UUs YF REPRESENTATIVES:
Republic of the Philippines a
HOUSE OF REPRESENTA RECENTCO
Quezon City pare3 0 AUG 2016
TW: x

SEVENTEENTH CONGRESS

ey: ~

REGIST TON UNIT
BILLS ani? Auf. ¥ SERVICE

First Regular Session

House Bill NSSI4

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

EXPLANATORY NOTE

Under Presidential Decree No. 4 the National Grains Authority was created to
promote the integrated growth and development of the grains industry (rice and corn and
other grains) so that it can adequately function as an institution conscious of its social
responsibilities and capable of providing adequate and continuous food supply to the
nation and of contributing to its proper share to the national economy. With the passage
of Presidential Decree No. 1770, the limitation to the grains industry was removed, thus
the National Grains Authority was reconstituted as the National Food Authority (NFA),

Given the wide-ranging significance of rice in Philippine society, the NFA was
created with the intention of protecting the interests of both rice producers and
consumers. As such, the agency’s two primary objectives are: (1) to ensure a fair price
for farm production and (2) ensure food security for consumers through widespread
access at affordable prices, especially for the poor and marginalized in society.

The objective to ensure a fair price for farm production necessitates that the NFA
intervene in farm-gate procurement of paddy rice (palay) through a state determined
buying floor price for the commodity. At the other end of the supply and value chain, to
protect consumers and ensure accessibility to the staple, the NFA also distributes rice to
public markets and when needed, sells on volume to wholesalers. NFA intervention is
resorted to in times of grains speculation and in times of man-made or natural calamities
NEA thus seeks to protect farmers by ensuring a minimum buying price for their paddy,
while protecting consumers from speculation and high prices through supplying tice to
the market from its domestic stockpile or when necessitated, through rice imports, Along
the way, NFA also has the authority to regulate the rice industry through the release of
standards and the exercise of quasi-judicial powers in controversies and cases arising
from violations of its Charter, Rules and Regulations. Hence, its charter mandates it to
exercise both proprietary and regulatory roles. Therefore, the NFA participates in a
market that it also regulates.

Consequently, these two objectives, conflict such that the government cannot
fulfill its objectives effectively and not at a cost which the State is willing to absorb when
it is entered in the Government ledgers as a loss emanating from Government Owned and
Controlled Corporation operations. When the State protects farmers’ income by
mandating to buy high, it must also allow milled paddy to be sold at its proper price
though high this may be. Unfortunately, rice is an effective intervention tool to alleviate
hunger and poverty for which reason, the State also intervenes in rice stocking and


distribution to ensure that the price of rice is regulated and capped in the retail markets.
This is the reason why if need be in the past, NFA buys its paddy or rice stocks at a price
which it does not necessarily sell to the wholesalers and retailers at a price that can
recover costs. This gave rise to the description of NFA operations as always buying high
and selling low. Consequently, losses have ballooned into billions under this structural
set-up. But those who understand the predicament understand the implications of the
structural set-up. In a study commissioned by the Department of Finance, it was revealed
that about eighty percent (80%) of the losses suffered by the NFA was incurred, not due
to managerial inefficiency but due to uncontrollable factors such as external policies it
was imposed to implement. Rightfully, the time has come when these losses must be
properly recognized as past subsidies in furtherance of Government policies related to
food security and domestic stability. This recognition cannot be done under the present
structural set up of the NFA under PD 4

To say the least, an overhaul of the NFA is overdue,

‘This draft measure seeks to reorganize NFA by creating a National Food Service
Corporation (NFSC), which will henceforth undertake all trading and security buffer
stocking functions of NFA. NFA will survive with all regulatory functions intact.

NBA’s books will be wiped clean of its loans and losses to be absorbed by the
National Government in the same way when the NG moved to save the Central Bank and
the Development Bank of the Philippines from closure due to behest loans, Food safety
and standards, as well as regulatory functions related to grains will be reposed with the
NFA while the newly created NFSC will be provided fresh capitalization to hold the
national buffer stocks for food security. In the event the NFSC will be engaged by other
agencies to address issues of food distribution for calamities, or poverty allevation, these
agencies will do so from their agency budgets declared and secured through the
transparency of their annual budget. ‘Thus, the referee which is the NFA will be barred
from pursuing the role of the player which the NFSC will now assume

For the NFA, the removal of its proprietary functions will enable it to focus more
on its regulatory one, right-sizing its current organization; redefining its tasks;
strengthening its procedures and processes, and, update its regulatory powers vis-a-vis
current trade concepts.

