HOUSE OF REPRESENTATNES

es RECEIVED
Republic of the Philippines 01 SEP 2016
HOUSE OF REPRESENTATIVES DATE:
Quezon City ra

BY: en
RATION UNIT.
INCE X SERVICE

SEVENTEENTH CONGRES!
First Regular Session

HOUSE BILL No. 3440 L us.

Introduced by REP. RODEL M. BATOCABE, REP. ALFREDO A. GARBIN, Jr., and
REP. CHRISTOPHER S. CO.

AN ACT CLASSIFYING THE MINE REHABILITATION FUND AND THE RESERVE
FUND AS A PUBLIC FUND, AMENDING FOR THE PURPOSE RA 7942

EXPLANATORY NOTE

This bills seeks to classify the mine rehabilitation fund created under Republic
Act No. 7942 or The Philippine Mining Act of 1995 as a public fund

Section 71 of The Philippine Mining Act of 1995 creates a ‘mine rehabilitation
fund’, which is composed of a P50,000 monitoring trust fund and a rehabilitation cash
fund of P5,000,000, or 10 percent of the EPEP cost, whichever is lower. This fund is
deposited in a government depository bank and is managed by an MRF committee
composed of the MGB Regional Director, the DENR Regional Executive Director, and
representatives of the Local Government Units, Non-Governmental Organizations, and
Contractors’, As it stands, RA 7942 does not provide any mode of checking how this
fund is used, which may lead to its use for corruption and unbridled use.

In line with this presidency’s thrust to have a more transparent government, it is
humbly submitted that the Mine Rehabilitation Fund be expressly classified as a public
fund. With its classification as a public fund, the Mine Rehabilitation Fund will now be
subject to the auditing powers of the Commission on Audit, thereby preventing those
who manage it any avenue to appropriate the amount for themselves, given the
amounts involved in such fund. It is also a way to ensure the mining industry has
enough funds for the rehabilitation of areas affected by the mining industry.

of all these, the passage of this bill is earnestly sought

CHRISTO! RS. CO

+ http: //www.dlsu.edu.ph/conferences/disu research congress/2014/ pdf/proceedings/SEE-I1]-026-FT.pdt


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Republic of the Philippines
HOUSE OF THE REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 8440

Introduced by HON. RODEL M. BATOCABE, HON. ALFREDO A. GARBIN, Jr. and
HON. CHRISTOPHER S. CO

AN ACT CLASSIFYING THE MINE REHABILITATION AND THE RESERVE FUND
AS A PUBLIC FUND, AMENDING FOR THE PURPOSE RA 7942

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

Section 1. A new subsection is Section 3 is hereby created and shall read as follows:

(aq) “Public fund” is a sum of money or other resources belonging to the
government to be set aside for the purpose of carrying out specific activities or attaining
certain objectives in accordance with special regulations, restrictions or limitations and
constituting the government.

Section 2. Section 71 of RA 7942 is hereby amended to read as follows:

SEC. 71. Rehabilitation. - Contractors and permittees shall
technically and biologically rehabilitate the excavated, mined-out, tailings
covered and disturbed areas to the condition of environmental safety, as
may be provided in the implementing rules and regulations of this Act. A
mine rehabilitation fund shall be created, based on the contractor's
approved work program, and shall be deposited as a trust fund in a
government depository bank and used for physical and social
rehabilitation of areas and communities affected by mining activities and
for research on the social, technical and preventive aspects of
rehabilitation. Failure to fulfill the above obligation shall mean immediate
suspension or closure of the mining activities of the contractor/permittee
concerned. THE MINE REHABILITATION FUND SHALL BE
CLASSIFIED AS A PUBLIC FUND SUBJECT TO AUDIT BY THE
COMMISSION ON AUDIT PURSUANT TO GOVERNMENT
ACCOUNTING RULES AND PROCEDURES.

Section 4, Section 85 shall be amended to read as follows:

Section 85, Mine Wastes and Tailings Fees. - A semiannual fee to
be known as mine wastes and tailings fee is hereby imposed on all
operating mining companies in accordance with the implementing rules
and regulations. The mine wastes and tailings fee shall accrue to a
reserve fund to be used exclusively for payment for damages to:

(@) Lives and personal safety;

(b) Lands, agricultural crops and forest products, marine life and
aquatic resources, cultural resources; and


(c) Infrastructure and the revegetation and rehabilitation of silted
farm lands and other areas devoted to agriculture and fishing
caused by mining pollution.

This is in addition to the suspension or closure of the activities of the
contractor at any time and the penal sanctions imposed upon the same.

The Secretary is authorized to increase mine wastes and tailings fees,
when public interest so requires, upon the recommendation of the
Director.

THE RESERVE FUND SHALL BE CLASSIFIED AS A PUBLIC FUND
SUBJECT TO AUDIT BY THE COMMISSION ON AUDIT PURSUANT
TO GOVERNMENT ACCOUNTING RULES AND PROCEDURES.

Section §. All sections and subsections affected by the amendments and
creations of the new provisions hereby shall be re-numbered accordingly.

Section 6. Separability Clause. \f any provision or part hereof is declared invalid or
unconstitutional, the remainder of this Act or provision not affected shall remain in full
force and effect

Section 7. Repealing Clause. All laws, Presidential Decrees, Executive Orders, rules
and regulations or parts thereof inconsistent with the provisions of this Act are hereby
repealed, amended or modified accordingly.

Section 8. Effectivity Clause. This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in at least two (2) newspapers of general
circulation, whichever comes earlier.

Approved,