HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

3152
HOUSE BILL NO.

Introduced by REP. ROMAN T. ROMULO
Lone District, Pasig City

AN ACT
REGULATING THE SALE OF PREPAID SUBSCRIBER IDENTITY
MODULE (SIM) CARDS, PROVIDING PENALTIES FOR VIOLATION
THEREOF, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

The latest trends in information technology, particularly in the field of
telecommunications, are greatly felt in our country. Almost all Filipinos
nowadays own and use cellular phones to exchange voice calls and text
messages, giving the Philippine the distinction of being the text-messaging
capital of the world. Not only that — we use our phones, tablets and other smart
mobile devices also to connect to the internet and avail of online services. With
the use of such devices, business transactions as well as everyday living have
become more effective and efficient.

Many owners of such devices prefer to use the pre-paid subscriber identity
module (SIM) card. Not only is this pre-paid SIM card easily accessible, i.e., it
can be bought almost everywhere, the owners thereof can likewise easily evade
detection since prepaid SIM cards 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 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 procedures 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 will 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.

ROMAN T. ROMULO


HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. giae

Introduced by REP. ROMAN T. ROMULO
Lone District, Pasig City

AN ACT
REGULATING THE SALE OF PREPAID SUBSCRIBER IDENTITY
MODULE (SIM) CARDS, PROVIDING PENALTIES 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 “Prepaid
Subscriber Identity Module (SIM) Cards Regulations Act of 2019”

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. However, possession of the most modern
technology comes with tremendous responsibility. A mechanism must be put in
place to ensure its effective use for the good of all while preventing its illegal or
malicious use to benefit a few. Towards this end, the State shall regulate the use
and sale of prepaid SIM cards for users of cellular phones and other mobile devices

only to persons who shall comply with the requirements herein set forth

SECTION 3. Registration Requirement. - All persons desiring to own

and/or use prepaid SIM cards for cellular phones and other mobile smart devices


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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:
1. 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;

. Senior’s Citizen Card;

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School Identification Card.

(b) The telephone number of the Prepaid 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 prepaid SIM cards shall keep a record of the names and other data of all
persons who purchased a prepaid 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 which 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


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partnership, or the owner in case of single proprietorship authorized to deal and/or
prepaid SIM card.

SECTION 5. Inquiry into the Telecommunications Service Provider's
Database. - If the user of a cellular phone with prepaid 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
prepaid 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 prepaid 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 prepaid 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
database 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


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prepaid 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 prepaid SIM cards. 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 prepaid
SIM cards who shall commit a violation of Sec. 3 hereof shall suffer the following
penalties:

i A fine of twenty-five thousand pesos (P25,000.00) for the first
offense;

ii A fine of fifty thousand pesos (P50,000.00) 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 (1) 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.


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(©) Breach of Confidentiality. - The penalty of imprisonment ranging from
four years and one day to six years or a fine of fifty thousand pesos (P50,000.00)
shall be imposed upon any employee of the corporation, partnership or single
Proprietorship authorized to deal and/or sell prepaid SIM or the
Telecommunications Service Provider who shall reveal the name of the registered

owner of a prepaid 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 (60)
days from the approval of this Act, the Department of Justice (DOJ) in coordination
with the National Telecommunications Commission shall issue the necessary rules

and regulations to implement its provisions

SECTION 9. Separability Clause. - \f, 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,