FOURTEENTH CONGRESS OF THE REPUBLIC) 
.- 
:ii\- 1 p r' ,i "r ! 
OF THE PHILIPPINES 
) 
i 
.j , 
First Regular Session 
1 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The proposed measnre seeks to systematize and professionalize the real estate industry in 
the Philippines. Despite the tremendous growth of the industry and its impact on the economy, it 
is un€ortunate that no comprehensive laws have been enacted to regulate it. 
For this reason, some members of the public have become victims to anomalous real 
estate transactions in a rising and unprecedented frequency with no adequate- remedy. 
Unscrupulous real estate brokers, developers or dealers, meanwhile, have not gone penalized. 
In order to safeguard public interest, there is a need to consolidate and integrate the laws, 
rules and regulations relative to real-estate practice. There is also a need to create a Real Estate 
Commission, with appropriate duties, powers and functions that will allow it to regulate, 
supervise and oversee the industry. When these are done, the buying public as well as the 
govermnent can finally be protected against unlawful and unconscionable transactions.* 
This bill was originally filed during the Thirteenth Congress, First Regular Session. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
“7 
J;. 
18 [J4 
‘ 1 . 1  
First Regular Session 
) 
SENATE 
S.B.No. j.298 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
REGULATING THE PRACTICE OF REAL ESTATE SERVICE 
IN THE PHILIPPINES, CREATING A REAL ESTATE COMMISSION AND 
APPROPRIATING FUNDS THEREFOR 
Be it enacted .by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. SJzort Title. - This Act shall be known as the “Real Estate License Act of the 
Philippines.” 
SECTION 2. Declaration ofPolicy. - The State recognizes the need to professionalize 
and regulate real estate services in the country as a vital component of economic development. 
For this purpose, real estate service practitioners shall be under the supervision and control of a 
Real Estate Commission with quasi-judicial powers to regulate, curtail and penalize acts or 
practices prejudicial to the public interest. 
SECTION 3. Dejnition of Terms. - As used in this Act, the term: 
(A) “Real estate” means the land, building, or other improvements permanently 
attached or annexed to the land, including the rights and interest therein; 
“Real estate development project” means the development of land for residential, 
commercial, industrial, agricultural, institutional, or recreational purposes, or any 
combination of such including but not limited to tourist resorts, reclamation 
projects, building or housing projects whether for individual or condominium 
ownership, memorial parks, and others of a similar nature; 
“Real estate service practitioners” refers to and consists of the following: 
(B) 
(C) 
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(1) Real estate salesperson or a natural person who performs services under the 
direct supervision and control of a real estate broker any or all the functions of 
the latter, for or in expectation of a share in the commission, fee, 
compensation, or other valuable consideration of the broker and who is 
separately licensed as such under the rules and regulations of the Real Estate 
Commission; 
(2) Real estate broker or any person, natural or juridical, who on behalf of another 
person and for or in expectation of a fee, commission, compensation or other 
valuable consideration, shall perform any of the following acts: offers, 
advertises, solicits, lists, promotes, mediates, negotiates or affects a sale, 
purchase exchange, mortgage, lease, joint venture or other transaction in real 
estate or any interest therein; 
(3) Real estate appraiser or a natural person who is a licensed real estate broker 
and who, for and in expectation of a fee, Compensation or other valuable 
consideration, offers to render or renders services as an expert on real estate 
values; 
(4) Real estate consultant or a natural person who is a licensed real estate broker 
and who, for and in expectation or a fee compensation or other valuable 
consideration, offers or renders professional advise and judgment on: 
(a) The acquisition, enhancement, preservation, utilization, or disposition 
of lands or improvements thereon; and 
(b) The conception, planning, management and development of realty 
projects. 
ARTICLE I1 
REAL ESTATE COMMISSION 
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SECTION 4. Real Estate Commission. - A “Real Estate Commission” is hereby created 
which shall be composed of a chairman and two (2) Deputy Chairmen who shall be appointed by 
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the President, and the tenure of office of the Chairman shall be for live ( 5 )  years, and the Deputy 
Chairmen for four (4) years and three (3) years respectively. 
To be eligible for office as a inember of the Commission, he shall be thirty five (35) years 
of age, of good moral character and a holder of a four-year Bachelor’s degree: Provided, that at 
least two (2) members shall have been engaged in the real estate business either as real estate 
broker, appraiser, or consultant for at least ten (10) years. 
