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Vol. II No. 49 A publication of the Committee Affairs Department November 18, 2014

COMMITTEE MEETINGS MEASURES COMMITTEE PRINCIPAL SUBJECT MATTER ACTION TAKEN/DISCUSSION NO. AUTHOR HB 4994 Speaker Providing for the basic law for the The Committee, chaired by Rep. Rufus Basic Law (Ad Belmonte Bangsamoro and abolishing the Rodriguez (2nd District, de Oro City), Hoc Committee) Autonomous Region in Muslim Mindanao will deliberate further on the proposed (ARMM), repealing for the purpose Bangsamoro Basic Law (BBL) in its next Republic Act 9054, or the law meeting. strengthening and expanding the Organic Act for the ARMM, and RA 6734, or the Legal luminaries and members of the academe law providing for an Organic Act for the made their respective comments on the ARMM constitutionality of the provisions of the proposed BBL.

Prof. Merlin Magallona, former Dean of the University of the (UP) College of Law, opined that the BBL will entail an amendment of the Constitution since it involves the reorganization, distribution and defragmentation of state powers which are acts sovereign to the people. He suggested that the BBL be reformulated and presented as an amendment to the Constitution to avoid questions on its constitutionality.

Former Ambassador to Rome and now president of the Philippine Council on Foreign Relations Jose Romero urged the legislature to remove the provisions in the BBL deemed unconstitutional and make the consultations more inclusive to know the real sentiments of all stakeholders.

On the other hand, former delegate to the 1986 Constitutional Commission Wilfrido Villacorta and former Ambassador Macabangkit Lanto believe that the BBL is in consonance with the Philippine Constitution, adding that a certain degree of liberality should be applied when “juxtaposing the BBL to the fundamental law of the land.”

Department of Justice (DOJ) Secretary emphasized that the BBL actualizes the peace agreement in a manner that is consistent with the Constitution.

The following government officials gave their support to the provisions of the BBL that relate to their respective mandates: Department of Agriculture (DA) Secretary ; Department of Energy (DOE) Secretary Carlos Jericho Petilla; Commission on Human Rights (CHR) Chair Loretta Ann Rosales; Department of Transportation and Communications (DOTC) Undersecretary Jose Perpetua Lotilla; Continuation… Department of Social Welfare and Development Bangsamoro (DSWD) Assistant Secretary Vilma Cabrera; Basic Law (Ad Commission on Higher Education (CHED) Hoc Committee) Deputy Executive Director Napoleon Imperial; Department of Public Works and Highways (DPWH) Director for Planning Service Constante Llanes; and Department of Tourism (DOT) representative Manuel Andrada. They took turns in answering the queries of the Committee members on the effect of the BBL on their respective systems of operation and the future intergovernmental relations between them and the Bangsamoro Government.

Department of Health (DOH) Undersecretary Nemesio Gako suggested that public health programs and the regulation of foods, drinks, drugs and tobacco be made a concurrent power shared by both the Central and Bangsamoro Governments. Under the BBL, these matters shall be under the exclusive power of the Bangsamoro.

Lawyer Lorenzo Vergara from the Office of the Ombudsman (OMB) conveyed the observations of the OMB with regard to the BBL. One of which is OMB’s opinion that granting the Bangsamoro Government the primary disciplinary authority over its own officials and employees will diminish the OMB’s constitutional power to investigate any act or omission of any public official, employee, office or agency.

Rep. Celso Lobregat (1st District, Zamboanga City) asked whether the hands of the legislators are tied to what has been agreed upon by the Government of the Philippines (GPH) and the Moro Islamic Liberation Front (MILF) under the peace agreement. Rep. Rodriguez said that irrespective of what has been agreed upon by both parties, Congress is duty-bound to review the BBL and make sure that all its provisions are in consonance with the Constitution.

Banks and Substitute Reps. Ponce Regulating the Philippine credit card The Committee, presided by Rep. Sonny Financial Bill to HBs Enrile, Romulo, industry Collantes (3rd District, ), approved the Intermediaries 207, 1031, Teodoro, substitute bill subject to style. 1513, Escudero, 2043, Mendoza (R.D.), Bangko Sentral ng Pilipinas (BSP) General 2551, Piamonte & Counsel Elmore Capule expressed support for 3563 & Collantes the bill. He informed the Committee that the 4861 Monetary Board has reviewed the substitute bill and found it favorable.

