Republic of the Philippines py
HOUSE OF REPRESENTATIVES [2
Quezon City, Metro Manila IS
IX OATED? JUL 25
TWENTIETH CONGRESS *) TIME 5:10 PM
1" Regular Session \e,

House Bill No. 151 2

Introduced by Representatives ERIC GO YAP and EDVIC G. YAP

EXPLANATORY NOTE

Section 3, Article XIII of the 1987 Constitution provides that the State shall afford full
protection to labor, local and overseas, or organized and unorganized, and promote
full employment and equality of employment opportunities for all. Further, it
stipulates that workers shall be entitled to security of tenure, humane conditions of
work, and a living wage.

The Mines and Geosciences Bureau has estimated in 2019 that the mining industry
provides livelihood and employment to 207,000 Filipinos. Apart from the
informalities in small-scale or artisanal mining that the sector presently encounters,
employee - miners of mining operators remain to be neglected and unprotected
from repetitive drudgery and risk in their working conditions, lack of welfare
services and social protection in their employment, and insufficient medical care in
their field. Furthermore, absent is an enabling legislation that would codify the
rights and privileges which shall be granted to the local Filipino miners.

Serving in the forefront of the high-risk mining activities, local Filipino miners are
deprived of the genuine protection from their employers not only in terms of salary
and benefits, but also in terms of ensuring their health and well-being while amid
the pits of the unknown and danger. Thus, this bill seeks to provide for a Magna
Carta for Local Filipino Miners. It aims to promote and improve the physical, social,
and economic well-being of Filipino miners, their living and working conditions,
and terms of employment and tenure.

The following measure also provides stringent penalties for ployer - mining
operators who fail to comply with the provisions set forth bythe sail! Magna Carta.

In view of the foregoing, approval of this bill is earnestly

HON. ERIC GO YAP HON. EPVIC G. YAP



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
1 Regular Session

House Bill No. 1512

Introduced by Representatives ERIC GO YAP and EDVIC G. YAP

AN ACT
PROVIDING FOR THE MAGNA CARTA OF LOCAL FILIPINO MINERS

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 “Magna Carta of Local
Filipino Miners.”

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to
promote and improve the physical, social, and economic well-being of local Filipino
miners, their living and working conditions, health and wellness security, and just
and livable terms of employment and tenure.

SEC. 3. Definition. - As used in this Act, the term “Local Filipino Miner”
refers to Filipino citizens who, individually or in the company of other Filipino
citizens, voluntarily form a cooperative duly licensed by the Department of
Environment and Natural Resources to engage, under the terms and conditions of a
contract, in the extraction or removal of minerals or ore-bearing materials from the
ground

SEC. 4. Coverage. — This Act shall cover all Local Filipino miners who are
registered and licensed with artisanal, small-scale, and large-scale mining
operations.

SEC. 5. Registration and Licensing of Local Filipino Miners. - All persons
undertaking or intending to undertake artisanal, small-scale, and large-scale mining
operations within a declared mining area shall apply for and license with the Board
according to the mining sector of their membership, as the case may be, subject to
payment of the corresponding license application fee and the following
requirements:

Filipino citizen;
. Legal age;

. With any government issued ID;

|. Barangay Clearance as proof of residency; and

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e. Certificate of attended skills and safety trainings conducted by MGB RO
concerned.

A license shall be issued to the applicant free of charge upon completion of
the mandatory 8-hour Occupational Safety and Health Orientation and Basic
Training on Environmentally Sustainable Mining Practices. Such license shall be
valid for at least three (3) years, unless sooner revoked for violation of mining rules
and regulations, and renewable for the same period after completion of the
orientation of training requirements.

SEC. 6. Contract of Employment - Notwithstanding any oral or written
stipulations to the contrary, the contract between the employer - mining operator
and the local miner shall be governed by the provisions of Articles 294 (formerly
279) and 295 (formerly 280) of the Labor Code, as renumbered. The employer -
mining operator shall provide his/her miner employees a copy of the employment
contract duly signed by the parties, which shall contain the terms and conditions of
employment, such as those provided under Section 7 hereof.

