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Republic of the Philippines “9° RECEIVED \
HOUSE OF REPRESENTATIVES 2 pay gdUK 30 mfy

Quezon City

NINETEENTH CONGRESS
Second Regular Session

House Bill No. 97

___ Introduced by Hon. Robert Ace S. Barbers _

AN ACT ESTABLISHING THE PHILIPPINE PUBLIC PAYMENT SYSTEM
EXPLANATORY NOTE

This bill seeks to establish a Philippine Public Payment System that enables
government authorities and institutions to transfer money, such as tax refunds,
government subsidies, social ameliorations, pensions or the likes, directly to a citizen's
bank account.

The Philippine government is gradually adapting to the changing demands of the
digital information age. Bangko Sentral ng Pilipinas (BSP), for instance, recently
allowed government institutions to collect payments and remittances through
electronic financial services. However, collections are currently the only transaction
that is digitized. For the government to truly achieve digital transformation, it must also
digitize the way government institutions and authorities make payments to the citizens.

In an effort to further streamline payment and settlement processes, the government
will implement a system in which all payments made by its institutions and authorities
will be deposited directly into a citizen's bank account.

This payment system will reduce the number of physical cash transactions, thereby
bringing faster and more efficient service to the public. Distribution of government
subsidies and ameliorations will be much easier. This will likewise r¢@xce bureaucracy
that could minimize corruption

In view of the foregoing, immediate approval of this bill is eae:


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
‘Second Regular Session

97

House Bill No.

Introduced by Hon. Robert Ace S. Barbers

AN ACT ESTABLISHING THE PHILIPPINE PUBLIC PAYMENT SYSTEM

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 “Philippine Public
Payment Act”

SEC. 2. Declaration of Policy. - The State recognizes the vital role of
information and communication technology in nation-building. The State also
recognizes the need of ease of doing business and efficient delivery of goods and
services to the general public. Toward this end, the State shall achieve digital
transformation by digitizing the way government institutions and authorities make
payments to the citizens.

SEC. 3. Objectives. ~ This Act aims to promote ease of doing business and
seamless service delivery to reduce bureaucracy and minimize corruption, as well as
to strengthen financial inclusion of citizens.

SEC. 4. OneAccount. — All citizens of the Philippines who are eighteen (18)
years old and above and have a PhilSys Number (PSN) shall have a government bank
account called OneAccount.

OneAccount is the citizen's bank account where all payments to him/her from
the government institutions and authorities shall be directly deposited.

Once a citizen has been issued a PhilSys Number, a OneAccount shall be
aulomatically created for him/her by the government for purposes of this Act.

Only one OneAccount shall be created for each person. !f one has an existing
bank account in a government bank, he can designate the same as his OneAccount.

‘SEC. 5. Public Payment. — All payments made by the government institutions
and authorities, such as but not limited to tax refunds, pensions, government
‘subsidies, social ameliorations, shall be directly deposited into a citizen's bank account
called OneAccount.


SEC. 6. Fees and Charges. — Subject to existing banking rules and regulations,
opening an account and maintaining the same in government bank for purposes of
this Act is free of charge. All other fees and charges are likewise waived.

SEC. 7. Applicability of Bank Secrecy Law. — The Bank Secrecy Law covers
OneAccount.

SEC. 8. Bangko Sentral ng Pilipinas (BSP). - The Bangko Sentral ng Pilipinas
(BSP) shall be the primary implementing agency to carry out the provision of this Act.
The BSP shall collaborate with Department of Information and Communications
Technology (DICT) for technical assistance.

SEC. 9. Penalties. — Any violation of this law will subject the offender upon
conviction, to an imprisonment of not more than five years or a fine not more than One
Million Pesos (P1,000,000.00) or both, in the discretion of the court.

SEC. 10. Funding. - The amount necessary to implement the provisions of this
Act shail be included in the General Appropriations Act.

SEC. 11. Implementing Rules and Regulations. - Within sixty (60) days from
the effectivity of this Act, the BSP and DICT shall promulgate rules and regulations to
effectively implement this Act.

SEC. 12. Repealing Clause. — All laws, orders, issuances, circulars, rules and
regulations or parts thereof, which are inconsistent with the provisions of this Act are
hereby repealed, modified, or amended accordingly.

SEC. 13. Effectivity Clause. - This Act shall take effect fifteen (15) days after
its publication in at least two (2) newspapers of general circulation.

Approved.