SEVENTEENTH CONGRESS OF THE REPUBLIC )
OF THE PHILIPPINES )
Second Regular Session ) "8 MIR 12 P321
SENATE RECESS

Senate Bill No._1738 —

Prepared and submitted jointly by the Committees on Justice and Human Rights;
Finance and Public Information and Mass Media, as recommended by bcommittee
on National Identification System Act with Senators Drilon, Ejercil

, Legarda, Villar, 4
Lacson, Recto, Villapueva, Trillanes IV, Aquino IV, Zubiri, Gordon, Pacquiao, Angara, ond

Gatchalian iS authors thereof

AN ACT
ESTABLISHING THE PHILIPPINE IDENTIFICATION SYSTEM

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

Sec. 1. Short Title. — This Act shall be known as the “Philippine Identification
System Act of 2018”.

Sec. 2. Declaration of Policies. — \t is hereby declared the policy of the State
to establish a single national identification system referred to as the “Philippine
Identification System” or the “PhilSys” for all citizens and resident aliens of the Republic
of the Philippines to promote seamless delivery of service, to improve the efficiency,
transparency, and targeted delivery of public and social services, to enhance
administrative governance, to reduce corruption and curtail bureaucratic red tape, to
avert fraudulent transactions and misrepresentations, to strengthen financial inclusion,
and to promote ease of doing business. Towards this end, a resilient digital system shall
be deployed to secure the data collected and ensure that the people's right to privacy,
confidentiality and other basic rights are at all times upheld and protected.

It is also the declared policy of the State to recognize the indispensable role of
the private sector as the main engine of national growth and development, and to

provide the most appropriate incentives to mobilize private resources for the purpose of



Promoting the use and ensuring maximum efficiency of the PhilSys as envisioned in this
Act.

Sec. 3. Objectives. — The PhilSys, a foundational identification system, shall
primarily be established to provide a valid proof of identity for all citizens and resident
aliens as a means of simplifying public and private transactions. The PhilSys aims to
eliminate the need to present other forms of identification when transacting with the
government and the private sector, subject to appropriate authentication measures
based on a biometric identification system.

Furthermore, the PhilSys shall be a social and economic platform through which
all transactions including public and private services can be availed of and shall serve as
the link in the promotion of seamless service delivery, enhancing administrative
governance, reducing corruption, strengthening financial inclusion, and promoting ease
of doing business.

Sec. 4. Scope and Application. — This Act shall apply to all persons or
entities, natural or juridical, in all transactions where the PhilSys Number, Philippine ID
(PhilID), or biometric information is required, presented, or used, whether legally or
illegally, within or outside the Republic of the Philippines.

Sec. 5. Definition of Terms. — As used in this Act:

(a) Authentication refers to the process of verifying, whether online or offline,
the identity of an individual against the registry information in the PhilSys
or PhilID;

(b) Biometric exceptions refer to instances whereby a citizen or resident alien
is not able to give complete set of biometrics as required by PhilSys but is
nevertheless admitted into the PhilSys;

(c) Biometric information refers to facial image, fingerprint, iris scan and/or

such other identifiable features of an individual;



(a)

(e)

(9)
(h)

10)

G)

Cardholder refers to a citizen or resident alien who has been registered
under the PhilSys and who has been issued and thus, in possession of the
Philippine ID Card;

Citizen refers to a Filipino citizen, as defined in the Constitution, including
those with dual or multiple citizenships, in accordance with Republic Act
No, 9225, otherwise known as the Citizenship Retention and Re-
acquisition Act of 2003;

Foundational ID System is one that has been created for general public
administration and identification which may serve as the basis for a wide
variety of public and private transactions, services, and derivative identity
credentials;

Mobile Registration refers to transportable registration centers;

Personal information refers to any information whether recorded in a
material form or not, from which the identity of an individual is apparent
or can be reasonably and directly ascertained by the entity holding the
information, or when put together with other information would directly
and certainly identify an individual as defined in Republic Act No. 10173,
otherwise known as the Data Privacy Act of 2012;

Philippine Embassy or Philippine Foreign Service post refers to a
diplomatic mission or consular office of the Republic of the Philippines in a
foreign country, including the economic and cultural office of the
Philippines, or the like, in a foreign territory.

