Republic of the Philippines
HOUSE OF REPRESENTATIVE!
Quezon City, Metro Manila

THIRTEENTH CONGRESS

First Regular Session

276

HOUSE BILL No.

Introduced by Honorable Jose C. De Venecia, Jr.

EXPLANATORY NOTE

‘The National Government (NG) deficit increased from 1.9% of Gross Domestic Product
(GDP) in 1998 to as much as 4.6% in 2003. A persistent deficit creates doubt within the
financial markets on government's ability to repay its debt, thus, pushing the cost of
botrowing even higher. The makings of a financial crisis increasingly threatens the entire
economy until a point is reached when business confidence is lost and creditors refuse to
lend any further.

Thus, it is very important to dramatically reduce the NG deficit. One way is to cut on
public expenditures. However, this runs counter to the need for mote public investments—
particularly on health, education and infrastructure—to combat poverty and encourage
economic development. To reduce the deficit without compromising development
spending, government needs to significantly improve tax collection particularly the Bureau
of Internal Revenue (BIR) which accounts for about 80% of total tax collection.

Past efforts to reorganize the BIR have proven to be shortlived because they were
authorized by mere administrative fiat. At present, the BIR is hampered by at least three
fundamental institutional constraints: (a) rigid personnel management system where
promotion is based merely on loyalty and seniority rather than exemplary performance (¢..,
exceeding the revenue target); (b) compensation structure that restricts the hiring of first-rate
professionals; and (c) strict line-item budgeting that limits the flexibility in the allocation of
funds.

‘There is an urgent need for Congress to create a Revenue Authority to address the growing
taxpayer dissatisfaction particularly over front-line services, high level of tax
evasion/avoidance, and increasing perception of systemic corruption in the Bureau. It is
expected that the new Authority shall be free from political interference in terms of
decisions pertaining to revenue rulings, audit and assessment, personnel management, and
budgeting.

“The proposed bill shall have the following salient features:

(1) The Authority shall be governed by a Revenue Board composed of four representatives
from the government and three from the private sector. The government



@

6)

@

representatives shall include the heads of the Department of Finance (ar Chairperson),
the Department of Budget and Management, the National Economic Development
Authority and the Securities and Exchange Commission. Private sector representatives
shall be nominated by peak professional organizations, and appointed by the President
of the Philippines. ‘They must be recognized experts in the fields of economics,
accounting, law, business management and other allied professions. The members of
the Board shall serve for a fixed term of office with different periods of expity to avoid
disruption of services, to prevent abandonment of approved plans/programs and to
limit reversal of revenue rulings and regulations.

The Revenue Authority shall be headed by a Chief Executive Officer (CEO)
responsible for the preparation of the following: work program, organizational
structure, annual budget, compensation package, and appointment of rank and file
employees, among many others. ‘The CEO shall be appointed by the Revenue Board
for a period of three years with possible reappointment under a performance-based
contract.

‘The Authority shall receive an annual service fee of not less than 1% but not more than
2% of total collection of the immediate preceding year, net of local government shares.

Selection of personnel for the new Revenue Authority shall be strictly based on merit
and fitness. An attractive separation retirement package shall be offered to those who
opt not to join the new Authority.

To balance the budget by 2009, it is imperative that tax collection effort significantly
improves. In this light, the creation of an independent Revenue Authority should be
pursued.

E C, DE VE! JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

THIRTEENTH CONGRESS

First Regular Session

& » 276

House Bill No.

ee
BY REPRESENTATIVE JOSE C. DE VENECIA, JR.
EEE

AN ACT CREATING THE NATIONAL REVENUE AUTHORITY,
PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES

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 and cited as the “National
Revenue Authority Act of 2004.”

SEC. 2. Declaration of Poli. ~ It is the policy of the State to reform tax administration
to meet the resource needs of government, satisfy the requirements of taxpayers as
customers, and help ensure the efficient and effective collection of taxes by the
Government. Towards this end, the State shall create an internal revenue agency that shall
be endowed with fiscal and administrative powers necessary to discharge its mandate with
excellence.

SEC. 3. Creation of the National Revenue Authority; Corporate Powers. ~ Thete is hereby
established a public organization to be known as the National Revenue Authority,
hereinafter referred to as the Authority, which shall be responsible for the implementation
of internal revenue laws and shall be attached to the Department of Finance (DOF). It
shall be organized within one hundred eighty (180) days from the effectivity of this Act.