In view of the foregoing, the immediate passage of the bill is earnestly sought,



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS

First Regular Session

House Bill No, 89.94

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

CREATING THE NATIONAL FOOD SERVICE CORPORATION (NFSC) AND
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES
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 “National Food
Service Corporation Act”.

SECTION 2. Declaration of Policy. - It shall be the policy of the State to ensure
food security for all Filipinos, and stability of both the supply and prices of foodgrains
and to carry out regulatory and developmental functions to support farmers to increase
their productivity, profitability, and to ensure consumer’s accessibility and affordability
of foodgrains and availability during calamities.

SECTION 3. Statement of Goals and Objectives. - To carry out the foregoing
policy, the government shall orient its programs towards the immediate attainment of the
following goals and objectives.

1. To maintain the strategic rice reserve throughout the year during

calamities / emergencies;

2 To provide and promote effective and efficient government intervention

both at the farmgate and consumer level;

3 ‘To promote marketing efficiency;

4. To provide and make available services including but not limited to

marketing and post production technical services;


10

1

12

16

17

18

19

20

21

22

23

24

25

26

27

28

29

5, To strengthen the efficiency of the food grains supply chain;

6. To focus government subsidies to economically disadvantaged sectors;
7. To rationalize government intervention
8. To institute measures to establish the integrity and assure the negotiability

of warehouse receipts evidencing food grains in storage;

9. To promote developmental regulations aimed at enhancing
competitiveness, transparency, and responsibility in the food grains
industry.

10. To promote interrelationships among foodgrains industry stakeholders,
and

11. To adopt all other measures for the food grains industry as may be
necessary to achieve the foregoing policy,

SECTION 4. Definition of Terms. — As used in this Act, the following terms

shall mean:

1) “Calamities” - refers to the fortuitous events which include acts of God such as

but not limited to typhoons, floods, droughts, earthquakes, volcanic eruptions,
lahar flows, and acts of man such as political and/or civil disturbances, and

widespread civil unrest

2) “Business Capitalization” - refers to the resources invested in the different lines of

activities by the foodgrains businessmen, For purposes of this Act, capitalization
includes the cost of stocks, whether on consignment or bought on cash basis, cost
of facilities and equipment, loans used in the business and amount of working

capital

3) “Cartel” - is any combination of an agreement between two or more persons

engaged in the production, manufacturing, processing, storage, supply,
distribution, marketing, sale or disposition of any basic necessity or prime
commodity designed to artificially and unreasonably increase or manipulate its
price. There shall be prima facie evidence of engaging in a cartel whenever two

(2) or more persons or business enterprises competing for the same market and


18

19

20

21

22

23

24

23

26

27

28

29

dealing in the same basic necessity or prime commodity perform uniform or
complementary acts among themselves which tend to bring out artificial and
unreasonable increase in the price of any basic necessity or prime commodity or
when they simultaneously and unreasonably increase prices in their competing

products thereby lessening competition among themselves.

4) “Contumacy” - refers to a person's willful refusal to comply with summons of a

court or one's resistance to NFSC.

5) “Cornering” - Restricting the flow/delivery of goods intended for distribution in

other areas with the intent of accumulating such goods thus depriving intended

areas the use thereof.

6) “Diversion” - refers to any act of the following circumstances’

a) unreasonable depletion of stocks;
b) selling or lending government stocks to another grains businessmen;

c) selling or offering to sell the government stocks beyond the maximum

>; and

quantity or price allowed by the NF:
d) storing and/or selling and/or rep-packing the government stocks in other
places/stalls, and/or un-authorized markings, other than duly authorized by
law.
e) Unreasonable, intentional or undue delay in the delivery or unloading of NFA
stocks to any NFA authorized warehouses, store or places for storing food

grains

7) “Farmgate Price” - refers to prevailing buying price of a certain commodity at the

farm level in a certain locality at a given specific time.

8) "Farmers" — refers to producers of agricultural food products. They can be tillers

of the land themselves or administrators or supervisors of the process.