Record history refers to an entry in the PhilSys consisting of the
information regarding a registered person in connection with his or her
entries in the system and his or her PhilID, as follows:

(1) _ Date of filing of the application for registration and the particulars

thereof;



v

(k)

()

(m)

(n)

(2) Date of filing of every application for modification and the
Particulars thereof;

(3) Modification of entry made, the date such modification was made,
and the document/s or other proof submitted in support thereof;

(4) Reason for the omission of any entry;

(5) Dates of issuance, reissuance, and cancellation of the PhilID, and
including the reasons therefor;

(6) Details of authentication requests processed by the Philippine
Statistics Authority (PSA), including the date the request was made
and processed, the requesting entity, and the response provided by
PhilSys;

(7) Disclosure, conveyance, dissemination, publication and use of
information by third parties; and,

(8). Other relevant information regarding the registration, modification,
and authentication of personal information of a citizen or resident
alien under this Act;

Registered information refers to any personal information regarding a

citizen or resident alien recorded in the PhilSys, including biometric

information and information about a citizen or resident alien required
under this Act to be recorded under the PhilSys.

Registered person refers to a person who has been registered under the

PhilSys.

Registration refers to the process of entering demographic and biometric

information of citizens or resident aliens in the Philippines to the system.

Registration centers refer to necessary facilities to capture both

demographic and biometrics information required for Philsys as

enumerated in Section 9 of this Act;



s

(0) Resident alien refers to an individual who is not a citizen of the Philippines
but has established residence in the Philippines for an aggregate period of
more than 180 days.

Sec. 6. The Philippine Identification System (PhilSys). — The PhilSys is the
government's central identification platform for all citizens and resident aliens of the
Philippines. An individual's record in the PhilSys shall be considered as an official and
sufficient proof of identity.

Sec. 7. Philippine Identification System Components. — The Philippine
Identification System shall have the following key components:

a. PhilSys Number (PSN). — The PSN is a randomly generated, unique, and
Permanent identification number that will be assigned to every citizen or resident
alien upon birth or registration by the PSA. All government agencies, including
government-owned or controlled corporations (GOCCs) shall incorporate in their
identification systems and databases the PSN of covered individuals which shall
be the standard number for the individual across all agencies of the government;
The PSN, in print, electronic or any other form, subject to authentication, shall be
accepted as sufficient proof of identity.

b. The PhilSys Registry. — The PSA, as repository and custodian of all data,
shall create and maintain a PhilSys Registry that will contain the PSN, registered
records, and information of all persons registered in the PhilSys. The information
in the PhilSys Registry shall be classified in a manner that allows safeguards for
data privacy and security, access controls, and change management.

The PhilID. — A non-transferable card shall preferably be issued to all citizens or

9°

resident aliens registered under the PhilSys subject to the guidelines to be issued
by the PSA.
1. Features. The PhillD Card shall be the physical medium issued to convey

essential information about the person's identity containing on its face the



nv

2

3.

PSN, full name, facial image, date of birth, address and some fingerprint
information of the individual in whose favor it was issued. All information
appearing in the PhilID should match with the registered information in
the PhilSys. The PhilID shall contain security features as safeguards for
data privacy and security, and prevention against the proliferation of
fraudulent or falsified identification cards. The PSA in consideration of
advances in technology, utility, security and confidentiality may, subject to
appropriate guidelines that shall be issued on the matter, provide citizens
or resident aliens with mobile PhilID;

Purpose. The PhilID shall serve as the official government-issued
identification document of cardholders in dealing with all national
government agencies, local government units (LGUs), government-owned
or controlled corporations (GOCCs), government financial institutions
(GFIs), and all private sector entities;

Fees. The initial application and issuance as well as the renewal of the
PhilID for citizens shall be free of charge. A standard fee shall be collected
by the issuing agency from resident aliens and on the reissuance of a
replacement card: Provided, That the PSA may identify instances wherein

a replacement card may be issued free of charge.

