Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 5561

Introduced by: HON. MARLYN ALONTE

AN ACT REGULATING THE PACKAGING, USE, SALE,
DISTRIBUTION AND ADVERTISEMENTS OF TOBACCO
PRODUCTS, ELECTRONIC NICOTINE DELIVERY SYSTEMS,
ELECTRONIC NON-NICOTINE DELIVERY SYSTEMS,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER
PURPOSES

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

SECTION 1. Short Title——This Act shall be known as the “TOBACCO AND
VAPING REGULATION ACT.”

SECTION 2. Policy—It is the policy of the State to protect the populace from
hazardous products and promote the right to health and instill health
consciousness among them.

It is also the policy of the State, consistent with the Constitutional ideal to
promote the general welfare, to safeguard the interests of the workers and other
stakeholders in the tobacco industry.

For these purposes, the government shall institute a balanced policy
whereby the use, sale and advertisements of tobacco products and electronic
nicotine and non-nicotine delivery systems, hereinafter also referred to as

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“The Department cautions the public regarding harmful chemicals in
these devices such as nicotine, ultra-fine particles, carcinogens, heavy
metals, and volatile organic compounds. Results generated from peer-
reviewed studies show that e-cig juices contain high levels of addictive
nicotine, which can result in acute or even fatal poisoning through
ingestion and other means. In addition to nicotine addiction, cases of
nicotine toxicity in children of epidemic proportion have been
documented in other countries with increasing prevalence of e-cigarette
use. E-cigarette aerosol that users and bystanders breathe and exhale
also contain harmful and potentially harmful substances including
second-hand aerosols (SHA).

Contrary to the claim regarding the effectiveness of e-cigarette as a
smoking cessation aid, there is barely sufficient evidence-based research
to prove so.

“While there is a lack of conclusive data regarding the long-term effects
of using e-cigarettes, its health risks cannot be set aside. The
precautionary principle recommends that, until conclusive data
regarding their safety have been established, regulatory measures should
aim at reducing exposures to these products,” added Secretary Duque.

This bill includes vaping or use of e-cigarettes in the same category as tobacco
products and applies the same strict regulations on smoking on vaping.

This bill is necessary to protect both the young and adults who have become
addicted to the chemicals vaporized with the use of electronic device systems.

It also covers electronic devices that vaporize nicotine and any other chemicals.

BACKGROUND
(from US Centers for Disease Control)
huttps://www.cde.gov/media/releases/2019/s1 1 14-update-number-vaping. html

The US Centers for Disease Control (CDC) announced the updated number of
confirmed and probable lung injury cases and deaths associated with the use of e-
cigarette, or vaping, products.

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Patients with Lung Injury

As of November 13, 2019, there are 2,172 confirmed and probable lung injury
cases associated with use of e-cigareite, or vaping, products were reported by 49
states (all except Alaska), the District of Columbia, Puerto Rico, and the U.S. Virgin
Islands.

Deaths

42 deaths have been confirmed in 24 states and the District of Columbia: Alabama,
California (4), Connecticut, Delaware, the District of Columbia, Florida, Georgia
(3), Illinois (4), Indiana (4), Kansas (2), Massachusetts (2), Michigan, Minnesota (3),
Mississippi, Missouri, Montana, Nebraska, New Jersey, New York, Oregon (2).
Pennsylvania, Tennessee (2), Texas, Utah, and Virginia.

Consistent with the foregoing, swift passage of this bill is earnestly sought.

HON. MARLYN
Lone District of Bifian

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

556i
HOUSE BILL NO.

Introduced by: HON. MARLYN ALONTE

AN ACT
REGULATING THE PACKAGING, USE, SALE, DISTRIBUTION AND
ADVERTISEMENTS OF TOBACO COPRODUCTS, ELECTRONIC
NICOTINE DELIVERY SYSTEMS, ELECTRONIC NON-NICOTINE
DELIVERY SYSTEMS, APPROPRIATING FUNDS THEREFOR, AND
FOR OTHER PURPOSES

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

SECTION 1. Short Title —This Act shall be known as the “TOBACCO AND
VAPING REGULATION ACT.”

SECTION 2. Policy. —It is the policy of the State to protect the populace from
hazardous products and promote the right to health and instill health
consciousness among them.

It is also the policy of the State, consistent with the Constitutional ideal to
promote the general welfare, to safeguard the interests of the workers and other
stakeholders in the tobacco industry.

For these purposes, the government shall institute a balanced policy

whereby the use, sale and advertisements of tobacco products and electronic
nicotine and non-nicotine delivery systems, hereinafter also referred to as

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vaping devices, vaping products, or vaping systems, shall be regulated in order
to promote a healthful environment and protect the citizens from the hazards of
tobacco smoke and vaporized nicotine and chemicals, and at the same time
ensure that the interests of tobacco farmers, growers, workers and stakeholders
are not adversely compromised.

