12 AUG 204

SIXTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —)
First Regular Session ys

HOUSE of REPRESENTATIVES.
House Bill No. xxxx 48

Introduced by: MA. THERESA B. BONOAN
4" District, City of Manila

EXPLANATORY NOTE

The City of Manila has Manila de bay, national wealth, in its
territorial jurisdiction. The bay is considered to be one of the best natural
harbours in Southeast Asia and one of the finest in the world. Manila de
Bay is a natural harbour which serves all water_bourne commercial
activities of the Port of Manila. It facilitated commerce and trade between
the Philippines and its neighboring countries, becoming the gateway for
socio-economic development even prior to Spanish occupation.

It is provided in the Constitution that the City of Manila shall be
entitled to an equitable share in the proceeds of the national wealth as well
as in the utilization and development of it. Manila was never given a share
in the income from its own national wealth. After 40 years of taking away
of its Constitutional right, Manila is in now fighting not only for its share
on the income on the port harbors, Manila is now fighting for its very
existence for it has been financially cash strapped hardly could pay the
salaries of its employees and its obligations, affecting the quality of its
public service.

The Bill strengthens Manila’s Constitutional right and privilege in
its share in the income from the port harbor. The Bill seeks to provide
Manila an additional income on the Gross of PPA. The local government
unit can utilize this in the implementation of its scholarship programs and
projects in providing better social services with end objective of
improving the lives of Manilefios and our Filipino brothers and sisters. It
is hereby declared the policy of the state shall promote a just and dynamic
social order that will ensure the prosperity and independence of the nation
and free the people from poverty through policies that provide adequate
social services, promote full employment, a rising standard of living, and
an improved quality of life for all. (Sec. 9 Art. 2 of the Constitution)
However, it is clear that the local government unit shall respect the
autonomy of PPA’s administration and supervision on Manila Ports as

provided in PD 875. VAG

HON. MA. THERESA B. BONOAN
4th District, City of Manila


SIXTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —_)
First Regular Session )

HOUSE of REPRESENTATIVES
House Bill No. xxxx 4867

Introduced by: MA. THERESA B. BONOAN
4" District, City of Manila

AN ACT URGING PPA (PHILIPPINE PORT AUTHORITIES) TO
SHARE THEIR INCOME WITH THE CITY OF MANILA IN THE
PROCEEDS DERIVED FROM MANILA PORTS, INCLUDING
SHARING THE SAME WITH ITS INHABITANTS BY WAY OF
DIRECT BENEFITS THROUGH SCHOLARSHIPS.

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

SECTION 1. SHORT TITLE. - THIS ACT SHALL BE KNOWN AS
THE “ MANILA'S NATIONAL WEALTH SCHOLARSHIP ACT OF 2014",

SECTION 2. DECLARATION OF POLICY. —

A) Local Governments shall be entitled to an equitable share in the
proceeds of the utilization and development of the national wealth
within their respective areas, in the manner provided by law,
including sharing the same with the inhabitants by way of direct
benefits. (Sec. 7 Art. X of the Constitution)

B) The term national wealth shall mean all natural resources situated
within the Philippine territorial jurisdiction including lands of
public domain, waters, minerals, coal, petroleum, mineral oils,
potential energy forces, gas and oil deposits, forest products,
wildlife, flora and fauna, fishery and aquatic resources, and all
quarry products.” (Article 386 of the Local Government Code)

C) It is hereby declared the policy of the state shall promote a just and
dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty
through policies that provide adequate social services, promote full
employment, a rising standard of living, and an improved quality of
life for all. (Sec. 9 Art. 2 of the Constitution)


D) The territorial and political subdivisions of the State shall enjoy
genuine and meaningful local autonomy to enable them to attain
their fullest development as self-reliant communities and make
them more effective partners in the attainment of national goals.
(Declared Policy in Republic Act No 7160, otherwise known as the
Local Government Code of 1991)

B) “The State shall protect and advance the right of the people to a
balanced and healthful ecology in accord with the rhythm and
harmony of nature.” (Article II, Section 16 of the Constitution)

SECTION 3. DEFINITIONS:
e "DUES" includes harbor fees, tonnage and wharfage dues,
berthing charges, and port dues and any other dues or fees imposed
by virtue of existing law or PD 857.

e “NATIONAL WEALTH” shall mean all natural resources:
situated within the Philippine territorial jurisdiction including lands
of the public domain, waters, minerals, coal, petroleum, mineral
oils, potential energy forces, gas and oil deposits, forest products,
wildlife, flora and fauna, fishery and aquatic resources, and all
quarry products” (Article 386 of the Local Government Code)

e “NET EARNINGS” shall mean income derived from whatever
source, whether exempt or subject to tax, net of deductions allowed
under Section 29 of the National Internal Revenue Code, as
amended, and income tax and other taxes paid thereon, but in no
case shall any reserve for whatever purpose be allowed as a
deduction from net earnings.

