FIFTEENTH CONGRESS }
REPUBLIC OF THE PHILIPPINES )
First Reguiar Session }
HOUSE OF REPRESENTATIVES

House Bill No. 706

Introduced by Representative Rufus 8. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

EXPLANATORY NOTE

Section 20 of Article |! of the 1987 Constitution mandates that: “The State
recognizes the indispensable role of the private sector, encourages private
enterprises, and provides incentives to needed investments.”

True to his administration's program of increasing the literacy rate of the
Filipinos especially the poorest of the poor, President Joseph Ejercito Estrada
has signed on July 4, 1998 an Executive Order adopting the National Book Policy
(NBP). Under said NBP all government policies towards the growth and
development of the book publishing industry have been institutionalized, In order
to ensure the effective, sustained and successful implementation of the NBP, the
National Book Development (NBD8) is tasked to implement the said policies,
Under the present administration, the NSP is still enforceable and
implementable.

Among the policies enunciated therein is that:” The State shall support the
development of the book pubfishing in all regions of the country, streamline the
bureaucracy with respect to book publishing and provide fiscal or non-fiscal
incentives to book publishing industry.”

Consistent with the abovequoted policy, there is an imperative need to
outline said incentives in order to ensure the affordability, accessibility and quality
of the textbooks and related educational materials as well as to be transparent in
all transactions concerning the same.

There is no doubt that until today, there are no clear guidelines or
incentives on book trade transactions. Said lack of clear guidelines is manifested
in the textbook scandal which hit the media brought about the Maslog incident.
Based on news report, “under the table considerations and/or exorbitant
discounts,” serve as the criteria for the purchase of books, textbooks and other
reading materials instead of the merits and quality thereof.


Consistent with the NSP, this bill seeks io adopt the Retail Price
Maintenance and Uniform Discounting Scheme. it is hoped that with the
enactment of the bill, the government could ensure for our children affordable,
accessible and quality-laden textbooks and related educational materials.

The bill provides for a uniform discount scheme of not lower than ten (10)
percent but not more than twenty-five (25) percent to bookstores or private
educational institutions

Records show that Japan, South Korea, Germany and other progressive
countries have been adopting the Retail Price Maintenance and Uniform
Discounting Scheme. Under the said scheme the publisher shall maintain the
retail prices of their products everywhere while giving a uniform discount to
bookstores,

Considering that schoo! year 2007-2008 has already started and parents
have been purchasing books, regulation on the discounting scheme is necessary
if not imperative for the benefits of the students and their parents.

Finally, this legislation would address the shortage of books and other
instrumental materials every school year.

In view of the foregoing immediate enactment of the bill is earnestly
sought.

a

RUFYS B. NGUEZ

Wa .

MAXIMO B, RODRIGUEZ, JR.


FIFTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES
First Regular Session

HOUSE OF REPRESENTATIVES
ace 708

i No.

introduced by Representative Rutus 3. Rodriguez and
Representative Maximo 8. Rodriguez, Jr.

AN ACT
ADOPTING A RETAIL PRICE MAINTENANCE AND UNIFORM DISCOUNTING
SCHEME JN BOOK TRADE WITH THE END VIEW OF ENSURING
AFFORDABLE, ACCESSIBLE AND QUALITY-LADEN TEXTBOOKS AND
OTHER RELATED EDUCATIONAL MATERIALS TO BE USED BY PRIVATE
AND PUBLIC SCHOOLS

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

SECTION 4. This Act shall be known as the “Retail Price Maintenance

and Uniform Discounting Act of 2010”.

SEC. 2. It is declared a policy of the State to support the development of
the book publishing indusiry in all regions of the country and to provide fiscal and

non-fiscal incentives to book publishing policy.

SEC, 3. In order to encourage the esiablishment of booksiores thai shall

be situated outside the cities and provincial capitals, such book
localities shail be registered with the duly organized publishing association and

accredited by the National Book Development Board (NBD8).


oe

1 Complying with the said criteria, said bookstores shall be entitled to
the following:
@ A six-year tax holiday from the commencement of commercial

operations for upstart firms and a four-year tax holiday for

astablished firms;

b. Deductions from taxable income for five years of 50% of the wages
corresponding to the increment in the number of direct labor hired.

c. Low interest loans with participating banks;

d. Availment of the retail price and uniferm discounting scheme.

SEC. 4. There is hereby adopted a retail price maintenance and uniform
discounting scheme in the procurement of textbooks and related educational
materials used in private and public schools. The uniform discount scheme shall
be not lower than ten (10%) percent but not more than twenty-five (25%) percent
to be given by the publishers only to bookstores accredited and registered with
the duly organized publishing association and registered with the NBDB

irrespective of their iocation.

SEC. 5. The uniform discount scheme of net lower than ten (10%)
percent but not higher than twenty-five (25%) percent shall also be given by
publishing association or its educational agent or material consultant to private

educational institutions, schools’ bookstores or to private book coordinators or

subject coordinators. Likewise, it is prohibited to provide such other


consideration aside from the discount such as loan facilities, motor vehicles,

travel abroad, accommodation and the likes.

SEC. 8. A declared retail price shall be forwarded by the duly organized
and accredited publishing association to the NBDB and be observed nationwide.
Said price can only be altered or changed upon a formal pronouncement by the
publisher concerned and that the same must be forwarded to the NBDB to have

efficacy

SEC. 7. Any persons who violate any provisions of this Act shall in
addition to the penalties imposed under R.A. No. 8047 and the Executive Order
adopting the National Book Policy shail suffer the imprisonment of four (4) years
to six (6) years and a fine of Two Million (P 2M) Pesos. In case of juridical
person, the president, chief executive officer or chief operating officer shall be

held liable.

SEC. 8, The NBDB in consultation with the Department of Education
(DepED), and the other appropriate agencies from the government sectors with
the active participation of the private sector shall promulgate the implementing
rules and regulations within sixty (60) days from the enactment of this Act. A
copy of such guidelines, rules and regulations shall be furnished to the Congress

of the Philippines through the Committee on Education, Culture and Arts of both

houses,


SEC. 9. If any provision of this Act or the application of such provision to
any person or circumstances is declared unconstitutional, the remainder of the
‘Act or the application of such provision to other provision, to other person, entity

or circumstances shall not be affected by such declaration.

SEC, 10. All laws, decrees, rules and regulations and other
administrative issuances or circulars or provisions therefore which are contrary to

or inconsistent herewith are hereby repealed or modified accordingly.

SEC. 11. This Act shall take effect fifty (15) days from the date of its

publication in the Official Gazette or in any newspaper of general circulation.

Approved.