9) "Foodgrains” - refers to palay, rice, corn and corngrits

10) "Food security" - refers to the policy objective, plan and strategy of substantially
meeting the food requirements of the present and future generations of Filipinos,

ensuring that food is affordable and available to all, through a combination of


a

19

20

21

22

23

24

25

26

27

28

29

local production and importation, and consistent with the overall national
development objectives,

11) “Grains Standards” - refers to the standard specification for rice/palay and/or
com grains/ corn grits and approved by the NFSC for adoption by the Bureau of
Product Standards, Department of Trade and Industry,

12) “Hoarding” — refers to the undue accumulation by any person or a combination of
persons of any basic necessity or prime commodity beyond his or their normal
inventory levels or the unreasonable limitation or refusal to the unjustified taking
out of any basic necessity or prime commodity from the channels of production,
trade, commerce and industry. There shall be prima facie evidence of hoarding
when a person has stocks of food grains fifty (50 %) higher than the usual
inventory and unreasonably limits, refuses, or fails to sell the same to the general
public at the time of discovery of the stocks, The determination of a person's
usual inventory shall be reckoned from the third month immediately preceding the
discovery of the stocks in case the person has been engaged in the business for at
least three (3) months; otherwise it shall be reckoned from the time he started his
business.

13)“Illegal Acts of Price Manipulation” - refers to acts of hoarding, profiteering,
cartelizing committed by persons habitually engaged in production, manufacture,
importation, storage, transport, distribution, sale or other methods of disposition
of foodgrains.

14)“Licensing” — refers to the act of granting an NFSC/privilege to a qualified
applicant to engage in a particular line of activity in the rice and/or corn
industry.

15)“Minimum Market Access (MMA)” — refers to the volume ofa specific
agricultural product that is allowed to be imported with a lower tariff as
commitment by the Philippines to the World Trade Organization (WTO)

16)“Price Manipulation”- refers to the act of causing prices of foodgrains to fall or

rise for one's own profit by changing or falsifying figures, accounts and other


i

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

related information.

17) “Registration” - shall mean the act of requiring businessmen engaged in certain
activities in the rice and / or corn industry to enlist themselves with the NFA for
purposes of monitoring only.

18) “Standard” - a specification adopted for wide use or repeated utilization. It is the
result of standardization effort approved by a recognized NFSC.

19) “Strategic Rice Reserve" ~ refers to the minimum inventory of rice equivalent to
at least fifteen days (15) national rice consumption or as maybe determined by
the Department of Agriculture to be maintained all year round under government
control as a matter of national policy to ensure food security during times of
calamities / emergencies whether natural or man made.

SECTION 5. Creation of National Food Service Corporation. - To execute the
foregoing policy, goals, and objectives, there is hereby created a body corporate known
as the National Food Service Corporation (NFSC) which shall be attached to the Office
of the President (OP).

SECTION 6. Board of Directors. The powers and functions of the NFSC shall be
vested in a Board of Directors which shall have the responsibility of formulating a
comprehensive program for the development of the foodgrains industry. The Bard shall
be composed of a Chairman, President, and three (3) members who shall be Filipino
citizens, at least thirty-five (35) years of age, with sufficient experience in agri-business
and management, and of proven honesty, integrity and competence. Both the Chairman
and the President shall be appointed by the President of the Philippines from nominees to
be recommended by the Secretary of the DA within thirty (30) days from the creation of
the NFSC.

Within the same period, the Secretaries of the DA, Department of Social Welfare
and Development (DSWD), Department of Trade and Industry (DTI) and the Department
of National Defense (DND) shall recommend fifteen (15) nominees from which the
President of the Philippines shall choose the remaining three (3) members of the Board.

The first member shall serve for a term of three (3) years, the second member for two (2)


20

2

22

23

24

25

26

27

28

29

years, and the third member for one (1) year. Subsequent vacancies in the Board shall be
filled up from a list to be submitted by the Secretaries consisting of three (3) nominees
for each vacancy, from which the President of the Philippines shall chooe a replacement
to serve for a term of three (3) years.

Within thirty (30) days from the submission of the list of nominees, the President
of the Philippines shall constitute the Board

‘The Board shall meet at least once a month on any date to be determined by the
Chairman, provided, that the Chairman may convene special meetings to discuss any
matter needing immediate resolution, The Board shall be entitled to a per diem for each
meeting actually attended by hem and other remuneration as may be determined by the
Board in accordance with existing policies of the government.

‘The Board shall adopt its own rules and regulations to govern its proceedings and
determine its official location and address.