Alex Ilagan, Credit Card Association of the Philippines (CCAP) executive director, also expressed support for the proposed law saying that it will promote consumer protection and ensure transparency in the credit card industry.

Rep. Cresente Paez (Party-List, COOP- NATCCO) proposed that a cap be imposed on the interest and penalties being charged by credit card companies.

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Continuation… However, Rep. Collantes said the proposal of Banks and Rep. Paez may be a subject of a separate bill. Financial Intermediaries On the query of Rep. Juliet Cortuna (Party-List, A TEACHER) on the possibility that credit card companies waive their annual and joining fees, the Committee decided to request the BSP to conduct a study on the matter and submit its report to the Committee.

Substitute Reps. Bichara, Enhancing the resolution and liquidation The Committee approved the substitute bill with Bill to HBs Rodriguez (R.), framework for banks, amending for the amendments. 14, 1787, & Collantes purpose Republic Act 3591, or the 4392 & Philippine Deposit Insurance Corporation PDIC President Cristina Orbeta, in expressing 4891 (PDIC) Charter, as amended, and other support for the bill, said the bill contains all the related laws provisions that the PDIC needs to be able to perform its mandate better. The passage of the bill into law will help maintain a sound and stable banking system, she added.

Basic Education HR 1319 Rep. Biazon Honoring Clarita Villarba Rivera, also The Committee, chaired by Rep. Kimi and Culture known as Mila Del Sol, for her Cojuangco (5th District, ), adopted contributions in the movie industry that HR 1319. enriched Philippine culture and the Philippine society in general

HB 1707 Rep. Noel Providing for the rehabilitation and repair The Committee agreed to create a technical of Gabaldon schoolhouses nationwide, working group (TWG), to be headed by Rep. appropriating funds therefor Gwendolyn Garcia (3rd District, ), to refine the bill and incorporate in it the amendments introduced by the Members of the Committee during the meeting.

Among the proposed amendments to the bill are the following:  Expand the scope of the bill to include the restoration and preservation of Gabaldon schoolhouses nationwide;  Define certain terms such as “Gabaldon buildings;” and  Include a penal provision in the bill.

Pasig City Rep. Roman Romulo recommended the possible conversion of the Gabaldon schoolhouses into two-storey or four-storey buildings to help address the problem of classroom shortage especially with the implementation of the K to 12 Program.

Rep. Victoria Noel (Party-List, AN WARAY), author of HB 1707, welcomes any amendment that will improve her bill.

The Department of Education (DepEd) was requested to submit a list of Gabaldon schoolhouses nationwide and a status report on the progress of its efforts to conserve Gabaldon schoolhouses.

Basic Education HBs 2277, Reps. Velarde, Providing for the mandatory annual The Joint Committee, co-presided by Rep. Kimi and Culture jt. 2646 & Arroyo (D.) & inspection of all public and private school Cojuangco (5th District, Pangasinan), Chair of w/ Higher and 2886 Calixto-Rubiano buildings by the city or municipal engineer the Committee on Basic Education and Culture, Technical or building official and Rep. Roman Romulo ( City), Chair of Education the Committee on Higher and Technical Education, agreed to create a technical working group (TWG) that will consolidate the bills. 3

Continuation… The TWG will be chaired by Pasay City Rep. Basic Education Emi Calixto-Rubiano. and Culture jt. w/ Higher and Rep. Gwendolyn Garcia (3rd District, Cebu) Technical underscored the importance of conducting Education mandatory annual inspection of all public and private school buildings to ensure the safety and structural integrity of these buildings thereby ensuring the safety of students. She added that some of the school buildings’ structures may have been weakened or damaged by the typhoons and earthquakes that recently hit the country.

Both Reps. Romulo and Cojuangco pointed out the need to identify the source of funding for the implementation of the school inspection, especially because the proposed law covers not only public schools but private schools as well.

The Department of Public Works and Highways (DPWH) and the leagues of local government units will be among those which will be invited to join the TWG.

HBs 2162 Rep. Olivarez Strengthening the voluntary accreditation The Joint Committee deferred its deliberation on & 2281 of private schools in the Philippines HBs 2162 and 2281. The Secretariat of the Committee on Basic Education and Culture was instructed to secure the position of Rep. Eric Olivarez (1st District, Parañaque City) on how best to dispose of his two bills which have the same subject matter and intent.

