REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No. 8457

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO.

EXPLANATORY NOTE

The National Printing Office, formerly known as the Bureau of Printing is one of the
remaining century-old agencies that we have. It was created under Philippine Commission Act No.
296 on November 7, 1901

‘The head of the Bureau of Public Printing was then called Public Printer and by virtue of the
Philippine Commission Act No. 1417 issued on November 01, 1905 was changed to Director of
Printing. It was renamed several times and transferred several times from one government agency to
another.

Under Executive Order No, 28s issued by President Corazon C. Aquino on July 25, 1987,
the National Printing Office was created and attached to the Philippine Information Agency. It was
later attached to the Office of the Press Secretary. On October 25, 2004, President Gloria
Ivlacapagal Arroyo issued Executive Order No. 378, identifying further the functions of the
National Printing Office and relaxing the rule as to exclusivity of printing of materials from
government agencies and allowing it to compete with the private sector. Government agencies can
source their printing requirements outside of the National Printing Office when the printing services
offered by the private sector is superior in quality and at a lower cost than what is offered by NPO
and the private printing provider is flexible in terms of meeting the target completion time of the
requesting agency.

The rationale of this proposal is to enhance the capability of the existing National Printing
Office and converting it into a corporate entity to be known as the "National Printing Corporation”.
With a corporate personality, it can compete with private sector and work for the upgrade of its
printing equipment and improve its printing technology.

‘The newly-invigorated National Printing Corporation will then be able to cope with the
printing demands of various government agencies. With up-to-date equipment, it can improve its
services and increase its revenues thereby benefiting our economy.

This bills has been previously filed in the 15" Congress by the late Rep. Pedro P. Romualdo.

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



REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
‘Third Regular Session

House Bill No. 8457 _

Introduced by MAGDALO- Party-List Representative
HON. GARY C. ALEJANO.

AN ACT
CREATING THE NATIONAL PRINTING CORPORATION, DEFINING ITS POWERS,
FUNCTIONS AND RESPONSIBILITIES AND FOR OTHER PURPOSES

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

ARTICLE I — TITLE, POLICY, AND DEFINITIONS
Section 1. Title. — This Act shall be known as the "National Printing Corporation Act",

Section 2. Declaration of Policy. - It is hereby declared a policy of the State to promote the
cicient management of government resources and enhance the capability of goverment agencies
‘o meet their mandated functions through the upgrading of appropriate technology and equipment to
ensure their unhampered growth and development.

Section 3. Definition of Terms. — The following terms are defined, as used in this Act:

8) Corporation — shall refer to the "National Printing Corporation’
») Accountable Forms — shal refer to forms with money value and those which
‘re specialized for the requisitioning office or forms of general use by any department in the
national government, local government units or goverment owned or controlled
corporations;
©) Specialized Forms — shall refer to forms with money value such as continuous
forms with serial numbers, forms with peculiar or security features, forms with modulus
mumbering, forms requiring highly specialized paper or specific markings which the
Corporation does not cary in stock and other forms which are no listed in the Corporation's
Official List;


ZFS oc mr daH eon Ee

13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

4) Standard Forms — shall refer to prescribed forms being printed by the
Corporation of general use by any department of the national government, local government
Units, or government owned or controlled corporations; and
©) Printed Matters — shall refer to other forms not falling under any of the
described forms.

ARTICLE Il - CREATION AND SITE OF PRINCIPAL OFFICE

Section 4. Creation. — There is hereby created a body corporate to be known as the
"National Printing Corporation", which shall be attached to the Office of the Press Secretary,

Section 5. Principal Office. — The Corporation shall have its principal office in Quezon
City. It may also establish satellite branches to expedite the processing of requests from local
government units and other government agencies,

