SEVENTEENTH CONGRESS OF THE REPUBLIC) NY euice ote soecetary
OF THE PHILIPPINES ) ——
Second Regular Session )
18 MAR 19, P65!
SENATE
RECEs A
commirTee REPorT No. 304 /

Submitted jointly by the Committees on Public Services; on Economic Affairs; and on Finance
on MAR g x 8

Re: Senate Bill no._1754

Recommending its approval in substitution of Senate Bill No. 695, 1261, 1291, 1441, 1594
taking into consideration House Bill No. 5828.

Sponsor: Senator Grace Poe

MR. PRESIDENT:

The Committees on Public Services; Finance; and Economic Affairs to which were
referred Senate Bill 695, introduced by Senator Paolo Benigno “Bam” Aquino IV and Senator
Joel Villanueva entitled:

“AN ACT
AMENDING SECTION 13(B) OF COMMONWEALTH ACT NO. 146,
AS AMENDED AND FOR OTHER PURPOSES”

Senate Bill No. 1261, introduced by Senator Richard J. Gordon entitled”

“AN ACT
FURTHER AMENDING COMMONWEALTH ACT NO. 146
OR THE PUBLIC SERVICE ACT, AS AMENDED”

Senate Bill No. 1291, introduced by Senator Juan Miguel F. Zubiri entitled:

“AN ACT
FURTHER AMENDING COMMONWEALTH ACT NO. 146
OTHERWISE KNOWN AS THE PUBLIC SERVICE ACT, AS AMENDED”

Senate Bill No. 1441, introduced by Senator Poe, entitled:
“AN ACT

FURTHER AMENDING COMMONWEALTH ACT NO. 146
OR THE PUBLIC SERVICE ACT, AS AMENDED”



Senate Bill No. 1594, introduced by Senator Win Gatchalian entitled:

“AN ACT
PROVIDING FOR THE DEFINITION OF PUBLIC UTILITY, FURTHER AMENDING FOR
THE PURPOSE COMMONWEALTH ACT NO. 146, OTHERWISE
KNOWN AS THE ‘PUBLIC SERVICE ACT’, AS AMENDED”

taking into consideration House Bill No. 5828, introduced by Representatives. Macapagal-
Arroyo, Salceda, Yap, Belmonte, et. al. entitled:

“AN ACT
PROVIDING FOR THE DEFINITION OF PUBLIC UTILITY,
FURTHER AMENDING FOR THE PURPOSE COMMONWEALTH ACT NO. 146,
OTHERWISE KNOWN AS THE 'PUBLIC SERVICE ACT”

have considered the same and have the honor to report them back to the Senate with the

recommendation that the attached Senate Bill No. 1'754, prepared by the Committees
entitled:

“AN ACT
AMENDING COMMONWEALTH ACT NO. 146, OTHERWISE
KNOWN AS THE PUBLIC SERVICE ACT, AS AMENDED,
AND FOR OTHER PURPOSES”

be approved in substitution of Senate Bill No. 695, 1261, 1291, 1441, 1594 taking into
consideration House Bill No. 5828, with Senators Aquino, Villanueva, Gordon, Zubiri, Poe,
Gatchalian and Legarda, as authors thereof.



RESPECTFULLY SUBMITTED:

Committeé on
Member, Commjttee on

‘ama

——
LOREN B. LEG, ~

Chairpers

Committee on Finance

Member, Committee on Public Services

pfittee on Economic Affairs
ember, Committee on Finance

VICE-CHAIRPERSONS,

JOSEPH VICTOR G. EJERCITO
Vice-Chairperson

Committee on Public Services; and Finance
Member, Committee on Economic Affairs

IGUEL “Migz” F. ZUBIRI

Vice-Chairperson

Committee on Economic Affairs

Member, Committees on Finance; and
Public Services

CYNTHIA A. VILLAR

Vice Chairperson
Committee on Finance

(Aw
PAOLO BENIGNO “Ban” AQUINO IV.
Vice-Chairperson
Committee on Finance
Member, Committee on Public Services