SECTION 3. Purpose.—It is the main thrust of this Act to:
a. Promote a healthful environment;

b. Inform the public of the health risks associated with cigarette smoking,
tobacco use, and vaping systems;

c. Regulate and subsequently ban all tobacco and vaping systems
advertisements and sponsorships;

d. Regulate the labeling of tobacco products and vaping systems;

e. Protect the youth from being initiated to cigarette smoking, tobacco use, and
vaping with the use of vaping systems by prohibiting the sale of tobacco
products to minors;

f. Assist and encourage Filipino tobacco farmers to cultivate alternative
agricultural crops to prevent economic dislocation; and

g. Create an Inter-Agency Committee on Tobacco and Vaping (IACTV) to
oversee the implementation of the provisions of this Act.

SECTION 4. Definition of Terms.—As used in this Act:

a. “Advertisement”—tefers to any visual and/or audible message disseminated
to the public about or on a particular product that promote and give publicity by
words, designs, images or any other means through broadcast, electronic, print
‘or whatever form of mass media, including outdoor advertisements, such as but
not limited to signs and billboards. For the purpose of this Act, advertisement
shall be understood as tobacco advertisement.

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b. “Advertising”—refers to the business of conceptualizing, presenting, making
available and communicating to the public, through any form of mass media,
any fact, data or information about the attributes, features, quality or availability
of consumer products, services or credit.

For the purpose of this Act, advertising shall be understood as tobacco or vaping
advertising. This shall specifically refer to any messages and images promoting
smoking; the purchase or use of cigarette or tobacco or vaping products; and
cigarette or tobacco or vaping trademarks, brand names, design and
manufacturer’s names;

c. “Advertiser”—refers to a person or entity on whose account or for whom an
advertisement is prepared and disseminated by the advertising agency, which is
a service established and operated for the purpose of counseling or creating and
producing and/or implementing advertising programs in various forms of
media;

d. “Cigarette”—refers to any roll or tubular construction, which contains
tobacco or its derivatives and is intended to be bumed or heated under ordinary
conditions of use;

e. “Distributor’—refers to any person to whom a tobacco product is delivered
or sold for purposes of distribution in commerce, except that such term does not
include a manufacturer or retailer or common carrier of such product;

f£ “Mass Media”—tefers to any medium of communication designed to reach a
mass of people. For this purpose, mass media includes print media such as, but
not limited to, newspapers, magazines, and publications; broadcast media such
as, but not limited to radio, television, cable television, and cinema; electronic
media such as but not limited to the internet;

g. “Minor”—tefers to any person below eighteen (18) years old;

h. “Manufacturer’—refers to any person or entity, including a repacker, who
makes, fabricates, assembles, processes, or labels a finished product;

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i. “Package”—tefers to packs, boxes, cartons or containers of any kind in which
any tobacco product is offered for sale to consumers;

j. “Person”—tefers to an individual, partnership, corporation or any other
business or legal entity;

k. “Point-of-Sale”—tefers to any location at which an individual can purchase
or otherwise obtain tobacco or vaping products;

1. “Promotion”—refers to an event or activity organized by or on behalf of a
tobacco or vaping device manufacturer, distributor or retailer with the aim of
promoting a brand of tobacco or vaping product, which event or activity would
not occur but for the support given to it by or on behalf of the tobacco
manufacturer, distributor or retailer. It may also refer to the display of a tobacco
or vaping product or manufacturer’s name, trademark, logo, etcetera on non-
tobacco products. This includes the paid use of tobacco or vaping products
bearing the brand names, trademarks, logos, etc. in movies, television and other
forms of entertainment. For the purpose of this Act, promotion shall be
understood as tobacco or vaping promotion;

m. “Public Conveyances”—refer to modes of transportation servicing the
general population, such as, but not limited to, elevators, airplanes, buses,
taxicabs, ships, jeepneys, light rail transits, tricycles, and similar vehicles;

n. “Public Places”—refer to enclosed or confined areas of all hospitals, medical
clinics, schools, public transportation terminals and offices, and buildings such
as private and public offices, recreational places, shopping malls, movie houses,
hotels, restaurants, and the like;

©. “Retailer’—refers to any person who or entity that sells tobacco products to
individuals for personal consumption;

p. “Smoking”—tefers to the act of carrying a lighted cigarette or other tobacco
products, whether or not it is being inhaled or smoked;

q. “Sponsorship”—tefers to any public or private contribution to a third party in
relation to an event, team or activity made with the aim of promoting a brand of