ARTICLE III - FUNCTIONS, POWERS AND COMPOSITION OF BOARD OF
DIRECTORS

Section 6. Powers and Functions. — The Corporation shall have the following powers and
functions:

a) To sue and be sued in its official name;
b) To enter into contracts, acquire, purchase, hold, lease, transfer or dispose of
property of any kind or nature necessary to carry out the purposes of this Act;
©) Receive and administer donations, contributions, grants, bequests or gifts in cash
or in kind from foreign governments, intemational agencies, private entities, and other
sources _related to the upgrading of its printing equipment or rehabilitation of its facilities;
4) To adopt and use a corporate seal;
©) To determine and keep its own system of accounts following the generally
accepted _principle of accounting, as well as the forms and contents of its contracts other
business documents;
) To compete with the private sector on the bulk printing requirements of
government agencies and may accept other government printing jobs including publications and
information materials;


eIrnnewne

) To acquire, in any lawful manner, such personal or real property; or any interest
therein, as it deems necessary or convenient in the transaction of its business; to hold,
maintain, sell, lease, or otherwise dispose of such property or any interest or charges
therewith; and

h) Discharge other functions which may be deemed necessary or as may be provided
by law related to the following specific functions:

i.) Printing, binding and distribution of all standard and accountable forms of

the national, provincial, city and municipal governments including
government owned or controlled corporations;

ii.) Printing of official ballots;

iii.) Printing of public documents such as the Official Gazette, General

Appropriations Act, Philippine Reports, and development information

materials of the Philippine Information Agency;

Section 7. Composition of the Board of-Directors. — The corporate powers of the
Commission shall be vested in and exercised by the Board of Directors. It shall be composed of
seven (7) members who shall be appointed by the President of the Philippines. The Board shall be.
‘made up of the following:

) Four (4) members from the Government Sector; two of whom shall have ten (10)
years technical and administrative experience in the publishing and mass media industry;

b) Two (2) members from the Private Sector, one WI of whom shall have at least (5)
years experience in the publishing and mass media industry;

) One (i) member from the Academe, one of whom shall have at least five (5) years
experience and familiarity in the operations of the print and publishing industry;

The first three (3) Directors to be appointed shall have a term of four (4) years each. The
next two (2) Directors to be appointe d. shall have a term of three (3) years each and the remaining
two (2) Directors to be appointed shall have a term of two (2) years each. Thereafter, the
appointment shall be in accordance with the Corporation Law.

‘The Board shall elect a Chairman from among its members and shall meet regularly at least
twice a month and may hold special meetings to consider urgent matters upon the call of the
Chairman or the majority of its members. A majority shall constitute a quorum to transact business


OI Ane wn a

i
12
13
14
15

7
18

20
21
22
2B
24
25
26
27
28
29
30
31
32
33
34
35

and the vote of at least a majority of the members present at a meeting at which there is a quorum
shall be considered valid as a corporate act.

No member of the Board shall have financial, or a pecuniary interest, directly or indirectly,
in any business contract or transaction entered into by the Corporation or any privilege granted by
it, Neither shall a member have any interest, financial or otherwise, in any undertaking or business
with an inherent conflict of interest with the Corporation.

ARTICLE IV — CAPITAL AND FISCAL, ADMINISTRATION
Section 8. Capitalization. — The authorized capital stock of the Corporation shall be One

ion pesos (P1,000,000,000.00) divided into One million (1,000,000) shares with a par value of
‘One thousand pesos per share, which shall be subscribed in full by the Government.

The initial paid-up capital. shall be Two hundred million pesos (P250,000,000.00) which
shall he released from the fuunds of the Treasury upon the effectivity of this Act. The sums of Two
hundred fifty million (P250,000,000.00) pesos are authorized as paid-up capital in the General
Appropriations Act for the second and third years following the date of effectivity of this Act,
respectively.

‘The unpaid balance of the authorized capital stock shall be appropriated when deemed
necessary by Congress in the subsequent years.