FRANCIS “Chiz” G. ESCUDERO

Vice-Chairperson

Committee on Public Services

Member, Committees on Finance; and
Economic Affairs

Committee on Economic Affairs
Member, Committee on Public Services;
and Finance

Committee on Finance
Member, Committee on Public Services

BL

SONNY ANGARA
Vice-Chairperson
Committee on Finance



MEMBERS:

tsk HONTIVEROS E ANTONIO “Sonny” F. TRILLANES IV

Committees on Finance; and Committees on Finance; Public Services;

Public Services . and Economic Affairs
will dictap Loker

propose 7 : pe
RICHARD J. GORDON MARIA vourned NANCY S. BINAY

's on Finance; Public Services Committees on Economic Affairs; and
Finaance

Committ
q

Economic Affairs

GREGORIO B. HONASAN
ittee on Finance

FRANCIS “Kiko” |GILINAN
Committees on Econdmic Affairs; and
Finance

Ex-Officio Members:

VICENTE C. $OTTO III

IN M. DRILON
ity Floor Leader

HON. AQUILINO “Koko” PIMENTEL III
President
Senate of the Philippines



SEVENTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES ) 5 /
Second Regular Session ) 18 MART il
SENATE
RECEIs.- 7 —
S.No. 1754 ]

Prepared jointly by the Committees on Public Services; Economic Affairs; and
Finance with Senators Paolo Benigno “Bam” Aquino IV, Joel Villaneva Richard J.
Gordon, Juan Miguel “Migz” Zubiri, Grace Poe, Win Gatchalian, and Loren Legarda as
authors thereof.

AN ACT AMENDING COMMONWEALTH ACT NO.146, OTHERWISE KNOWN
AS THE PUBLIC SERVICE ACT, AS AMENDED, AND FOR OTHER PURPOSES

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

Section 1. Short Title — This Act shall be known as "The New Public Service
Law of the Philippines.”

Sec. 2. Declaration of Policy ~ It is a Constitutionally enshrined policy of the
State to promote a just and dynamic social order that will free the people from
Poverty through measures that promote an improved quality of life for all.

The State recognizes that public utilities are necessary to the public and are
natural monopolies that must be regulated as required by public interest. It is the
Policy of the State to ensure that the consuming public’s satisfaction and quality of
life shall be the yardsticks for an effective regulation of public utility providers
without compromising the reasonable rate of return of the latter. It is likewise the
Policy of the State to encourage private enterprise and provide incentives for needed
investments.

The above policies are fulfilled by ensuring: (a) effective regulation of public
utilities and public services; (b) a reasonable rate of return to Public utilities and
Public services; and (c) the lifting of foreign equity restrictions by clearly defining
what are considered to be public utilities.



wo earva

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Sec. 3. — Definition of Terms. - For the Purposes of this Act, the terms below
shall be defined as follows:

a. Cost-of-Living Adjustment - refers to the percentage by
which the Philippine Statistics Authority (PSA) Consumer Price Index
for the month of June of the calendar year preceding the adjustment
exceeds the PSA Consumer Price Index for the month of June of the
calendar year in which the maximum amount of the fine was last set
or adjusted pursuant to law;

b. Disgorgement of Profits - refers to the giving up or
recapturing of profits traceable to a certain transaction or wrongdoing
upon demand or by legal compulsion;

c Distribution of Electricity - refers to the conveyance of
electric power by a distribution utility through its distribution system
Pursuant to the provisions of RA 9136, Pursuant to Section 4 (n) of
said law;

d. Transmission of Electricity - refers to the conveyance of
electricity through the high voltage backbone system, pursuant to
Section 4 (ccc) of RA 9136;

e. Treble Damages - refers to an additional sum, depending
on the discretion of the agency or court involved, which is thrice the
amount of the monetary award granted; and

f. Water Works and Sewerage Systems - refers to the
entire water systems to ensure an uninterrupted and adequate supply
and distribution of portable water for domestic and other purposes and
the proper operation and maintenance of sewerage systems as defined
and referred to in RA 6234, as amended, and PD 198, as amended.

