EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Second Regular Session
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SENATE
S.B. No. 1760
TIME
NDfcX
Introduced by SEN. IMEE R. MARCOS
AN ACT ESTABLISHING THE DRUG PRICE REGULATORY BOARD TO 
REGULATE THE PRICES OF DRUGS AND MEDICINES IN THE PHILIPPINES 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9502, OTHERWISE 
KNOWN AS THE "UNIVERSALLY ACCESSIBLE CHEAPER AND QUALITY 
MEDICINES ACT OF 2008" AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Article II, Section 15 of the 1987 Constitution provides that the State shall protect 
and promote the right to health of the people and instill health consciousness among 
them.
Article XIII, Sections 11 and 12 of the Constitution further mandate that "the State 
shall adopt an integrated and comprehensive approach to health development which shall 
endeavor to make essential goods, health and other social services available to all the 
people at affordable cost. There shall be priority for the needs of the under-privileged, 
sick, elderly, disabled, women, and children. The State shall endeavor to provide free 
medical care to paupers." "The State shall establish and maintain an effective food and 
drug regulatory system and undertake appropriate health manpower development and 
research, responsive to the country's health needs and problems."
The enactment of Republic Act No. 9502, otherwise known as the Universally 
Accessible Cheaper and Quality Medicines Act of 2008 has lowered the prices of medicines 
In the country. However, the Department of Health admitted that while the general trend 
in the prices of generic essential medicines have gone down in recent years, the 
Philippines is still paying higher prices when compared internationally. Generic drugs are 
still sold up to four times the international reference prices whereas branded innovator 
products are sold up to 22 times higher, especially In private hospitals and pharmacies.
This bill seeks to create an inter-agency Drug Price Regulatory Board (hereafter 
referred as the Board) to regulate the prices of drugs and medicines in the Philippines, in 
lieu of the Drugs and Medicines Price Monitoring and Regulation Authority of the Secretary 
of the Department of Health. The inter-agency composition of the Board ensures a broad 
spectrum of ideas, viewpoints and administrative powers in addressing the issue of 
affordability and accessibility of drugs and medicines In the country.


The bill also seeks to strengthen the procurement of cheaper drugs and medicines 
by the government through the creation of a trust fund to be utilized for parallel drug 
importation and other procurement arrangements. The Board is empowered to require 
pharmaceutical distributors to buy or obtain under any other form of arrangement, 
reasonable quantity of drugs and medicines procured by the government. The Board can 
also mandate up to 15% of a drug or medicine procurement of large pharmaceutical 
distributors to be allotted to a particular generic drug and medicine, thereby ensuring 
affordability and accessibility of medicines for our countrymen.
Thus, the passage of this bill is earnestly sought.
IMEE R. MARCOS


tr-
EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Second Regular Session
)
)
)
SENATE
S.B. No. 1760
Introduced by SEN. IMEE R. MARCOS
DATE
TIME
AN ACT ESTABLISHING THE DRUG PRICE REGULATORY BOARD TO 
REGULATE THE PRICES OF DRUGS AND MEDICINES IN THE PHILIPPINES 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9502, OTHERWISE 
KNOWN AS THE "UNIVERSALLY ACCESSIBLE CHEAPER AND QUALITY 
MEDICINES ACT OF 2008" AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of die Philippines in Congress 
assembled:
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SECTION 1. Chapter 3 of Republic Act No. 9502 will now be titled,yyDrugs and 
Medicines Price Regulatory Board"
SEC. 2. Section 17 of Republic Act No. 9502 is hereby deleted and a new 
Section 17 is hereby Inserted to read as follows:
"SEC. 17. CREATION AND COMPOSITION OF THE DRUG 
PRICES REGULA TION BOARD.
a) THERE IS HEREBY CREATED THE DRUGS PRICES REGULATION 
BOARD, WHICH SHALL BE ATTACHED TO THE DEPARTMENT OF 
HEALTH AND COMPOSED OF SEVEN (7) MEMBERS AS FOLLOWS:
1) SECRETARY OF HEALTH OR HIS DULY DESIGNATED 
REPRESENTATIVE AS CHAIRPERSON;
2) SECRETARY OF TRADE AND INDUSTRY OR HIS DULY 
DESIGNATED REPRESENTATIVE AS VICE-CHAIRPERSON;
3) DIRECTOR, FOOD AND DRUGS ADMINISTRATION OR HIS 
DULY DESIGNATED REPRESENTATIVE AS MEMBER;
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4) CHAIRMAN, PHILIPPINE HEALTH INSURANCE 
CORPORATION AS MEMBER;
5) ONE (1) ECONOMIST FROM THE ACADEME AS MEMBER; AND
6) TWO (2) REPRESENTATIVES FROM THE CONSUMERS' 
SECTOR AS MEMBERS.