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tobacco product, which event, team or activity would still exist or occur without

such contribution. For the purpose of this Act, sponsorship shall be understood
as tobacco sponsorship;

r. “Tobacco”—refers to agricultural components derived from the tobacco plant,
which are processed for use in the manufacturing of cigarettes and other tobacco
products;

s. “Tobacco Product”—refers to any product that consists of loose tobacco or
contains nicotine and is intended for use in a cigarette or with the use of any of
the various types of electronic nicotine delivery systems, including any product
containing tobacco and intended for smoking or oral or nasal use. Unless stated
otherwise, the requirements of this Act pertaining to cigarettes shall also apply
to other tobacco products;

t. “Tobacco Grower”—refers to any person who plants tobacco before the
enactment of this Act and classified as such by the National Tobacco
Administration (NTA);

u. “Vaping”—tefers to the use of electronic nicotine delivery systems or
electronic non-nicotine delivery systems for vaporizing and inhaling the liquid
form of nicotine, toxicants, chemical additives, or any mix thereof; and

v. “Warning”—refers to the notice printed on the tobacco or vaping product or
its container and/or displayed in print or aired in broadcast or electronic media
including outdoor advertising and which shall bear information on the hazards
of tobacco or vaping use.

Healthful Environment

SECTION 5. Smoking and Vaping Ban in Public Places.—Smoking and vaping
shall be absolutely prohibited in the following public places:

a. Centers of youth activity such as playschools, preparatory schools,

elementary schools, high schools, colleges and universities, youth hostels and
recreational facilities for persons under eighteen (18) years old;

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b. Elevators and stairwells;

c. Locations in which fire hazards are present, including gas stations and storage
areas for flammable liquids, gas, explosives or combustible materials;

. Within the buildings and premises of public and private hospitals, medical,
dental, and optical clinics, health centers, nursing homes, dispensaries and
laboratories;

e. Public conveyances and public facilities including airport and ship terminals
and train and bus stations, restaurants and conference halls, except for separate
smoking areas; and

£. Food preparation areas

SECTION 6. Designated Smoking, Non-smoking, and Vaping Areas.—In all
enclosed places that are open to the general public, private workplaces and other
places not covered under the preceding section, where smoking and vaping may
expose a person other than the smoker to tobacco smoke or vaporized nicotine,
the owner, proprietor, operator, possessor, manager or administrator of such
places shall establish smoking and vaping, non-smoking and non-vaping areas.
Such areas may include a designated smoking and vaping area within the
building, which may be in an open space or separate area with proper
ventilation, but shall not be located within the same room that has been
designated as a non-smoking and non-vaping area.

All designated smoking areas shall have at least one (1) legible and visible sign
posted, namely “SMOKING AND VAPING AREA” for the information and
guidance of all concerned. In addition, the sign or notice posted shall include a
waming about the health effects of direct or secondhand exposure to tobacco
smoke. Non-Smoking and Non-Vapings areas shall likewise have at least one
(1) legible and visible sign, namely: “NON-SMOKING AND NON-VAPING
AREA” or “NO SMOKING AND NO VAPING.”

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Access Restrictions

SECTION 7. Vending Machines, Self-Service Facilities —Unless the vending
machine has a mechanism for age verification, the sale or distribution of
tobacco products and vaping devices to minors by means of a vending machine
or any self-service facility or similar contraption or device is prohibited, except
at point-of-sale establishments.

SECTION 8. Retailer Compliance with Respect to Self-Service Facilities —
Each retailer shall ensure that all tobacco-related and vaping-related self-service
displays or facilities, advertising, labeling and other items that are located in the
establishment of the retailer and that do not comply with the requirements of

this Act are removed or are brought into compliance with the requirements of
this Act.

SECTION 9. Minimum Age Sales.—Under this Act, it shall be unlawful:

a. For any retailer of tobacco products and vaping devices to sell or distribute
tobacco products and vaping devices or components thereof to any minor;

b. For any person to purchase cigarettes, tobacco, and vaping products from a
minor;

c. For a minor to sell or buy cigarettes or any tobacco product or any vaping
product or component; and

d. For a minor to smoke cigarettes or any other tobacco products.

It shall not be a defense for the person selling or distributing that he/she did not
know or was not aware of the real age of the minor. Neither shall it be a defense
that he/she did not know nor had any reason to believe that the cigarette or any
other tobacco product was for the consumption of the minor to whom it was
sold.

SECTION 10. Sale of Tobacco and Vaping Products Within School
Perimeters.—The sale or distribution of tobacco and vaping products is

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prohibited within one hundred (100) meters from any point of the perimeter of a
school, public playground or other facility frequented particularly by minors.

SECTION 11. Signage.—Point-of-Sale establishments offering, distributing or
selling tobacco products and vaping products to consumers, shall post the
following statement in a clear and ~—conspicuous_—_ manner:
“SALE/DISTRIBUTION TO OR PURCHASE BY MINORS OF TOBACCO
AND VAPING PRODUCTS IS UNLAWFUL” or “IT IS UNLAWFUL FOR
TOBACCO AND VAPING PRODUCTS TO BE SOLD/DISTRIBUTED TO
OR PURCHASED BY PERSONS UNDER 18 YEARS OF AGE.”