Sec. 4. - Recognition of Previous Transfer of Jurisdiction to Various
Administrative Agencies. ~ Since the enactment of Commonwealth Act No. 146, the
Jurisdiction over several public services had been transferred to various
administrative agencies such as, but not limited to, the following:

a. Department of Transportation (DOTr);

b. Land Transportation Franchising Regulatory Board (LTFRB);

2



. Land Transportation Office (LTO);
|. Civil Aeronautics Board (CAB);
. Civil Aviation Authority of the Philippines (CAAP);
Philippine Ports Authority (PPA);
|. Maritime Industry Authority (MARINA);
. Philippine Coast Guard;
i. Department of Information and Communications Technology (DICT);
j. National Telecommunications Commission (NTC);
k. Department of Energy (DOE);
|. Energy Regulatory Commission (ERC);
m. Department of Environment and Natural Resources (DENR);

zse>ean

n. League of Cities;

0. National Water Resources Board;

p. Local Water Utilities Administration;

q. Philippine Competition Commission (PCC).

For purposes of this act, the term “Administrative Agencies “shall refer to
existing agencies with which the powers and duties of the Public Service Commission
were transferred, are hereby authorized and ordered to charge and collect from any
Public service or public utility or applicant, as the case may be, reasonable fees as
reimbursement of its expenses in the exercise of its authorization, supervision, and
regulation duties, and to impose appropriate penalties and fines as provided by law.
These Administrative Agencies are govern by their respective charters and related
statutes.

Sec. 5. Public Utility. - A new Section 13 (d) of Commonwealth Act No. 146,
as amended, is hereby inserted to read as follows:

“(D) PUBLIC UTILITY. — A SUBSET OF PUBLIC SERVICE,

IT REFERS TO THE DIRECT TRANSMISSION DISTRIBUTION,

AND DELIVERING THROUGH A NETWORK, A COMMODITY OR

SERVICE OF PUBLIC CONSEQUENCE AND IS A NATURAL

MONOPOLY THE OPERATION OF WHICH MUST BE

RESTRICTED PURSUANT TO SECTION 11, ARTICLE XII OF THE

1987 CONSTITUTION.



THE FOLLOWING SHALL BE AN EXCLUSIVE LIST OF
PUBLIC UTILITIES:

(1) TRANSMISSION OF ELECTRICITY;

(2) DISTRIBUTION OF ELECTRICITY; AND

(3) WATER WORKS AND SEWERAGE SYSTEMS.

NO OTHER BUSINESS OR SERVICE SHALL BE DEEMED A
PUBLIC UTILITY OTHER THAN THOSE LISTED IN THIS
SECTION UNLESS OTHERWISE SUBSEQUENTLY PROVIDED BY
LAW UPON RECOMMENDATION BY THE NATIONAL ECONOMIC
AND DEVELOPMENT AUTHORITY (NEDA), THROUGH ITS
BOARD, IN CONSULTATION WITH THE PHILIPPINE
COMPETITION COMMISSION (PCC) AND THE CONCERNED
ADMINISTRATIVE AGENCIES, TAKING INTO CONSIDERATION
SECTIONS 2 AND 4 OF THIS ACT AND THE FOLLOWING
CRITERIA:

1. THE PERSON OR JURIDICAL ENTITY REGULARLY SUPPLIES
AND DIRECTLY TRANSMITS AND DISTRIBUTES TO THE
PUBLIC THROUGH A NETWORK A COMMODITY OR SERVICE
OF PUBLIC CONSEQUENCE;

