FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
r' 
li, 
First Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORYNOTE 
The power of the State to impose civil pecuniary penalties for violation of the penal law 
has a deterrent effect. But inflation has weakened this deterrent effect. 
Thus, the government needs to provide for the assessment and adjustment of existing 
values of the civil monetary penalties. This bill provides for the regular adjustment for inflation 
of civil monetary penalties, and maintain their deterrent effect. 
This bill is a product of the public hearings conducted by the Committee on 
Constitutional Amendments, Revision of Codes and Laws during the last Congress.* 
* This bill was re-filed during the Thirteenth Congress, First Regular Session 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPWES 
1 
7 
I)’‘llh 
I 
First Regular Session 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
OF CIVIL MONETARY PENALTIES AS PROVIDED IN THE PENAL CODE AND 
PROVIDING THE PROCEDURE FOR THE REGULAR ADJUSTMENT FOR INFLATION 
AMOUNT OF DAMAGES CAUSED BY A CRIME OR QUASI-DELICT 
Be it enacted by the Senate and House of Representutives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. - This Act shall be lcnown as the “Civil Penalties and Damages 
Inflation Adjustment Act of 2007.” 
SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State to 
maintain the deterrent nature of its penal laws, more specifically, the civil monetary penalties and 
damages for death caused by a crime or quasi-delict by adjusting its amounts regularly in 
accordance with prevailing inflation rates. 
SECTION 3. Definition of Terms. - 
(A) “Civil Penalty” means any penalty, fine, or other sanction that - 
(1) Is for a specific monetary amount as provided by the Penal Code; or 
(2) Has a minimum and/or maximum amount provided by the Penal Code; or 
(3) Is assessed or enforced by the courts pursuant to the Penal Code; and 
(B) “Damages” means damages for death caused by crime or quasi-delict as provided in 
the Civil Code; Article 2206 
(C) “Consumer Price Index” means the Consumer Price Index for all urban consumers 
published by the National Economic and Development Authority (NEDA) and 
National Statistics Office WSO). 
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(D) “Cost-of-Living Adjustment” means the percentage, if any, for each civil monetary 
penalty and damages by which the Consumer Price Index for the month of June of the 
calendar year preceding the adjustment, exceeds the Consumer Price hdex for the 
month of June of the calendar year in which the amount of such civil monetary was 
last set or adjusted pursuant to law. 
(E) “Secretary” shall refer to the Secretary of the Department of Justice. 
SECTION 4. Civil Monetary Penalty Inflation Adjustment Reports. - Within six (6) 
months after the date of enactment of this Act, and on the first week of January of each fifth 
calendar year thereafter, the Secretary shall submit a report on civil monetary penalty inflation 
and damages adjustment to both Houses of Congress. Such report shall include: 
(A) Each civil monetary penalty and damages as defined under Section 3(A); 
(B) The date each civil monetary and damages was not recently set pursuant to law; 
(C) The maximum amount of each civil monetary penalty and damages or, if applicable, 
the range of the minimum and maximum amounts of each civil monetary penalty and 
damages in effect on the date of submission of each report; 
(D) The amount of each civil monetary penalty and damages prescribed under paragraph 
(C) other than any such penalty for which inflation adjustment is provided by law, if 
each such penalty is increased by the adjustment described under Section 3(C) of this 
Act; and 
(E) A listing of the modifications to the Penal Code that would require to: 
(1) Increase each penalty described in paragraph (A) by the adjustment described 
under Section 3(C), excluding any penalty for which inflation adjustment is 
provided by law or that has been increased within the five (5) year period 
immediately preceding the date of submission of such report; and 
(2) Provide that any increase in any civil monetary penalty and damages shall 
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apply only to violations which occur after the date any such increase takes. 
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SECTION 5. Cost-of-Living Adjustments of Civil Monetary Penalties. - 
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(A) Adjustment. - The Adjustment described under Section 4, paragraph (D) and (E)(1) 
shall be determined by increasing the maximum civil monetary penalty and damages or the range 
of minimum and maximum civil monetary penalties and damages, as applicable, for each civil 
monetary penalty and damages by the cost-of-living adjustment. Any increase detennined under 
this subsection shall be rounded to the nearest: 
(1) Multiple of Ten Pesos (P10.00) in the case of penalties less than or equal to 
One Hundred Pesos (P100.00); 
(2) Multiple of One Hundred Pesos (P100.00) in the case of penalties greater than 
One Hundred Pesos (P100.00) but less than or equal to One Thousand Pesos 
(P1,000.00); 
(3) Multiple of One Thousand pesos (P1,OOO.OO) in the case of penalties greater 
than One Thousand Pesos (Pl,OOO.OO) but less than or equal to Ten Thousand 
Pesos (P 10,000.00); 
(4) Multiple of Five Thousand Pesos (P5,OOO.OO) in the case of penalties greater 
than Ten Thousand Pesos (Pl0,OOO.OO) but less than or equal to One Hundred 
Thousand Pesos (PlO0,OOO.OO); 
(5) Multiple of Ten Thousand Pesos (Pl0,OOO.OO) in the case o f  penalties greater 
than One Hundred Thousand Pesos (PlOO,OOO.OO) but less than or equal to 
Two Hundred Thousand Pesos (P200,OOO.OO); and 
(6) Multiple of Twenty Five Thousand Pesos (P25,OOO.OO) in the case of penalties 
greater than Two Hundred Thousand Pesos (P200,OOO.OO). 
SECTION 6. Annual Report. - No later than first week January of each year, the 
Secretary in consultation with the National Economic and Development Authority (NEDA) and 
he National Statistics Office (NCSO) shall submit a report on civil monetary penalties to the 
Congress which shall include: 
(A) To the extent possible, the number and amount of civil monetary penalties and 
damages imposed pursuant to each provision of law providing for such civil 
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monetary penalties and damages, during the complete fiscal year preceding the 
submission of such report; 
(B) To the extent possible, the number and amount of such civil penalties and damages 
collected during such fiscal year; and 
(C) Any recommendation that the Secretary determines appropriate to: 
(1) Eliminate obsolete civil monetary penalties and damages; 
(2) Modify the amount of any civil monetary and damages; 
(3) Make any other legislative modifications concerning civil monetary penalties 
and damages. 
SECTION 7. Congressional Action. - The Chairpersons of the Senate Committee on 
Constitutional Amendments, Revision of Codes and Laws, and the House of Representatives’ 
Committee on Revision of Codes and Laws shall, upon receipt of the annual report, file the 
necessary bill to amend the present laws affected by the report with the respective houses. The 
bill shall be immediately forwarded to the Senate President and the Speaker of the House of 
Representatives for certification as urgent. 
SECTION 8. Separability Clause. - If any provision or part hereof is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 9. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rules or regulations or part thereof, contrary to or 
inconsistent with the provision of this Act is hereby repealed, modified, or amended accordingly. 
SECTION 10. Efectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
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