SECTION 12. Proof of Age Verification —In case of doubt as to the age of the
buyer, retailers shall verify, by means of any valid form of photographic
identification containing the date of birth of the bearer, that no individual
purchasing a tobacco or vaping product is below eighteen (18) years of age.

Advertising and Promotions

SECTION 13. Warnings on Cigarette and Vaping Packages.—Under this Act:

a. All packages in which tobacco and vaping products are provided to
consumers withdrawn from the manufacturing facility of all manufacturers or
imported into the Philippines intended for sale to the market, starting | January
2004, shall be printed, in either English or Filipino, on a rotating basis or

separately and simultaneously, the following health warnings:

“GOVERNMENT WARNING: Cigarette Smoking and Vaping is Dangerous
to Your Health;”

“GOVERNMENT WARNING: Cigarettes and Vaporized Nicotine are
Addictive;”

“GOVERNMENT WARNING: Tobacco Smoke and Vaping Can Harm Your
Children;” or

“GOVERNMENT WARNING: Smoking and Vaping Kill.”

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b. Upon effectivity of this Act until 30 June 2006, the health warning shall be
located on one side panel of every tobacco or vaping product package and
occupy not less than fifty percent (50%) of such side panel including any border
or frame.

c. Beginning 1 July 2006, the health warning shall be located on the bottom
portion of one (1) front panel of every tobacco or vaping product package and
occupy not less than thirty percent (30%) of such front panel including any
border or frame. The text of the warning shall appear in clearly legible type in
black text on a white background with a black border and in contrast by
typography, layout or color to the other printed matters on the package. The
health warning shall occupy a total area of not less than fifty percent (50%) of
the total warning frame.

d. The warnings shall be rotated periodically, or separately and simultaneously
printed, so that within any twenty-four (24) month period, the four (4) variations
of the warnings shall appear with proportionate frequency.

e. The warning shall not be hidden or obscured by other printed information or
images, or printed in a location where tax or fiscal stamps are likely to be
applied to the package or placed in a location where it will be damaged when
the package is opened. If the warning to be printed on the package is likely to be
obscured or obliterated by a wrapper on the package, the warning must be
printed on both the wrapper and the package.

f. In addition to the health warning, all packages of tobacco and vaping products
that are provided to consumers shall contain, on one side panel, the following
statement in a clear, legible and conspicuous manner: “NO SALE TO
MINORS” or “NOT FOR SALE TO MINORS.” The statement shall occupy an
area of not less than ten percent (10%) of such side panel and shall appear in

contrast by color, typography or layout with all the other printed material on the
side panel.

g. No other printed warnings, except the health warning and the message
required in this Section, paragraph f. shall be placed on cigarette packages.

SECTION 14. Warnings in Advertising —Under this Act:

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a. All tobacco and vaping advertising in mass media shall contain either in
English or Filipino, the following health warning: “GOVERNMENT
WARNING: Cigarette Smoking and Vaping is Dangerous to Your Health.”

b. For print and outdoor advertisements, the warning frame shall be centered
across the bottom of the advertisement and occupy a total area of not less than
fifteen percent (15%) of such advertisement including any border or frame. The
health warning shall occupy a total area of not less than fifty percent (50%) of
the total warning frame. The text of the health warnings shall be clearly visible
and legible, printed in a prominent color as appropriate and shall appear in
contrast by color, typography or layout with all other printed material in the
advertisement. The warning shall not be hidden or obscured by other printed
information or images in the advertisement.

c. For television and cinema advertisements, the warning shall be clearly shown
and voiced over in the last five (5) seconds of the advertisement, regardless of
the duration of the advertisement, even when such advertisement is silent. The
health warning shall occupy a total area of not less than fifty percent (50%) of
the television screen and shall be clearly visible, legible and audible, in black
text on white background or white text on black background. No other images
except the warning shall be included in the warning frame.

d. For radio advertisements, the warning stated after the advertisement shall be
clearly and audibly voiced over in the last five (5) seconds of the advertisement,

regardless of its duration.

SECTION 15. Restrictions on Advertising—The following restrictions shall
apply to all tobacco and vaping advertising:

a. Advertisements shall not be aimed at or particularly appeal to persons under
eighteen (18) years of age.

b. Advertisements shall not feature a celebrity or contain an endorsement,
implied or express, by a celebrity.

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c. Advertisements shall not contain cartoon characters or subjects that depict
humans or animals with comically exaggerated features or that attribute human
or unnatural characteristics to animals, plants or other objects.

d. Advertisements shall only depict persons who are or who appear to be above
twenty-five (25) years of age.

e. Advertisements shall not show, portray or depict scenes where the actual use

of, or the act of using, puffing or lighting cigarettes or other tobacco products is
presented to the public.