2. THE COMMODITY OR SERVICE IS NECESSARY TO THE
PUBLIC AND A NATURAL MONOPOLY THAT NEEDS TO BE
REGULATED WHEN THE COMMON GOOD SO REQUIRES;

3. THE COMMODITY OR SERVICE IS NECESSARY FOR THE
MAINTENANCE OF LIFE AND OCCUPATION OF RESIDENTS;
AND

4. THE COMMODITY OR SERVICE IS OBLIGATED TO PROVIDE
ADEQUATE SERVICE TO THE PUBLIC ON DEMAND.”

THIS SECTION AND THIS ACT DO NOT HAVE ANY
EFFECT ON THE EXISTING REGULATIONS OF PUBLIC
SERVICES AND DO NOT, IN ANY WAY, DIMINISH THE
CONSTITUTIONAL RESTRICTIONS PROVIDED UNDER
SECTIONS 11 AND 17, ARTICLE XII AND SECTION 4, ARTICLE

4



IX (PART C) OF THE CONSTITUTION. NEITHER DOES THIS
SECTION NOR THIS ACT REDEFINE “COMMON CARRIERS”
AND ALTER THE EXISTING HIGH STANDARDS ACCORDED TO.
IT.”

Sec. 6. Authorization to Operate. - The first paragraph of Section 15 of
Commonwealth Act No. 146, as amended, is hereby amended to read as follows:

“With the exception of those enumerated in the preceding section, no
Public service shall operate in the Philippines without Possessing a
valid and subsisting FRANCHISE, certificate, OR ANY OTHER
APPROPRIATE FORM OF AUTHORIZATION FOR THE
OPERATION OF A PUBLIC SERVICE [from—the—Public—Service
Commission—knewn—as—certificate—of—publ wenience;"—or
“certificate-of publie-convenience-and-necessity;"} as the case may be,
FROM THE CONGRESS, THE SECURITIES EXCHANGE
COMMISSION (SEC) AND/OR THE PROPER ADMINISTRATIVE
AGENCY to the effect that the operation of said service and the
authorization to do business will promote the public interest in a
Proper and suitable manner.”

Sec. 7. Issuance of Authorizations and Fixing of Rates, Tolls and the like and
the Reasonable Rate of Return. - Section 16 (a) and (c) of Commonwealth Act No.
146, as amended, are hereby amended to read as follows:

(a) To issue certificates [which-shall-be-_known-as-certificates-of public

€envenience;] authorizing the operation of public service within the
Philippines whenever the [Cermmission] ADMINISTRATIVE AGENCY
finds that the operation of the public service Proposed and the
authorization to do business will promote the public interest in a
Proper and suitable manner. [Previded—Fhat-thereafter,certificates-of
public convenience-and-certificates-of publi ind-necessity
wilt_be-granted_onlyto—citi the Philippi fthenited
5 Jons, ips; ;
mpanies—constituted—and—organized—under—the—laws—of—the
Phitippines;-Provided,That-sixty_per-centum-ofthe-stock-or_paid-up
5



(c) To fix and determine THE MAXIMUM CEILING FOR individual or
joint rates, tolls, charges, classifications, or schedules thereof, as well
as commutation, mileage, kilometrage, and other special rates which
shall be imposed, observed, and followed thereafter by any public
service WHEN THE PUBLIC INTEREST SO REQUIRES: Provided,
That the [Commission] ADMINISTRATIVE AGENCY may, in its
discretion, approve rates proposed by public services provisionally and
without necessity of any hearing; but it shall call a hearing thereon
within [thirty] FIFTEEN days, thereafter, upon publication and notice
to the concerns operating in the territory affected, TO RATIFY ITS
PRIOR PROVISIONAL APPROVAL OR CHANGE, MODIFY OR
ALTER THE APPROVED RATE BASED ON PUBLIC INTEREST:
Provided, further, That in case the Public service equipment of an
operator is used principally or secondarily for the Promotion of a
Private business, the net profits of said Private business shall be
considered in relation with the public service of such operator for the
Purpose of fixing the rates; PROVIDED THAT THE MAXIMUM RATE
OF RETURN SHALL BE EQUAL TO THE POST-TAX WEIGHTED
AVERAGE COST OF CAPITAL FOR THE SAME OR COMPARABLE
BUSINESSES COMPUTED USING ESTABLISHED MODERN AND
UP TO DATE METHODOLOGIES SUCH AS THE CAPITAL ASSET
PRICING MODEL: PROVIDED ALSO, THAT INCOME TAX BE
ALLOWED AS A CASH EXPENDITURE OR OUTFLOW FOR RATE-
DETERMINATION PURPOSES: PROVIDED FURTHER, THAT
THIS PROVISION SHALL NOT BAR THE APPLICATION OF

