HOUSE OF REPRESENTATIVES:
RECEIVED

0.2 AUG 2016

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Republic of the Philippines
HOUSE OF REPRESENTATIVES DATE
Quezon City, Metro Manila va

SEVENTEENTH CONGRES:
First Regular Session

HOUSE BILL NO,

Introduced By: REPRESENTATIVE MAGNOLIA ROSA C, ANTONINO

EXPLANATORY NOTE

This bill seeks to require the registration of all users of prepaid Subscribers
Identity Module (SIM) Cards and to provide penalties for any violation thereof. It was
originally filed in the 16" Congress as House Bill No. 2588 and was reported out by the
Committee on Information Communication Technology under Substitute Bili No. 5231
Due to lack of material time, Congress failed to enact into law this important piece of
legislation

It must be noted that the use of SIM Cards has become more of a security concern
that many countries in the world like Australia, Switzerland, Singapore, etc. had required
their registration. In the Philippines, there have been numerous cases when SIM Cards
had been used in the commission of crimes like in demanding ransom, in text scam and
even to detonate bombs, and the criminals simply got away with such crimes as the
identity of the user could not be determined. Let us put a quietus to these criminal
activities

While there are sectors opposing this measure, majority of the Filipinos have been
clamoring for the passage of this bill. The rationale behind this important piece of
legislation is to improve efficiency in law enforcement and to address national security

tivities

‘The foregoing reasons warrant the approval of this measure ~~
AG! fe ROSA C. ANTONINO

Representative
Fourth District, Nueva Ecija


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO, 2328

Introduced By: REPRESENTATIVE MAGNOLIA ROSA C. ANTONINO

AN ACT
REQUIRING THE REGISTRATION OF ALL USERS OF PREPAID
SUBSCRIB IDENTITY MODULE (SIM) CARDS AND PROVIDING
PENALTIES THEREFOR

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

ION 1. Short Title. ~ This Act shall be known as the “Subscriber Identity
Module (SIM) Card Registration Act”.

SEC. 2. Declaration of Policy. — The State recognizes the vital role of
information and communication technology in nation building

The introduction of modern telecommunications technology with the view of
providing the widest information dissemination is greatly encouraged but possession of
the most modern technology carries with it great responsibility, There is a need therefore
to install an effective mechanism that will prevent an illegal or malicious purpose for the
greater good of all. Toward this end, the paramount objectives of the State must be
protected by requiring the registration of all users of prepaid subscriber identity module
(SIM) cards,

SEC. 3. Definition of Terms. — As used in this Act:

a) Direct seller refers to a person or entity, whether natural or juridical, who
directly dispenses or sells a SIM car to an end user;

b) End User refers to any individual/subscriber who directly purchases a SIM
card from a direct seller for personal use;

©) Postpaid Mobile Phone refers to a mobile phone, the service of which is
provided by a prior arrangement with a public telecommunications entity and
the user thereof is billed at the end of the monthly billing cycle according to
the use of mobile services,


4) Prepaid Mobile Phone refers to a mobile phone for which credit is purchased
in advance of service use. The purchased credit is used to pay for mobile
phone services at the point the service is accessed or consumed, If there is no
available credit then access to the requested service is denied;

e) Public Telecommunications Entity or PTE refers to any duly enfranchised
and authorized public telecommunications entity that offers voice, short
messaging system (SMS/text), mobile data, value-added services (VAS) or
any other telecommunication services to the public for a fee;

f) SIM Card refers to the SIM which is an integrated circuit that securely stores
the international mobile subscriber identity and the related key used to
identify and authenticate subscribers on mobile telephony devices, such as
mobile phones and computers, A SIM card is a removable plastic into which a
SIM circuit is embedded and can be transferred between different mobile
devices; and

2) SIM Card Registration refers to the process of recording and verifying
mobile phone number and personal information of a subscriber, by a PTE or
other direct seller, including the subscriber's photograph, name, date of birth,
gender and address,

SEC. 4, Sale and Registration of SIM cards. ~ Every direct seller shall require
the end user of a SIM card to present a valid identification with photo to ascertain the
latter’s identity. The direct seller shall further require the end user to accomplish and sign
a control numbered registration form issued by the respective PTE of the SIM card being
purchased. The registration form shall include an attestation by the end user that the
person personally appearing before the direct seller and the identification documents
presented are true and correct and that the person is one and the same who had
accomplished and signed the registration form

Except in cases where PTE is the direct seller, the accomplished registration form
must be submitted to the concerned PTE within fifteen (15) days from the date of sale
The confidentiality clause in the SIM car registration under Section 9 hereof shall start to
apply at the point of sale

An end user who does not produce valid identification with photo, and fails to
accomplish a registration for in accordance with the preceding paragraph shall be refused
the sale of a SIM card by the direct seller. The direct seller shall only issue the SIM car to
the end user after compliance with the requirements mentioned above and in the
succeeding sections

SEC. 5. Registration of SIM Cards by a Representative. ~ Any person who
wants to purchase a SIM card but cannot personally register with the direct seller may,
for valid reason, authorize another to register on the persons’ behalf, subject to the
following conditions:

a) the representative is authorized through a duly notarized Special Power of
Attorney; and


b) the principal and the representative should present an original and a true and
clear copy of any of the valid identification cards with photo listed in Section
6 (a) hereof.

