SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
S.No. 
2943 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
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'15 
SEP -B P 1 :55 
TO REQUIRE ALL PROVIDERS OF TELECOMMUNICATIONS SERVICES TO 
ESTABLISH AND CARRY OUT PLANS FOR PROCUREMENT FROM 
BUSINESSES OWNED BY MINORITIES AND WOMEN 
EXPLANATORY NOTE 
The Constitution, Article 13 provides: 
Section 1. The Congress shall give highest priority to the enactment 
of measures that protect and enhance the right of all the people to human 
dignity, reduce social, economic, and political inequalities, and remove 
cultural inequities by equitably diffusing wealth and political power for the 
common good. 
To this end, the State shall regulate the acquisition, ownership, use, 
and disposition of property and its increments. 
It is in the public interest that business enterprises owned by minorities and 
women participate in procurement contracts of all providers of telecommunications 
services. The opportunity in our free enterprise system by minorities and women is 
essential if this nation is to attain social and economic equality. 
Business enterprises can be improved through the development by the providers of 
telecommunications services of substantial long-range and annual goals, which are 
supported by training and technical assistance, for the purchase to the maximum 
practicable extent of technology, equipment, supplies, services, and materials from 
minority business enterprises. 
Procurement policies which include participation of business enterprises that are 
owned by minorities and women also benefit the communication industry and its 
( 


consumers by encouraging the expansion among suppliers and promoting economic 
efficiency in the process. l 
~~J.~ 
MIRlAM DEFE~SOR SANTI$iO 
8r 
I This bill was originally filed in the Thirteenth Congress, First Regular Session. It was refiled in the 
Fourteenth Congress, First Regular Session and in the Fifteenth Congress, First Regular Session. 
2 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
S.No. 
2943 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
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'15 
SEP -8 P 1 :55 
IUX'EIVED H\,;~ • 
TO REQUIRE ALL PROVIDERS OF TELECOMMUNICATIONS SERVICES TO 
ESTABLISH AND CARRY OUT PLANS FOR PROCUREMENT FROM 
BUSINESSES OWNED BY MINORITIES AND WOMEN 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Telecommunications 
2 
Economic Opportunity Act." 
3 
SECTION 2. Declaration of Policy. - It is the policy of the State to encourage 
4 
and foster greater economic opportunity for business enterprises that are owned by 
5 
minorities and women. 
6 
SECTION 3. Definition of Terms. - In this Act, the term-
7 
(A) 
"Business enterprise owned by minorities or women" means-
8 
(1) A business enterprise that is at least 51 percent owned by a person or 
9 
persons who are minority persons or women; or 
10 
(2) In the case of any publicly owned business, at least 51 percent of the 
11 
stock of which is owned by one or more persons who are minority persons or 
12 
women, and whose management and daily business operations are controlled by 
13 
one or more of those persons. 
14 
(B) 
"Commission" means the National Telecommunications Commission. 


1 
(C) 
"Control" means exercising the power to make financial and policy 
2 
decisions. 
3 
(D) 
"Minority person" means persons who belong to indigenous cultural 
4 
communities or group of persons not fully assimilated into the mainstream of social life 
5 
on account of race, creed, or religion. 
6 
(E) 
"Operate" means the active involvement in the day-to-day management of 
7 
the business and not merely being officers or directors. 
8 
(F) 
"Telecommunications service" means the offering, on a common carrier 
9 
basis, of telecommunications facilities, or of telecommunications by means of such 
10 
facilities. Such term does not include an information service. 
11 
SECTION 4. Annual Plans Required. -
12 
(A) 
In General. -
The Commission shall require each provider of 
13 
telecommunications services to submit annually a detailed and verifiable plan for 
14 
increasing its procurement from business enterprises that are owned by minorities or 
15 
women in all categories of procurement in which minorities are underrepresented. 
16 
(B) 
Contents of Plans. - The annual plans required by paragraph (I) shall 
17 
include, but shall not limited to, short and long-term progressive goals and timetables, 
18 
technical assistance and training and shall, in addition to goals for direct contracting 
19 
opportunities, include methods for encouraging both prime contractors and grantees to 
20 
engage business enterprises that are owned by minorities and women in subcontracts in 
21 
all categories in which minorities are underrepresented. 
22 
(C) 
Implementation Report. - Each provider of telecommunications services 
23 
shall furnish an annual report to the Commission regarding the implementation of 
24 
programs established pursuant to this Act in such form as the Commission shall require, 
25 
and at such time as the Commission shall aunually designate. 
2 