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2

23
24
25
26
27
28
29

1

PERFORMANCE-BASED RATE REGULATION SHOULD THE
ADMINISTRATIVE AGENCY REGULATING SUCH PUBLIC
SERVICE DEEM IT EFFICIENT AND IN THE PUBLIC INTEREST;
PROVIDED FINALLY, THAT THIS SHALL NOT BE INTERPRETED
AS AMENDING OR REPEALING REGULATIONS PROMULGATED
BY THESE ADMINISTRATIVE AGENCIES TO DEREGULATE
RATES.
Sec. 8. Reasonable Costs — Section 17 (b) of Commonwealth Act No. 146, as
amended, is hereby amended to read as follows:
“(b) To require any public service to pay the actual expenses incurred
by the [Commission] ADMINISTRATIVE AGENCY in any
investigation if it shall be found in the same that any rate, toll, charge,
schedule, regulation, practice, act or service thereof is in violation of
any provision of this Act or any certificate, order, rule, regulation or
requirement issued or established by the [Commission]
ADMINISTRATIVE AGENCY. The [Commission]
ADMINISTRATIVE AGENCY may also assess against any public
service REASONABLE costs [Ret-to-exeeed-twenty-five-peses] with
reference to such investigation.”
Sec. 9. Section 20 (i) of Commonwealth Act No. 146, as amended, is hereby
amended to read as follows:
“(i) To sell, alienate or in any manner transfer shares of its capital
stock to any alien if the result of that sale, alienation, or transfer in
itself or in connection with another previous sale shall be the reduction
to less than sixty per centum of the capital stock belonging to
Philippine citizens IN THE OPERATION OF A PUBLIC UTILITY AS
REQUIRED BY THE CONSTITUTION. Such sale, alienation or
transfer shall be void and of no effect and shall be sufficient cause for
ordering the cancellation of the certificate.”
Sec. 10. Section 21 of Commonwealth Act No. 146, as amended, is hereby
amended to read as follows:



“Every public service violating or failing to comply with the terms and
conditions of any certificate or any orders, decisions or regulations of
the [Commission] ADMINISTRATIVE AGENCY shall be subject to
DISGORGEMENT OF PROFITS, TREBLE DAMAGES, a fine NOT
EXCEEDING FIVE MILLION PESOS (PHP5,000,000.00) OR ALL
OR ANY COMBINATION THEREOF [of net-exeeeding-two-hundred
peses] per day for every day during which such default or violation
continues; and the [Commission] ADMINISTRATIVE AGENCY is
hereby authorized and empowered to impose such PENALTY OR fine,
after due notice and hearing.

The PENALTIES AND fines so imposed shall be paid to the
Government of the Philippines through the [Commission]
ADMINISTRATIVE AGENCY, and failure to pay the PENALTY OR
fine in any case within the same specified in the order or decision of
the [Commission] ADMINISTRATIVE AGENCY shall be deemed
good and sufficient reason for the suspension of the certificate of said
Public service until payment shall be made. Payment may also be
enforced by appropriate action brought in a court of competent
jurisdiction. The remedy provided in this section shall not be a bar to,
or affect any other remedy provided in this Act but shall be cumulative
and additional to such remedy or remedies.”