b) THE MEMBERS OF THE BOARD REPRESENTING THE ACADEME 
AND THE CONSUMERS' SECTOR SHALL BE APPOINTED BY THE 
PRESIDENT OF THE PHILIPPINES AND SHALL SERVE FOR A 
TERM OF TWO (2) YEARS: PROVIDED, THAT THE 
REPRESENTATIVES FROM THE CONSUMERS' SECTOR SHALL NOT 
BE ELIGIBLE FOR REAPPOINTMENT FOR ANOTHER TERM."
SEC. 3. Section 18 of Republic Act No. 9502 is hereby deleted and a new 
Section 18 is hereby inserted to read as follows:
"SEC. 18. POWERS OF THE BOARD. - THE BOARD SHALL 
HAVE THE FOLLOWING POWERS:
a) 
POWER TO DETERMINE THE MAXIMUM RETAIL PRICE
OF DRUGS OR MEDICINES SUBJECT TO PRICE REGULATION -
(1) UPON APPLICATION OR MOTUPROPIOVIHEH THE PUBLIC 
INTEREST SO REQUIRES, THE BOARD SHALL HAVE THE 
POWER TO REGULATE THE RETAIL PRICES OF DRUGS AND 
MEDICINES LISTED UNDER SECTION 26 HEREOF, 
INCLUDING THEIR DOSAGE FORM AND PACKING, AND, IN 
ORDER THAT THEY SHALL BE MADE AVAILABLE TO THE 
PUBLIC AT AFFORDABLE RETAIL PRICE FROM THE 
DIFFERENT MANUFACTURERS, IMPORTERS, TRADERS, 
DISTRIBUTORS, WHOLESALERS OR RETAILERS AND AFTER 
A PROPER DETERMINATION AS THE BOARD MAY DEEM FIT, 
FIX FROM TIME TO TIME, BY PUBLICATION THE MAXIMUM 
RETAIL PRICE AT WHICH SUCH FORMULATIONS SHALL BE 
SOLD;
(2) NO RETAILER SHALL SELL DRUGS AND MEDICINES AT A 
RETAIL PRICE EXCEEDING THE MAXIMUM RETAIL PRICE 
FIXED BY THE BOARD: PROVIDED, THAT UNTIL THE 
MAXIMUM RETAIL PRICE OF DRUGS AND MEDICINES 
SUBJECT TO PRICE REGULATION IS FIXED BY THE BOARD, 
THE RETAIL PRICE THEREOF SHALL BE THE PRICE WHICH


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PREVAILED IMMEDIATELY BEFORE THE EFFECnVTTY OF 
THIS ACT AND NO MANUFACTURER, IMPORTER, TRADER, 
DISTRIBUTOR, WHOLESALER OR RETAILER OF SUCH DRUG 
OR MEDICINE SHALL SELL THE SAME AT A RETAIL PRICE 
EXCEEDING THE PRICE PREVAILING IMMEDIATELY 
BEFORE THE EFFEdlVITY OF THIS ACT.
FOR PURPOSES HEREOF, DRUGS AND MEDICINES 
SHALL INCLUDE BUT IS NOT LIMITED TO SINGLE- AND 
MULTI-INGREDIENT MEDICINES INCLUDED IN THE 
PHILIPPINE NATIONAL DRUG FORMULARY (PNDF) 
ESSENTIAL DRUG LIST AND SOLD UNDER THEIR GENERIC 
AND BRAND NAMES.
b) POWER TO INCLUDE OTHER DRUGS OR MEDICINES IN THE LIST 
SUBJECT TO PRICE REGULATION. - UPON APPLICATION OR 
MOTUPROPIO WHEN THE PUBLIC INTEREST SO REQUIRES AND 
AFTER PROPER DETERMINATION, THE BOARD MAY ORDER THE 
INCLUSION OF DRUGS AND MEDICINES TO THE LIST SUBJECT 
TO PRICE REGULATION UNDER SECTION 26 HEREOF.