SECTION 16. Restrictions on Print Media Advertising—The following
restrictions shall apply to all print media tobacco and vaping advertisements:

a. Advertisements shall not be placed in any printed publication unless there is a
reasonable basis to believe that at least seventy-five percent (75%) of the
readers of such publication are eighteen (18) years of age and above, and the
number of youth who read it constitutes less than ten percent (1 0%) of all youth
in the Philippines.

b. Advertisements shall not be placed on the packaging or outside covers (front
and back) of a magazine, newspaper, journal or other publication printed for
general circulation.

SECTION 17. Restrictions on Outdoor Advertising —The following restrictions
shall apply to all outdoor tobacco and vaping advertisements:

a. Outdoor advertisements shall not be placed on billboards, wall murals, or
transport stops or stations which are within one hundred (100) meters from any
point of the perimeter of a school, public playground or other facility frequented
particularly by persons below eighteen (18) years of age.

b. Outdoor advertisements shall not, either individually or when placed in

deliberate combination with other outdoor tobacco or vaping advertising,
exceed seventy (70) square meters in total size.

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c. Outdoor advertisements shall not be placed on taxis, buses, trains or other
public conveyance or in stations, terminals or platforms thereof, except point-
of-sale establishments.

SECTION 18. Restrictions on Advertising in Cinemas——Tobacco and vaping
advertisements are prohibited in connection with the showing of any film where
persons below eighteen (18) years old are permitted admission.

SECTION 19. Restrictions on Television and Radio Advertising —
‘Advertisements shall not be broadcast on television, cable television, and radio
between seven o’clock in the morning and seven o’clock at night.

SECTION 20. Restrictions on Advertising in Audio, Video and Computer
Cassettes/Discs, Mobile Games, Electronic Games, and Similar Medium.—No
electronic advertisements shall be incorporated within any video or audio
cassette, videogame machine, mobile game, electronic game, computer game,
optical disc, or any similar medium, unless access to the item is restricted to
persons eighteen (18) years of age or older. For the purpose of this Section,
video game includes any electronic amusement device that utilizes a computer,
microprocessor, or similar electronic circuitry and its own cathode ray tube, or
is designed to be used with a television set or a monitor that interacts with the
user of the device.

SECTION 21. Restrictions on Advertising on the Internet and Similar
Medium.—Advertisements of tobacco and vaping products are prohibited on
the Internet, social media, and electronic media, and other similar medium
unless such medium is restricted to persons eighteen (18) years of age or older.
A site will be deemed restricted if a person cannot obtain access beyond the first
page of the website unless the person has established that he or she is at least
eighteen (18) years old. This limitation applies to commercial communications
and shall not prevent the use of company Internet websites to provide
information regarding a company, its products and smoking and health related
information. This Section shall not prohibit business-to-business transactions
conducted on the Internet and other similar medium between tobacco and
electronic nicotine delivery systems manufacturers, retailers, and distributors.

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SECTION 22. Ban on Advertisements.—Beginning 1 January 2007, all tobacco
and vaping advertising on television, cable television, radio, social media, and
electronic media shall be prohibited.

Beginning 1 July 2007, all cinema and outdoor advertising shall be prohibited.
No leaflets, posters and similar outdoor advertising materials may be posted,
except inside the premises of point-of-sale retail establishments.

Beginning 1 July 2008, all forms of tobacco and vaping advertising in mass
media shall be prohibited except tobacco advertisements placed inside the
premises of point-of-sale retail establishments.

SECTION 23. Restrictions on Tobacco and Vaping Promotions —The
following restrictions shall apply on all tobacco and vaping promotions:

a. Promotions must be directed only to persons at least eighteen (18) years old.
No person below eighteen (18) years old or who appear to be below eighteen
(18) years old may participate in such promotions. The participants in
promotions must be required to provide proof of age.

b. Communications to consumers about tobacco or vaping promotions shall
comply with the provisions of this Act governing tobacco and vaping
advertising. In addition to the required health warning, the age requirement for
participation in any promotion must be clearly marked on the program materials
distributed to consumers.

c. All stalls, booths, and other displays concerning tobacco and vaping
promotions must be limited to point-of-sale locations or adult-only facilities.

d. Telephone communications concerning promotional offers, programs or
events must include a recorded health warning message in English or Filipino
consistent with the warnings specified in this Act.

e. No placement shall be made by any manufacturer, distributor, or retailer of

any tobacco product, tobacco product package, vaping product or component or
advertisement as a prop in any television program or motion picture produced

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for viewing by the general public or in a video, optical disc or on a video or
electronic game machine.

f. The name, logo, or other indicia of a cigarette or vaping brand may appear on
cigarette lighters, ashtrays, vaping devices, other smoking or vaping-related
items. If such name, logo, or other indicia of a cigarette or vaping brand is
larger than fifty (50) square centimeters, the item must carry a health warning
consistent with the warnings specified in this Act.

g. No merchandise such as, but not limited to, t-shirts, caps, sweatshirts, visors,
backpacks, sunglasses, writing implements and umbrellas, may be distributed,
sold or offered, directly or indirectly, with the name, logo or other indicia of a
cigarette or vaping brand displayed so as to be visible to others when worn or
used. Clothing items must be in adult sizes only.