‘The Authority shall have its principal place of business in Metro Manila and may
establish branches and offices in such other places as may be deemed necessary for the
performance of its mandate.

SEC. 4 Responsibility and Primary Objective, - The primary responsibility and objective of
the Authority is to raise revenues to finance the operations of the Government consistent
with fiscal policy and revenue collection targets.

SEC. 5. Powers and Functions, - The Authority shall exercise the powers and duties
heretofore exercised by the Bureau Internal Revenue under the National Internal Revenue
Code of 1997, hereinafter referted to as the Code, and other laws. Such powers and dunes
shall comprehend the assessment and collection of all national internal revenue taxes, fees,


and charges, and the enforcement of all forfeitures, penalties, and fines connected therewith,
including the execution of judgments in all cases decided in its favor by the Court of Tax
Appeals and the ordinary courts. The Authority shall give effect to and administer the
supervisory and police powers conferred to the Bureau of Internal Revenue by the Code
and other laws.

The officials and employees of the Authority shall be hired on a fixed term
performance-based contracts.

In addition, the Authority shall have the following corporate powers: to adopt, alter,
and use an official seal which shall be judicially noticed; to enter into contracts; to lease or
own real and personal property; and to sell or otherwise dispose of the same; incur
obligations necessary in the conduct of its operations; and to perform any and all acts
necessary ot proper to carry out the purposes of this Act.

‘The Authority may acquire and hold such assets and incur such liabilities in
connection with its operations authorized by the provisions of this Act and other laws, of as
are essential to the proper conduct of such operations.

SEC. 6. Capitalization. - The Authority shall have an authorized capital of Ten Billion
Pesos (PhP 10,000,000,000) which shall be fully subscribed by the Republic of the
Philippines and shall be paid up by the transfer to the Authority of assets valued in such
amount. Initially, the national government shall transfer to the Authority such assets as may
be determined pursuant to Section 19 of this Act.

SEC. 7. Service Fee, — The Authority shall receive an annual service fee from the
Government for services rendered in the discharge of its mandate. Subject to the
recommendation of the Development Budget Coordinating Committee (DBC) created
under E.O. No. 232, s. of 1970, as amended, said fee shall not fall below one percent (1%)
Ror go beyond two percent (2%) of revenues collected in the immediately preceding
calendar year, net of collections accruing to Local Government Units, including Internal
Revenue Allotment (IRA), and other agencies: Provided, however, That in the initial year of
operation, the service fee shall be 2% of net revenues collected in the immediately preceding
year. Said amount shall be appropriated in the annual General Appropriations Act.

The Authority shall likewise be entitled to five percent (5%) of annual collections in
excess of its annual collection target set by the DBCC: Provided, however, That no postion of
the performance bonus shall accrue to members of the Revenue Board.

SEC. 8. Composition of the Revenue Board; Qualfications of Members. — (a) ‘There is hereby
created a Revenue Board, hereinafter referred to as the Board, composed of the Secretary
of Finance, as chairperson, and the following as members: the Director-General of the
National Economic Development Authority, Secretary of the Budget and Management, and
the Chairperson of the Securities and Exchange Commission, all of whom shall serve ex
aficio and with no compensation, and three (3) representatives from the non-government
sector to be appointed by the President, who shall serve full-time for a term of three (3)


years, and may be reappointed once: Provided, however, That reappointment of representatives
from the non-government sector shall follow the nomination process outlined in this
Section.

(©) The three members from the non-government sector shall include an economist,
an accountant, and a lawyer. Each shall be selected and appointed by the president from a
pool of candidates to be nominated by peak professional organizations of economists,
accountants, and lawyers, respectively, which must have been in existence for at least ten
(10) years. A “peak professional organization” refers to an organization duly recognized by
members as representative of, and having the largest active membership in their profession
The mechanics of the nomination process shall be provided for in the Implementing Rules
and Regulations for this Act.

(©) OF the initial members appointed from the non-government sector, the first
appointee shall serve for three (3) years, the second for two (2) years, and the third for (1)
year.

() Whenever the chairperson or any of the members serving in ex affiio capacity is
unable to attend a meeting of the Board, the representative shall be an Undersecretary or its
equivalent rank: Provided, That the highest ranking «x offcio member present shall preside
over the meeting in case the chairperson is absent.