Economic HB 4482 Rep. Quimbo Declaring the second week of November The Committee, chaired by Rep. Enrique M. Affairs of every year as economic and financial Cojuangco (1st District, ), approved the literacy week bill subject to amendments.

Rep. Romero “Miro” Quimbo (2nd District, Marikina City), author of HB 4482, said the proposed law aims to instill in the minds of the value of finance and economics in their daily lives. A financially literate citizenry, he added, will be able to make sound financial decisions, mobilize savings, and contribute ideas on improving economic policies and programs which, eventually, will redound to the enhancement of the economic growth potential of the country.

The bill proposes to include in the curriculum of all secondary schools and higher education institutions (HEIs) program activities on economic and financial literacy including, but not limited to, conducting basic economic and financial management classes, setting up literature corners on economics and finance, and organizing fora and trainings.

Resource persons present expressed their support for the measure even as they presented some comments and recommendations to improve the bill.

Bangko Sentral ng Pilipinas (BSP) Assistant Syd Amador informed the Committee of the BSP’s Economic and Financial Learning

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Continuation… Program (EFLP) which was created in year Economic 2000 that aims to establish a citizenry that is Affairs well informed in economics and finance, thus making them more effective partners in safeguarding price stability as well as in ensuring a stronger and safer banking and payment system. Likewise, she added, a knowledgeable citizenry is able to contribute more meaningfully to economic development and benefit better from the opportunities that it brings.

Amador said the proposed law will expand and strengthen the implementation of the EFLP.

Other resource persons present during the meeting were Dr. Stella Luz Quimbo, president of the Philippine Economic Society (PES); Cristina Orbeta, president and chief executive officer of the Philippine Deposit Insurance Corporation (PDIC); and representatives from the Insurance Commission (IC), Commission on Higher Education (CHED) and the Department of the Interior and Local Government (DILG).

Energy HJR 21 Speaker Authorizing the President of the The Committee, chaired by Rep. Reynaldo Belmonte Philippines, His Excellency Benigno S. Umali (2nd District, ), approved Aquino III, to provide for the establishment House Joint Resolution (HJR) 21. of additional generating capacity as mandated by RA 9136, to effectively Rep. Umali stated that HJR 21 was a result of a address the projected electricity shortage series of meetings by the Joint Congressional in the Luzon Grid on March 1, 2015 to July Power Commission (JCPC) House Panel and 31, 2015 the Committee on Energy in response to HBs 3743 and 3751 and HR 1533.

He clarified that HJR 21 does not include an authorization to purchase or lease additional power generating capacity, but merely reinforces the Interruptible Load Program (ILP).

HBs 3747 and 3751, respectively filed by Eastern Rep. Ben Evardone and MAGDALO Party-List Rep. Gary Alejano, prescribe urgent measures necessary and proper to effectively address the impending electric power crisis.

On the other hand, HR 1533, filed by Speaker Feliciano Belmonte Jr. (4th District, City), calls for an inquiry into the need to establish additional generating capacity to ensure the energy requirements of the country, in accordance with Section 71 of Republic Act 9136, otherwise known as the Electric Power Industry Reform Act (EPIRA) of 2001.

Rep. Neri Colmenares (Party-List, Bayan Muna) asserted that there should be no rush in granting the President the authority to provide for the establishment of additional generating capacity as he expressed doubts whether there is really an imminent power shortage next year. He pointed out that even the Department of Energy (DOE) and the National Grid Corporation of the Philippines (NGCP) could not

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Continuation… reconcile their data on the projected energy Energy supply shortage.

DOE Secretary Carlos Jericho Petilla said there is no discrepancy between the data used by the DOE and that of the NGCP. He explained that the NGCP does not reflect forced outages in its power outlook for 2015 saying that their occurrence cannot be predicted.

Petilla also said the DOE issued a directive to power plants to move their maintenance from April and May 2015 to June 2015. However, he said, some power plants may not be able to keep their scheduled maintenance on hold as it will result in major plant damage.

Fidel Dagsaan Jr., head of NGCP’s Power Network Planning Division, agreed to provide the Committee a list of major power plants that are scheduled for maintenance shutdown from March to July 2015.