The employer - mining operator shall submit the original copy of the
Contract of Employment when directed to do so by the Regional Director or his/her
duly authorized representative. The Contract of Employment must conform to the
DOLE Standard Computation. The Contract of Employment shall stipulate, among
others:

a. The specific description of the kind or nature of security job, work, or
service being contracted;

b. The place of work and terms and conditions governing the contracting
arrangement;

c. The basic equipment to be provided by the employer - mining
operator which shall be as follows:

d. An “automatic crediting provision" which shall immediately give effect
to the common provision in wage orders that prescribed increases in
wage rates and other wage-related benefits of an employee shall be
borne by the employer - mining operator accordingly;

e. Provisions which shall ensure that the employer - mining operator
shall uphold the rights and provide all the benefits of the local Filipino
miners, as amended, and other existing laws, and that violation of
which will render the employer - mining operator ineligible to license
by the Mines and Geosciences Bureau (MGB) for large-scale miners
and the Provincial/City Mining Regulatory Board for artisanal and
‘small-scale miners;

f, An undertaking that the employer - mining operator shall directly
remit monthly the employers’ share and employees’ contribution to the
Social Security System (SSS), Employees' Compensation Commission
(ECC), Philippine Health Insurance Corporation (PhilHealth), and
Home Development Mutual Fund (Pag-IBIG); and


g. An undertaking that the expenses for any training required by the
employer or other government instrumentalities, shall be shouldered
by the employer - mining operator.

Imposition of additional tasks or duties not expressly included in the Contract
of Employment shall be considered outside the scope of the employment contract of
the local Filipino miners shall be unlawful and constitute a violation of this Act.

SEC. 7. Rights of Local Filipino Miners. - All Local Filipino Miners, whether
deployed or assigned as reliever, seasonal, week-ender, or temporary, shall be
entitled to all the rights and privileges as provided for in the Labor Code, as
amended, which shall include the following:

a. Safe and healthful working conditions, including without limitation
humane working environment, appropriate rest or “sitting time” periods,
protection against abusive treatment of the employer - mining operator
such as physical or corporal punishment, among others;

b. Labor standards such as but not limited to service incentive leave,
premium pay, overtime pay, holiday pay, night shift differential, 13%
month pay, and separation pay as may be provided in the Contract of
Employment or under the Labor Code, as amended;

¢. Retirement benefits as provided for by the Labor Code and other existing
law and retirement plans of the employer - mining operator, if any;

d. Social security and welfare benefits;

e. Right to self-organization and collective bargaining, subject to the
provisions of existing laws; and

£. Security of tenure.

SEC. 8, Discrimination Prohibited. ~ Discrimination against any Local
Filipino Miner and other private security personnel by reason of gender, civil status,
creed, religious or political beliefs and ethnic groupings in the exercise of their
functions and responsibilities is hereby prohibited.

SEC. 9. Terms and Conditions of Employment. -

a. Requirements for Pre-employment and Continued Employment. - The
local Filipino Miner employed by any mining - operator should be
duly licensed and must have passed the training required for
pre-employment and for continued employment. Expenses for these
training shall be shouldered by the local Filipino miner.

Any additional training may be required at the expense of the
requesting party.

b. Entitlement to Minimum Wage. - Unless a higher minimum wage is
agreed upon by the parties, the local Filipino miner shall be entitled to
receive a salary of not less than the minimum wage rate prescribed for
non-agricultural sector or industry in the region where he/she is


assigned, regardless of the nature of business of the principal.

©. Transfer of Assignment. - In case of transfer, the wage rate most
favorable to the local Filipino miner shalll apply. Thus, transfer of local
Filipino miner to areas outside the region of the domicile shall not
result to reduction of the wage rate being enjoyed by the local Filipino
miner prior to such transfer. Transfer to an area or region with higher
wage rate shall render the higher rate the applicable wage rate for the
transferred local Filipino miner.

d. Statutory Benefits. ~ Local Filipino miners are entitled to not less
than the following benefits depending on the working hours, work
shift and workdays and other analogous conditions, which benefits
should be included in the cost distribution in the Contract of
Employment:

. Basic salary for all actual workdays and for the twelve (12) regular
holidays (as holiday pay) which must not be lower than the minimum
wage rates, to be computed by using the factors recommended herein.
Whenever work is rendered on a regular holiday, an additional pay of one
hundred percent (100%) of the minimum wage rate should be paid;