(© A member from the non-government sector shall be a natural-born citizen of the
Philippines, at least forty (40) years of age, of good moral character, known for honesty and
patriotism, of unquestionable integrity, and a recognized expert in the field of taxation, fiscal
policy, public finance, fiscal administration, accounting, management , or law: Provided,
however, That such members shall not have been employees of the Bureau of Internal
Revenue ot the Authority created under this Act within the last ten (10) years prior to their
appointment: Provided, further, ‘That no person who has been connected as a director,
partner, officer, lawyer, accountant, consultant or in any other capacity with individuals,
general professional partnerships, or professional corporations who prepare and file tax
returns, statements, protests and other papers with, or who appear before , the Authority
shall be appointed within one (1) yeat from the cessation of such connection. An
appointment to fill the vacancy created by the death, resignation or removal of a member
from the non-government sector shall only be for the unexpired period of such member's
term.

(® The President of the Philippines shall initially fix the compensation of the members
from the non-government sector based on an objective classification system, to be specified
in the Implementing Rules and Regulations of this Act, at a sum commensurate to the
importance and responsibilities attached to the position. The Board may increase such
compensation: Provided, however, ‘That the increase shall not affect the compensation of a
member during whose incumbency the increase was approved for the duration of such
member's term.



SEC. 9. Powers of the Revenue Board. - The Revenue Board shall:

@) Adopt and promulgate policies and rules for the effective enforcement of the
provisions of the Code, this Act, and other revenue laws;

(b) Upon the recommendation of the CEO, approve the annual and supplemental
budget of receipts and expenditures of the Authority, and authorize such operating and
capital expenditures of the Authority as may be necessary or proper for the effective
management, operation and administration of the Authority;

(© Form committees, including an executive committee, that shall assist the Board in
the performance of its functions: Provided, however, That no person shall be appointed to the
executive committee who has been employed within the past ten (10) years by the Bureau of
Internal Revenue or the Authority created under this Act;

@ Exercise such powers and perform such other acts as may be necessary, useful,
incidental or auxiliary to carty out the provisions of this Act, or to perform the purposes
and objectives of this Act.

All references in the Code and other revenue laws, and in the rules and regulations
issued thereunder, to the Secretary of Finance shall be deemed to refer to the Revenue
Board.

SEC. 10. Conflict of Interest. — In addition to the requirements of Republic Act No
6713, otherwise known as the Code of Ethical Standards, any member of the Board with
personal or pecuniary interest in any matter in the agenda of the Board shall disclose such
interest to the Board and shall inhibit himself during the deliberations when such matter is
taken up. The decision taken on the matter shall be made public and the minutes of the
meeting shall reflect the disclosure made and the inhibition of the member concerned.

SEC. 11. Disqualfications. — In addition to the disqualification imposed by Republic Act
No. 6713, a member of the Board shall be disqualified from being connected as director,
partner, officer, lawyer, accountant, consultant or in any other capacity with individuals,
general professional partnerships, or professional corporations who prepare and file tax
returns, statements, protests and other papers with, or who appear before, the Authority, in
which case such member shall terminate his or her association with such individuals and
resign from, and divest himself ot herself of any and all interests in, such general
professional partnerships, or professional corporations.

Members of the Board from the non-government sector shall not hold any other
public office or employment during their tenure, unless such office or employment is with a
state university or college ot is connected with the performance of their duties as members
of the Board.


SEC. 12, Remoual of Members from the Non-Government Sector, ~ The President may
remove any member of the Board from the non-government sector for any of the following
reasons:

(@) The member suffers from physical or mental incapacity that renders him or her
incapable of properly discharging the duties and responsibilities of membership in the Board
and such incapacity has lasted for more than six (6) months; or

(b) The member has committed acts or operations that are shown prima facie to be
fraudulent or illegal or manifestly opposed to the aims and interests of the Authority;

(©) The member no longer possesses the qualifications specified in Section 8 of this
Act; ot

(@ The member is subsequently disqualified under the provisions of existing law.

SEC. 13. Mertings. - The Board shall meet at least twice a month. The Board may be
called to a meeting by the chairperson or by three (3) other members of the Board.