Sec. 8. PhilSys Registry Data. —Information to be collected and stored under

the PhilSys shall be limited to the following:

i. Demographic Data
1. Full Name;
Ze SeX,
3. Date of Birth;
4. — Place of Birth;



10

i

5. Address;
6. _ Filipino or Resident Alien;
7. Mobile Number (optional); and
8. E-mail address (optional)
ii, Biometrics Information
1. Facial image;
2. Full set of fingerprints;
3. Iris scan; and

4. If necessary, other identifiable features of an individual as may be

determined in the Implementing Rules and Regulations

In case of visual or physical impairment that renders the capturing of the
biometric information of the person applying for registration impossible, biometric
exceptions shall be employed and allowed by the PSA. The PSA shall issue guidelines

for the appropriate age for capturing the biometrics information of minors.

Sec. 9. Registration. — One (1) year after the effectivity of this Act, every
citizen or resident alien shall register personally with the following registration centers
that have the necessary facilities to capture the information required to be contained in
the Registry:

1) PSA Regional and Provincial Offices;

2) Local Civil Registry Offices (LCROs);

3) Government Service Insurance System (GSIS);

4) Social Security System (SSS);

5) Philippine Health Insurance Corporation (PhilHealth);

6) Home Development Mutual Fund (HDMF);



6

7

8

9

10

7) Commission on Elections (COMELEC);

8) Philippine Postal Corporation (PhiPost); and

9) Other government agencies and government-owned and controlled

corporations (GOCCs) as may be assigned by the PSA.

In the case of Filipino citizens residing abroad, the registration shall be made in
the nearest Philippine Embassy or Philippine Foreign Service post, or other registration
centers that may be designated by the DFA in coordination with the PSA.

Special arrangements shall be made for the registration of the following:

1) Minors;

2) Senior Citizens;

3) Persons with disability;

4) Indigenous Persons; and,

5) Persons in Institutional Households.

The PSA shall also initiate mobile registrations to cater to citizens and resident
aliens in remote areas.

Registration in the PhilSys is deemed successful and complete upon the issuance
of the PSN and confirmation of registration by the PSA.

Sec. 10. Basic Documentary Requirements. — The registration centers shall
require the presentation of the applicant's birth certificate as a basic documentary
requirement for identification of citizens seeking to register with the PhilSys: Provided,
That for resident aliens, proof of his/her residence in the Philippines shall be required:
Provided, further, That in order to ensure easier verification, citizens and resident aliens
may be allowed to submit an alternative or additional document/s to prove his/her
identity. Notwithstanding the foregoing, appropriate guidelines shall be issued to ensure
that the registration is not prohibitive and restrictive as to unduly defeat the purpose of

this Act.



Sec. 11. Change of Entries. - In case of change in any of the entries in the
information collected and stored under the PhilSys, citizens or resident aliens shall
update their registration information in the manner to be specified by the PSA:
Provided, That every ten (10) years after registration, citizens and when applicable,
resident aliens, shall renew his/her registration to ensure continued accuracy of the
registrant information.

Sec. 12. Authentication. — For purposes of establishing proof of identity for
transacting business with any government agency, the presentation of the PhilID or
PSN shall constitute sufficient proof thereof, subject to proper authentication. Private
entities are likewise mandated to accept the PhilID or PSN as valid proof of identity
under the same terms and conditions as above: Provided, That when authentication
cannot be performed, without any fault on the part the cardholder or holder of a PSN,
the PSA shall ensure that he/she will not be disadvantaged or prejudiced thereby.

The PSA shall perform authentication of the PSN of an individual submitted by
any requesting entity, in relation to his biometric information or demographic
information, subject to such conditions and upon payment of such fees and in such
manner as may be specified by regulations. The PSA may charge reasonable fees for
authentication services as it may deem necessary.