The Chainnan shall receive an annual salary of Three Hundred Thousand Pesos 
(P300,OOO.OO) and the members shall receive an annual salary of Two Hundred Forty-Thousand 
pesos (P240,OOO.OO) each. 
SECTION 5. Powers and Functions of the Commission. -The Commission shall exercise 
the following powers and functions: 
(A) Provide comprehensive policy guidance for the promotion and development of the 
real estate industry; 
Initiate, integrate and recommend such rules and regulations, standards, guidelines 
and procedures as may be necessary for the growth and effective enhancement of 
the real estate profession; 
(C) Gather and compile statistical date required in the effective implementation of this 
Act; 
(D) Draw up recommendations to government agencies or departments concerned for 
the purpose of rationalizing and coordinating real estate transactions; 
(E) Promulgate such rules and regulations as may be necessary to implement effectively 
the provisions of this Act; 
(F) Assess and fix the rate of reasonable regulatory fees; 
(G) Administer oath and affirmation and to issue subpoena and subpoena duces tecum 
in connection with any investigation of which it has jurisdiction under this Act; 
(H) Appoint, discipline, andor remove subordinate officials or employees, and to 
determine the compensation of its technical staff or personnel: Provided, that except 
as to its technical staff and such other position as the Commission may declare to be 
(B) 
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(1) 
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highly technical or primarily confidential, all positions under the Commission are 
subject to the provisions of the Civil Service Law and Rules, but are exempt from 
the regulations of the Wage and Position Classification Office; 
After notice and hearing, revoke, cancel or suspcnd the exercise or enjoyment of 
license and benefits granted under this Act; 
Monitor all forms of advertisements, announcements, signboards, billboards, 
pamphlets, brochures, and others of similar nature concerning real estate and to 
provide every possible safeguard to protect legitimate and licensed real estate 
seiyice practitioners and in pursuance thereof it shall exercise its judicial and police 
powers to finally and completely eradicate the pernicious practices of unauthorized 
and unlicensed individuals engaged in real estate service practice; 
(K) Screen, issue and monitor permits issued to accredited organizations of real estate 
professionals in the industry, and to accredit seminars and real estate instructors for 
the purpose of upgrading the quality and knowledge of the profession; and to 
conduct examination as a prerequisite in the practice of the profession; 
(L) Require all transactions involving the sale, lease, exchange or mortgage of real 
estate to be certified by a duly licensed real estate broker and which in the case of 
an owner or developer of a real estate development project shall be a requirement 
for an application for License to Sell with the Housing and Land Use Regulatory 
Board (HLURB) and registration with the Register of Deeds, except in exempt 
transactions as provided under Section 18; 
(M) Acquire exclusive jurisdiction in determining and integrating all rules and 
regulations with respect to the payment of government fees, dues or charges in 
relation to the privilege to practice the profession; and 
(N) Adopt a national code of ethics to be strictly observed by all licensed real estate 
salespersons, brokers, appraisers and consultants. 
SECTION 6. License Requirement. - No natural nor juridical person or a division or 
department thereof, shall directly or indirectly engage in real estate services practice or represent 
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himself or itself as a real estate salesperson, broker, appraiser or consultant without having first 
secured the corresponding license from the Commission in accordance with this Act and the 
person or persons authorized to act as such for any juridical person in respect to real estate 
services shall all be duly licensed real estate service practitioners. 
SECTION 7. Application for License. - Any natural person duly qualified and who has 
successfully passed the examination required by this Act for real estate brokers, appraisers, 
consultants, may apply for a license as real estate broker, appraiser or consultant or forms duly 
prescribed by the Commission. 
Any natural person duly qualified under Section 8 of this Act may apply for a license as 
real estate salesperson and shall at all times by under the direct supervision and control of a real 
estate broker. 
SECTION 8. QuaZ$cations. -Any applicant for examination for license to engage in the 
real estate profession shall, at the time of the filing of his application be: 
(A) A Filipino citizen; 
(B) At least twenty one years old; 
(C) Of good moral character; and 
(D) A holder of a bachelor’s degree from a duly recognized school, university or 
institution and he must have attended an completed a real estate service seminar 
given by accredited entities for those applying as real estate brokers salespersons, 
the applicant must be a holder of a high school diploma in a duly recognized school, 
university or institution and he must have attended and completed a real estate 
service seminar given by said accredited entities. 
