Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Third Regular Session

Housé Bill No.__ 0706

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO.

AN ACT
PROVIDING FOR CONSUMER GROUP REPRESENTATION IN THE
GOVERNING BOARDS OF GOVERNMENT REGULATORY BODIES
AMENDING FOR THE PURPOSE THEIR RESPECTIVE CHARTERS, AND
FOR OTHER PURPOSES’

EXPLANATORY NOTE

Today, the Filipino people is saddled with the burden of high and volatile
cost of public utilities. The public helplessly accept and watch as a succession of
increases in the price of goods and services relentlessly devour what is left of
their purchasing power.

It is now more expensive to travel by public transportation as fare rates
are up in buses, taxis and jeepneys. The Metro Rail Transit (MRT), which was
expected to alleviate the demand of the public for affordable mass transportation,
has also become expensive for daily commuters. Plying our toll roads had just
become almost unaffordable, while pump prices continue an upward trend. Our
phone, water and electric bills have also steadily increased

All of these unfold almost at the same time as the Filipino consumer now
turns to the government for relief. Unfortunately, this upsurge in the cost of basic
necessities had been approved by government regulatory bodies despite heavy
opposition from the public.

| This is @ counterpart measure to Senate Bill No. 2680 fled by the Honorable Ralph G. Recto during the First Regular
Session of the present 15" Congress.


This fact tells us that the opinion of the public, as consumers and end
users of products and services, do not weigh heavily on public policy when the
opposite should be true.

No less than the Philippine Constitution mandates that public participation,
in the interest of transparency and effective governance, shall be promoted at all
levels of social, political, and economic decision-making.

Furthermore, it is the duty of the State to provide for mechanisms in which
the concerned sectors can actively participate, in particular, in the regulatory
affairs of government.

Unfortunately, up to this day, a number of charters creating various
government regulatory bodies - especially those concerned with determining
rates of utilities, public transport, etc. - do not contain any provision of increasing
public participation in their decision-making process.

As a result, numerous policy decisions in the past have been approved
either without prior consultation from stakeholders or without full disclosure of its
details in public forums, thereby compromising the ideals of participative policy-
making and transparency

This bill seeks to address all that. Specifically, this measure aims to
provide for the institutionalization of the participatory mechanisms for concerned
stakeholders by including at least one (1) representative coming from consumer
groups belonging to the sector being regulated by the government regulatory
body concerned, amending the charters creating the following regulatory bodies:

1. Land Transportation and Franchising Regulatory Board (LTFRB);
2. Toll Regulatory Board (TRB);

3. Energy Regulatory Commission (ERC);

4. Manila Waterworks and Sewerage System (MWSS); and

5. National Telecommunications Commission (NTC)

It calls for the creation of the position of Consumer Group Representative,
who will sit at the Governing Boards of these regulatory bodies.

Once this bill is enacted into law, the public, as a consumer, would be
well-represented in the Governing Boards of these regulatory bodies when they
formulate public policy, particularly with regards to the approval of rate increases
in the sector they regulate.

The bill also aims to prevent malicious activities and grave abuse of
discretion committed by those who sit on the affected regulatory bodies because


they will no longer be left unchecked as representatives of sectors concemed will
have direct participation over decision-making affairs at the top level

In view of the foregoing, the expeditious passage of this bill into law is
earnestly sought.

DIOSDADO GAL ARROYO GLORIA MACAPAGAL ARROYO
Second District, Camarines Sur Second District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Third Regular Session

House Bill No. _O 4

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
PROVIDING FOR CONSUMER GROUP REPRESENTATION IN THE
GOVERNING BOARDS OF GOVERNMENT REGULATORY BODIES
AMENDING FOR THE PURPOSE THEIR RESPECTIVE CHARTERS, AND.
FOR OTHER PURPOSES.

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

SECTION 1. Title. - This Act shall be known as “Consumer Group
Representation in Regulatory Bodies Act of 2012."

SECTION 2. Declaration of Policy. — Pursuant to the constitutional
mandate that the right of the people and their organizations to effective and
reasonable participation at all levels of social, political, and economic decision-
making shall not be abridged, and the State shall, by law, facilitate the
establishment of adequate consultation mechanisms, the State shall:

a) prevent the concentration of power and information in a few
persons/government organizations;

b) adopt and implement a policy of full public disclosure of all its
transactions involving public interest thereby promoting transparency and
accountability; and


c) ensure the protection and advancement of consumer welfare by
mandating the inclusion of consumer group representatives in the
Governing Boards of government regulatory bodies.

SECTION 3. Consumer Group. — For purposes of this Act, a consumer
group shall refer to a representative organization, registered under the Securities
and Exchange Commission (SEC), which has been established and organized to
cater to a national constituency, and whose mandate includes the protection of
the interests and rights of consumers in a specific sector that is being regulated
by a government regulatory body.

SECTION 4. Coverage. — The Governing Boards of the following
government regulatory bodies shall include at least one (1) member who shall
represent the consumer group belonging to the sector being regulated by the
government regulatory body concerned:

a) Land Transportation and Franchising Regulatory Board, created by
Executive Order No. 292;

b) Toll Regulatory Board, created by Presidential Decree No. 1112;
c) Energy Regulatory Commission, created by Republic Act No. 9136;

d) Manila Waterworks and Sewerage System, created by Executive Order
No. 1036;

e) National Telecommunications Commission, created by Executive Order
No. 546;

Such member of the respective governing boards of the aforementioned
government regulatory bodies shall be called the Consumer Group
Representative.

The Consumer Group Representative shall perform the same functions,
shall have the same voting rights, shall be paid the same salaries, remunerations
and emoluments, and enjoy the same privileges as those enjoyed by the other
members of the Governing Board of the concerned government regulatory
authority.

SECTION 5. Qualifications of Consumer Group Representative. - No
person shall be appointed as a Consumer Group Representative unless he is a
natural born citizen of the Philippines, at least thirty (30) years of age, able to
read and write, a bona fide member of the Consumer Group which he seeks to
represent for at least two (2) years prior to his appointment, and has never been
convicted of any administrative, civil or criminal offense involving moral turpitude.


The Consumer Group Representative should also have at least five (5)
years of known advocacy in the consumer sector he represents.

If, at any time during his appointment, the Consumer Group
Representative ceases to be a bona fide member of his respective consumer
group through expulsion, resignation, or any manner of removal sanctioned by its
organizational by-laws, the position of Consumer Group Representative shall
automatically be declared vacant and shall be filled up accordingly by initiating
the appointment process as herein provided

SECTION 6. Appointing Authority. — The President of the Republic of the
Philippines shall appoint the Consumer Group Representative subject to the
qualifications as herein provided, and to the limitations and prohibitions under
existing laws and statutes.

SECTION 7. Implementing Rules and Regulations. — The Department of
Budget and Management (DBM) and the government regulatory agencies as
enumerated under Section 4 of this Act shall formulate and issue the necessary
implementing rules and regulations for the effective implementation of this Act
within sixty (60) days after the effectivity of this Act.

SECTION 8. Separability Clause. — If any part or provision of this Act shall
be held to be unconstitutional or invalid, other parts or provisions hereof which
are not affected thereby shall continue to be in full force and effect.

SECTION 9. Repealing Clause. — All laws, decrees, executive orders,
rules and regulations, or parts thereof which are inconsistent with this Act are
hereby repealed, amended or modified accordingly

SECTION 10. Effectivity. — This Act shall take effect fifteen days (15) days

following its publication in at least two (2) newspapers of general circulation or
the Official Gazette.

Approved,