Any requesting entity shall obtain the consent of an individual before collecting
his/her identity information for the purposes of authentication. It shall inform the
individual submitting his/her identity information the following details, namely, (a) the
nature of the information that may be shared upon authentication, and (b) the uses to
which the information received during authentication may be put by the requesting
entity. Provided, That the information requested shall only be used for the purpose for

which it was requested.



1

2

3

4

Sec. 13. Use of the PhilID/PSN. —The PhillD shall be honored and accepted,

subject to authentication, in all transactions requiring proof or verification of citizens or

residents’ alien identity, such as, but not limited to:

(a)

(b)

()

(d)

(e)

(9)
(h)

(i)
0)

(k)

Application for eligibility and access to social welfare and benefits granted
by the government;

Application for services and benefits offered by Government Service
Insurance System (GSIS), Social Security Service (SSS), PhilHealth, Home
Development Mutual Fund (HDMF), and other government agencies;
Applications for passports and driver's license;

Tax-related transactions;

Registration and voting identification purposes;

Admission to any government hospital, health center or similar institution;
All other government transactions;

Application for admission in schools, colleges, learning institutions and
universities, whether public or private;

Application and transaction for employment purposes;

Opening of bank accounts and other transactions with banks and other
financial institutions;

Such other transactions, uses or purposes, as may be defined in the

implementing rules and regulations.

The PSN and biometrics of an individual, as authenticated through the PhilSys,

shall be honored and accepted, notwithstanding the absence or non-presentation of a

PhillD.

Sec. 14. Limitations. — Proof of identity shall not necessarily be construed as

proof of eligibility to avail of certain benefits and services which shall be determined

based on applicable rules and regulations of the government authorities/agencies



concerned. Issuance of the PSN and/or PhilID shall not likewise be construed as
incontrovertible proof of citizenship.

Sec. 15. Philippine Statistics Authority. — The PSA shall be the primary
implementing agency to carry out the provisions of this Act. Overall planning,
management, and administration of the PhilSys shall be the responsibility of the PSA. It
shall issue rules in the implementation and enhancement of the PhilSys, including, but
not limited to, registration, authentication and data governance. It shall ensure the
integrity and security of the same, in accordance with the provisions of this Act,
including all other applicable laws and policies. The PSA shall issue guidelines and
undertake measures to ensure secure, reliable and efficient authentication of PhilSys
record upon the request of authorized government and private entities. Pursuant
thereto, the State shall provide for the installation of state-of-the-art biometric
machines in all relevant agencies for authentication of data and identity holders.

The PSA shall collaborate with local government units (LGUs), other government
agencies, and GOCCs in order to ensure the registration and enrolment of all citizens
and resident aliens into the PhilSys including the Indigenous Cultural
Communities/Indigenous Peoples (ICCs/IPs) and those located in remote localities.

The PhilSys shall be managed, maintained, and administered by the PSA with the
technical assistance of the Department of Information and Communications Technology
(DICT). Nothing in this Act prevents the PSA from adopting new but more effective
technology, including for registration, authentication and data security, taking into
consideration the declared principles and objectives of this Act.

For the above-mentioned purposes, there shall be established within the PSA and
directly under the Office of the National Statistician, a separate office to be headed by a
Deputy National Statistician, which shall perform the functions provided for under this

Act.