h. No name, logo, or other indicia of a cigarette or vaping brand or element of a
brand-related marketing activity, may appear on items that are marketed to or
likely to be used by minors such as, but not limited to, sports equipment, toys,
dolls, miniature replicas of racing vehicles, video games, mobile games,
electronic games, and food. The manufacturer or company must take all
available measures to prevent third parties from using the company’s brand
names, logos, or other proprietary material on products that are directed toward
minors.

i. No tobacco and vaping advertisements may be placed on shopping bags.
SECTION 24. Naming Rights.—Subject to the provisions of this Act:

a. No manufacturer may enter into any agreement pursuant to which payment is
made or other consideration is provided by such manufacturer to any sports
league, or any team involved in any such league, in exchange for use of a
tobacco or vaping product brand.

b. No manufacturer may enter into any agreement for the naming rights of any

stadium or arena using a tobacco or vaping product brand name or otherwise
cause a stadium or arena to be named with such a brand name.

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SECTION 25. Restrictions on Sponsorships.—Beginning 1 July 2006:
a. No sponsorship shall be provided for:

1) an event or activity which bears a tobacco or vaping product brand name,
unless there is reasonable basis to believe that all persons who compete, or
otherwise take an active part, in the sponsored events or activities are persons
eighteen (18) years of age or older;

2) a team or an individual bearing a tobacco or vaping product name, unless all
persons sponsored are eighteen (18) years of age or older; or

3) a sponsored event or activity reasonably believed to be of particular appeal to
persons under eighteen (18) years old.

b. Tobacco and vaping brand sponsorships shall be prohibited except where
there is a reasonable basis to believe that:

1) attendance at the sponsored event or activity will comprise no less than
seventy-five percent (75%) persons at least eighteen (18) years old;

2) the sponsored event or activity will not be of particular appeal to persons
under eighteen (18) years old;

3) the sponsored event or activity will not receive exposure, other than as a
news item, on television or radio or the Internet, unless such exposure complies
with the provisions of this Act governing tobacco and vaping marketing through
those media; and

4) the principal activity associated with the sponsorship does not require above-
average physical fitness for someone of the age group of those taking part.

c. All persons authorized to bear tobacco product advertisements, logos or brand
names at sponsored events shall be at least eighteen (18) years old.

d. All forms of advertising associated with or ancillary to sponsorship shall
comply with the marketing provisions of this Act.

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SECTION 26. Ban on Sponsorships—Beginning 1 July 2008, cigarette and
tobacco and vaping companies are hereby prohibited from sponsoring any sport,
concert, cultural or art event, as well as individual and team athletes, artists or
performers where such sponsorship shall require or involve the advertisement or
promotion of any cigarette or tobacco company, tobacco product or tobacco use,
vaping or electronic nicotine delivery system product or vaping use, name, logo
or trademarks and other words, symbols, designs, colors or other depictions
commonly associated with or likely to identify a tobacco or vaping product:
Provided, That the attribution only to the name of the company in the roster of
sponsors shall be allowed: Provided further, That no manufacturer may register
a tobacco or vaping brand name as a company name after the passage of this
Act.

SECTION 27. Restrictions on Sampling—The distribution of samples of
tobacco and vaping products to persons below eighteen (18) years old is
prohibited.

SECTION 28. Legal Actions.—Any legal action in connection with the tobacco
and vaping industries shall be governed by the provisions of the Philippine Civil
Code and other applicable laws.

Implementing Agency and Application

SECTION 29. Implementing Agency—An Inter-Agency Committee on
Tobacco and Vaping (IACTV), which shall have the exclusive power and
function to administer and implement the provisions of this Act, is hereby
created. The IACTV shall be chaired by the Secretary of the Department of
Trade and Industry (DTI) with the Secretary of the Department of Health
(DOH) as Vice Chairperson. The IACTV shall have the following as members:
a. Secretary of the Department of Agriculture (DA);

b. Secretary of the Department of Justice (DOJ);

c. Secretary of the Department of Finance (DOF);

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d. Secretary of the Department of Environment and Natural Resources (DENR);
e. Secretary of the Department of Science and Technology (DOST);

f. Secretary of the Department of Education (DepEd);

g. Administrator of the National Tobacco Administration (NTA);

h. A representative from the Tobacco Industry to be nominated by the legitimate
and recognized associations of the industry; and

i. A representative from a nongovernment organization (NGO) involved in
public health promotion nominated by DOH in consultation with the concerned
NGOs;

The Department Secretaries may designate their Undersecretaries as their
authorized representatives to the IAC.

SECTION 30. Application to Tobacco and Vaping Products.—The provisions
of this Act shall apply to all tobacco and vaping products placed into commerce
in the Philippines. Except as provided below, no provision of this Act shall
apply to tobacco and vaping products intended or offered by the manufacturer
for export and not for [retail] sale in the Philippines.