c) POWER TO IMPLEMENT COST-CONTAINMENT AND OTHER 
MEASURES -
1) THE BOARD SHALL HAVE THE POWER TO DETERMINE 
THE FAIR PRICE OF DRUGS OR MEDICINES FOR 
PURPOSES OF PUBLIC HEALTH INSURANCE AND 
GOVERNMENT PROCUREMENT; AND
2) THE BOARD SHALL HAVE THE POWER TO IMPLEMENT 
ANY OTHER MEASURES THAT THE GOVERNMENT MAY 
AVAIL OF TO EFFECTIVELY REDUCE THE COST OF DRUGS 
OR MEDICINES THAT SHALL INCLUDE, BUT NOT 
LIMITED TO, COMPETITIVE BIDDING, PRICE-VOLUME 
NEGOTIATIONS, PARALLEL DRUG IMPORTATION AND 
OTHER APPROPRIATE MECHANISMS THAT INFLUENCE 
SUPPLY, DEMAND, AND EXPENDITURES ON DRUGS AND 
MEDICINES.
3) THE BOARD SHALL HAVE THE POWER TO MANDATE UP 
TO 15% OF A DRUG OR MEDICINE PROCUREMENT OF 
LARGE PHARMACEUTICAL DISTRIBUTORS TO BE 
ALLOTTED TO A PARTICULAR GENERIC DRUG AND


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MEDICINE AND/OR REQUIRE PHARMACEUTICAL 
DISTRIBUTORS TO BUY OR OBTAIN UNDER ANY OTHER 
FORM OF ARRANGEMENTS, REASONABLE QUANTITY OF 
DRUGS AND MEDICINES PROCURED BY THE PHILIPPINE 
PHARMA PROCUREMENT, INC. SUCH DRUGS AND 
MEDICINES SHALL BE MADE AVAILABLE TO ALL 
BRANCHES OF THE SAID DISTRIBUTOR WHICH SHALL 
INFORM ANY BUYER OF THE AVAILABILITY, WITH 
CORRESPONDING PRICES, OF THESE DRUGS AND 
MEDICINES SO THAT THE BUYER MAY ADEQUATELY 
EXERCISE HIS/HER OPTION. THE LIST OF THESE DRUGS 
AND MEDICINES SHALL BE POSTED IN A CONSPICUOUS 
PLACE IN THE SAID BRANCHES.
d) POWER TO IMPOSE ADMINISTRA TIVE FINES AND PENAL TIES. 
- AFTER DUE NOTICE AND HEARING, THE BOARD SHALL HAVE 
THE POWER TO SUSPEND OR REVOKE THE LICENSE TO 
OPERATE (LTO), PROFESSIONAL OR BUSINESS LICENSE, AS 
THE CASE MAY BE, OF ANY PERSON, MANUFACTURER, 
IMPORTER, TRADER, DISTRIBUTOR, WHOLESALER, RETAILER, 
OR ANY OTHER ENTITY, AND IMPOSE ADMINISTRATIVE FINES 
IN SUCH AMOUNT AS IT MAY DEEM REASONABLE WHICH 
SHALL IN NO CASE BE LESS THAN TWO HUNDRED THOUSAND 
PESOS (P 200,000.00) NOR MORE THAN FIVE MILLION PESOS 
(P 5,000,000.00) FOR VIOLATIONS OF THE MAXIMUM RETAIL 
PRICE FIXED PURSUANT TO THIS SECTION.
e) OTHER POWERS NECESSARY TO IMPLEMENT PROVISIONS OF 
THIS CHAPTER- THE BOARD SHALL EXERCISE SUCH POWERS 
AND FUNCTIONS AS MAY BE NECESSARY TO IMPLEMENT AND 
ENFORCE THE PROVISIONS OF THIS CHAPTER OF THIS ACT, 
INCLUDING THE POWER TO REQUIRE THE PRODUCTION AND 
SUBMISSION OF RECORDS, DOCUMENTS, BOOKS OF 
ACCOUNT, BILLS OF LADING, INPUT DOCUMENTS, RECORDS 
OF PURCHASE AND SALE, FINANCIAL STATEMENTS, AND SUCH 
OTHER DOCUMENTS, INFORMATION AND PAPERS AS MAY BE 
NECESSARY TO ENABLE THE BOARD TO CARRY OUT ITS 
FUNCTIONS, DUTIES AND RESPONSIBILITIES. ACCORDINGLY, 
EVERY DECEMBER 31st OF EVERY YEAR, EVERY 
MANUFACTURER, IMPORTER, TRADER, DISTRIBUTOR, 
WHOLESALER, AND RETAILER OF DRUG AND MEDICINE


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WHETHER INCLUDED IN OR EXCLUDED FROM THE LIST OF 
DRUGS AND MEDICINES THAT ARE SUBJECT TO PRICE 
REGULATION SHALL FURNISH THE BOARD A LIST, 
CONTAINING ON THE MINIMUM THE CORRESPONDING 
PRICES AND INVENTORY, OF ALL DRUGS AND MEDICINES IT 
MANUFACTURES, IMPORTS, TRADES, DISTRIBUTES, 
WHOLESALES, OR RETAILS AND ALL NECESSARY 
INFORMATION THAT THE BOARD MAY REQUIRE."
