HOUSE OF ‘REPRESENTATIVES

RECEIVED
SEVENTEENTH CONGRESS ) DATE:_3.0 IN 2015
OF THE REPUBLIC OF THE PHILIPPINES ) 5
First Regular Session ) Time: LF

BY:
HOUSE OF REPRESENTATIVES

REGISTRATION UNIT

BILLS % SERVICE
House Bill No. 671 coils

Introduced by Representative Victor A. Yap

EXPLANATORY NOTE

Section 21 and 23 of Commonwealth Act (CA) No. 146 provides the imposable penalties
against erring Public Communications Entities for violation of the terms and/or conditions of any

certificate, authotity, order, decision, resolution or regulation of the National ‘Telecommunications
Commission (NTO).

However, the said penalty in Section 21 of CA No. 146 amounts only to Two Hundred
Pesos (Php 200.00) per day of violation, and the penalty under Section 23 of CA No. 146 is a
maximum of Twenty Five Thousand Pesos (Php 25,000.00) imposable fines ot an imprisonment not
exceeding Five (5) yeats for violations. These penalties are obsolete and insignificant given the high
level of income earned by Public Communications Entities.

In order to ensure compliance by the Public Communications Entities with the law and the
NIC's certificate, authority, order, decision, resolution or regulation, it is necessary to impose higher

penalties and to provide a legal mechanism to allow NTC to adjust penalties based on a rational
standard,

In view of the foregoing, the swift approval of this measure is sought.

—* |
VICTOR|A(
Representative, 24 District of Tarlac


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SEVENTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Billo. 8 1

Introduced by Representative Victor A. Yap

AN ACT
PROVIDING FOR PENALTIES OR FINES AGAINST ERRING PUBLIC
TELECOMMUNICATIONS ENTITIES FOR VIOLATION OF THE TERMS OR
CONDITIONS OF ANY CERTIFICATE, AUTHORITY, ORDER, DECISION,
RESOLUTION OR REGULATION OF THE NATIONAL TELECOMMUNICATIONS.
COMMISSION (NTC), AMENDING FOR THE PURPOSE SECTIONS 21 AND 23 OF
COMMONWEALTH ACT NO. 146

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

SECTION 1. Under Section 21 of Commonwealth Act No. 146, after the second

paragraph, the following paragraphs shall be inserted to read as follows:

“PUBLIC TELECOMMUNICATIONS ENTITIES VIOLATING OR
FAILING TO COMPLY WITH THE TERMS AND CONDITIONS OF ANY
CERTIFICATE, AUTHORITY, ORDER, DECISION, RESOLUTION OR
REGULATION OF THE NATIONAL TELECOMMUNICATIONS
COMMISSION (NTC), SHALL BE SUBJECT TO FINES AND PENALTIES OF
THREE HUNDRED THOUSAND PESOS (PHP 300,000.00) BUT NOT
EXCEEDING FIVE MILLION PESOS (PHP 5,000.000.00) FOR EVERY DAY
DURING WHICH SUCH DEFAULT OR VIOLATION CONTINUES; AND
THE NTC IS HEREBY AUTHORIZED AND EMPOWERED TO IMPOSE
SUCH FINE, AFTER DUE NOTICE AND HEARING.

THE FINES OR PENALTIES IMPOSED SHALL BE PAID TO THE
GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES THROUGH
THE NTC. FAILURE TO PAY THE FINES OR PENALTIES IN ANY CASE
WITHIN THE TIME SPECIFIED IN THE ORDER OR DECISION OF THE
NTC SHALL BE DEEMED GOOD AND SUFFICIENT REASON FOR THE
SUSPENSION OF THE CERTIFICATE OF SAID PUBLIC
TELECOMMUNICATIONS ENTITY UNTIL PAYMENT THEREOF SHALL
HAVE BEEN MADE.


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THE NTC SHALL INCREASE THE AMOUNT OF THE
ABOVESTATED FINES OR PENALTIES EVERY FIVE (5) YEARS SUBJECT.
TO A CERTIFICATION FROM THE NATIONAL ECONOMIC AND
DEVELOPMENT AUTHORITY (NEDA) ON THE COMPUTATION OF COST
OF MONEY BASED ON THE CURRENT CONSUMER PRICE INDEX.”

SECTION 2. Under Section 23 of Commonwealth Act No. 146, a second paragraph shall

be inserted to read as follows:

“PUBLIC TELECOMMUNICATIONS ENTITIES SHALL PERFORM,
COMMIT, OR DO ANY ACT OR THING HEREIN FORBIDDEN OR
PROHIBITED OR SHALL NEGLECT, FAIL, OR OMIT TO DO OR PERFORM.
ANY ACT OR THING HEREIN REQUIRED TO BE DONE OR PERFORMED,
SHALL BE PUNISHED BY A FINE NOT EXCEEDING THREE HUNDRED
MILLION PESOS (PHP 300,000,000.00)

SECTION, 3. Section 21 and 23 of Commonwealth Act No. 146 and all other laws,

orders, decrees, rules and regulations or parts thereof inconsistent with are hereby repealed or

modified accordingly.

SECTION 4. This Act shall take effect fifteen (15) days after publication in two (2) national

newspapers of general circulation.

Approved,