1 Sec. 16. Creation of the PhilSys Policy and Coordination Council
2 (PSPCC). The PhilSys Policy and Coordination Council (PSPCC) is organized to
3. formulate policies and guidelines to ensure effective coordination and implementation of

4 the PhilSys. The PSPCC shall be composed of the following:

1. Secretary, National Economic and Development Authority (NEDA) --

6 Chairperson

7 2. National Statistician and Civil Registrar General, Philippine Statistics
8 Authority (PSA) -- Co-Chairperson

9 3. Undersecretary, Department of Budget and Management (DBM) --

10 Vice-Chairperson

i Members:

12 4. Undersecretary, Department of Foreign Affairs (DFA)

13 5. Undersecretary, Department Information and Communications Technology
14 (DICT)

15 6. Undersecretary, Department of Finance (DOF)

16 7. Undersecretary, Department of Social Welfare and Development (DSWD)

17 8. Undersecretary, Department of Interior and Local Government (DILG)

18 9. Chairman, National Privacy Commission (NPC)

19 10.Deputy Governor, Bangko Sentral ng Pilipinas (BSP)

20 11.President and General Manager, Government Service Insurance System
21 (GSIS)

22 12.President and Chief Executive Officer, Philippine Health Insurance
23 Corporation (PHIC)

24 13. President and Chief Executive Officer, Social Security System (SSS)

25 14. Postmaster General, PhilPost



The PSPCC shall ensure the compatibility of the respective technology
infrastructure of different government agencies in order to comply with the
requirements of PhilSys.

Sec. 17. Protection Against Unlawful _ Disclosure of
Information/Records. — No person may disclose, collect, record, convey,
disseminate, publish, or use any information of registered persons with the PhilSys, give
access thereto or give copies thereof to third parties or entities, including law
enforcement agencies, national security agencies, or units of the Armed Forces of the
Philippines (AFP), except in the following circumstances:

(a) When the registered person has given his or her consent, specific to the

Purpose prior to the processing;

(b) When the compelling interest of public health or safety so requires,
relevant information may be disclosed provided that the risk of significant
harm to the public is established and the owner of the information is
notified within seventy two (72) hours of the fact of such disclosure; and,

(c) Upon the order of any competent court.

Information disclosed shall not be used except for the specific purpose for which
it was authorized and shall not be divulged by any person to any third party other than
the person so authorized.

PSA must ensure that information in the PhilSys is used only in accordance with
its intended purpose as set forth in this Act.

Any information obtained as a result of unlawful disclosure under this Act shall
be inadmissible in any judicial, quasi-judicial or administrative proceedings.

Registered persons may request the PSA to provide access to his or her
registered information and record history subject to the guidelines and regulations to be

issued by the PSA.



Sec. 18. Safeguards on the Philippine Identification System (PhilSys). — The
PSA with the technical assistance of the DICT shall implement reasonable and
appropriate organizational, technical, and physical security measures to ensure that the
information gathered for the PhilSys, including information stored in the PhilSys
Registry, is protected from unauthorized access, use, disclosure, and against accidental
or intentional loss, destruction, or damage. Moreover, PSA shall ensure that individuals
are adequately informed upon registration for PhilSys on how their data will be used
and how they can access their registered information and record history.

While upholding the confidentiality provisions under RA No. 10625, otherwise
known as the Philippine Statistical Act of 2013, all data collated by the Authority under
the PhilSys may be used to generate aggregate data or statistical summaries without
reference to or identification of any specific individual. Provided, that nothing in this Act
shall be construed as prohibiting or limiting the sharing or transfer of any personal data
that is already authorized or required by law.

Sec. 19. Penal Provision. Any person or entity who, without just and sufficient
cause, shall refuse to accept, acknowledge and/or recognize the PhilID or PSN, subject
to authentication, as the only official identification of the holder/possessor thereof shall
be fined in the amount of Five Hundred Thousand Pesos (P500,000.00).

Any person who utilizes the PhilID or PSN in an unlawful manner or use the
same to commit any fraudulent act or for other unlawful purpose/s shall be punished
with imprisonment of not less than six (6) months but not more than two (2) years or a
fine of not less than Fifty Thousand Pesos (P50,000.00) but not more than Five
Hundred Thousand Pesos (P500,000.00), or both, at the discretion of the court.

