+E CEIVED
EIGHTEENTH CONGRESS

REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

we _ |tope

Introduced by Representative Rufus 8. Rodriguez

House Bill No. 2834

EXPLANATORY NOTE

Section 20 of Article ll of the 1987 Constitution mandates that: “The State
recognizes the indispensable role of the private sector, encourages private enterprises, and
Provides incentives to needed investments.”

Consistent with the above quoted policy, there is an imperative need to outline said
incentives in order to ensure the affordability, accessibility and quality of the textbooks and
elated educational materials as well as to be transparent in all transactions concerning the
same.

There is no doubt that until today, there are no clear guidelines or incentives on book
trade transactions. Said lack of clear guidelines is manifested in the textbook scandal which
hit the media brought about the Maslog incident. Based on news report, “under the table
considerations and/or exorbitant discounts,” serve as the criteria for the purchase of books,
textbooks and other reading materials instead of the merits and quality thereof.

Consistent with the NBP, this bill seeks to adopt the Retail Price Maintenance and
Uniform Discounting Scheme. It is hoped that with the enactment of the bill, the government
could ensure for our children affordable, accessible and quality-laden textbooks and related
educational materials.

The bill provides for a uniform discount scheme of not lower than ten (10) percent but
not more than twenty-five (25) percent to bookstores or private educational institutions.

Records show that Japan, South Korea, Germany and other progressive countries
have been adopting the Retail Price Maintenance and Uniform Discounting Scheme. Under
the said scheme the publisher shall maintain the retail prices of their products everywhere
while giving a uniform discount to bookstores.

Considering that school year 2007-2008 has already started and parents have been
purchasing books, regulation on the discounting scheme is necessary if not imperative for
the benefits of the students and their parents.

Finally, this legislation would address the shortage of books and other instrumental
materials every school year.

In view of the foregoing immediate enactment of the bill is earnestly sought.

Yr,

T Arne
Rur Us 8 RODRIGUEZ

* vie JUL 25 209



EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

_Introduced by Representative Rufus B. Rodriguez -
House Bill No. 2834

AN ACT
ADOPTING A RETAIL PRICE MAINTENANCE AND UNIFORM DISCOUNTING SCHEME
IN BOOK TRADE WITH THE END VIEW OF ENSURING AFFORDABLE, ACCESSIBLE
AND QUALITY-LADEN TEXTBOOKS AND OTHER RELATED EDUCATIONAL
MATERIALS TO BE USED BY PRIVATE AND PUBLIC SCHOOLS

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

SECTION 1. This Act shall be known as the ‘Retail Price Maintenance and Uniform
Discounting Act’.

SEC. 2. It is declared a policy of the State to support the development of the book
Publishing industry in all regions of the country and to provide fiscal and non-fiscal incentives
to book publishing policy.

‘SEC. 3. In order to encourage the establishment of bookstores that shall be situated outside
the cities and provincial capitals, such bookstores, in such localities shall be registered with
the duly organized publishing association and accredited by the National Book Development
Board (NBDB).
Complying with the said criteria, said bookstores shall be entitled to the following:
a. A six-year tax holiday from the commencement of commer ial operations for
upstart firms and a four-year tax holiday for established firms;
b. Deductions from taxable income for five years of 50% of the wages
corresponding to the increment in the number of direct labor hired.
c. Low interest loans with participating banks;
d. — Availment of the retail price and uniform discounting scheme.

SEC. 4. There is hereby adopted a retail price maintenance and uniform discounting
Scheme in the procurement of textbooks and related educational materials used in private
and public schools. The uniform discount scheme shall be not lower than ten (10%) percent
but not more than twenty-five (25%) percent to be given by the publishers only to bookstores
accredited and registered with the duly organized publishing association and registered with
the NBDB irrespective of their location.

SEC. 5. The uniform discount scheme of not lower than ten (10%) percent but not higher
than twenty-five (25%) percent shall also be given by publishing association or its
educational agent or material consultant to private educational institutions, schools’
bookstores or to private book coordinators or subject coordinators. Likewise, it is prohibited
to provide such other consideration aside from the discount such as loan facilities, motor
vehicles, travel abroad, accommodation and the likes.

SEC. 6. A declared retail price shall be forwarded by the duly organized and accredited
Publishing association to the NBDB and be observed nationwide. Said price can only be


a

altered or changed upon a formal pronouncement by the publisher concerned and that the
‘same must be forwarded to the NBDB to have efficacy.

‘SEC. 7. Any persons who violate any provisions of this Act shall in addition to the penalties
imposed under R.A. No. 8047 and the Executive Order adopting the National Book Policy
shalll suffer the imprisonment of four (4) years to six (6) years and a fine of Two Million (P
2M) Pesos. In case of juridical person, the president, chief executive officer or chief
operating officer shall be held liable.

SEC. 8. The NBDB in consultation with the Department of Education (DepED), and the
other appropriate agencies from the government sectors with the active participation of the
private sector shall promulgate the implementing rules and regulations within sixty (60) days
from the enactment of this Act. A copy of such guidelines, rules and regulations shall be
furnished to the Congress of the Philippines through the Committee on Education, Culture
and Arts of both houses.

SEC. 9. If any provision of this Act or the application of such provision to any person or
circumstances is declared unconstitutional, the remainder of the Act or the application of
Such provision to other provision, to other person, entity or circumstances shall not be
affected by such declaration.

SEC. 10. All laws, decrees, rules and regulations and other administrative issuances or
circulars or provisions therefore which are contrary to or inconsistent herewith are hereby
repealed or modified accordingly.

SEC. 11. This Act shall take effect fifty (15) days from the date of its publication in the
Official Gazette or in any newspaper of general circulation.

Approved,