20 JAN 2015
Soo) PM
Republic of the Philippines Spee
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Congress
Second Regular Session
House Bill No.

Introduced by Honorable Roy M. Loyola
EXPLANATORY NOTE

‘The latest trend in information technology particularly in the field of
telecommunications is greatly felt in our country. Almost every Filipinos nowadays,
own and use cellular phones. With the use of this instrument, business transactions as
well as everyday living have become more effective and efficient. One reason that
may be attributed to the popularity of cellular phones among us Filipinos is the system
of text messaging that earned us the monicker the texting capital of the world.

However, majority if not all cellular phone owners prefer to use the pre-paid
subscriber identity module (SIM) card. Not only is this pre-paid subscriber identity
module (SIM) card easily accessible, i.e., it can be bought almost everywhere, the
owners thereof can likewise easily evade detection since prepaid SIMs are virtually
undetectable. Due to this, unscrupulous individuals almost always take advantage of
the same in the pursuit of their criminal activities to the detriment not only of a
particular interest but that of the whole nation.

‘The proposed bill therefore seeks to address the above-mentioned problem
being brought about by the proliferation of pre-paid subscriber identity module (SIM)
card. It provides for a system of regulating the sale and/or disposition of pre-paid SIM
cards and also puts into place the procedure to be followed if a member of the law
enforcement agency and/or officer would like to retrieve information concerning the
owner of a pre-paid SIM card that had been used in a criminal or illegal activity
without prejudice to the rights of the registered owner under existing law. With this in
mind, it is hoped that the proposal would contribute in one way or the other, in
providing solution to our recurrent peace and order problem.

Every new technology carries with it tremendous responsibility. The
technology should be used for the advancement of the interest of all and not only of a
chosen few. It therefore becomes our imperative duty as lawmakers to ensure that the
benefits we derive for this technology should be used properly and not abused by some
segments of our society.

It is for this reason and the advancement of the common good that early passage
of this bill is earnestly sought.

M. LOYOLA


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

Sixteenth Congress
Second Regular Session

House Bill No. 5335

Introduced by Honorable Roy M. Loyola _

AN ACT
REGULATING THE SALE OF PRE-PAID SUBSCRIBER IDENTITY
MODULE (SIM) CARDS, PROVIDING PENALTY FOR VIOLATION
THEREOF AND FOR OTHER PURPOSES

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

SECTION 1. Title.- This Act shall be known as the “Pre-paid
Subscriber Identity Module (SIM) Cards Regulations Act of 2014”.

SECTION 2. Declaration of Policy. - The State recognizes the vital role
of communication and information 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 though, carries with it tremendous responsibility.
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 regulate the use and sale of pre-paid subscriber identity module
(SIM) card for cellular phone users only to persons who shall comply with the
requirements herein set forth.

SECTION 3. Registration Requirement, - All persons desiring to own
and/or use pre-paid subscriber identification module (SIM) card for cellular
phones shall, before the actual purchase thereof, prepare and accomplish before
any corporation, partnership, single proprietorship authorized to deal and/or sell
the said product a registration form which shall contain the following
information:

(a) Full name and complete address of the buyer which shall be
accompanied by any of the following documents, to wit:

. A Valid Identification Card with photograph;

. A Valid Passport;

Driver’s License;

|. Social Security System Identification Card;

. Company Identification Card;

. Government Service Insurance System identification Card;

. Voter’s Identification Card;

NAUAWNE


8. Senior’s Citizen Card;
9. School Identification Card

(b) The telephone number of the Pre-paid Subscriber Identity Module
(SIM) Card that will be issued.

SECTION 4. Recording by the Corporation, Partnership, Single
Proprietorship or Authorized Dealer and the Telecommunications Service
Provider. ~The corporation, partnership or single proprietorship authorized to
deal and/or sell pre-paid subscriber identity module (SIM) card shall keep a
record of the names and other data of all persons who purchased a pre-paid
subscriber identity module (SIM) card. A certified copy of the registration
and/or information sheet prepared by the would-be buyer shall then be
transmitted to the Telecommunication Service Provider who shall file and keep
a record of the same in a data base to be created for the purpose.

The copy of the registration and/or information sheet submitted to the
Telecommunications Service Provider shall be certified to by the President,
General Manager, Treasurer or any other responsible officer of the corporation
or partnership, or the owner in case of single proprietorship authorized to deal
and/or pre-paid subscriber identity module (SIM) card.