Sec. 11. Section 23 of Commonwealth Act No. 146, as amended, is hereby
amended to read as follows:

“Any public service corporation that shall perform, commit, or do any
act or thing forbidden or prohibited or shall neglect, fail or omit to do
or perform any act or thing herein to be done or performed, shall be
Punished by a fine not exceeding [twenty-five-thousand-_peses] FIVE
MILLION PESOS (PHP5,000,000.00), or by imprisonment [not
exeeeding-five-years] OF NOT LOWER THAN SIX (6) YEARS AND
NOT HIGHER THAN TWELVE (12) YEARS, or both, in the
discretion of the court.”



1 Sec. 12. Section 24 of Commonwealth Act No. 146, as amended, is hereby
2 amended to read as follows:

3 “Any person who shall knowingly and willfully perform, commit, or do,
4 or participate in performing, committing, or doing, or who shall
5 knowingly and willfully cause, participate, or join with others in causing
6 any public service corporation or company to do, perform or commit,
7 or who shall advice, solicit, persuade, or knowingly and willfully
8 instruct, direct, or order any officer, agent, or employee of any public
9 service corporation or company to perform, commit, or do any act or
10 thing forbidden or prohibited by this Act, shall be punished by a fine

11 not exceeding [twe—theusand—peses] FIVE MILLION PESOS

12 (PHP5,000,000.00), or imprisonment [Ret-exeeeding-twe-years] OF
23 NOT LOWER THAN SIX (6) YEARS AND NOT HIGHER THAN
4 TWELVE (12) YEARS, or both, in the discretion of the court. &

18
19

20 Sec. 13. Section 25 of Commonwealth Act No. 146, as amended, is hereby
21 amended to read as follows:

22 “Any person who shall knowingly and willfully neglect, fail, or omit to

23 do or perform, or who shall knowingly and willfully cause or join or

24 Participate with others in causing any public service corporation or

25 company to neglect, fail or omit to do or perform, or who shall advise,

26 solicit, or persuade, or knowingly and willfully instruct, direct, or order

27 any officer, agent, or employee of any public service corporation or

28 company to neglect, fail, or omit to do any act or thing required to be

29 done by this Act, shall be published by a fine not exceeding [two

30 thousand-peses] FIVE MILLION PESOS (PHP5,000,000.00) or by

31 imprisonment [net-exceeding-two-years] OF NOT LOWER THAN SIX



1

aus

on

20
21
22
23
24
25
26
27
28
29
30
31
32

(6) YEARS AND NOT HIGHER THAN TWELVE (12) YEARS, or
both, in the discretion of the court.”

Sec. 14. Section 26 of Commonwealth Act No. 146, as amended, is hereby

amended to read as follows:

“Any person who shall destroy, injure, or interfere with any apparatus
or appliance owned or operated by to in charge of the [Commission]
ADMINISTRATIVE AGENCIES or its agents, shall be deemed guilty
of a misdemeanor and upon conviction shall be Punished by a fine OF
THE AMOUNT EQUIVALENT TO THE ACTUAL MARKET VALUE
OF THE APPARATUS OR APPLIANCE DESTROYED OR INJURED
PLUS A FINE NOT EXCEEDING ONE MILLION PESOS
(PHP1,000,000.00) [Ret—exceeding—ene—thousand—pesos] or

imprisonment [Rot-exceeding—six-months] OF NOT LOWER THAN
SIX (6) YEARS AND NOT HIGHER THAN TWELVE (12) YEARS,

or both in the discretion of the court.
f : ; os jon inj . fe
ith, forfek

Sec. 15. Section 28 of Commonwealth Act No. 146, as amended, is hereby
amended to read as follows:

“Violations of the orders, decisions, and regulations of the

[Commission] ADMINISTRATIVE AGENCIES and of the terms and

conditions of any certificate issued by the [Commission]

ADMINISTRATIVE AGENCIES [shalt_preseribe-after-sixty days,} and
violations of the provisions of this Act shall [preseribe—afterone

hundred-and-eighty- days} BE IMPRESCRIPTIBLE.”