SECTION 7. Organization - The NFSC shall be governed by a Board which
shall create and administer, through, its President as hereinafter provided, the necessary
staff and line units of the NFSC, whose personnel compensation shall be governed by the
latest compensation laws. The NFSC shall be attached to the Department of Agriculture
(DA) and shall not be abolished or privatized without approval of Congress.

SECTION 8. Management of the NFSC- The Management of the NFSC shall
be vested in the President who shall be appointed by the President of the Philippines and
who shall direct and manage the affairs of the NFSC, subject to the supervision of the
Board. The President shall hold office for a term of three (3) years, except, when earlier
removed for cause, o until his successor shall have been appointed and qualified.

There shall be two (2) Vice presidents, appointed by the Board, who shall assist
the President in the performance of his functions. Either one of the Vice presidents, upon
designation of the Administrator, shall perform the duties and exercise the powers and
functions of the President in the absence of the latter.

The President and Vice Presidents shall not be less than thirty-five (35) years of

age, all of whom should be citizens of the Philippines, of proven honesty and integrity,


1

20

21

22

23

24

25

26

27

28

29

and of recognized managerial competence,

SECTION 9. Powers, Functions and Responsibilities of the NFSC. — The

NESC shall have the following powers, functions and responsibilities:

1. To maintain and manage throughout the year a Strategic Rice Reserve equivalent
to at least fifteen (15) days national rice consumption or as may be determined by
the Department of Agriculture, for food security purposes;

2. To undertake when authorized by the President of the Philippines duty and tariff
free importation of other food commodities;

3. To undertake stabilization function when commissioned by the Department of
Trade and Industry and to be paid for such service;

4. To provide rice for the Department of Social Welfare and Development pro-poor
programs or to the National Disaster Risk Reduction and Management Council
(NDRRMC) in cases of calamity and to be paid for such service;

5. To maintain and operate post harvest facilities to be able to provide services;

6. To undertake importation of rice and corn in order to maintain the appropriate
volume of Strategic Rice Reserve and shall be entitled to tax expenditure subsidy;

7. To enter into an agreement with another government to import rice and corn and
other foodgrains when approved by the President;

8. To engage in other food commodities on opportunity and need basis;

9. To own, lease, or acquire ownership by purchase, or to invest in, hold, sell,
mortgage, pledge or otherwise dispose of properties, stocks or bonds or any
interest in either or any obligation or evidence of indebtedness of any person,
partnership, firm or corporation;

10. To own, lease, operate or otherwise hold land, buildings, equipment, facilities and
such other properties as may be necessary to carry out its functions;

11. To enter into, make, perform and carry out contracts of class and description
necessary or incidental to the realization of its functions with other persons, firm
or corporation, private or public, including loans or borrowings by the NFSC from

domestic or foreign sources which shall be guaranteed by the National


iW
12
13

14

7
18
19
20
21
22
23
24
25
26
2
28

29

12.

13

14.

16,

18,

19.

Government but within specific limits or initiate contracts and/or agreements in
behalf of the industry between the Philippine Government and any foreign
government or institution;

To sue and be sued. To adopt, alter and use an official seal which shall be of
judicial notice; and otherwise to do and perform any and all acts as may be
necessary to carry into effect the provisions of this Act or as are essential to the
proper conduct of its operations.

To avail of foreign grants and development aid to support its development thrusts
and to ensure that technologies and expertise are up-to-date;

To set aside part of its revenues and fees generated to finance reward and
incentive systems for programs such as but not limited to anti-hoarding and anti-
smuggling;

To invest its fund or assets in such undertaking as it may deem wise and
necessary such as but not limited to investment in any and all kinds of securities,
stocks, bonds and other secured collateral and to issue debt instruments that are
agri-agra eligible;

To create and establish, a Provident Fund which shall consist of contributions
made both by the NFSC and its officers and employees to a common fund for the
payment of retirement and other benefits to such officers and employees or their
heirs under such terms and conditions as the Board may fix;

To establish and/or restructure its own internal organization and to fix the
remuneration, emoluments, allowances, and other fringe benefits of its officers
and employees as the Board may deem fit;

To import/export or cause the importation/exportation of food grains
products/commodities and/or raw materials, equipment and facilities needed in
the manufacture/processing of food grains commodities as may be approved by
the Board;

To engage in the production, manufacturing, processing and/or packaging of food

products/commodities as may be necessary to effectively carry out its functions


20

2

22

23

24

25

26

at

28

29

20.