© "PORT" means a place where ships may anchor or tie up for the
purpose of shelter, repair, loading or discharge of cargo, or for other
such activities connected with water-borne commerce, and
including all the land and all water areas and the structures,
equipment and facilities related to these functions.


SECTION 4. SHARE OF MANILA FROM PPA:

Manila shall have a share based on the preceding fiscal year from
the proceeds derived by PPA engaged in the utilization and development
of the national wealth based on the following formula whichever will
produce a higher share for Manila or whatever is practicable:

a) One percent (1%) of the gross sales or receipts of the preceding
calendar year or

b) Forty percent (40%) of the taxes, fees or charges, including related
surcharges, interests or fines PPA would have been paid if it were not
otherwise exempt.

SECTION. 5. AUTOMATIC RELEASE OF SHARES:

The Constitutional share of Manila shall be remitted, without need of any
further action, directly to the treasury of Manila, on a yearly basis within
thirty (30) days after the end of each year, and which shall not be subject
to any lien or holdback that may be imposed by the Courts or National
Government for whatever purpose.

SECTION. 6. DIVIDENDS UNDER RA 7656 AND ALL TAXES
SHALL BE PAID BY PPA. The constitutional share of Manila
generated within Manila shall fully & exclusively utilized for the benefit
of the City of Manila having no need to declare dividends under RA 7656
for the above share shall be deducted only after PPA has declared its
dividends based on the latter’s net earnings to the National Government as
prescribed in RA 7656.

SECTION. 7.
The Constitutional share of Manila shall be appropriated by the
Sangguniang Panlunsod as special funds to finance the following
scholarship programs of the poor and indigent Manileno scholars:

a) For Alternative Learning System (ALS)

b) Training pangkabuhayan identified by DOLE, Tesda, or by the
Local Government Unit as in-demand or needed in the industry or
are relevant to help the impoverished improve their standard of
living.

provided for that those which are classified as category C3 or D by the
social workers of DSWD during their ALS Review or training
pangkabuhayan

-they shall be served one full meal per school day and

-they shall have a supply of one kilo quality rice subsidy depending on the
weekly attendance of the scholar/s provided it should not be more than ten
kilos per week per family for each category of scholars, while in their


training pangkabuhayan seminar and while they are on their on-the-job
training provided it does not exceed 6 (six) months from the start of on-
the-job training.
-provided that during their internship or on-the-job training they shall be
given food and transport allowance based on market rate/prices in Manila.
This shall be shouldered equally using the above special funds and
DOLE’s funds and
c) college scholarship in courses identified by DOLE or CHED or
City of Manila as in-demand and/or courses which are in dire need
in our country.
Provided that those who are classified as category C3 or D by the
social workers of DSWD shall have the following priviliges:
-supply of one kilo of quality rice subsidy depending on the weekly
attendance of the scholar/s provided it should not be more than ten
kilos per week per family of the scholars while they are in school
provided it does not exceed the usual number of years prescribed in
the course chosen and it shall continue during their Review
necessary for the its board exam.

The scholar shall undergo assessment tests to gauge what
employable course is appropriate considering the interest, ability
and skills of the scholar.

The City shall provide free annual courses, in coordination with
private industries or companies, that will enhance and update the
employees skills in response to the needs of the times without
additional help or subsidies from the above special funds.

SECTION. 8. CREATION OF RESERVES. — The balance of any
revenue or income of the MPSERA remaining at the end of each year
shall be applied to the creation of a general reserve or such other reserves
and shall be utilized in accordance to what is originally prescribed in this
Law.

SECTION 9. AUDITING. - The Commission on Auditor assigned
in the City of Manila, in coordination with the DOF (Department of
Finance) shall monitor the proper implementation of this project.

SECTION 10. | SEPARABILITY CLAUSE. - If any provision of this
Act shall be held unconstitutional or invalid, the other provisions not
otherwise affected shall remain in full force and effect.

SECTION 11. | REPEALING CLAUSE. - All laws, executive orders
or issuances or any part thereof which are inconsistent herewith are
hereby repealed or amended accordingly.


SECTION 12. EFFECTIVITY CLAUSE. - This Act shall take
effect fificen (15) days after its publication in at least two (2) national

newspapers of general circulation.

Approved,