SECTION 5. Inquiry into the Telecommunications Service Provider's
Database. - If the user of a cellular phone with pre-paid subscriber identity
module (SIM) card shall use the same in the commission of a crime or for any
malicious fraudulent or illegal purpose, a court of competent jurisdiction may,
by written order, authorize the appropriate law enforcement authority to look
into the records of the owner of the pre-paid subscriber identity module (SIM)
card used in the commission of the above-mentioned acts with the
Telecommunications Service Provider keeping records of the same: Provided,
That, such written order shall only be granted upon application in writing of any
law enforcement agency and/or officer and only upon examination under oath or
affirmation of the applicant and the witnesses he may produce and upon the
court being satisfied that: (1) there is reasonable ground to believe that the pre-
paid subscriber identity module (SIM) card has been used in the commission of
a crime or for a malicious, fraudulent or illegal purpose; (2) that there is
reasonable ground to believe that the owner of the said pre-paid subscriber
identity module (SIM) card is probably the perpetrators of the same and (3)
there is no other speedy and adequate means readily available to obtain such
facts and information.

‘The written order issued by the court for this purpose shall specify: (1)
the name of the law enforcement agency and/or officer authorized to look into
the data base of the Telecommunications Service Provider; (2) instruct the
Telecommunications Service Provider to furnish the information requested; (3)
direct the law enforcement agency and/or officer to use the information obtained
in accordance with the written application and (4) specify the period of the


written order which shall not exceed thirty (30) days unless extended or renewed
by the court issuing the same upon good cause shown.

SECTION 6. Telecommunications Service Provider’s Report. - The
Telecommunications Service Provider to whom the records of all purchases of
pre-paid subscriber identity module (SIM) card has been forwarded by the
corporation, partnership or single proprietorship authorized to deal and/or sell
the same shall forthwith prepare duplicate copies of its record containing the
names and other data of all registered owners of pre-paid subscriber identity
module (SIM) card. The duplicate copies of its record shall be furnished the
National Telecommunications Commission and the Bureau of Internal Revenue.

SECTION 7. Penal Provisions. - (a) For Failure to Comply with the
Registration Requirement: Any corporation, partnership, single proprietorship
or any authorized dealer of pre-paid subscriber identity module (SIM) card who
shall commit a violation of Sec. 3 hereof shall suffer the following penalties:

i. A fine of twenty-five thousand pesos (P 25,000.00) for the first
offense;

ii. A fine of fifty thousand pesos (P 50,000.00) for the second offense;

iii. A fine of one hundred thousand pesos (P100,000.00) for the third
offense and imprisonment from six months and one day to four
years. In addition, the license or authority of the corporation,
partnership, single proprietorship or the authorized dealer shall
likewise be revoked or cancelled; Provided, That, the penalty of
imprisonment shall be imposed on the President, General Manager,
Treasurer or other responsible officer of the corporation or
partnership or the owner in case of a single proprietorship.

(b) For failure to keep record. - The penalty of imprisonment ranging
from thirty days and one day to six months or a fine of fifty thousand pesos
(P50,000.00) shall be imposed upon the President, General Manager, Treasurer
or other responsible officer of the corporation or partnership or the owner in
case of a single proprietorship who shall commit a violation of Sec. 4 hereof.

(a) Breach of Confidentiality. - The penalty of imprisonment ranging
from four years and one day to six years or a fine of fifty thousand pesos (P
50,000.00) shall be imposed upon any employee of the corporation, partnership
or single proprietorship authorized to deal and/or sell pre-paid subscriber
identity module (SIM) card or the Telecommunications Service Provider who
shall reveal the name of the registered owner of a pre-paid subscriber identity
module (SIM) card which is not in accordance with the provisions of Sec. 5
hereof.

The same penalty shall be imposed upon any employee of the
‘Telecommunications Service Provider who, despite the written order issued by a
competent court, shall refuse the law enforcement agency and/or officer access
to the information specified in said written order.


SECTION 8. Implementing Rules and Regulations. - Within sixty days
from the approval of this Act, the Department of Justice in coordination with the
National Telecommunications Commission shall issue the necessary rules and
regulations to implement its provisions.

SECTION 9. Separability Clause. - If, for any reason, any provision or
section of this Act shall be held to be unconstitutional or invalid, the other
provisions or sections hereof which are not affected thereby shall continue to be
in full force and effect.

SECTION 10. Effectivity. - This Act shall take effect fifteen (15) days
after the completion of its publication in the Official Gazette or in at least two

(2) newspaper of general circulation.

Adopted,