. Allowance in addition to the basic salary, if prescribed by the applicable
Regional Wage Order;

. Premium pay of thirty percent (30%) of the daily rate for work on special
days or on rest days, which is increased to fifty percent (50%) whenever
work is performed coinciding the rest days and special days;

. Overtime pay for work rendered in excess of eight (8) hours a day,
equivalent to at least twenty-five percent (25%) of the regular hourly rate
on ordinary days and thirty percent (30%) of the hourly rate on regular
holidays, special days and rest days;

. Night shift differential equivalent to ten percent (10%) of the regular
hourly rate for work rendered between 10:00 p.m. and 6:00 a.m. of the
following day;

. Five (5) days service incentive leave for every year of service which
benefits can be availed of during days of absence and, if not used, are
convertible into its cash equivalent. A proportionate leave benefit per
month may be derived by dividing five (5) days by twelve (12) months
multiplied by the current daily rate;

”. Maternity leave as provided for under Republic Act No. 1161, as amended
by Republic Act No. 8282, otherwise known as the "Social Security Law,”

4


for female miners who are unable to work due to childbirth or miscarriage,
up to the first four (4) deliveries or miscarriages;

8. Paternity leave of seven (7) days with full pay for male miners under
Republic Act No. 8187, otherwise known as the "Paternity Leave Act of
1996." which shall be granted after the delivery, without prejudice to an
employer's policy of allowing the employee to avail of the benefit before or
during the delivery. The paternity leave with pay is granted for the first
four deliveries, including miscarriages, of the male employee's lawful wife
with whom he is cohabiting;

9. Parental leave of seven (7) days every year for solo parents - miners who
are left alone with the responsibility of parenthood as defined under
Republic Act No. 8972, otherwise known as the "Solo Parents' Welfare Act
of 2000";

10. Leave for Victims of Violence Against Women and their Children of ten
(10) days for qualified victim-female miners under Republic Act No. 9262,
otherwise known as "Anti-Violence Against Women and Their Children
Act of 2004",

11. Special Leave for Women of not more than two (2) months with full pay
based on her gross monthly compensation following surgery caused by
gynecological disorders, under Republic Act No. 9710, otherwise known
as "The Magna Carta of Women’,

12. 13" month pay which is one-twelfth (1/12) of the total basic salary earned
within a calendar year;

13. Separation Pay if the termination of employment is for authorized cause as
provided by law and as enumerated below:

a. One-half (1/2)-month pay per year of service, but guaranteed to
one (1) month pay if separation is due to:

i. Retrenchment or reduction of personnel effected by
management to prevent serious losses;

ii, Closure or cessation of operation of an establishment not due
to serious losses or financial reverses;

iii, Illness or disease not curable within a period of six (6)
months and continued employment is prohibited by law or
prejudicial to the employee's health or that of his/her
co-employees; or


b. Lack of service assignment for a continuous period of six (6)
months.
i, One (1) month pay per year of service if separation is due to:

1. Installation of labor-saving device, such as
replacement of employees by equipment/machinery;

2. Redundancy, as when the position has been found to
be a surplusage or unnecessary in the operation of the
agency;

3. Impossible reinstatement of the employee to his/her
former position or to a substantially equivalent
position for reasons not attributable to the fault of the
employer, as when the reinstatement ordered by a
competent authority cannot be implemented due to
closure or cessation of operations of | the
establishment/mining operator, or the position to
which the employee is to be reinstated no longer
exists and there is no substantially equivalent position
to which he/she can be assigned; or

4. Lack of service assignment by reason of age.

14. Benefits under the Employees Compensation Program pursuant to
Presidential Decree 626;

15. PhilHealth benefits under Republic Act No. 7875, as amended by Republic
Act No. 9241;

16. Social Security benefits under Republic Act No. 1161, as amended by
Republic Act No. 8282;

17. Safe and healthful working conditions as provided in the Occupational
Safety and Health Standards;

18, Retirement pay provided for by the Labor Code and other existing laws.
The fund shall be administered and maintained by a trust company bank,
investment house, pre-need company, or corporation duly authorized to
perform trust function exclusively for collective investment or
re-investment of certain money received in its capacity as trustee, or
similar arrangement as may be agreed upon in accordance with law.