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SEC. 4. Section 19 of Republic Act No. 9502 is hereby deleted and a new
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Section 19 is hereby Inserted to read as follows:
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"SEC. 19. MEETINGS OF THE BOARD - THE BOARD SHALL HOLD 
REGULAR MEETING EVERY QUARTER AND SUCH SPECIAL 
MEETINGS AS MAY BE NECESSARY UPON THE REQUEST OF THE 
CHAIRMAN OR UPON THE REQUEST OF AT LEAST TWO (2) OF ITS 
MEMBERS. THE BOARD MAY INVITE CONCERNED PUBLIC AND 
PRIVATE AGENCIES OR ENUTIES TO PARTICIPATE, COMPLEMENT, 
AND ASSIST IN THE PERFORMANCE OF ITS FUNCTIONS."
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SEC. 5. Section 20 of Republic Act No. 9502 is hereby deleted and a new
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Section 20 Is hereby inserted to read as follows:
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"SEC. 20. CREATION OF A SECRETARIAT — THERE IS HEREBY 
CREATED A SECRETARIAT TO BE HEADED BY AN EXECUTIVE 
DIRECTOR TO SUPPORT THE BOARD IN CARRYING OUT ITS 
FUNCTIONS. THE BOARD SHALL PROVIDE FOR THE 
INSTITUTIONAL SETUP, QUALIFICATIONS, AND COMPENSATION 
OF THE EMPLOYEES COMPOSING THE SECRETARIAT IN 
ACCORDANCE WITH EXISTING CIVIL SERVICE AND CAREER 
EXECUTIVE SERVICE RULES AND REGULATIONS AND CONSISTENT 
WITH THE PROVISION OF THE SALARY STANDARDIZATION LAW 
FOR GOVERNMENT PERSONNEL, AND DETERMINE THE SIZE AND 
COMPOSITION OF THE SECRETARIAT."
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SEC. 6. Section 21 of Republic Act No. 9502 is hereby deleted and a new
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Section 21 Is hereby inserted to read as follows:
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"SEC. 21. PROCEDURES FOR INQUIRIES, STUDIES, HEARINGS, 
INVESTIGATIONS, AND PROCEEDINGS. —ALL INQUIRIES, 
STUDIES, HEARINGS, INVESTIGATIONS AND PROCEEDINGS 
CONDUCTED BY THE BOARD SHALL BE GOVERNED BY THE RULES


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ADOPTED BY THE BOARD, AND IN THE CONDUCT THEREOF SHALL
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NOT BE BOUND BY THE TECHNICAL RULES OF EVIDENCE."
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SEC. 7. Section 22 of Republic Act No. 9502 is hereby deleted and a new
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Section 22 is hereby inserted to read as follows:
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"SEC. 22. EFFECnVTTYAND REVIEW OF THE DECISIONS OR
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ORDERS OF THE BOARD. — ALL DECISIONS OR ORDERS OF THE
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BOARD PURSUANT TO SECTION 18 HEREOF, SHALL BE
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IMMEDIATELY OPERATIVE.
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A PARTY ADVERSELY AFFECTED BY A DECISION, ORDER OR 
RULING OF THE BOARD MAY, WITHIN THIRTY (30) DAYS FROM 
NOTICE OF SUCH DECISION, ORDER OR RULING, OR IN CASE OF A 
DENIAL OF A MOTION FOR RECONSIDERATION THEREOF, WITHIN 
FIFTEEN (15) DAYS AFTER NOTICE OF SUCH DENIAL, FILE AN 
APPEAL WITH THE COURT OF APPEALS, WHICH SHALL HAVE 
JURISDICTION TO REVIEW SUCH DECISION, ORDER OR RULING.
THE FILING OF A PEimON FOR A WRIT OF CERTIORARI OR 
OTHER SPECIAL REMEDIES IN THE SUPREME COURT SHALL IN NO 
CASE SUPERSEDE OR STAY ANY DECISION, ORDER OR RULING OF 
THE BOARD, UNLESS THE SUPREME COURT SHALL SO DIRECT, AND 
THE PETITIONER MAY BE REQUIRED BY THE SUPREME COURT TO 
GIVE BOND IN SUCH FORM AND OF SUCH AMOUNT AS MAY BE 
DEEMED PROPER."