Tobacco and vaping products intended or offered for export shall be subject
only to the requirement that the shipping container shall be prominently marked
on the outside “Export Only:” Provided, That, tobacco and vaping products
which are marked for export, but are sold/traded or distributed in the Philippine
market, shall be subject to immediate confiscation and destruction.

SECTION 31. Compliance Monitoring. —Not later than one (1) year after the
date of the effectivity of this Act, and annually thereafter, the IACTV shall
submit to the President of the Philippines and to both Houses of Congress a
Compliance Monitoring Report on the compliance of the manufacturers on all
applicable laws and ordinances with respect to the manufacture and distribution
of tobacco products.

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The report shall contain pertinent information on the methods, goals and
implementation program of said manufacturers with respect to the requirements
of this Act.

Penal Provisions
SECTION 32. Penalties —The following penalties shall apply:

a. Violation of Sections 5 and 6.—On the first offense, a fine of not less than
Five hundred pesos (Php500.00) but not more than One thousand pesos
(Php1,000.00) shall be imposed.

On the second offense, a fine of not less than One thousand pesos (Php1,000.00)
but not more than Five thousand pesos (Php5,000.00) shall be imposed.

On the third offense, in addition to a fine of not less than Five thousand pesos
(Php5,000.00) but not more than Ten thousand pesos (Php10,000.00), the
business permits and licenses to operate shall be cancelled or revoked.

b. Violation of Sections 7, 8, 9, 10, and 11.—On the first offense, any person or
any business entity or establishment selling to, distributing or purchasing a
cigarette or any other tobacco products for a minor shall be fined the amount of
not less than Five thousand pesos (Php5,000.00) or an imprisonment of not
more than thirty (30) days, upon the discretion of the court. For succeeding
offenses, both penalties shall apply in addition to the revocation of business
licenses or permits in the case of a business entity or establishment.

If the violation is by an establishment of business entity, the owner, president,
manager, or the most senior officers thereof shall be held liable for the offense.

If a minor is caught selling, buying or smoking cigarettes or any other tobacco
products, the provisions of Article 189 of Presidential Decree No. 603 otherwise
known as The Child and Youth Welfare Code, as amended, shall apply.

¢. Violation of Sections 13 to 27—On the first offense, a fine of not more than

One hundred thousand pesos (Php100,000.00) or imprisonment of not more
than one (1) year, or both, at the discretion of the court shall be imposed.

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On the second offense, a fine of Two hundred thousand pesos (Php200,000.00)
or imprisonment of not more than two (2) years, or both, at the discretion of the
court shall be imposed.

On the third offense, in addition to a fine of not more than Four hundred
thousand pesos (Php400,000.00) or imprisonment of not more than three (3)
years, or both, at the discretion of the court, the business permits and licenses, in
the case of a business entity or establishment, shall be revoked or cancelled.

In the case of a business entity or establishment, the owner, president, manager
or officials thereof shall be liable.

If the guilty officer is an alien, he shall summarily be deported after serving his
sentence, and shall be forever barred from re-entering the Philippines.

Programs and Projects

SECTION 33. Programs and Projects——For a period not exceeding five (5)
years, the National Government and the concerned departments and agencies
shall provide the following programs and projects:

a. Tobacco Growers’ Assistance Program—This program shall be utilized to
support financially the tobacco farmers who may be displaced due to the
implementation of this Act or has voluntarily ceased to produce tobacco. To
avail of this program, a beneficiary shall present convincing and substantial
evidence that:

1) He or she has been a tobacco farmer for the last three (3) years prior to
January 1, 2004;

2) He or she belongs to the tobacco-producing provinces;

3) He or she has a certificate of eligibility to apply issued by the Local
Government Unit and the NTA; and

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4) He or she has ceased to plant tobacco for the next preceding season after the
enactment of this Act.

b. Tobacco Growers’ Cooperative.—This program shall promote cooperative
programs to assist tobacco farmers in developing alternative farming systems,
plant alternative crops and other livelihood projects. The requirements of
subsection a) shall likewise apply.

c. National Smoking Cessation Program.—A National Smoking Cessation
Program shall be undertaken with the approval of the IAC-Tobacco. The
implementing rules and guidelines to reinforce this program shall be submitted
to the IAC-Tobacco by the Secretary of Health within three (3) months after the
effectivity of this Act.

d. Research and Development Program.—The IAC-Tobacco shall establish a
research and development program to be spearheaded by the NTA in
cooperation with the DOST, which will undertake studies concerning
technologies and methods to reduce the risk of dependence and injury from
tobacco product usage and exposure, alternative uses of tobacco and similar
research programs.

e. National Tobacco-Free Public Education Program.—State Universities and
Colleges and Technical and Vocational Schools shall provide scholarship
programs for dependents of tobacco growers for which the administrator of the
NTA shall provide implementing rules and guidelines. The guidelines shall be
submitted to the IAC-Tobacco within three (3) months after the effectivity of
this Act.

f. Displaced Cigarette Factory Workers’ Assistance Program.—The Secretary of
Labor and Employment, with the concurrence of the IAC-Tobacco shall
establish a program to assist displaced, terminated/separated or retrenched
cigarette factory workers as a result of the enactment of this Act. The Secretary
of Labor in coordination with the NTA and DTI shall provide the rules and
guidelines to effectuate this program and submit the same to the IAC-Tobacco
within three (3) months after the effectivity of this Act.