The presence of four (4) members shall constitute a quorum: Provided, ‘That in all cases
the chairperson or the chairperson’s duly designated alternate shall be among the four (4)

Alll decisions of the Board shall require the concurrence of at least four (4) members.

‘The Authority shall maintain and preserve a complete record of the proceedings of the
Board, including the tapes and transcripts of the stenographic notes, either in their original
form, in microfilm, or in any electronic medium,

SEC. 14. The Chief Executive Officer; Qualifications; Appointment; Term of Offise. - The
Authority shall be headed by a Chief Executive Officer, hereinafter referred to as CEO, who
shall be a natural-born citizen of the Philippines, of good moral character, known for
honesty and patriotism, of unquestionable integrity, with at least seven (7) years experience
in management, and a recognized expert in the field of taxation, finance, fiscal
administration, economics, public administration ot public finance.

‘The CEO of the Authority shall be appointed by the Board from a list of at least three
@) nominees prepared by a selection committee created by the Board and chaired by a
member of the Board, for a term of three (3) years; Provided, That the incumbent
Commissioner of the Bureau of Internal Revenue as of the date of the approval of this Act
shall not be qualified to serve as CEO of the Authority except in a holdover capacity
pending the appointment of the CEO. The CEO shall enter into a performance contract
with the Board and maybe re-appointed depending on the CEO's performance: Provided,
‘however, That no person may be appointed as CEO for more than three (3) terms. In
addition to other grounds for removal as may provided for by law, the CEO may be
removed by a majority vote of all the members of the Board prior to the end of the CEO's



3-year term for failure to meet commitments in the performance contract, unless such
failure is attributable to a cause or causes beyond the CEO's control.

SEC. 15. Powers and Functions of the CEO. - The CEO of the Authority shall exercise
the powers and functions of the Commissioner of the Internal Revenue under Sections 4, 5,
6, 7, 8, 14, 15, 16, 17, 19, 20, and other provisions of the National Internal Revenue Code of
1997. In addition, the CEO shall:

@) Execute, administer and implement the policies and measures approved by the
Board;

(b) Direct and supervise the operations and administration of the Authority;

(©) Represent the Authority in all dealings with offices, agencies and instrumentalities
of the Government and with all persons and entities, public or private, domestic ot foreign;

(a) Direct and supervise the preparation of the agenda for the meeting of the Board,
and to submit for the consideration of the Board such policies and measures as he or she
believes necessary to carry out the purposes and objectives of this Act;

(©) Promulgate, with the approval of the Board, all necessary rules and regulations for
the effective enforcement of the provisions of the Code, this Act and other revenue laws;

() Determine the organizational structure, including the geographical location of the
branches and offices, of the Authority; recognize its personnel; and issue such rules and
regulations, as he ot she may deem necessary ot convenient for these purposes;

@ Establish a performance-based management system which shall govern the
selection, hiring, appointment, transfer, promotion or dismissal of all personnel. Such
system shall aim to attract and retain professionally competent, well-trained, honest,
courteous and efficient personnel and to establish professionalism and excellence at all
levels of the Authority.

All positions in the Authority shall be governed by a compensation and position
classification system and qualification standards approved by the Board based on a
comprehensive job analysis and audit of actual duties and responsibilities. The Board shall
have the authority to establish a compensation plan for the Authority; Provided , however ,
That the total personal services budget of the Authority shall not be more than sixty percent
(60%) of its total operating budget.

Appoint, fix the remuneration and other emoluments, and remove personnel of the
Authority; Provided, That the Board shall have final appellate authority in cases involving
promotion, transfer, assignment, or reassignment of personnel of the Authority and these
personnel actions ate deemed made in the interest of the service and not disciplinary;


(h) Provide for the continuing education and taining of Authority officials and
employees. Por this putpose, the Authority may establish a training institute or enter into
agreements with institutions of higher leaming in the country for the establishment of
ezaining programs for its technical personnel in the field of taxation, tax administeation and
elated fields, The Authority is Hkewise authorized to defray the costs of study, at home or
abroad, of qualified employees of the Authority, of promising university graduates ot of any
other qualified petsons who shall be determined by proper competitive examinations

@ To exercise such other powers and functions as may be vested in the CEO by the
Board.

The CEO shall have the authority to delegate any of the foregoing powers to such
official ot officials of the Authority, as he or she may deems necessary.