(E) Must not have been convicted of a crime where fraud is an essential element: 
Provided, that an applicant for the licensure examination for real estate broker must 
submit a certification under oath that he has three (3) years experience as licensed 
real estate salesperson jointly certified by the licensed real estate brokeds with 
whom he has practiced for such period and the specific dates of employment; for 
real estate appraisers, certification under oath of live (5) years experience as a 
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licensed real estate broker: Provided, further, that an applicant for the licensure 
examination for real estate consultants must certify under oath that he has at least 
ten (10) years experience as a licensed real estate broker and at least five (5) years 
experience as real estate appraiser. 
SECTION 9. Scope ofExamination. - An examination shall be given to the licensure 
applicants for real estate brokers, real estate appraisers or real estate consultants, which shall 
include the following: 
(A) For Real Estate Broker. - Fundamentals of property ownership; legal requirements 
for real estate practice; real estate brokerage practice; practical appraisal for real 
estate broker; site location and map reading; subdivision development; 
condominium concept; real estate financing; taxation; economics; basic principles 
of ecology; urban and rural land use; planning, development and zoning; legal 
aspects of sale, mortgage, lease, documentation and registration; agrarian reform 
law; code ofethics; and other relevant subjects as may be determined by the Board. 
(B) For Real Estate Appraiser. - General real estate information; theories and 
principles in practical appraisal mathematics; appraisal report writing; laws 
affecting real estate appraisal; income and investment problems; appraisal of 
machinery and equipment; case studies, agrarian reform law; code of ethics; and 
other relevant subjecls as may be determined by the Commission. 
(C) For Real Estate Consultant. - Written and/or oral examination on re- 
iiivestment/feasibility studies; design; process innovation; constructiodinstallation 
and other techuical services on special studies; agrarian reform law; code of ethics; 
and other relevant subjects as may be determined by the Commission; Provided 
however, that applicants shall, at the time of filing the application for real estate 
consultant examination, must have at least ten (10) years experience in his field of 
specialization. 
SECTION 10. Duration ofLicense. - All licenses shall be valid for a period of three 
years and renewable in accordance with the rules and regulations of the Commission. 
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SECTION 11. Rating in the Examination. - In order that candidate may be deemed to 
have successfully passed the examination, he must have obtained an average of at least seventy 
percent (70%) in all subject, with no rating below fifty percent (50%) in any subject. 
SECTION 12. License Numbers. - The Commission shall assign a permanent license 
number for each registered salesperson, broker, appraiser and consultant, which number shall be 
indicated in their respective pocket cards, letterheads, dry seals, signboards, billboards, 
advertisements, brochures, pamphlets and all other documents or materials released by a real 
estate service practitioner in the exercise of his profession. As to salespersons, the license 
number of the real estate broker who has direct supervision and control over them shall be 
indicated. 
SECTION 13. Pocket Cards. - The Commission shall prepare, issue and deliver to each 
licensed real estate service practitioner a pocket card in such form and manner as the 
Commission shall prescribe, but which shall contain the name, business address and license 
number of the license and in case of a real estate salesperson, the name, business address and 
license mnnber of the broker who has direct supervision and control over him and shall certify 
that the person whose name appears is a licensed real estate service practitioner. Such cards shall 
be shown by the license to all parties at the commencement of any transaction. hi case of loss, 
destruction or damage, the Commissioner may, upon submission of affidavit of loss, issue a 
duplicate card upon payment of a fee. 
SECTION 14. Display of License in the Place of Business. - Every licensed real estate 
service practitioner shall establish and maintain a principal place of business and such other 
branch o€fices as may be necessary and shall conspicuously display therein certified true copies 
of the license of all as real estate service practitioner employed by such office. 
SECTION 15. Procedure in the Suspension and/or Revocation oflicense. - 
(A) The Commission shall motu propio or upon verified complaint, investigate and 
decide on matters involving the implementation and/or violation of the provision of 
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this Act and such investigation shall be mandatory when from the allegations of the 
complaint and the answer of the respondent, including the supporting documents, 
the merits of the case cannot be decided without conducting an investigation even if 
the respondent does not request a formal investigation. In no case shall the ruling of 
the Cominission exceed ninety (90) days from the date the complaint is filed, except 
in exceptional meritorious cases. 
(B) The direct evidence from the complainant and the respondent shall consist of the 
sworn statement and documents submitted in support of the complaint or answer as 
the case may be, without prejudice to the presentation of additional evidence 
deemed necessary but was unavailable during the time of filing of the complaint or 
answer, upon which the cross-examination by respondent and complaint shall be 
based. Following the cross-examination, there may redirect and recross- 
examination when deemed necessary. 