The employer - mining company may establish a retirement plan for the
payment of the retirement benefits of its employee - miners. From this a
Retirement Trust Fund (RTF) shall be created out of contributions from the
employer ~ mining operator. The trust fund agreement shall be executed
by and between the employer - mining operator as trustor and a trust
entity as trustee in favor of miner - employee. The trust entity as trustee
shall administer the retirement plan and manage the trust fund in


accordance with the retirement plan agreed upon by employer - mining
operator and employee - miner.
The employer - mining operator may also register with the Securities and
Exchange Commission (SEC), a non-stock Retirement Fund Company
(RFC) owned and managed by its members who are officers and
employees. The RFC shall manage and reinvest the retirement fund, and
shall pay the retirement benefits of its members upon his/her retirement.
As such, any payment for retirement benefits collected in advance from
the employer - mining operator shall immediately be deposited by the
employer ~ mining operator or trustor to the trustee or retirement fund
company in favor of the employee - miners as benefit upon retirement;
and

19. Other benefits granted by law, individual or collective agreement, or
company policy or practice.

e. Recommended Computation of the Estimated Equivalent Monthly Rates. -
Using the Applicable Daily Rate (ADR) and a factor representing the number of
paid days in a year, the following procedures are recommended to facilitate the
computation of the Estimated Equivalent Monthly Rates (EEMR).

For those who are required to work every day including Sundays or rest days,
special days, and regular holidays:

EMR = (ADR x 393.5) / 12

Where 393.5 is derived from:

298 - ordinary working days
24 - 12 regular holidays x 200%
67.6 - 52 rest days x 130%
3.9- 3 special days x 130%

For those who are considered paid on all days including unworked Sundays or rest
days, special days and regular holidays:
EMR = (ADR x 365) / 12

Where 365 days derived from:

298 - ordinary working days
3 - special days

52 - rest days

12 - regular holidays

For those who do not work and are not considered paid on Sundays or rest days:
EMR = (ADR x 313) / 12
Where 313 is derived from:
298 - ordinary working days
3 - special days (if worked) x (130%)
12 - regular holidays


For those who do not work and are not considered paid on Saturdays and Sundays
or rest days:
EMR = (ADR x 261) / 12
Where 261 is derived from:
246 - ordinary working days
3 ~ special days (if worked) x (130%)
12 - regular holidays

By using the above indicated factors, the daily wage for workdays and twelve

(12) holidays are included in the monthly rates. Thirty percent (30%) rest day

premium is integrated in factor 393.5 for all the Sundays or rest days in a year. For

factors 313 and 261, all the twelve (12) regular holidays and the three (3) special days

are included. However, factor 310 or 258 may be used instead of factor 313 or 261,

respectively, if the three (3) special days are not considered paid.

Not included in the above formula is the additional pay due an employee
whenever work is rendered on an ordinary working day proclaimed by the
President or enacted into law as a special day (that is, other than August 21,
November 1 and December 31) and local holidays.

f. Mandatory Life Insurance and Health Care or Medical Insurance. - Employer -
Mining Operator shall be required to provide Employee - Miners mandatory life
insurance and health care or medical insurance, including but not limited to
HMOs, to cover work-related injuries, disability, or death that may result from
the nature of the work of Employee - Miners during the period of their duty.

SEC. 9. Deductions from Salary. - No deduction shall be made from the salary
of the local Filipino miners, except for:

._$SS contribution;

.. Pag-IBIG contribution;

. PhilHealth contribution;

. Withholding tax from income, provided a proper withholding tax
receipt is issued to the employee before the filing of income tax
return every year;

.. Union dues, if authorized in writing; and
Other deduction as may be authorized in writing by employer -
mining operator for payment to a third person and the employee -
miner agrees to do so, provided that the latter does not receive any

iary benefit, directly or indirectly, from the transaction.

These deductions should be reflected in the payroll by the employer - mining
operator.

