Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regelar Session

HOUSE BILL No. 3919

Introduced by: HON. LORETO LEO S. OCAMPOS

EXPLANATORY NOTE

Monopolies are generally perceived as repugnant. In a monopolistic market structure, there
is only one producer or seller for a product, who can suppress the quantity and quality of goods and
demand higher prices. Market entry is restricted due to high costs or other impediments, which may
ocial or political.

be economic, s

On the other hand, perfect competition describes markets such that no participants are large
enough to have the market power to set the price of a homogeneous product

Water is a very essential resource for the survival of mankind. Providing clean and potable
water for all is still a major concern in the Philippines.

‘The attainment of complete coverage of water supply services for the whole country is a
declared policy of the State. The State endeavors to make clean water accessible to all members of
the society.

‘This bill seeks to prohibit the monopoly and control of water utility distribution of small
level 2 & 3 water operators. It secks to promote a perfect competition in water distribution in order
to make water affordable and obtainable.

‘The immediate passage of this bill is earnestly sought.

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LORETO LEO S. OCAMPOS
Representative
2" District, Misamis Occidental

asain


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metto Manila

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 8940

Introduced by: HON, LORETO LEO S. OCAMPOS

AN ACT PROHIBITING THE MONOPOLY AND CONTROL OF WATER UTILITY
DISTRIBUTION OF SMALL LEVEL 2 & 3 WATER OPERATORS

Section 1, Title. Vhis Act shall be known as “An Act Prohibiting the Monopoly and Control of

Small Level 2 & 3 Water Distribution.

Section 2, Declaration of Policy. It shall be the policy of the State fo encourage the participation of
king water accessible 1 all

small level 2 & 3 water operators in water distribution thereby
households. The State recognizes the vital role chat small level 2 & 3
play in meeting, the water and sanitation needs of the people.

tors /distributors

Section 3, Detinition of Veems.

s, natural or juridical, including directors, officers,

a. Monopoly - the holdings of pe
Jistribution utility and their respective holding,

stockholders and related interests, in 4
companies (25%) percent of the voting shares of stock.

Section 4. Prohibition. It shall be unlawful for any person, natural or juridical to own more thin

nventy five percent (25%) of the voting shares of stock in any level 2 or 3 water distribution,

Section 5. Penalty. Any person found violating or attempting to violate the provisions of this act
shall be guilty of « felony. He shall be punished by imprisonment of not less than one (L) year but
hot more than six (6)years or a fine of not less than Fifty thousand pesos (P50,000.00) but aot more
Jred thousand pesos (P500,000.00) or both at the discretion of the court

than Kive bu

Section 6. Implementing Ageney. The Local Water Utilities Administration shall be the
implementing ageney for this act. ‘The above agency shall formulate the implementing rules an
regulations for this Act.

SECTION 9. Separability Clause. — If any provision or part thereof, is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain valid

and subsisting,

SECTION 10. Repealing Clause. ~ Any law, presidential decree or issuance, executive order, letter
of instruction, administrative order, rule or regulation contrary (0, oF inconsistent with the
provisions of this Act is hereby repealed, modified or amended accordingly

SHCVION 11. Lffectivity Clause. “This Act shall take effect fifteen (15) days after its publication in
at least two (2) newspapers of general circulation,

Approved,