SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHlblPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Sill No. . 12 8 5 
.ierntil.' 
~~H.;.",II~.j.",.br¥ 
'13 
AUG 15 AS:36 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
More than ever, the public is well informed and critical of our nation's governance 
and our leaders' performance because various instruments such as the media 
and the cyber world, including social networking sites, provide avenues to share 
information and opinion from different sectors of the society. One of the most 
controversial and widely-debated sphere of governance is the process of 
preparing and enacting the national budget. 
The public in general, and concerned organizations in particular, has the liberty 
to share their opinions and proposals regarding the national budget and to a 
certain extent, they can participate in the process of preparing and enacting it. 
However, there is a clamor for more accessibility to information and more 
transparency in the process. 
In response to this call, this measure proposes the institutionalization of the 
partioipation of oivil sooiety organizations (CSOs) in the preparation and 
authorization process of the annual national budget. It provides for a system for 
accreditation and participation of CSOs to ensure that the budget is appropriate 
and responsive to the needs of our people. And as a protection to the interest of 
the public, it provides for a procedure in case the participating CSOs have a 
conflicting interest to the purpose of the law. 
This measure was filed in the Fifteenth Congress by the Committees on Finance 
and Constitutional Amendments, Revision of Codes and Laws but was not 
enacted into law. 
The immediate passage of this bill is earnestly sought. 
Senator 


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SIXTEENTH CONGRESS OF THE REPUBLIC) 
QF THE PHlblPPINeS 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 12 8 5 
'13 
AUG 15 A 8 :36 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
INSTITUTIONALIZING 
THE 
PARTICIPATION 
OF 
CIVIL 
SOCIETY 
ORGANIZATIONS (CSOs) IN THE PREPARATION AND AUTHORIZATION 
PROCESS OF THE ANNUAL NATIONAL BUDGET, PROVIDING EFFECTIVE 
MECHANISMS THEREFOR, AND FOR OTHER PURPOSES 
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 "People's 
Participation in the National Budget Process Act of 2013". 
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SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to 
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facilitate the establishment of adequate consultation and feedback mechanisms 
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to promote meaningful and effective participation of Civil Society Organizations 
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(G80s) in the preparation and authorization of the annual national budget in 
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order to ensure that the annual appropriations will be an instrument of 
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development that is reflective of the national objectives, strategies and plans 
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beneficial to the people. 
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SEC. 3. Definition of Terms. - For purposes of this Act, the following terms are 
defined as follows: 
a) "Accreditation" refers to the registration process of CSOs with the National 
Government Agencies (NGAs) and Government Owned and Controlled 
Gorporations (GOGGs), in order to allow them to partioipate in the 
preparation and authorization of the annual budget; 
b) "Accredited GSO" refers to OSOs that have fulfilled the requirements ih 
Section 5 of this Act; 
c) "Budget Call" refers to the budget document Issued by the Department of 
Budget and Management (DBM) and sent to all NGAs and GOCCs, which 
contains the policy guidelines and procedures in the preparation of the 
annuai budget, Inciudlng the budget preparation caiendar for any given 
year. The issuance of a budget call signals the beginning of the budget 
preparation phase; 
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d) "Civil 
Society 
Organizations 
(CSOs)" 
include 
non-government 
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organizations (NGOs), cause-oriented groups, people's organizations, 
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cooperatives, 
trade 
unions, 
professional 
associations, 
faith-based 
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organizations, 
media 
groups, 
indigenous 
peoples 
movements, 
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foundations, and other citizen groups formed primarily for social and 
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economic development, which monitor government projects, engage in 
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policy discussion, and actively participate in collaborative activities with 
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Government; 
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e) "Conflict of Interest" refers to a condition which occurs when a CSO or any 
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of its key officers are involved in mUltiple interests which prevents an 
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impartial or unbiased attitude towards their participation in the national 
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budget process; 
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f) "Constructive Engagement" refers to a partnership between Government 
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and counterpart 060s marked by sustained dialogue towards problem 
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solving while respecting and retaining the focus on assertion for reforms; 
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g) "GOvernment-Owned or Controlled Corporation (GOCC)" refers to any 
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agency organized as a stock or non-stock corporation, vested with 
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functions relating to public needs whether governmental or proprietary in 
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natUre, and owned by the GoVernment of tile Repuollc of tile philippines 
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directly or through its instrurnentalities either wholly, or, where applicable 
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as in the case of stock corporations, to the extent of at least a majority of 
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its outstanding capital stock; 
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h) "National Government Agem;y (NGA)" refers to a unit of the National 
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Government, including the Judiciary, both Houses of Congress, and 
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Constitutional Offices; 
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i) "Participatory Mechanisms" refers to the means by which CSOs can 
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participate meaningfully and effectively in the government process of 
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formulating and authorizing an annual national budget that is responsive 
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to the needs of the different sectors in our society. 