In case the person intending to purchase a STM card is a minor, the parents or
guardian shall be required to give their express consent in writing and submit the same
With registration form and valid identification cards with photo of both the minor and the
parents or guardian,

The direct seller may deny the request for representative registration after an
assessment that the reason given therefore is not valid or that the identification cards or
their true copies are not authentic or sufficient.

SEC. 6, Coverage of Registration. ~ All direct sellers are hereby mandated to
register pertinent data in a registration form devised for the purpose, to include the
following information and requirements:

a) Full name and complete address of the end user appearing in a valid
government-issued identification document with photo, In view thereof, SIM
card end users shall be required to present the original and submit a true and
faithful reproduction or photocopy of any government-issued identification
documents like, Driver License, Passport, Voters Identification Card,
Professional Regulation Commission Identification Card, and the like;

The direct seller may make further inquiries or require the submission of
additional identification if necessary, and withhold the sale of the SIM card
pending compliance with the additional requirements

b) Assigned cell phone number of STM card (s) and serial number (s).

SEC. 7. Submission of Registration Form, ~ ‘The registration form required
under Section 6 of this Act shall be accomplished in triplicate, and shall be forwarded by
the direct seller to the concerned PTE, The concerned PTE shall submit a copy of the
duly accomplished registration form to the National Telecommunication Commission
(NTC) within fiNeen (15) days from the date the sell or receipt of such form from the
respective direct sellers. The required registration form and the copies thereof shall be
certified by either the President, General Manager, Treasurer, Secretary or any other duly
appointed officer of the PTE or direct seller, as the case may be

SEC. 8. Submission of Verified List of Dealers or Agents. ~The PTEs shall
submit to the NTC, within thirty (30) days from the date of effectivity of this Act, a
verified list of their current authorized dealers or agents nationwide, Thereafter, the PTEs
shall submit to the NTC every quarter of cach year an updated list of the same.

SEC. 9. Confidentiality Clause, — Any information in the SIM card registration
shall be treated with absolute confidentiality and may be released only with the consent
of the subscriber, upon written request


SEC. 10, Disclosure of Information. — Notwithstanding the provisions of Section
9 hereof, the PTEs shall be required to provide information contained in the SIM card
registration only upon order of a competent court upon finding of probable cause that a
particular number is used in the commission of a crime or that it was utilized as a means
to commit an unlawful act.

SEC. 11, SIM Car Register. — All PTEs are required to submit an updated SIM
Card Register of their subscribers to the NTC every six (6) months of both postpaid and
prepaid mobile phone users, and maintain a record containing information required under
Section 6 of this Act

In case of loss or any change in the information after the acquisition of the SIM
card, the subscriber must notify the PTEs within thirty (30) days from such loss or
change. The concerned PTE in return must notify the NTC of such loss or change in the
information within fifteen (15) days from receipt of notification trom the subscriber.

All PTEs are required to keep the data of their subscribers and the NTC shall see
to it that these data be kept with utmost confidentiality as provided for under Section 9 of
this Act and in accordance with existing laws.

SEC. 12. Registration of Existing Mobile Phone Sub:
mobile phone subscribers with prepaid SIM cards are required to register with th
respective PTE within one hundred eighty (180) days from the effectivity of this Act
Such deadline may be extended by the NTC but shall not be longer than ninety (90) days,
upon a valid written request.

cribers. ~ All existing

Failure to register within the prescribed period shall authorize the PTE to
automatically deactivate its services to the specific existing prepaid SIM card subscriber.

SEC. 13. Penalties, — The following penalties shall be imposed for violation of
any provision of this Act

a) If the offense is committed by a PTE, the President and other executive
officers shall be held liable and the following penalties shall be imposed:

First Offense — a fine of three hundred thousand pesos (P300,000.00)
Second Offense - a fine of five hundred thousand pesos (P500,000.00)
Third Offense - a fine of one million pesos (P1,000,000.00)

b) A penalty of suspension of its operation and a fine ranging from five thousand

pesos (P5,000.00) to fifty thousand pesos (P50,000.00) shall be imposed on
any direct seller who fails to comply with the provisions of this Act


"14. Rules and Regulations. - The NTC shall, in coordination with
concerned agencies, shall promulgate the necessary rules and regulations to implement
this Act

SEC. 18. Separability Clause, — If for any reason, any part or provision of this
Act is held invalid, the remaining provision not affected thereby, shall remain in full
force or effect.

SEC. 16, Repealing Clause. ~ All laws, decrees, executive orders, rules and
regulations, which are inconsistent with this Act are hereby repealed, amended or
modified accordingly

SEC. 17, Effeetivity, -This Act shall take effect fifteen (15) dai
publication in the Official Gazette or in a newspaper of general circulation

Approved.

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