1 
SECTION 5. Report to Congress. - The Commission shall provide an annual 
2 
report to Congress beginning in January of the year in which this law is enacted, on the 
3 
progress of activities undertaken by each provider of telecommunications services 
4 
regarding the implementation of activities pursuant to this Act to develop business 
5 
enterprises that are owned by minorities or women. The report shall evaluate the 
6 
accomplishments under this Act and shall recommend a program for enhancing the policy 
7 
declared in this Act, together with such recommendations for legislation as it deems 
8 
necessary or desirable to further that policy. 
9 
SECTION 6. Regulation and Criteria for Determining Eligibility of Minority 
10 
Business Enterprisesfor Procurement Contracts. -
11 
(A) In General. - The Commission shall establish regulations for implementing 
12 
programs pursuant to this Act that will govern providers of telecommunications services 
13 
and their affiliates. 
14 
(B) VerifYing Criteria. - The Commission shall develop and publish regulations 
15 
setting forth criteria for verifYing and determining the eligibility of business enterprises 
16 
that are owned by minorities or women for procurement. 
17 
(C) Outreach. - The Commission's regulations shall require each provider of 
18 
telecommunications services and its affiliates to develop and to implement an outreach 
19 
program to inform and recruit business enterprises that are owned by minorities or 
20 
women to apply for procurement contracts under this Act. 
21 
(D) Enforcement. -
The Commission shall establish and promulgate such 
22 
regulations necessary to enforce the provisions of this Act. 
23 
SECTION 7. Waiver Authority. - The requirements laid down in the preceding 
24 
section may be waived, in whole or in part, by the Commission with respect to a 
3 


1 
particular contract or subcontract in accordance with guidelines set forth in regulations 
2 
which the Commission shall prescribe when it determines the application of such 
3 
regulations proven to result in undue hardship or unreasonable expense to a provider of 
4 
telecommunications services. 
5 
SECTION 8. False Representation of Business; Sanctions -
6 
(A) In General. - Any person corporation, through its directors, officers, or agents, 
7 
which falsely represents the business as a business enterprise that is owned by minorities 
8 
or women in the procurement or attempt to procure contracts from telephone operating 
9 
companies and their affiliates pursuant to Section 6, shall be punished by a fine of not 
10 
more than PJSO,OOO.OO, or by imprisonment for a period not to exceed five years of its 
11 
directors, officers, or agents responsible for the false statements, or by both fine and 
12 
imprisonment. 
13 
(B) Holding Companies. - Any provider of telecommunications services which 
14 
falsely represents its annual report to the Commission or its implementation of its 
15 
programs pursuant to Section 6 shall be subject to a fine ofPl,OOO,OOO.OO and be subject 
16 
to a penalty of up to five years restriction from participation in lines of business activities 
17 
provided for in this Act. 
18 
SECTION 9. Discrimination Prohibited. -
No otherwise qualified business 
19 
enterprise that is owned by minorities or women shall solely, by reason of its racial, 
20 
ethnic, or gender composition be excluded from the participation in, be denied the 
21 
benefits of, or be subjected to discrimination in procuring contracts from telephone 
22 
utilities. 
23 
SECTION 10. Civil Actions Authorized. -
Whenever a qualified business 
24 
enterprise that is owned by minorities or women has reasonable cause to believe that a 
4 


1 
provider of telecommunications services or its affiliate is engaged in a pattern or practice 
2 
of resistance to the full compliance of any provision of this Act, the business enterprise 
3 
may bring a civil action in the appropriate court against the provider of 
4 
telecommunications services or its affiliate requesting such monetary or injunctive relief, 
5 
or both, as deemed necessary to ensure the full benefits ofthis Act. 
6 
SECTION 11. Separab ility Clause. - If any provision of this Act is held invalid or 
7 
unconstitutional, the same shall not affect the validity and effectivity of the other 
8 
provisions hereof. 
9 
SECTION 12. Repealing Clause. - All laws, decrees, orders, and issuances, or 
10 
portions thereof, which are inconsistent with the provisions of this Act, are hereby 
11 
repealed, amended or modified accordingly. 
12 
SECTION 13. Effectivity Clause. - This Act shall take effect fifteen (15) days 
13 
after its publication in the Official Gazette or in two (2) newspapers of general 
14 
circulation. 
Approved, 
Itmdp3Sept2015 
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