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SEC. 4. Coverage. - This Act shall apply to NGAs and GOCCs whose budget is 
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included in the Annual General Appropriations Act. 
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SEC. 5. Aaareditation. - The applioation for aooreditation for the Senate, the 
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House of Representatives, the Judiciary, and the Constitutional Offices shall be 
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filed at the Office of the Secretary, the Secretary-General, the Supreme Court 
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Clerk of Court, and the Office of the Chairman, respectively. The application fot 
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accreditation for other NGAs and GOCCs may be filed at their respective 
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regional or central office. The application form shall be prescribed by each office 
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and the application for accreditation shall be accompanied by the following 
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documents: 
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a) Artlcies of incorporation and By-Laws of the appilcant esc; 
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b) Certification of Registration and/or such other similar documents, issued 
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by an appropriate government agency tasked to register civil society 
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organizations, such as but not limited to, the Securities and Exchange 
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Commission, Bureau of Labor Relations, Housing and Land Use 
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Regulatory 
Board, 
Insurance 
Commission, 
and 
the 
Cooperative 
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Development Authority; 
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0) The list of offioers, direotors, trustees and members; 
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d) Duly audited financial statements for the past three (3) years showing the 
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assets and liabilities of the organization; 
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e) Full disclosure of the sources offunds; and, 
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f) Full disclosure of service contracts with other NGAs, CSO, private 
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corporations, other CSOs, and other engagements which may result in 
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conflict of interest. 
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Upon approval of the application, the head of the concerned NGA or GOCC shall 
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Issue the certificate of accreditation. this shali be valid for three (3) years 
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following its issuance except for the certification of accreditation issued by the 
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Senate and the House of Representatives, which shall be valid for the entire term 
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of the Congress under which such certificate of accreditation was issued. 
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No application for accreditation shall be disapproved, except upon due notice 
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and hearing. The decision of the head of the concerned NGA or GOCC shall be 
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rendered within twenty (20) working days from the time of the filing of the 
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application, 
Failure to act on the application shall be deemed an automatic 
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approval of the application for accreditation 'of the concerned CSO, and the 
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issuance of a certificate of accreditation shall necessarily ensue. 
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SEC. 6. eso Participation. - In the interest of transparency, eso participation 
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shall be a component in the preparation and authorization of the annual national 
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budget. 
All NGAs and GOeCs shall be required to formulate and adopt 
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guidelines outlining the mechanism for the accreditation and active participation 
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of the esos in the preparation and authorization of the annual national budget. 
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The DBM shall ensure that the NGA or GOee has complied with the above 
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mentioned requirement. 
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Accredited CSOs, through their duly authorized representatives, shall be allowed 
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to partiCipate as resource persons in the budget hearings to be conducted by the 
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appropriate Committees of each House of Congress, provided that they comply 
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with the guidelines to be issued by both Houses of Congress. 
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Notwithstanding their participation in the budget hearings to be conducted by the 
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appropriate Oommittees of each House of Oongress as provided in the preceding 
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paragraph, the Committee on Appropriations of the House of Representatives 
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and the Committee on Finance of the Senate shall schedule one (1) hearing day 
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for the presentation of the positions of accredited CSOs on the budget. 