(C) Either party may avail or service of counsel and may require the attendance of 
witness and the production of documentary evidence in his favor trough the 
compulsory process of subpoena or subpoena duces tecum. 
(D) The investigation shall be conducted for the purpose of ascertaining the truth and 
without necessarily adhering to technical rules of judicial proceedings. 
(E) Any complaint filed under this Act is without prejudice to civil or criminal actions 
filed in regular courts for the same acts. 
SECTION 16. Appeals. - 
(A) Appeals shall be made by the party adversely affected by the decision to the office 
of the President within fifteen (15) days from receipt of the decision unless a 
petition for reconsideration is filed, which petition shall be decided within fifteen 
(15) days. Notice of the appeal shall be filed with the Commission which shall 
foiward the records of the case together with the notice of appeal to the Office of 
the President or his duly authorized representative within fifteen (15) days from 
filing of the notice of appeal, with its comment, if any. The notice of appeal shall 
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specifically state the date the decision was appealed form as well as the sate o f  
receipt thereof. It shall also set forth clearly the grounds relied upon in making the 
appeal from decisions; 
A petition for consideration shall be based only on any of the following grounds: 
(1) New evidence discovered which materially affects the decision rendered; 
(2) The decision is not supported by the evidence or record; or 
(3) Errors of law or irregularities were committed which are prejudicial to the 
(B) 
interest of the respondent; 
Provided, that only one petition for reconsideration shall be entertained. 
SECTION 17. Preventive Suspension and Other Measures. - The Commission may 
preventively suspend may license under this Act pending as investigation and/or decision, if the 
charge against any license involves misrepresentation, dishonesty or grave misconduct or fraud 
and there is strong evidence to believe that the respondent is guilty of the charges which would 
warrant the revocation of his license. 
At any time after the commencement of an administrative action but prior to the 
resolution thereof, the Commissioner when so warranted by the circumstances, may issue 
preliminary and/or preventive orders such as but not limited to, temporary cease and desist 
orders to prevent and/or restrain the commission of acts, which would probably work injustice to, 
or prejudice the rights of the complaints or any other person or entity involved, andor which 
may rendered any action, order of judgment ineffectual. 
ARTICLE I11 
PRACTICE OF REAL ESTATE SERVICE 
SECTION 18. Acts Constituting the Practice of Real Estate Practice. - Any single act or 
transaction embraced within the definitions contained in Section 3 hereof, shall constitute as real 
estate service, except when the same is performed by: 
(A) Any natural or juridical person who directly performs by himself or itself any o€ the 
abovementioned acts with respect to his or its own property except those covered by 
Section 22; 
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(B) Any receiver, trustee or assignee in insolvency proceedings; 
(C) Any person acting pursuant to a court order; 
(D) Public officers in the performance of their official duties; 
(E) Officials and employees of banks, insurance companies, savings and loan 
associations or other financial institutions with respect to the foreclosures and 
eventual disposition of their acquired assets and only while they are employed by 
such bank, insurance company, savings and loan associations or financial 
institution. 
SECTION 19. Unauthorized Practice. - No person, whether natural or juridical, nor any 
of its employees or associates shall be allowed to practice the real estate profession in the 
Philippines without first obtaining a license under the provisions of this Act. Any person, 
whether natural or juridical, found guilty of violating this provisions or who shall transact with 
an unlicensed practitioner shall be subject to the penalties provided in Section 29. 
SECTION 20. Branch Of$ces of Real Estate Service Practitioner. - Branch offices of 
real estate brokers, appraisers or consultants must be manned by a duly licensed real estate 
salesperson, broker, appraiser or consultant as the case may be and must be registered as such 
with the Commission. 
SECTION 21. Real Estate Salesperson under Supervision and Control of Brokers. 
~ No 
salesperson can negotiate, mediate or transact any real estate transaction for an in behalf of a 
broker without first securing a license as salesperson under the rules of the Commission. A 
salesperson cannot by himself be a signatory to a written agreement involving a real estate 
transaction unless the real estate broker who has direct control and supervision over him is also a 
signatory thereto. A broker shall be guilty of violating this Act for having a salesperson who has 
not secured the required license prior to employment. 
At no time shall the number of a salesperson under a broker exceed twenty (20) and a list 
of the salesperson under the broker shall be submitted to the Commission and updated regularly. 
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I11 the event a salesperson ceases to be employed with a broker, the same must be reported by the 
broker within thirty (30) days from cessation of relationship. 