Pursuant to DOLE Labor Advisories, deductions or requiring cash deposits
from employees to answer for reimbursement of loss or damage on tools, materials,
or equipment supplied by the employer is allowed However, for deductions of such
nature to be valid, the foliowing conditions must be observed:

a. The employee concerned is clearly shown to be responsible for the loss or

damage;

b. The employee is given reasonable opportunity to show cause why the

deduction should not be made;

c. The amount of such deduction is fair and reasonable and shall not exceed

the actual loss or damage; and

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d. The deduction from the wages of the employee does not exceed twenty

percent (20%) of the employee's wages in a week.

In the event that employer - mining operator requires a cash deposit from its
employee - miners, the maximum amount shall not exceed the employee's one (1)
month basic salary. The said cash deposit may be deducted from the employee's
wages in an amount which shall not exceed twenty percent (20%) of the employee's
wages in a week. The full amount of cash deposit deducted shall be returned to the
employee within ten (10) days from his/her separation from the service.

SEC. 10. Right to Security of Tenure and Due Process. ~

a. Local Filipino miners shall enjoy security of tenure in their employment as

provided by law. Their services can only be terminated for just or
authorized causes after due process.

b.

1.

For termination of employment based on just causes as defined in
Article 297 (formerly 282) of the Labor Code, as renumbered, the
requirement of two written notices served on the employee shall be in
accordance with the following:

i

The first written notice should contain:

a. The specific causes or grounds for termination;

b. Detailed narration of the facts and circumstances that
will serve as basis for the charge against the employee -
miner. A general description of the charge will not
suffice;

1. The company rule, if any, that is violated
and/or the ground under Article 297 (formerly
282) of the Labor Code, as renumbered, that is
being charged against the employee - miner;
and

2. A directive that the employee - miner is given
an opportunity to submit a written explanation
within five (5) calendar days from receipt of the
first written notice.

After serving the first notice, the employer should afford
the employee ~ miner the ample opportunity to be heard
and to defend himself/herself with the assistance of
his/her representative if he/she so desires, as provided in
Article 292 (b) (formerly 277) of the Labor Code, as
renumbered.
“Ample opportunity to be heard” means any meaningful
opportunity (verbal or written) given to the employee -
miner to answer the charges against him/her and submit
evidence in support of his/her defense, whether in a
hearing, conference, or some other fair, just, and reasonable
way. A formal hearing or conference becomes mandatory
only:

a. when requested by employee - miner in writing;

b. substantial evidentiary disputes exist;


¢. acompany rule or practice requires it; or
d._ when similar circumstances justify it.

iii, After determining that termination of employment is
justified, the employer - mining operator shall serve the
employee - miner a second written notice, the notice of
termination, indicating that:

a. all circumstances involving the charge against
the employee - miner; and
b. the grounds have been established to justify the
severance of his/her employment.
The foregoing notices shall be served on the employee ~
miner’s last known address.
Termination for just cause as stated in Article 297 (formerly
282) of the Labor Code, as renumbered, does not entitle the
employee - miner to separation pay, unless otherwise
provided in the employer's policy, individual contract, or
collective agreement.

2. For termination of employment based on authorized causes, as
defined in Articles 298 and 299 (formerly 283 and 284 of the Labor
Code, as renumbered), the requirement of due process shall be
deemed complied upon service of a written notice to the employee -
miner and to the appropriate DOLE Regional Office at least thirty (30)
days before the effectivity of the termination, specifying the ground(s)
for termination.

3. If the termination is brought about by the completion of the contract,
no prior notice is required. If the termination is brought about by the
failure of a probationary employee - miner to meet the reasonable
standards of the employer - mining operator, which was made known
to the employee - miner at the time of employment, it shall be
sufficient that a written notice is served upon the employee - miner
within a reasonable time prior to the expiration of the probationary
period.

4, The termination of employment of local Filipino miner prior to the
expiration of the Contract of Employment be governed by the
provisions of the Labor Code.

In case the termination of employment is caused by the
pre-termination of the Contract of Employment not due to any
authorized cause under the Labor Code, the right of the employee -
miner to accrued and unpaid wages and other wage-related benefits,
including unremitted legal mandatory contributions such as SSS,
PhilHealth, Pag-IBIG, and ECC, shall be borne by the party at fault,
without prejudice to the solidary liability of the parties to the

Contract.
b. Report of Dismissal, Termination or Retirement. - The employer - mining
operator shall submit a monthly report of all dismissal or termination,

10


including retirement, effected during the month to the DOLE Regional Office

having jurisdiction over its main or branch office using the prescribed form.