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g. Health Programs.—The IAC-Tobacco, in consultation with the DOH, shall be
responsible for awarding grants to all medical institutions for the purpose of
planning, carrying out, and evaluating activities related to smoking-related
illnesses. The IAC-Tobacco shall submit to Congress and the President of the
Philippines the annual report of expenditures related to this program.

h. Withdrawal Clinics—The DOH shall establish smoking and vaping
withdrawal clinics to provide counseling regarding the hazardous health effects
of tobacco/cigarette smoking and vaping and to rehabilitate smokers and vapers
from the hazardous effects of such products.

If a smoker/vaper-minor voluntarily submits himself for treatment, counseling,
or rehabilitation in a smoking or vaping withdrawal clinic located in any
medical institution in the Philippines, or through his parent/guardian, the
expenses incurred shall be a reimbursable outpatient service of the Philippine
Health Insurance Corporation.

Information Program

SECTION 34. Information Drive.—Consistent with the provisions of this Act,
the DOH shall, in cooperation with the DepEd and with the assistance of the
Philippine Information Agency (PIA), undertake a continuous information
program on the harmful effects of smoking and vaping.

The DOH shall enlist the active participation of the public and private sectors in
the national effort to discourage the unhealthy habit of smoking and vaping.

SECTION 35. Instruction on the Hazardous Effect of Smoking and Vaping as
Part of School Curricula—Instruction on the adverse effects of
cigarette/tobacco smoking, including their health, environmental and economic
implications, shall be integrated into the existing curricula of all public and
private elementary and high schools.

The DepEd Secretary shall promulgate such rules and regulations as may be

necessary to carry out the abovestated policy hereof, and, with the assistance of
the Secretary of Health, and with the approval of the IACTV, shall cause the

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publication and distribution of materials on the unhealthy effects of smoking to
students and the general public.

Miscellaneous Provisions

SECTION 36. Congressional Oversight Committee on Tobacco.—A
Congressional Oversight Committee on Tobacco (COC-Tobacco and Vaping) is
hereby constituted which is mandated to monitor and review the implementation
of this Act for a period not exceeding three (3) years. The COC-Tobacco and
Vaping shall be composed of the Chairpersons of the Senate Committees on
Health, Trade and Commerce, Agriculture and Public Information and the
House of Representatives Committees on Trade and Industry, Health, Public
Information and Agriculture and a Member of the House of Representatives
representing the tobacco producing provinces, to be nominated by all the
Members of the House of Representatives from tobacco producing districts.

The Secretariat of the COC-Tobacco and Vaping shall be drawn from the
existing secretariat personnel of the standing committees comprising the
Congressional Oversight Committee and its funding requirements shall be
charged against the appropriations of both the House of Representatives and the
Senate of the Philippines.

SECTION 37. Implementing Rules.—The IACTV shall promulgate such rules
and regulations necessary for the effective implementation of this Act within six
(6) months from the date of publication of this Act. The said rules and
regulations shall be submitted to the COC-Tobacco and Vaping for its review.
The COC-Tobacco and Vaping shall approve the implementing rules and
regulations within thirty (30) working days of receipt thereof: Provided, That in
the event the implementing rules and regulations are not promulgated within the
specified period, the specific provisions of this Act shall immediately be
executory.

SECTION 38. Appropriations—The amount necessary to implement the
provisions of this Act shall be charged against the current year’s appropriations
of the concerned national government agencies. Thereafter, such funds as may
be necessary for the continued implementation of this Act shall be included in

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at

the budgets of the concerned national government agencies under the annual
General Appropriations Act.

SECTION 39. Repealing Clause —DOH Administrative Orders No. 10 s. 1993
and No. 24 s. 2003 are hereby repealed. Article 94 of Republic Act No. 7394, as
amended, otherwise known as the Consumer Act of the Philippines, is hereby
amended.

All other laws, decrees, ordinances, administrative orders, rules and regulations,
or any part thereof, which are inconsistent with this Act are likewise repealed or
amended accordingly.

SECTION 40. Separability Clause——Should any provision of this Act be
subsequently declared unconstitutional, the other provisions not so declared
shall remain in full force and effect.

SECTION 41. Effectivity—This Act shall take effect fifteen (15) days after its
publication in the Official Gazette and at least two (2) newspapers of national

circulation.

Approved.

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