No salesperson shall receive or demand a fee, commission or compensation of any kind 
ftom any person, other than the duly licensed real estate broker and who has direct control and 
supervision over him, for any service rendered or work done by such salesperson in any real 
estate transaction. 
No violation of this provision shall be caused for revocation or suspension of the broker 
unless there was actual knowledge of such violation or the broker retains the benefits, profits or 
proceeds of a transaction wrongfully negotiated by the salesperson. 
SECTION 22. Juridical Persons as Real Estate Sewice Practitioner. - 
(A) No partnership or corporation shall engage in real estate service practice unless it is 
duly licensed by the Commission and registered with the Securities and Exchange 
Commission (SEC), and the persons authorized to act as such for the partnership or 
corporation are all duly licensed as salesperson, brokers, appraisers or consultants, 
as the case maybe. The partnership or corporation shall regularly submit a list of its 
real estate service practitioners to the Commission and to the SEC as part of its 
annual reportorial requirements. 
(B) Division or departments of corporations and partnerships engaged in marketing or 
selling any real estate development project in marketing or selling any real estate 
development project in the regular course of business must be headed by a full-time 
licensed real estate broker and all salespersons in such division, or department must 
be separately licensed as salespersons under the rules of the commission. There 
shall at least be one (1) licensed real estate broker for every twenty (20) licensed 
salespersons. In case of resignation or termination from employment of a real estate 
service practitioner, the same shall be reported by the employer to the Commission 
within a period not to exceed thirty (30) days from the date of the effectivity of the 
resignation or termination. 
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(C) Subject to the provision of the Labor Code, a corporation or partnership may hire 
the services of licensed real estate brokers, appraisers of consultants on commission 
basis to perform real estate services and the later shall be deemed independent 
contractors and not employees of such corporation or partnership. 
SECTION 23. Duties and Responsibilities of Licensed Salespersons, Brokers, Appraisers 
and Consultants. - All licenses, in the practice of the profession, are required to; 
(A) Present their pocket cards to all parties at the start of every transaction an inform 
them of any vital information affecting his or its license; 
(B) Disclose all material facts concerning such real estate transaction; 
(C) Undertake an accurate verification of all land titles, survey plans, technical 
descriptions, transferability of ownership or possession, construction plans and 
specifications, zoning regulations, rules and laws, appraisals, assessed values and 
actual market valuation, before promoting or negotiating any transaction on any 
particular real estate or real estate development project; 
(D) Promote the fairest agreement among and between the parties to any real estate 
transaction; 
(E) Authenticate every contract negotiated by him or for and in behalf of his partnership 
or corporation with his personal signature and personal seal; 
Advice the parties of the amount of taxes, fees and other assessment due the 
government in connection with said transaction; 
(G) Keep a registry book in the form prescribed by the Commission which shall contain 
a record of all transaction consummated by him specifying the nature of the 
property, assessed value, actual consideration for the contract, and nature of 
transaction, whether a sale, exchange, mortgage, lease, joint venture or the like; and 
(H) Submit an annual report of a11 his transaction to the Commission, 
(F) 
SECTION 24. Grounds for Suspension and Revocation. - The Real Estate Commission 
may, motu propio, or upon verified complaint in writing by any person, investigate the activities 
of any real estate salesperson, broker, appraiser and consultant and after due notice and hearing, 
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suspend or revoke the license for such period as the Commission may deem proper, when the 
license is found guilty of any of the following activities; 
(A) Procuring license or pocket card through fraud and deceit and making false, 
fraudulent or deceitful statement of facts in his application for license or forging 
any signature therein; 
(B) Making any false and deceitful promise directly or through prospectus, 
advertisements, pamphlets, brochures or billboards which are liltely to influence 
persuade or induce any person to enter into a transaction; 
(C) Making any substantial misrepresentation or non-disclosure of a material fact; 
(D) Any conduct in a real estate transaction which demonstrates gross and evident bad 
faith, dishonesty, untrustwoithiness or incompetence; 
(E) Paying or accepting, giving or charging any undisclosed commission, rebate, 
compensation or profit; 
Procuring or helping to procure consent to or effecting the consummation of any 
real estate transaction or engagement of this service by means of bribery or 
corruption, fraud, deceit, intimation, violence or immoral offerings; 
(G) Inducing any real party to a real estate transaction to break his contract for the 
purpose of substituting in lieu thereof a new contract with the sane or different 
principal where such substitution is motivated by personal gain of the licensee; 
(H) Misrepresenting himself as a member of an accredited organization of real estate 
service practitioners and using trade name, insignia or membership of any real 
estate organization, profession or trade of which the licensee is not a member; 
Splitting or offering or agreeing to pay, split or rebate any commission, fee or 
valuable consideration, directly or indirectly with any person who is not a duly 
licensed real estate broker or real estate salesperson for cooperating, assisting or 
endorsing a transaction or engagement of his service; 
Conviction of a crime where fraud is an essential element; 
(F) 
(I) 
(J) 
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(K) Dishonesty or engaging in fraudulent representations in any written document 
incloding any prospectus, advertisements, brochure, pamphlet, billboard and similar 
literature concerning any real estate transaction or project; 
Acting for more than one party to a transaction without the knowledge and consent 
in writing of all parties; 
(L) 
(M) Failing to exercise adequate supervision over the activities of his licensed 
employees; 
(N) Violation of any of the provisions of this Act or order of the Commission of which 
the broker has notice. 