Section 9. Source of Funds. — The following shall constitute the sources of funds against
which the operating expenses of the Corporation may be drawn:

a) All revenues from printing and allied services operated or rendered by the
Corporation, including remittances from agencies nationwide;

b) Proceeds of grants, donations, disposal of assets and sale of obsolete forms
and records, loans and other form of indebtedness entered into by the Corporation;

©) Interest which may he earned on investments;

4) Drawings on the capital or surplus of the Corporation,

Section 10. Management of Funds. — The Corporation ma invest any of its funds not
immediately required to be expended in meeting its obligations or in the discharge of its functions,


ewranneune

in such secured notes, government securities, and other negotiable instruments that shall satisfy the
guidelines prescribed by the Board.

All funds of the Corporation shall be deposited in such commercial and universal banks as
may be accredited by the National Treasury as depository of government funds. The Board shall
designate the official signatories of the Corporation with regards to the deposit or withdrawal of the
Corporation's monies in such banks.

ARTICLE V — ADMINISTRATIVE PROVISIONS AND TAX EXEMPTIONS.

Section 11. Record of Transaction— The Corporation shall keep proper accounts and
records of all its transactions and affairs, and shall exert all efforts to ensure that all payments made
‘out of its moneys arc correctly made and properly authorized, and that adequate control is
maintained over the assets of, or in the custody of, the Corporation and the expenditures incurred by
the Corporation. The Corporation shall be subject to audit by the Commission on Audit.

Section 12. Exemption from Taxes, Customs and Tariff Duties—The importation of
printing equipment, machineries, spare parts, accessories, and other materials, including supplies
and services used directly in the operations of the printing system, not obtainable locally on
favorable terms, shall be exempt from all direct and indirect taxes, custom duties, fees, imports,
tariff duties, compensating taxes, wharfage fees and other charges and restriction, the provisions of
existing laws to the contrary notwithstanding.

All obligations entered into by the Corporation and any income derived therefrom, including
those contracted with private international banking and financial institutions shall be exempt from
all taxes on both principal and interest

Section 13. Merit System. — All officials and employees of the Corporation shall be
selected and appointed on the basis of merit and fitness in accordance with civil service law, rules
and regulations. The recruitment, transfer, promotion, and dismissal of all its personnel including
temporary workers shall be governed by a merit system that will be established by the Corporation
in compliance with existing laws, rules and regulations.


Section 14. Coverage from GSIS. — All employees of the Corporation shall be deemed and
covered by the Government Service Insurance System and shall enjoy all the benefits provided
under this System.

Section 15. Abolition of the National Printing Office—The National Printing Office,
formerly Bureau of Printing created on November 7, 1901 by the Philippine Commission Act No.
296, as amended by the Philippine Commission ActNo 1417 is hereby abolished. All_ its
budgetary appropriations, finances, properties, records, equipment, rights, chooses in action, and
other assets as well as liabilities, are hereby transferred to the Authority.

All permanent officers and employees of the National Printing Office shall continue in
Office as officers and personnel of the Corporation except those appointed which shall be on hold-
over capacity until their successors have been appointed by the President. Permanent officials and
employees who choose to leave government service, or who prefer to retire, if qualified for
retirement, shall be given a Separation Incentive Package/Retirement Package, subject to existing
separation/retirement laws, rules and regulations,

Section 16. Legal Counsel. — The Office of the Government Corporate Counsel shall act as
the external legal counsel of the Authority before any court of law or any quasi-judicial bodies of
the government without prejudice of any deputation or designation that it may issue in favor of the
in-house counsel of the Corporation,

Section 17. Repealing Clause. — Executive Order No. 285 (s. 1987), as amended by
Executive Order No. 378 (2004) is hereby repealed. All laws, decrees, executive orders, rules and
regulations, o parts thereof inconsistent with or contrary to the provisions of this Act are hereby
repealed or modified accordingly.

Section 18. Separability Clause— If any part or provision of this Act is held
unconstitutional or invalid, other parts or provisions thereof, which are not affected, shall continue

to remain in full force and effect.

Section 19. Effectivity. — This Act shall take effect fifteen (15) days following the
completion of its publication in at least two (2) newspapers of general circulation,

Approved,