Poverty Substitute Reps. Yap (S.), Institutionalizing the Pantawid Pamilyang The Committee, chaired by Rep. Salvio Fortuno Alleviation Bill to HBs Yap (A.), Pilipino Program (4Ps) to reduce poverty (5th District, ), approved with 154, 195, Antonino- and promote human capital development, amendment the Committee Report on the 1494, Nadres, Arroyo and providing funds therefor substitute bill. 1802, 3887 (D.), Olivarez & & 4063 Rodriguez (R.)

HR 1074 Rep. Teodoro Inquiry into the social impact evaluation of The Committee approved the Committee Report the 4Ps of the Department of Social on HR 1074. Welfare and Development (DSWD)

HR 591 Rep. Suansing Inquiry into the implementation of the 4Ps The Committee terminated its deliberations on with the end in view of addressing the HR 591. complaints and problems affecting the program and making the necessary Rep. Estrellita Suansing (1st District, Nueva legislation Ecija), author of HR 591, raised the following issues concerning the implementation of the 4Ps:  Delayed release of cash grants to

program beneficiaries;  Pawning of cash cards by some beneficiaries; and

 Reduced amount of cash grants received by beneficiaries.

Maria Karla Abigail Pangilinan, Deputy Program Manager for Operations of the 4Ps of the Department of Social Welfare and Development (DSWD), said the delay in the release of cash grants may be attributed to the delayed issuance or unavailability of cash cards.

As prescribed under the program, cash grants shall be released to the beneficiaries through the Landbank of the Philippines (LBP) cash cards. However, in some cases where the cash card is not yet available, there are alternative forms of payment such as over-the-counter transactions at LBP branches or offsite payment centers.

Pangilinan denied allegations that some beneficiaries do not receive the full amount of 6

Continuation… cash grants they are entitled to. She Poverty emphasized that no deductions of any amount Alleviation are made on the cash grants.

On reports that 4Ps beneficiaries are allegedly pawning their cash cards, Pangilinan said the DSWD strictly prohibits this. She added that a resolution was recently signed by the National Advisory Committee for 4Ps addressing the issue.

Rep. Magnolia Rosa Antonino-Nadres (4th District, ) urged the conduct of a periodic validation of the program beneficiaries, adding that the last validation was made way back in 2009. She noted that there are beneficiaries who have already improved their economic status and should thus graduate from the program, and there are families considered as poor but are not included in the program.

Vincent Andrew Leyson, National Household Targeting System for Poverty Reduction (NHTS- PR) National Project Manager, assured the Committee that the second round of national assessment/validation of program beneficiaries will be conducted soon.

HB 4765 Rep. Rodriguez Providing for an enhanced social The Committee will deliberate further on HB (O.) protection for the working poor and the 4765 in its next meeting. near poor, and appropriating funds therefor HB 4765 aims to ease the financial burden of the self-employed working poor and near poor with respect to their monthly contributions to the Social Security System (SSS) by mandating the government to provide a counterpart contribution. Self-employed workers who belong to the working poor or near poor category pay for their own SSS contributions compared to those employed SSS members whose payment of contributions are tempered by the employer’s share, which constitutes about two-thirds of their SSS contributions.

Under the bill, a Social Protection Fund (SPF) shall be created from which the amount needed for the mandated government counterpart contribution shall be drawn.

George Ongkeko Jr., SSS Chief Actuary, suggested that the proposed SPF should have clear mechanisms especially in the remittance of funds from identified sources to avoid glitches in updating the members’ accounts.

Ongkeko also expressed reservations on the provision in the bill authorizing the President to use the portion of the SPF in excess of the projected government contributions for the next five years for other social protection programs of the government. He stressed that the SPF should be used solely for its intended purpose.

He also mentioned that the SSS does not have the capacity to identify the “self-employed working poor and near poor” who will qualify under the program. 7

Rural HB 4333 Rep. Co Providing for a rural employment The Committee, chaired by Rep. Development assistance program, and appropriating Manuel Agyao, agreed to create a technical funds therefor working group (TWG) to fine tune the bill.

Rep. Rodel Batocabe (Party-List, AKO BICOL), co-author of HB 4333, said the proposed law aims to provide temporary employment to qualified heads of families or single adult members of poor households who volunteer to do unskilled manual work for 60 days in rural areas where they reside. It is similar to the Cash for Work Programs of the Department of Social Welfare and Development (DSWD). He mentioned that the bill was patterned after the National Rural Employment Guarantee Act (NREGA) of 2005 which was enacted by the Parliament of India.