Alll references in the Code and other revenue laws, and in the rules and regulations
issued thereunder, to the Commissioner of the Internal Revenue shall be deemed to refer to
the CEO.

SEC. 16. Salary of the CEO, ~The Board shall fix the salary of the CEO based on an
objective classification system to be specified in the Implementing Rules and Regulations of
this Act at a sum commensutate to the importance and responsibilities attached to the
position.

SEC. 17. Indemnification for Legal Definse Costs and Expenses. — Section 227 of the
National Internal Revenue Code is hereby amended to read as follows:

“The National Revenue Authority shell indemnify members of the Revenue Board
and other officials of the National Revenue Authority, including personnel of the units
performing ascessment, audit and collection functions against all costs and expenses
reasonably incurred by such persons in connection with any civil or ctiminal action, suit or
proceeding to which they may be or made a party by reason of their performance of theit
functions ot duties, unless they are finally adjudged in such action ot proceeding to be liable
for gross negligence ot misconduct.

“In the event of settlement of compromise, indemnification shall be provided only in
connection with such matters covered by the settlement as tw which che National Revenue
Authority is advised by external counsel that che persons to be indemnified did not commit
any gross negligence or misconduct,

“The costs and expenses incurred in defending the aforementioned action, suit or
proceeding may be paid by the National Revenue Authority in advance of the final
disposition of such action, suit or proceeding upon receipt of an undertaking by or on
behalf of the member of the Revenue Board, official or employee to repay the amount
advanced should it ultimately be detetmined by the National Revenue Authority that said
member of the Revenue Board, official or employee is not entitled to be indemnified as
provided in this Section.”



SEC. 18. Implementing Details. - The Authority shall be made operational by the
performance of the following acts:

(a) The President shall constitute the Revenue Board by appointing the members
thereof within one hundred eighty (180) days from the effectivity of this Act; and

(b) The completion of the transfer of such assets and liabilities of the Authority as
provided in the succeeding Section.

SEC. 19. Transfer of Assets. — (a) Upon the effectivity of this Act, a Committee
composed of the Chairperson and ex offids members of the Revenue Board and the
Chairpersons of the Committees on Ways and Means of the Senate and the House of
Representatives shall determine the assets of the Bureau of Internal Revenue which shall be
transferred to the Authority. The Committee shall hire the services of an independent
appraiser to determine the value of the assets to be transferred to the Authority.

(©) The Committee shall complete its work within ninety (90) days from the
constitution of the Board. It shall submit a comprehensive report of its findings and
justifications to Congress and the President within fifteen (15) days from the completion of
its work.

SEC. 20. Mandate to Organize. ~ (a) The Authority shall be organized by the Board, by
adopting if it so desires, an entirely new organizational structure or staffing pattern to suit
the operations of the Authority under this Act. No preferential or priority right shall be
given to or enjoyed by any personnel for appointment to any position in the new staffing
pattern, nor shall any personnel be considered as having prior or vested rights with respect
to retention in the Authority or in any position which may be created in the new staffing
pattern, even if such personnel should be the incumbent of a similar position prior to
organization. Selection shall be based strictly on merit and fitness and applicants may
likewise be subject to lifestyle checks to ensure their suitability for appointment to the new
organization. The formulation of the program of organization shall be completed within six
(© months after the effectivity of this Act, and shall be fully implemented within a period of
six (6) months thereafter, both of which periods shall be collectively referred to as the
transition period. Personnel who may not be retained are deemed separated from the
service.

(b) Subject to the preceding paragraph and to minimize the disruption of internal
revenue administration during the transition period, all incumbent personnel in the Burcau
of Internal Revenue as of the date of the approval of this Act shall continue to exercise their
duties and functions as personnel of the Authority. To help ensure that revenue targets are
met during the same period, and in addition to the provisions of Section 285 of the National
Internal Revenue Code, an additional amount equivalent to five percent (5%) of the excess
in collection targets for the said period shall be used to pay separation benefits authorized
under the succeeding Section and shall likewise be treated as receipts appropriated for this
purpose, Towards the same end, the hiring of auditors, suspension of assessments,



institution of voluntary assessment programs, and similar measures are hereby authorized
during the transition period to augment revenue collection

SEC. 21. Separation Benefits, — The officials and employees of the former Bureau of
Internal Revenue who are separated from the service as result of the organization of the
‘Authority shall be allowed to retire or be separated from the service under existing laws:
Provided, T+G6hat in no such case shall any employee displaced or separated from the service
as a result of this Act, shall receive less than One Hundred Thousand Pesos (Php
100,000.00) as separation benefit. The methodology that shall govern the implementation
of the said program shall be provided in the IRR.

