THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILE'PINES 
1 
First Regular Session 
) 
"Rli JUL 29 
S E N A  
S.B. No. 
P4 :44 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
It is in the public interest for business enterprises owned by minorities and women 
to participate in procurement contracts of all providers of telecommunications services. 
The opportunity in our free enterprise system by minorities and women is essential if this 
nation is to attain social and economic equality. 
Business enterprises can be improved through the development by the providers 
of telecommunications services of substantial long-range and annual goals, which axe 
supported by training and technical assistance, for the purchase to the maximum 
practicable extent of technology, equipment, supplies, services and materials from 
minority business enterprises. Procurement policies which include participation of 
business enterprises that are owned by minorities and women also benefit the 
communication industry and its consumers by encouraging the expansion of the number 
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of suppliers for procurement, thereby encouraging competition among suppli 
promoting economic efficiency in the process. 
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29 p;$ :!:! 
THIRTEENTH CONGRESS OF THE REPUBLIC) 
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OF THE PHILIPPINES 
1 
First Regular Session 
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S E N A  
S.B. No. 
Introduced by Senator Miriam Defensor Santiago 
1 
AN ACT 
THAT REQUIRES ALL PROVIDERS OF TELECOMMUNICATIONS SERVICES TO 
ESTABLISH AND CARRY OUT PLANS FOR PROCUREMENT FROM 
BUSINESSES OWNED BY MINORITIES AND WOMEN 
Be it enacted by the Senate and House of Repvesentatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Telecommunications 
Economic Opportunity Act.” 
SECTION 2. Declaration of Policy. - It is the policy of the State to encourage 
and foster greater economic opportunity for business enterprises that are owned by 
minorities and women. 
SECTION 3. DeJinition of Terms. - For the purpose of this Act, the following 
definitions apply: 
(1) The term “business enterprise owned by minorities or women” 
mean- 
(a) a business enterprise that is at least 51 percent owned by a erson i 
or 
persons who are minoritypersons or women; or 
(b) in the case of any publicly owned business, at least 51 percent of 
the stock of which is owned by one or more persons who are minority persons or women, 


policy decisions. 
SECTION 4. Annual Plans Required. - 
(1) IN GENERAL - The Commission shall require each provider of 
telecommunications services to submit annually a detailed and verifiable plan for 
increasing its procurement from business enterprises that are owned by minorities or 
women in all categories of procurement in which minorities are under represented. 
(2) CONTENTS OF PLANS - The annual plans required by paragraph (1) 
shall include (but not limited to) short and long-term progressive goals and timetables, 
technical assistance and training and shall, in addition to goals for direct contracting 
opportunities, include m ethods for encouraging b 0th prime c ontractors and grantees to 
engage business enterprises that are owned by minorities and women in subcontracts in 
all categories in which minorities are under represented. 
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(3) 
IMPLEMENTATION 
REPORT 
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each 
provide 
of 
telecommunications services shall furnish an annual report to the Commission re arding 
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(4) The term “operate” means the active involvement in the day 
management of the business and not merely being officers or &rectors. 
to-day 


the implementation of programs established pursuant to this Act in such form as the 
Commission shall require, and at such time as the Commission shall annually designate. 
SECTION 5. Report to Congress. - The Commission shall provide an annual 
report to-eongress b6Einning in January 2005, on the progress of activities undertaken by 
each provider of telecommunications services regarding the implementation of activities 
pursuant to this Act to develop business enterprises that are owned by minorities or 
women. The report shall evaluate the accomplishments under this Act and shall 
recommend a program for enhancing the policy declared in this Act, together with such 
recommendations for legislation as it deems necessary or desirable to fwther that p licy. 
SECTION 6. Regulation and Criteria for Determining Eligibility of I: 
inority 
Business Enterprises for Procurement Contracts. - 
(1) IN GEhERAL - The Commission shall establish regulations for 
implementing programs pursuant to this Act that will govern providers of 
telecommunications services and their affiliates. 
(2) VElUFYING CRITERIA. - The Commission shall develop and 
publish regulations setting forth criteria for verifymg and determining the eligibility of 
business enterprises that are owned by minorities or women for procurement. 
(3) OUTREACH - The Commission’s regulations shall require each 
provider of telecommunications services and its affiliates to develop and to implement an 
outreach program to inform and recruit business enterprises that are owned by minorities 
or women to apply for procurement contracts under this Act. 
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(4) ENFORCEMENT - The Commission shall establish and promulgate 
such regulations necessary to enforce the provisions of this Act. 
SECTION 7. Wuiver Authority. - The requirements laid down in the preceding 
section may be waived, in whole or in part, by the Commission with respect to a 
particular contract or subcontract in accordance with guidelines set forth in regu ations 
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which the Commission shall prescribe when it determines the application of such 
regulations proven to result in undue hardship or unreasonable expense to a provider of 
telecommunications services. 
SECTION 8. False Representation of Business; Sanctions - 
(1) IN GENERAL - Any person corporation, through its directors, 
officers, or agents, which false represents the business as a business enterprise that is 
owned by minorities or women in the procurement or attempt to procure contracts from 
telephone operating companies and their affiliates pursuant to Section 6, shall be 
punished by a fine of not more than one hundred fifty thousand pesos (P150,000.00), or 
by imprisonment for a period not to exceed five (5) years ofits directors, officers, or 
agents responsible for the false statements, or by both fine and imprisonment. 
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--. 
(2) HOLDING COMPANIES - Any provider of telecommuni ations 
services which falsely represents its annual report to the Commission 
r its 
implementation of its programs pursuant to Section 6 shall be subject to a fine of one 
million pesos (Pl,OOO,OOO.OO) and be subject to a penalty of up to five (5) years 
restriction from participation in lines of business activities provided for in this Act. ! 
SECTION 9. Discrimination Prohibited. - No otherwise qualified business 
enterprise that is owned by minorities or women shall solely, by reason of its racial, 
ethnic, or gender composition be excluded from the participation in, be denied the 
benefits of, or be subjected to discrimination in procuring contracts from telephone 
utilities. 
SECTION 10. Civil Actions Authorized. - Whenever a qualified business 
enterprise that is owned by minorities or women has reasonable cause to believe that a 
provider of telecomiiications services or its affiliate is engaged in a pattern or practice 
of resistance to the full compliance of any provision of this Act, the business enterprise 
may bring a civil action in the appropriate court against the provider of 


telecommunications services or its affiliate requesting such monetary or injunctive relief, 
or both, as deemed necessary to ensure the full benefits of this Act. 
SECTION 11. Attorney’s Fees and Costs. - In any action or proceeding to 
enforce or charge a violation of a provision of this Act, the court, in its discretion, may 
allow the prevailing party reasonable attorney’s fees and costs. 
SECTION 12. Separability Clause. - If any provision or part thereof, is held 
invalid or unconstitutional, the reminder of the law of the provision not otherwise 
affected shall remain valid and subsisting 
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SECTION 13. 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. 
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SECTION 14. Effectivity Clause. - This Act shall fake effect fifteen (1 
after its publication in at least two (2) newspapers of general circulation. 
Approved. 
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