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SEC. 8. Section 26 of Republic Act No. 9502 is hereby amended to read as
follows:
"SECTION 26. Display of Maximum Retail Price Fixed [and 
approved by order of the President of the Philippines] by the BOARD 
for Drugs or Medicines Subject to Price Regulation. - (a) Within a 
reasonable period as may be determined by the [Secretary of the Department 
of Health] BOARD, and: Provided, That it conforms to existing drug product 
labeling requirements, every manufacturer, importer, distributor, wholesaler, 
trader, or retailer of a drug and medicine Intended for sale shall display the 
retail price which shall not exceed the maximum retail price fixed by the 
Board. The maximum retail price shall be printed on the label of the 
immediate container of the drug and medicine and the minimum pack thereof 
offered for retail sale with the words "RETAIL PRICE NOT TO EXCEED" 
preceding It, and "UNDER DRUG PRICE REGULATION" on a red strip 
PROVIDED THAT IN CASE OF A CONTAINER CONSISTING OF


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SMALLER SALEABLE PACKS, THE RETAIL PRICE OF SUCH SMALLER 
PACK SHALL ALSO BE DISPLAYED ON THE LABEL OF EACH SMALLER 
PACK AND SUCH PRICE SHALL NOT BE MORE THAN THE PRO RATA 
RETAIL PRICE OF THE MAIN PACK ROUNDED OFF TO THE NEAREST 
CENTAVO.
(b) Within a period as may be determined by the [Secretary of the 
Department of Health] BOARD from time to time, every manufacturer, 
importer, or trader shall issue a price list to wholesalers, distributors, retailers 
and to the [Secretary of the Department of Health] BOARD, indicating the 
retail price, the maximum retail price, and such other information as may be 
required by the [Secretary of the Department of Health] BOARD.
SEC. 9. A new Section 26-A is hereby inserted to read as follows:
"SECTION 26-A. Display of Price and Price List of Drugs or Medicines 
Excluded from the List Subject to Price Regulation. - Every 
manufacturer. Importer, trader, distributor, wholesaler, or retailer of a drug 
or medicine excluded from the list subject to price regulation under Section 
23 hereof shall display in indelible print mark on the label of the immediate 
container of the drug or medicine and the minimum pack thereof offered for 
retail sale, the words "NOT UNDER PRICE REGULATION" on green strip.
SEC. 10. Section 28 of R.A 9502 is hereby deleted and a new Section 28 is 
hereby inserted to read as follows:
"Sec. 28. Creation of a Trust Fund- A trust fund in the amount of 
Five Hundred Million Pesos (P 500,000,000.00) is hereby established to be 
administered by the Board. The fund shall serve as revolving fund to be 
utilized for parallel drug importation and other procurement arrangements to 
lower the cost of drugs and medicines through the Philippine Pharma 
Procurement, Inc."
SEC. 11. Section 30 of R.A. 9502 is hereby amended to read as
follows:
"SEC. 30. Reportorial and Public Notice Requirements. — (a) The 
[Secretary of the Department of Health] BOARD shall submit a bi-annual 
Monitoring Report of its performance on the implementation of this Act to 
the Office of the President. This report submitted to the Office of the


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President shall be published in a newspaper of general circulation within thirty 
(30) days upon submission.
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(c) The order of the [President of the Philippines] BOARD imposing 
maximum retail prices on drugs and medicines, including the conditions 
implementing it, shall be published within fifteen (15) days from issuance in 
at least two (2) newspapers of general circulation. All wholesalers, 
manufacturers, distributors, importers, or traders shall have a copy of the 
order of the [President of the Philippines] BOARD and provide the same to 
their clients and customers for every transaction.
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SEC. 12. Appropriations. - The amount of Five Hundred Million Pesos (P 
500,000,000.00) as a trust fund under Section 28 hereof and the amount necessary 
to carry out the functions of the Board shall be included in the annual General 
Appropriations Act.
SEC. 13. Separability Clause. - Should any provision herein be declared 
unconstitutional, the same shall not affect the validity of other provisions of this Act.
SEC. 14. Repealing Clause. - All laws, decrees, orders, rules, and regulations 
or other issuances of parts inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly.
SEC. 15. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after Its publication in the Official Gazette or in any two (2) newspapers of general 
circulation in the Philippines.
Approved,