All information gathered shall be used by the DOLE for policy and statistical

purposes.

c. Reserved Status. - An employee - miner may be placed in a work pool or on
reserved status due to lack of service assignment after the expiration or
termination of the Contract of Employment with the employer - mining
operator where he/she is assigned, or due to the temporary suspension of
service operations, or due to valid relief from the current place of work and
there is no work assignment available.

No employee - miner can be placed in a work pool or on reserved status in

any of the following situations:

1. after expiration of a service contract, if there are other principals where

he/she can be assigned;
2. as. measure to constructively dismiss the employee - miner; and
3. as an act of retaliation for filing any complaint against the employer for
violation of labor laws, among others.

If after a period of six (6) months, the employer - mining operator cannot
provide work or give an assignment to the reserved employee - miner, the
latter can be separated from service and shalll be entitled to separation pay as
described hereof. An assignment of the employee - miner as a reliever for less
than one-month shall not be considered as an interruption of the six (6)
months period.

d. Retaliatory Measures. - Pursuant to Article 118 of the Labor Code, as
amended, it shall be unlawful for the principal, employer - mining operator,
or any party privy to the Contract of Employment to refuse to pay or reduce
the wages and benefits, and discharge or in any manner discriminate against
any employee - miner who has filed any complaint or instituted any
proceeding on wages, labor standards violation, or has testified or is about to
testify in such proceedings.

. Preventive Suspension. - Subject to the constitutional rights of the workers to
security of tenure and the right to be protected against dismissal except for a
just and authorized cause and without prejudice to the notice requirement
under Article 297 (formerly 282) of the Labor Code, as renumbered, employee
- miner may be preventively suspended if their continued employment poses
a serious and imminent threat to life or property of the employer - mining
operator or the employee - miner.

No preventive suspension shall last longer than thirty (30) days. The
employer - mining operator shall thereafter reinstate the employee - miner to
his/her former position or it may extend the period of suspension, provided
that during the period of extension, the employer - mining operator shall pay
the wages and other benefits due the employee - miner.

SEC. 11. Conciliation-Mediation through the Single-Entry Approach (SEnA).

- All issues on employment, disciplinary measures, suspension, termination and

compliance with labor standards and occupational health and safety standards

between the employer - mining operator and its employee - miner shall be subject to
the 30-day mandatory conciliation-mediation or the Single-Entry Approach (SEnA)
of the DOLE pursuant to Republic Act No.10396.

1


SEC. 12. Non-diminution of Benefits. - Nothing herein shall be construed to
authorize the diminution or reduction of benefits being enjoyed by the employee -
miner at the time of the enactment of this Act.

SEC. 13. Implementing Rules and Regulations. - The DOLE shall formulate
the necessary rules and regulations, not inconsistent with any provisions of this law,
for the implementation of the Magna Carta of Local Filipino Miners. The rules and
regulations shall be promulgated within six months from the effectivity of this Act.

SEC. 14. Penal Provision. - Any person who shall willfully interfere with,
restrain, or coerce any employee - miner in the exercise of his/her rights or shall in
any manner commit any act in violation of any of the provisions pf this Act, upon
conviction, shall be punished by a fine of not less than Two Hundred Fifty Thousand
Pesos (P250,000.00) but not more than Five Hundred Thousand Pesos (P500,000.00)
or imprisonment of not more than two (2) years, or both, at the discretion of the
court.

In addition to the abovementioned penalties, the court may impose additional
penalty of cancellation of the employer ~ mining operator's certificate of registration
/ license.

This penal provision shall apply and extend to the mining operator's officers,
Board of Directors, employees, or personnel as warranted under the circumstances.

SEC. 15. Separability Clause. - If any portion or provision of this Act is
declared invalid or unconstitutional, other provisions hereof shall remain in full
force and effect.

SEC. 16. Repealing Clause. - All laws, decrees, executive orders, issuances,
rules and regulations which may be inconsistent with any of the provisions of this
Act are hereby deemed repealed, amended or modified accordingly

SEC. 17. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a national newspaper of general circulation.

Approved,