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

SIXTEENTH CONGRESS
First Regular Session
HOUSE BILL No4102

Introduced by Hon. LEOPOLDO N. BATAOIL

EXPLANATORY NOTE
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This Bill Amending R.A. No. 10086:'Strengthening People’s Nationalism Through
Philippine History Act, addresses two weaknesses in the law that constrain the National
Historical Commission of the Philippines from attaining its objective and effectively

delivering its services.

First, Section 24 of R.A. No. 10086 imposes a one-million-peso (Php 1,000,000.00)
cap or ceiling on the revolving fund of the Commission (NHCP), which is sourced from the
proceeds of publications, entrance fees and donations, and fees for technical services,
conferences and workshops, and similar income. The law provides that any income in
excess of this cap “shall be remitted to the National Treasury and accrue to the General
Fund.”

Second, Section 17(e) requires the Deputy Executive Director of the NHCP to
Possess career executive service officer (CESO) eligibility as a qualification for the

position,

Qn the Cap on the Revolving Fund

By today’s standards and especially in light of the museum modernization program
of the NHCP, a ceiling of one million pesos is insufficient to augment the cost of

maintaining its 22 museums, let alone other projects of the Commission. Worse, it becomes


a disincentive for the NHCP to even collect entrance fees that would enable it to be less

dependent on the national government for the maintenance of its shrines and museums.

Indeed, the cap renders meaningless Presidential Administrative Order No. 31
(dated 1 October 2012), directing all departments, bureaus, commissions and
instrumentalities of the National Government to rationalize their fees and charges, increase
their existing rates and impose new fees and charges. Higher revenue generation by the
NHCP from new rates will not improve its cost-recovery and fiscal performance, because
all income in excess of one million pesos will simply go to the National Treasury—contrary

to the lawful purpose for which the fees and donations were collected.

In the particular case of donations, Sec. 24 of R.A. No. 10086 runs counter to the
egal principle that donations given and accepted for a specific purpose shall be used or
disbursed for that purpose alone, By channeling donations received by the NHCP to the
General Fund, R.A. No. 10086 effectively diverts the donations from their intended

also a deterrent to potential donors who would

purpose. This is not just contrary to law; i
understandably like to see the full proceeds of their donations accrue to the NHCP alone.
Another consequence is that donors will tend to limit their donations to small amounts, to

ensure that no “excess” will get diverted to the National Treasury for other purposes.

A review of more or less analogous statutes, moreover, shows that no cap or ceiling,

of whatsoever amount, is imposed on similar income generated by the following entities:

1. Philippine Amateur Athletic Federation and its National Sports Associations, under
R.A, No, 3135 (1961 Revised Charter of the Philippine Amateur Athletic

Federation;

2. Philippine Sports Commission and its National Sports Associations, under R.A. No.
6847 (Philippine Sports Commission Act of 1990);

3. Philippine Science High School System, under R.A. No. 9036, which strengthened
said System in 2001;


Film Development Council of the Philippines, under R.A. No. 9167, which created
said Council in 2002;

Philippine National Ear Institute, under R.A. No. 9245 (Philippine Ear Research
Institute Act of 2003);

Mindanao Development Authority, under R.A. No. 9996 (Mindanao Development
Authority Act of 2010), approved on 17 February 2010;

National Commission on Muslim Filipinos, under R.A. No. 9997 (National
Commission on Muslim Filipinos Act of 2009), approved on 18 February 2010;

Philippine National Red Cross, under R.A. No. 10072 (Philippine Red Cross Act of
2009), approved on 20 April 2010;

Girl Scouts of the Philippines, under R.A. No. 10073 (Girl Scouts of the Philippines
Charter of 2009), approved on 20 April 2010; and

Philippine Rubber Research Institute, under R.A. No, 10089 (Philippine Rubber
Research Institute Act of 2010).

The National Museum has a cap on its revolving fund, higher (two million pesos)

than the NHCP’s, The excess, moreover, is not directed by law to be remitted to the

National Treasury as in the case of the NHCP. Instead, the Board of Trustees of the

National Museum is allowed to dispose of unappropriated money as the Board deems best

suited for the promotion of the purpose of the Muscum. In the case of the National

Museum, therefore, the revolving fund is constituted wholly for the use of the National

Museum, not for the enrichment of the National Treasury.

Finally, the ceiling of one million pesos on the NHCP’s revolving fund implies how

lowly the nation values its history and heritage.


On the CESO Eligibility of the Deputy Executive Director

The position of the NHCP Deputy Executive Director is classified as a second-level
executive/managerial position which, per the Civil Service Commission's Memorandum
Circular No. 13 of 2011 (Policies for Executive/Managerial Positions in the Second Level),
does not require CESO eligibility. Between the general CESO eligibility requirement and
the more specific requirement of knowledge of and experience in the field of Philippine
history and heritage, the NHCP prefers the latter.

Consequently, the following amendments are strongly recommended to the
Honorable Members of this august Senate:

(1) that Section 24 of
cap AND delete pro

General Fund of the National Treasury; and

0086 be amended to remove the one-million-peso

fFequiring the remittance of excess income to the

(2) that Section 17(¢) of R.A. No. 10086, requiring the Deputy Executive Director
of the NHCP to possess as a qualification career executive service officer
(CESO) eligibility, be completely deleted.

presentative, 2" Districi) of Pangasinan


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

SIXTEENTH CONGRESS
First Regular Session
HOUSE BILL NO.4102

Introduced by Hon, LEOPOLDO N. BATAOIL.

AN ACT
AMENDING REPUBLIC ACT NO. 10086 ENTITLED “AN ACT STRENTHENING
PEOPLES’ NATIONALISM THROUGH PHILIPPINE HISTORY BY CHANGING
THE NOMENCLATURE OF THE NATIONAL HISTORICAL INSTITUTE INTO
THE NATIONAL HISTORICAL COMMISSION OF THE PHILIPPINES,
STRENGTHENING ITS POWERS AND FUNCTION, AND FOR OTHER
PURPOSES”.

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

assembled:

SECTION 1. Section 24 of R.A. No. 10086 entitled “An Act Strengthening Peoples*
Nationalism Through Philippine History by Changing the Nomenclature of the National
Historical Institute into the National Historical Commission of the Philippines,
Strengthening its Powers and Functions, and For Other Purposes,” is hereby amended to

read as follows:

“SEC. 24. Revolving Fund. — The income of the NHCP derived from the
proceeds of publications, park entrance fees and donations, the rendering of
technical services, conferences and workshops and similar income shall be
constituted as a revolving fund to augment the projects where the income

was derived, subject to government auditing rules and regulations.”


SEC. 2. Section 17(e) of R.A. No. 10086, requiring the Deputy Executive Director of the
NHICP to possess as a qualification career executive service officer (CESO) eligibility, is

completely deleted.

SEC. 3. Repealing Clause. ~ All laws, executive orders, rules and regulations inconsistent

with or contrary to this Act, as amended, are hereby repealed or amended accordingly.

SEC. 4. Effectivity Clause. — This Act shall take effect fifteen (15) days after its publication

in at least two newspapers of general circulation.

Approved,