2

2:

8

23.

and as approved by the Board;

To establish and enforce standards in storage, milling, distribution, shipping,
drying, handling, hauling, grading, sampling and inspection, test and analysis,
specification, nomenclature, units of measurement, code of practice and

packaging, conservation, and transport for food items;

.To introduce more efficient post harvest systems and technologies, and to

coordinate with research and development entities in foodgrains processing and
marketing;

To promote interrelationships among foodgrains industry stakeholders;

To establish networks with national and international institutions for the
development of the food grains industry;

SECTION 10. Exemptions. - The NFSC is hereby declared exempt:

From the provisions of R.A. 9184 and its IRR, for the procurement of rice and
corn, upon the express written approval of the President of the Philippines,

From payment of all taxes, duties, fees, imposts charges, costs and restrictions to
the Republic of the Philippines, provinces, cities, municipalities and other
agencies and instrumentalities, including the taxes, duties, fees, imposts and other
charges provided for under the Tariff and Customs Code of the Philippines, R.A.
No. 1937, as amended by Presidential Decree No. 34, dated October 27, 1972,
and Presidential Decree No. 69, dated November 24, 1972, and all filing, docket,
and service fees, bonds and other charges or costs in any court or administrative

proceedings in which the NFSC may be a party.

. From all income taxes, franchise taxes and realty taxes to be paid to the National

Government, its provinces, cities, municipalities and other government agencies
and instrumentalities; and

From all duties, arrastre fees in so far as the government's share is concerned,
including all charges and fees imposed under Presidential Decree No. 857,
compensating taxes and advance sales taxes, wharfage fees and tonnage dues on

import or export of goods required for its operations and projects.


20

21

22

23

24

25

26

27

28

29

All documents or contracts executed by or in favor of the NFSC shall also be

exempt from the payment of documentary and science stamp taxes and

registration fees: Provided, however, that this exemptions shall not apply to taxes
and assessments payable by persons or entities transacting business with the

NFSC.

5. From coverage of Presidential Decree No. 711 (Abolishing All Existing Special
Fiduciary Funds and Transferring to the General Fund the Operations and
Funding of all Special and Fiduciary Funds).

6. From compulsorily procuring from the Government Service Insurance System for
its insurance coverage for its rice and corn importation.

SECTION 11. Assets and Liabilities of NFA. - The National Food Authority
shall transfer all its loans and its non core assets to an NFA Board of Liquidators (NFA-
BOL) which shall handle the disposition and liquidation of the transferred assets and
liabilities. It shall be deemed abolished upon full disposition of assets and liquidation of
all liabilities but not later than ten (10) years. The Personnel Services (PS) and the
Maintenance and Other Operating Expenses (MOOE) of the NFA-BOL shall be provided
for by the National Government.

All trading assets shall be transferred to NFSC.

SECTION 12. Capitalization. - The NFSC shall have a total authorized
capitalization in the form of existing assets amounting to Twenty Billion Pesos
(P20,000,000,000.00). The balance shall be provided in the form of equity contribution
thru the General Appropriations Act.

‘The national government shall make additional equity investment into the NFSC
out of funds appropriated in the General Appropriations Act.

SECTION 13. Funding. - The Government through DBM shall include in the
annual President's budget proposal, funds to be utilized for personal services, interest and
other maintenance and operating expenses to maintain its food security buffer stock. In
the event that the NFSC is commissioned to implement programs for price and supply

stabilization or poverty alleviation or calamities, the DA or the DSWD or NDRRMC,


22

23

24

25

26

27

28

29

respectively, will provide NFSC the funds difference between the NFSC buying price and
the desired ex-farm price to influence the market or NFSC selling price vis-d-vis the
desired consumer price, while the Department of Social Welfare and Development will
provide NFSC the price difference between the NFSC's selling price and DSWD’s
desired price for pro-poor programs. Funds for the programs shall likewise be included
by DBM for DA and DSWD in the President’s budget

Section 14. Separation Incentive Package. - The NFA shall provide for a
separation package for its officers and employees who subject to Board approval and
shall be given a separation incentive package equivalent to the following scale:

1-20 years 1.5 x gross monthly pay !’ x yr of service for the first 20 years

21 ~30 years 2.0 x gross monthly pay ¥ x yr. of service in excess of 1" 20 years

more than 30 years 2.5 x gross monthly pay! x yr. of service in excess of I" 30
years

In addition to other retirement benefits to which they are entitled to under existing
laws and regulations. Employees who opt to retire under RA 1616 shall receive only 1.5
gross monthly pay for every year of service under SIP.

