unforeseeable, but also to which are foreseeable, but inevitable.’ Indeed, the occurrence
of this global pandemic is a circumstance which is beyond the control of both parties and
should therefore be considered as a “fortuitous event’.

Also, public utilities such as Meralco, Maynilad, and Manila Water, telecommunication
companies and intemet service providers such as Globe and PLDT-Smart, operators of toll
roads such as North Luzon Expressway, South Luzon Expressway and NAIA road network
should likewise let go of payments for one (1) month.

It is not enough for government institutions and private businesses to postpone payments.
Since people are forced to stay at home during the quarantine period, they must spend
whatever money they have to tide them over the emergency. They would have little to no
money at all to pay for their suspended obligations after the quarantine is lifted. A 30-day
“National Payment Holiday” is therefore necessary.

The immediate passage of this bill is most earnestly sought,

' Article 1174 of the Civil Code of the Philippines.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

First Regular Session
EIGHTEENTH CONGRESS

House Bill No, 6617

Introduced by the Honorable Precious Hi

AN ACT
MANDATING A _ THIRTY-DAY NATIONAL PAYMENT HOLIDAY DUE TO THE
CORONAVIRUS DISEASE 2019 (COVID-19) GLOBAL PANDEMIC

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

SECTION 1. Short Title. - This Act shall be known as the "COVID-19 30-Day National
Payment Holiday Act of 2020".

SEC. 2. Declaration of Policy. - The State shall adopt an integrated and
comprehensive approach to health development which shall endeavor to make essential
goods, health and other social services available to all the people at affordable cost. Towards
this end, the State shall implement policies which will alleviate the financial burden of its
citizens due to the economic consequences brought about by the COVID-19 pandemic.

SEC. 3. Waiver of loan amortizations and premium contributions. — Loan amortizations
and premium contributions to government financial institutions such as, but not limited to,
Social Security System (SSS), Government Service Insurance System (GSIS), Pag-IBIG
Fund, and PhilHealth, are hereby waived for a period of one month.

SEC. 4. Waiver of rental payments for residential purposes. - Rental payments for
dwelling units such as apartments, condominiums, or dormitories are hereby waived for a
period of one month.

SEC. 5. Waiver of rental payments for commercial purposes. — Rental payments for
commercial spaces in private establishments are hereby waived for a period of one month.

SEC. 6. Waiver of subscription payments with intemet service providers and
telecommunication companies. - Subscription payments with internet service providers and
telecommunication companies are hereby waived for a period of one month.

SEC. 7. Waiver of toll fees. - Toll fees paid for use of expressways are hereby waived
for a period of one month.

SEC. 8. Waiver of payments for electric and water consumption. — Payments with
public utilities for electric and water consumption are hereby waived for a period of one month.

SEC. 9. 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. 10. 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.

SEC. 11. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,