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SEC. 7. Privileges and Incentives. - An accredited CSO shall enjoy the follOWing 
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privileges and incentives: 
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a) To receive notices and participate as resource person through its duly 
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authorized representatives in any regular and consultative public 
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meetinQs, hearings, conferences, and dialogues on matters related to the 
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preparation and authorization of the annual national budget; 
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b) Access to copies of the budget proposals submitted by the NGAs or 
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GOCCs to the DBM; 
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0) To provide position papers to the DBM on the budget proposal of NGAs or 
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GOCCs submitted pursuant to the budget call; 
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d) To submit its own alternative or proposed budget or position paper; 
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e) Access to issuances such as, but not limited to policy orders, circulars and 
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memoranda that are related to the budget; 
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f) Access to the documents prepared by the DBM for submission to 
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Congress by the President as a basis for the General Appropriations Bill 
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required under Article VII, Section 22 of the Constitution; 
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g) To present written proposals on projects and activities of the government 
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entities whose budget is under deliberation; and, 
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h) Access to committee reports released by both Houses. 
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SEC. 8. Notice to CSOs. - Notice to CSOs may be sent through electronic mail, 
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facsimile machine, postal mail, and by posting at the website of the NGA or 
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GOee concerned. Any of the said modes of sending notices shall be deemed 
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compliance to the requirements under Section 7 (a) of this Act. 
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SEC. 9. Conflict of Interest. - It is the responsibility of the CSO to inform the 
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NGA or GOCC of a conflict of interest in their work with the concerned agency, if 
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and when such situation arises. 
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However, if the NGA or GOGC deems that the GSO has a oonfliot of interest with 
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the work of such NGA or GOCC, the latter shall give the applicant-CSO an 
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opportunity to explain and prove that no conflict of interest exists. 
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In case there is a conflict of interest, the NGA or GOCC shall automatically 
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suspend the privileges of the CSO and shall remain in effect until the conflict of 
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interest ceases to exist. 
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seC. 10. CanceNation of Accreditation. - Upon receipt of a verified complaint in 
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writing, which charges the holder of a certificate of accreditation of having 
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procured their certificate of accreditation by fraud or deceit, the head of the NGA 
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or GOCC shall notify and serve a copy of the complaint to the CSO concerned, 
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who shall be given an opportunity to be heard. 
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Inaction by the NGA or GOCC on the said complaint within twenty (20) working 
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days from the receipt of such complaint shall be deemed a dismissal of the 
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complaint against the CSO involved. 
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SEC. H. Non-Accredited eso. - Non-accredited CSOs may still participate in 
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the budget process by submitting position papers for the NGNs or GOCC's 
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consideration and by attending and observing public consultations. They may be 
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invited to expound on their critique or proposal when said institutions deem it fit. 
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Nothing in this Act shall be construed to deprive non-accredited CSOs the rights, 
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privileges and incentives accorded to them by the Constitution, existing laws, 
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executive orders, rules and regulations and other issuances. 
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SEC. 12. Publia and Timely Disolosure of Budget Doouments and Other Related 
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Data. - In order for CSOs to participate in an informed manner, the NGA or 
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GOCC shall post on their websites or other public posting areas, budget 
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documents to which esos shall have access, as provided for under Section 7 of 
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this Act. 
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SEC. 13. Separability Clause. - If, for any reason, any section or provision of 
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this Act is held unconstitutional or invalid, no other section or provision shall be 
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affected. 
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SEC. 14. Repealing Clause. - All laws, decrees, executive orders, rules and 
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regulations, issuances or any part thereof inconsistent with the provisions of this 
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Act are hereby repealed or amended accordingly. 
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SEC, 16, 
Effeotivity. -
This Act shall take effect fifteen (16) days after its 
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publication in at least two (2) newspapers of general circulation. 
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Approved, 
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