SECTION 15. Offenses and Penalties. - Notwithstanding the provisions of any
laws or regulations to the contrary, and for purposes of carrying out the provisions of this
Act, the following acts or omissions are hereby considered as serious, less serious and
light offenses and corresponding penalties therefore are herein prescribed:

a) Serious Offenses- Any of the following acts or omissions shall constitute a
serious offense:

1) Hoarding of foodgrains as defined in this Act;

2) Any act of diversion as defined in this Act;

3) The act of manipulating the prices of foodgrains as defined in this Act;

4) Printing, issuing, or knowingly using, possessing or negotiating a canceled,

unauthorized, illegal, counterfeit or falsified warehouse receipt;

§

Failure or refusal of foodgrains bonded warehouseman, without any lawful

excuse, to deliver foodgrains deposited with him: Provided, however, that the


20

21

22

23

24

2s

26

warehouseman shall be entitled to the allowance authorized for depreciation
of the foodgrains deposited.
The offender shall, upon conviction, be punished by imprisonment of not less than
four (4) years and one (1) day nor more than six (6) years, or a fine of not less than
Fifty Thousand Pesos (P50,000.00) nor more than One Hundred Twenty Thousand
Pesos(P120,000.00) or both fine and imprisonment at the discretion of the court,
b) Less Serious Offenses - Any of the following acts or omissions shall constitute a
less serious offense:
1) Connivance in the concealment of a stock shortage in a foodgrains warehouse;
2) Knowingly submitting any report to the NFSC containing false information or
data;

3

Misrepresentation in connection with any application for license to engage in
foodgrains business;

4) Failure or refusal of a warehouseman to allow the NFSC or his duly

authorized representative to inspect or examine their foodgrain stocks to
conceal shortages or to misrepresent the quantity or quality of his foodgrain
stocks, including the impeding of such inspection and examination by
abandonment, absence or otherwise, and

5) Engaging in the business of foodgrains retailing, wholesaling, threshing,

shelling, warehousing, milling, exporting, importing, trading, growing and
selling of certified seed, manufacturing or processing without a valid license.
‘The offender shall, upon conviction, be punished by imprisonment of not less
than six (6) months and one (1) day nor more than four (4) years, or by fine
of not less than Thirty Thousand Pesos (P30,000.00), nor more than Fifty
‘Thousand Pesos (P50,000.00), or both fine and imprisonment, at the discretion
of the court

©) Light Offenses - Any of the following acts or omissions shall constitute a light

offense:

1) Non-compliance with the rules, regulations, decisions, orders, circulars or


20

ai

22

23

24

25

26

27

directives lawfully issued by the Board, provided non-compliance does not
constitute a higher offense as herein above provided;

2) Selling or offering to sell to the NFSC by any person of palay or corn or other

foodgrains other than that directly produced by him as farmer or shared by
him as tenant or landlord, knowingly buying such foodgrains by any
authorized personnel for the NFSC; connivance by any person in the selling or
buying of such foodgrains; and

3) Any other violation of the provision of this Act for which no specific penalty

is prescribed and which is not punished under any other existing law.

‘The offender shall, upon conviction, be punished by imprisonment of not less
than one (1) month and one (1) day nor more than six (6) months, or a fine of
not less than Five Thousand Pesos (P5,000,00) nor more than Thirty
Thousand Pesos (P30,000.00) or both such fine and imprisonment, at the
discretion of the court

In addition to the foregoing penalties, the Administrator is hereby authorized to
prescribe and impose fines and penalties.

SECTION 16. Repealing Clause. - Provisions of Presidential Decree Nos. 4
and 1770, as amended and all other laws, decrees, executive orders, rules and regulations,
issuances or parts thereof inconsistent with the provisions of this Act are hereby
expressly repealed or modified accordingly.

SECTION 17. Repealing Clause. - All laws, executive orders, presidential
decrees, proclamations, rules, regulations, issuances and enactments of parts thereof
inconsistent with this Act are hereby repealed or modified accordingly.

SECTION 18

. Effectivity. - This Act shall take effect fifteen (15) days from its complete
publication in the Official Gazette of in a newspaper of general circulation in the

Philippines, whichever comes earlier

APPROVED.