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Republic of the Philippines Ci ON

HOUSE OF REPRESENTATIVES 5 ox
Quezon City REPEUED Qa
one: 9 SEP, ery
SEVENTEENTH CONGRESS

First Regular Session

House Bill No._ 3587

Introduced by Representative GLORIA MACAPAGAL ARROYO.

AN ACT
PROVIDING FOR CONSUMER GROUP REPRESENTATION IN THE GOVERNING
BOARDS OF GOVERNMENT REGULATORY BODIES AMENDING FOR THE
PURPOSE THEIR RESPECTIVE CHARTERS, AND FOR OTHER PURPOSES.

EXPLANATORY NOTE

Today, the Filipino people is saddled with the burden of high and volatile cost of public
utilities. The public helplessly accept and watch as a succession of increases in the
price of goods and services relentlessly devour what is left of their purchasing power.

It is now more expensive to travel by public transportation as fare rates are up in buses,

taxis and jeepneys. The Metro Rail Transit (MRT), which was expected to alleviate the —
demand of the public for affordable mass transportation, has also become expensive for

daily commuters. Plying out toll roads had just become almost unaffordable, while pump

prices continue an upward trend. Our phone, water and electric bills have also steadily

increased

All of these unfold almost at the same time as the Filipino consumer now turns to the
government for relief. Unfortunately, this upsurge in the cost of basic necessities has
been approved by government regulatory bodies despite heavy opposition from the
public.

This fact tells us that the opinion of the public, as consumers and end users of products
and services, do not weigh heavily on public policy when the opposite should be true.

No less than the Philippine Constitution mandates that public participation, in the
interest of transparency and effective governance, shall be promoted at all levels of
social, political, and economic decision-making,

Furthermore, it is the duty of the State to provide for mechanisms in which the
concerned sectors can actively participate, in particular, in the regulatory affairs of
government.

Unfortunately, up to this day, a number of characters creating various government
regulatory bodies - especially those concerned with determining rates of utilities, public
transport, etc.- do not contain any provision of increasing public participation in their
decision-making process.


As a result, numerous policy decisions in the past have been approved either without
prior consultation from stakeholders or without full disclosure of its details in public
forums, thereby compromising the ideals of participative policy-making and
transparency.

This bill seeks to address alll that. Specifically, this measure aims to provide for the
institutionalization of the participatory mechanisms for concerned stakeholders by
including at least one (1) representative coming from consumer groups belonging to the
sector being regulated by the government regulatory body concerned, amending the
charters creating the following regulatory bodies:

1, Land Transportation and Franchising Regulatory Board (LTFRB);
2. Toll Regulatory Board (TRB);

3. Energy Regulatory Commission (ERC);

4. Manila Waterworks and Sewerage System (MWSS); and

5. National Telecommunications Commission (NTC)

It calls for the creations of the position of Consumer Group Representative, who will sit
at the Governing Boards of these regulatory bodies.

Once this bill is enacted into law, the public, as a consumer, would be well-represented
in the Governing Boards of these regulatory bodies when they formulate public policy,
particularly with regards to the approval of rate increases in the sector they regulate.

The bill also aims to prevent malicious activities and grave abuse of discretion
committed by those who sit on the affected regulatory bodies they will no longer be left
unchecked as representatives of sectors concerned will have direct participation over
decision-making affairs at the top level

In view of the foregoing, the expeditious passage of this bill into law is earnestly sought.

GLORIA MACAPAGAL ARROYO
2" District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS.
First Regular Session

House Bill No. 358'7

Introduced by Representative GLORIA MACAPAGAL ARROYO

AN ACT
PROVIDING FOR CONSUMER GROUP REPRESENTATION IN THE GOVERNING
BOARDS OF GOVERNMENT REGULATORY BODIES AMENDING FOR THE
PURPOSE THEIR RESPECTIVE CHARTERS, AND FOR OTHER PURPOSES

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

SECTION 1. Title. - This Act shall be known as "Consumer Group
Representation in Regulatory Bodies Act of 2016."

SECTION 2. Declaration of Policy. - Pursuant to the constitutional mandate that
the right of the people and their organizations to effective and reasonable participation
at all levels of social, political, and economic decision-making shalll not be abridged, and
the State shall, by law, facilitate the establishment of adequate consultation
mechanisms, the State shall:

a) prevent the concentration of power and information in a few
persons/government organizations;

b) adopt and implement a policy of full public disclosure of all its transactions
involving public interest thereby promoting transparency and accountability; and

¢) ensure the protection and advancement of consumer welfare by mandating the
inclusion of consumer group representatives in the Governing Boards of
government regulatory bodies.

SECTION 3. Consumer Group. - For purposes of this Act, a consumer group.
shall refer to a representative organization, registered under the Securities and
Exchange Commission (SEC), which has been established and organized to cater to a
national constituency, and whose mandate includes the protection of the interests and
rights of consumers in a specific sector that is being regulated by the government
regulatory body.

SECTION 4. Coverage. - The Governing Boards of the following government
regulatory bodies shall include at least one (1) member who shall represent the
consumer group belonging to the sector being regulated by the government regulatory
body concerned:

a) Land Transportation and Franchising Regulatory Board, created by Executive
Order No. 292;


b) Toll Regulatory Board, created by Presidential Decree No. 1112;
c) Energy Regulatory Commission, created by Republic Act No. 9136;

d) Manila Waterworks and Sewerage System, created by Executive Order No.
1036;

e) National Telecommunications Commission, created by Executive Order No.

Such member of the respective governing boards of the aforementioned
government regulatory bodies shall be called the Consumer Group Representative.

The Consumer Group Representative shall perform the same functions, shall
have the same voting rights, shall be paid the same salaries, remunerations and
emoluments, and enjoy the same privileges as those enjoyed by the other members of
the Governing Board of the concerned government regulatory authority.

SECTION 5. Qualifications of Consumer Group Representative. - No person
shall be appointed as a Consumer Group Representative unless he is a natural born
citizen of the Philippines, at least thirty (30) years of age, able to read and write, a bona
fide member of the Consumer Group which he seeks to represent for at least two (2)
years prior to his appointment, and has never been convicted of any administrative, civil
or criminal offense involving moral turpitude.

The Consumer Group Representative should also have at least five (5) years of
known advocacy in the consumer sector he represents.

If, at any time during his appointment, the Consumer Group Representative
ceases to be a bona fide member of his respective consumer group through expulsion,
resignation, or any manner of removal sanctioned by its organizational by-laws, the
position of Consumer Group Representative shall automatically be declared vacant and
shall be filled up accordingly by initiating the appointment process as herein provided

SECTION 6. Appointing Authority. - The President of the Republic of the
Philippines shall appoint the Consumer Group Representative subject to the
qualifications as herein provided, and to the limitations and prohibitions under existing
laws and statutes.

SECTION 7. Implementing Rules and Regulations. - The Department of Budget
and Management (DBM) and the government regulatory agencies as enumerated under
Section 4 of this Act shall formulate and issue the necessary implementing rules and
regulations for the effective implementation of this Act within (60) days after the
effectivity of this Act.

SECTION 8. Separability Clause. - If any part or provision of this Act shall be
held to be unconstitutional or invalid, other parts or provisions hereof which are not
affected thereby shall continue to be in full force and effect.

SECTION 9. Repealing Clause. - All laws, decrees, executive orders, rules and
regulations, or parts thereof which are inconsistent with this Act are hereby repealed,
amended or modified accordingly.


SECTION 10. Effectivity. - This Act shall take effect fifteen days (15) days
following its publication in at least two (2) newspapers of general circulation or the
Official Gazette.

Approved,