The penalty of three (3) years to six (6) years imprisonment and a fine of One
Million Pesos (P1,000,000.00) to Three Million Pesos (P3,000,000.00) shall be imposed

upon any offender found guilty of any of the following acts or omissions:


17

a) The willful submission of or causing to be submitted a fictitious name or false
information in the application, renewal, or updating in the PhilSys by any
person;

b) The unauthorized printing, preparation, or issuance of a PhilID by any
person;

c) Willful falsification, mutilation, alteration, or tampering of the PhilID by any
person;

d) The use or of the PhilID/PSN or unauthorized possession of a PhilID, without
any reasonable excuse by any person other than the one to whom it was
issued or the possession of a fake, falsified, or altered PhillD; or

e) The willful transfer of the PhilID or the PSN to any other person.

The penalty of six (6) years to ten (10) years imprisonment and a fine of Three
Million Pesos (P3,000,000.00) to Five Million Pesos (P5,000,000.00) shall be imposed
upon any offender found guilty of any of the following acts or omissions:

a) Any person who shall collect or use personal data in violation of Section 12 of
this Act;

b) Any person who shall willfully use or disclose data or information in violation
of Section 17 of this Act; or

c) Any person, not covered by the succeeding paragraphs, who shall access the
PhilSys or process data or information contained therein without any
authority.

If financial profit resulted from accessing, disclosing, or using the data or
information, the guilty person shall, in addition, pay twice the amount gained from such
act.

Malicious disclosure of data or information by officials, employees or agents who
have the custody or responsibility of maintaining the PhilSys shall be penalized with ten

(10) years to fifteen (15) years imprisonment and a fine of Five Million Pesos



(P5,000,000.00) to Ten Million Pesos (P10,000,000.00). If financial profit resulted from
such disclosure or processing of the data or information, the guilty person shall, in
addition, pay twice the amount gained from such act.

Officials, employees or agents who have the custody or responsibility of
managing or maintaining the PhilSys shall be penalized with three (3) years to six (6)
years imprisonment and a fine of One Million Pesos (1,000,000.00) to Three Million
Pesos (P3,000,000.00) if by their own negligence, the PhilSys is accessed by
unauthorized persons, or the data or information contained therein is processed without
any authority from this Act or any existing law.

In all instances, if the violation was committed by a government official or
employee, the penalty shall include perpetual absolute disqualification from holding any
public office or employment in the government, including any government-owned and
controlled corporations (GOCCs), and their subsidiaries.

The penalties imposed in this section shall be in addition to those imposed on
acts or omissions punishable by existing penal and other laws.

Sec. 20. Transitory Provisions. — The PSA shall carry out the implementation
of the PhilSys in such manner that the operations of card-issuing government agencies
shall not be impeded so as not to unduly delay delivery of public service: Provided, That
the PSA shall gradually synchronize and consolidate all existing government-initiated
identification systems into one integrated and interconnected identification system that
will ensure an easier, faster, more reliable and more secure access to information and
services.

Sec. 21. Funding. — The amount necessary to implement the provisions of this
Act shall be included in the General Appropriations Act.

Sec. 22. Information Campaign — Within three (3) months from the

effectivity of this Act, the PSA together with the DFA and other government agencies,



shall undertake an extensive information campaign to promote the PhilSys to all citizens
and resident aliens.

Sec. 23. Implementing Rules and Regulations (IRR). — Within sixty (60)
days upon approval of this Act, the PSA, in coordination with the members of PSPCC,
shall promulgate rules and regulations and exchange existing technologies and best
Practices on the issuance of the PhilID/PSN, authentication and data security to
effectively implement the Provisions of this Act.
Sec. 24. Separability Clause. - If any provision, section, or part of this Act shall be
declared unconstitutional or invalid, such judgment shall not affect, invalidate, or impair
any other provisions, sections, or parts hereof.

Sec. 25. Repealing Clause. — All laws, except RA No. 10173, decrees, orders,
rules, and regulations, which are inconsistent with the provisions of this Act, are hereby
repealed or modified accordingly.

Sec. 26. Effectivity. — This Act shall take effect fifteen (15) days after its
Publication in the Official Gazette or in a newspaper of general circulation.

Approved,