SEC. 22. Transfer of Powers. — All powers, duties and functions bested by law in the
Bureau of Internal Revenue shall be deemed transferred to the Authority. The powers,
duties and functions vested by the National Internal Revenue Code of 1997 and other
revenue laws in the Deputy Commissioners, Service Chiefs, Assistant Service Chiefs,
Revenue Regional Directors, Assistant Revenue Regional Directors, Chiefs and Assistant
Chiefs of Divisions, Revenue District Officers, special deputies of the Commissioner,
internal revenue officers and other employees of the Bureau of Internal Revenue shall be
deemed transferred to the officers and employees of the Authority who are appointed to
exercise the same powers, duties and functions as the abovementioned Bureau of Internal
Revenue officers and employees: Provided, however, That pursuant to the power of the CEO
to determine the organizational structure of the Authority and to reorganize its personnel
under Section 11 of this Act, the positions and bodies mentioned in Sections 7, 9, 10, 11, 13,
14, 15, 51(B), 58(A), 77((A), 81, 90(D), 95, 105(B), 114(B), 128(B), 130(A)(3), 130 (A)(4)(b),
163, 164, 16, 171, 172, 196, 200(C), 202, 204, 206, 207(A), 207(B), 209, 213, 214, 215, 227,
236(A), 236(B), 236(B), 236(F), 236(G), 236()), 241, 242, 245(a), 245(€), 245(), 248, and 271
of the National Internal Revenue Code of 1997 may be changed, abolished, combined with
another position or body, or substituted with another and the powers and functions granted
by these provisions to said positions and bodies may be performed by such officials or
employees deemed appropriate by the CEO: Provided, further, That for purposes of
applications for abatement, cancellation, and compromise under Section 204 of the Code,
the Revenue Board shall be authorized to fix the terms and conditions, including the levels
of approving authority and the creation of committees to process said applications.

All references to the Bureau of Internal Revenue in the National Internal Revenue
Code of 1997 and other revenue laws, and in the rules and regulations issued thereunder
shall be deemed to refer to the National Revenue Authority.

SEC. 23. Applicability of Probibitions and Sanctions; Administrative Complaints, — ‘The
penalties imposed on officials, agents or employees of the Bureau of Internal Revenue who
are guilty of the offenses enumerated in the National Internal Revenue Code of 1997 and
other criminal statutes shall be applied to members of the Revenue Board and officials,
agents and employees of the Authority who are found guilty of such offenses.

For purposes of administrative complaints against officers and employees of the
Authority, an internal audit unit to be created by and reporting directly to the Board shall



conduct the investigations on such complaints. For this purpose, such internal audit unit
shall be deemed deputized by the Office of the Ombudsman under Republic Act No. 6770.

SEC. 24. Repealing Clause. — The provisions of Sections 18, 19, 20, 21 and 22 of
Chapter 4, Title II, Book IV of Executive Order No. 292, otherwise known as the
Administrative Code of 1987, are hereby repealed. The provisions of Title I of the National
Internal Revenue Code of 1997 insofar as they are inconsistent with the provisions of this
Act, are hereby r repealed or amended accordingly. ‘The other provisions of the Code,
including Sections 51(B), 58(A), 77(A), 81, 90(D), 95, 103(B), 114(B), 128(B), 130(A)(3),
130(A)(4)(b), 163, 164, 166, 171, 172, 196, 200(C), 202, 204, 206, 207(A), 207(B), 209, 213,
214, 215, 227, 236(A), 236(B), 236(E), 236(F), 236(G), 2369), 241, 242, 245(a), 245(6),
245(), 248, 271, and 285 are hereby amended, and those other laws, niles and regulations in
consistent with this Act ate hereby repealed or modified accordingly.

SEC. 25. Separability Clause. — If any provision ot section of this Act is held invalid, the
other provisions and sections not affected thereby shall remain in full force and effect.

SEC. 26. Eifctvity Clause. ~ This Act shall take effect fifteen (15) days following its
publication in the Oficial Gazete or in two (2) newspapers of general circulation.

Approved.