FIFTEENTH CONGRESS OF THE REPUBLIC)

OF THE PHILIPPINES )
3® Regular Session )
House of Representatives
Howse BillNo. GG '73

Introduced by : Atty. MA. THERESA B. BONOAN-DAVID
Representative, 4" District, City of Manila

EXPLANATORY NOTE

Today, the Filipino people is bracing for the impact of what is probably one of the most
massive surges in the cost of public utilities in recent memory. The public helplessly watch by as a
succession of increases in the price of goods and services relentlessly devour what is left of their
purchasing power.

itis now more expensive to travel by public transportation as fare rates are up in buses, taxis
and jeepneys. The Metro Rail Transit (MRT) is also set to increase fares. Plying our toll roads had
just become almost unaffordable, while pump prices continue to hit the ceiling. Our phone, water and
electric bills also steadily increase. All of these unfold almost at the same time, as the Filipino
consumers now tums 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 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, itis 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
concemed 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
tionalization 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 conceed, amending the charters creating the following regulatory
bodies:

1. Land Transportation and Franchising Regulatory Board;
2. Toll Regulatory Board;

3. Energy Regulatory Commission;

4, Manila Waterworks and Sewerage System; and

5. National Telecommunications Commission.

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 concerned will have direct participation over decision-making affairs at the
top level.

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

Atty. MA. eee DAVID

Representative, 4" Dist. City of Manila


FIFTEENTH CONGRESS OF THE REPUBLIC)
OF THE PHILIPPINES )
3®° Regular Session )

f Representatives
nope No.6673

Introduced by ; Representative Atty. MA. THERESA B. BONOAN-DAVID
4" District, City of Manila

AN ACT PROVIDING FOR A 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:

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

SEC. 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 establishments 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

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

SEC. 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.

SEC. 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. 54¢

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.

SEC. 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 convieted 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.