SECTION 25. CertiJicate of Transaction. - The parties to a real estate transaction 
iiivolving sale or exchange shall certify under oath in a form prescribed by the Commission that 
a real estate broker has negotiated and mediated in the consummation, and that the consideration 
and all material facts contained in the deed of conveyance are true and correct: Provided, 
however, that in cities and provinces where there are no licensed real estate brokers, or that the 
parties have directly negotiated and consummated the transaction with each other without the 
mediation of real estate broker, the certification shall estate the fact and shall be made under oath 
before the Register of Deeds of the city or province where the real estate is located: Provided 
also, that in the case of owners, developers or joint venture partner of real estate project, this 
certification of transaction shall be a requirement for an application for License to Sell. 
No deed of conveyance in any real estate transaction mentioned herein shall be accepted 
for registration by the Registry of Deeds unless the aforesaid certification of the parties and the 
real estate brokers together with certification of payment of withholding tax on income value 
added tax, capital gains tax and other fees and taxes imposed by the Government are present and 
filed accordingly. 
SECTION 26. Code of Ethics for Real Estate Sewice Practitioner. - The Board shall 
adopt the code of ethics for real estate service practitioners which shall be promulgated by the 
integrated national organization of real estate service practitioners. 
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ARTICLE V 
FINAL PROVISIONS 
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SECTION 27. Transitovy Provisions. - Those who, on the date of effectivily of this Act 
are already licensed as real estate broker, real estate appraisers or real estate consultant by the 
Bureau of Domestic Trade shall be registered and issued by the Board and the Commission a 
certificate of registration and a professional license without taking the prescribed examination: 
Provided, that they shall file their applications in the form prescribed for the purpose not later 
than one (1) year from the date ofthe effectivity of this Act: Provided further that the renewal of 
their licenses is governed by the provisions of this Act. 
All natural or juridical persons which as of the date of the effectivity of this Act are 
unlicensed real estate service practitioners shall obtain their licenses not laler than one (1) year 
from the date of the effectivity of this Act. 
SECTION 28. Appropriations. - Such sums as may be necessary to carry out the 
provisions o€ this Act shall be included in the General Appropriations Act of the year following 
its enactment into law and thereafter. 
SECTION 29. Penal Provisions. - All cases of violations of this Act committed by any 
person whether natural or juridical including violations of implementing rules and regulations, 
shall me meted the penalty of a fine of not less than One Hundred Thousand pesos (PlO0,OOO.OO) 
or imprisoiunent of not less than two (2) years, or both such fine and imprisonment upon the 
discretion of the court. 
In case the violation is committed by a juridical person, in addition to the fine imposed by 
the preceding paragraph on the juridical person, the responsible officer or officer who shall 
consent to or shall knowingly tolerate such violations shall be directly liable for the acts of his 
subordinates and shall be criminally liable as a co-principal, and shall be meted a fine of not less 
than One Hundred Thousand Pesos (100,000.00) 
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SECTION 30. Sepavability Clause. - If any provision, or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 31, Repealing Clause. - Presidential Decree No. 1602 is hereby amended and 
any law presidential decree or issuance, executive order, letter of instruction, administrative 
order, rule or regulation contrary to, or inconsistent with, the provision of this Act is hereby 
repealed, modified or amended accordingly. 
SECTION 32. Effectivity Clause. - This Act shall take effect fifteen (15) days its 
publicatioii in at least Iwo (2) newspaper of general circulation. 
Approved, 
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