Sec. 16. Subsequent Adjustment of Fines imposed under this Act - The
maximum amounts of fines imposed under this Act, as well those imposed under
Commonwealth Act No 146, shall be adjusted by the head of each administrative
agency under Section 1 of this Act by a Cost-of-Living Adjustment on January 1 of
the year immediately following the date of enactment of this Act and every fifth
calendar year thereafter. Each head of the administrative agency shall file copies of

10



the adjustment with the University of the Philippines Law Center in accordance with
Executive Order No. 292 (1987), as amended.

Any increase shall apply only to fines, including those whose associated
violation predated such increase, which are assessed after the date the increase
takes effect.

Sec. 17. Interpretation. — This Act shall be subject to and consistent with the
regulatory powers of the State to promote public interest in Article IX-C, Section 4
and Article XII, Section 17 of the Constitution.

No franchise, certificate, or authorization granted by the Congress and the
appropriate administrative agencies under Section 3 of this Act shall be (a) exclusive
in character, (b) for a longer period than fifty years, and (c) granted except under
the condition that it shall be subject to amendment, alteration, or repeal by
Congress when the public interest so requires.

The power to grant any franchise, certificate, or any other form of
authorization for the operation of a Public service still belongs to the Congress,
unless otherwise provided by law to an administrative agency.

Sec. 18. Non-Impairment of Existing Agreements. — The application and
implementation of the pertinent provisions of this Act shall not impair vested rights
or obligations of contracts. Current and subsisting concession agreements and other
similar contracts of juridical Persons with government agencies or government-
owned and —controlled corporations covering activities hereunder classified as public
utilities shall remain valid and in force in accordance with the existing terms and
conditions the parties agreed to thereunder until expiration or termination thereof.

Sec. 19. Suppletory Application of Commonwealth Act No. 146. —
Commonwealth Act No. 146, as amended, shall be construed as a general law that
shall apply suppletorily to special laws or existing sector-specific laws governing
Public services, except for Section 13 (d) of Commonwealth Act No. 146, as
amended, created by Section 4 of this Act.

Sec. 20. Comprehensive Baseline Survey. — The University of the Philippines
Law Center shall conduct a comprehensive baseline survey of public services
governance within six (6) months from the effectivity of this Act. Copies of the
results of said survey shall be furnished to the Congress, the NEDA and PCC.

i



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The PCC, in coordination with the NEDA, is mandated to conduct regular
studies on whether deregulation is warranted in a sector to improve consumer
welfare and to submit its recommendation to Congress.

Sec. 21. Implementing Rules and Regulations. — All administrative agencies
under Section 3 of this Act shall, in coordination with the NEDA, PCC and the
University of the Philippines Law Center, Promulgate rules and regulations to
implement the provisions of this Act within ninety (90) days from the effectivity of
this Act, including the criteria for the determination of imposable fines, as provided
for in this Act, to be based on the capitalization of a public service provider and
peculiarities of the public service concerned.

Sec. 22. Repealing Clause. — All laws, including Commonwealth Act No. 146,
as amended, decrees, orders, rules and regulations, or other issuances or parts
thereof inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

Sec. 23. Appropriation. — The initial funding to carry out the provisions of this
Act shall be charged against the current year’s appropriation. Thereafter, such sums
as may be necessary shall be included in the General Appropriations Act.

Sec. 24. Separability Clause. - If any portion or provision of this Act is
declared unconstitutional, the remainder of this Act or any provision not affected
thereby shall remain in force and effect.

Sec. 25. Effectivity. - This Act shall take effect after fifteen (15) days
following the completion of its publication either in the Official Gazette or in a
newspaper of general circulation in the Philippines.

Approved,

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