The DSWD, however, said that the proposed compensation for volunteer workers, which is 75% of the prevailing minimum wage set by the National Wages and Productivity Commission (NWPC), should be shouldered by both the agency or project proponent and the concerned local government unit (LGU). For this purpose, he added, a memorandum of agreement should be entered into by parties involved.

The NREGA is a labor law and social security measure in India which aims to guarantee the citizens of India the “right to work” by providing them livelihood security in rural areas. The World Bank regarded the law as a “stellar example of rural development” in its World Development Report for 2014.

Rep. Eliza “Olga” Kho (2nd District, ) expressed support for the proposed law adding that Filipinos in rural areas need not go anymore to Metro to find employment.

Ways and Privilege Deputy Speaker On the reported smuggling of resins, The Committee, chaired by Rep. Romero “Miro” Means Speech Apostol depriving the government of money in the Quimbo (2nd District, Marikina City), will form of taxes and duties deliberate further on the issues raised in the privilege speech in its next meeting.

In his privilege speech last August 12, 2014, Deputy Speaker Sergio Apostol (2nd District, ) revealed the gross underpayment of duties and taxes by various consignee- importers amounting to about P624 million in 2012 alone, covering 2,651 40-footer containers of imported resin based on available documents.

He tagged seven companies which are involved in technical smuggling, none of whom were represented during the meeting despite invitations from the Committee.

Deputy Speaker Apostol urged the Committee to investigate this case of technical smuggling and take appropriate actions.

Rep. Elpidio Barzaga Jr. (4th District, ) explained that technical smuggling refers to the

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Continuation… fraudulent or erroneous declaration or Ways and undervaluation of goods being imported into the Means country to deliberately avoid or reduce the payment of fixed taxes, duties and other charges.

Rep. Barzaga asked the Bureau of Customs (BOC) to present documents relative to the importation of resin covering the period 2012 to 2013, emphasizing that these are basic documentary evidences required to objectively validate the existence of technical smuggling.

BOC Commissioner John Philip Sevilla said it might take the Bureau four months to produce the required documents citing its cumbersome document storage system.

The Chair asked the BOC to present a sampling of these documents within three weeks while it is retrieving all the documents on resin importation.

Rep. Rodel Batocabe (Party-List, AKO BICOL) suggested the issuance of a subpoena to the seven importers to compel their attendance in the next Committee meeting. But the Chair explained that it may be difficult to serve the subpoenas because most of them may have registered fictitious office addresses.

Sevilla informed the Committee that a major reform in the BOC’s accreditation system has been introduced last February 2014 upon the directive of the Department of Finance (DOF). He said all registering importers are required to present clearances from the Bureau of Internal Revenue (BIR) and Securities and Exchange Commission (SEC) to prove their legitimacy. As a result, he said the number of importers registered with the BOC was trimmed down by almost one-fourth.

The BOC was asked to submit to the Committee a discussion paper on the effectiveness of its new accreditation system in deterring fly-by- night importers.

TECHNICAL WORKING GROUP MEETING MEASURES COMMITTEE PRINCIPAL SUBJECT MATTER ACTION TAKEN/ DISCUSSION NO. AUTHOR Public Order Draft Reps. Requiring business establishments, public The technical working group (TWG), presided and Safety Substitute Gatchalian and private buildings and offices, parks, by Rep. Leopoldo Bataoil (2nd District, (Technical Bill to HBs (S.), Castelo, public and private schools, streets, alleys Pangasinan), will deliberate further on the draft Working Group) 4284, 425, Piamonte, and other places of public congregation to substitute bill in its next meeting. 618, 620, Rodriguez (R.), install closed circuit television (CCTV) 774, 2449, Antonino- cameras as a means to deter the The TWG focused its discussion on Sections 1 3129, 3261 Nadres, Arroyo commission of crime to 8 of the draft substitute bill. 3597, 3835, (D.) 3836 & 3838 Primicias- Agabas & Pagdilao

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FORUM

COMMITTEE SUBJECT MATTER DISCUSSIONS

National Cultural Forum on raising people’s awareness of the plight of The Committee, chaired by Rep. (2nd District, Communities students in indigenous schools North ), in coordination with GABRIELA and Save Our Schools Network, conducted a legislative forum entitled “Og Iskwela Puron… (to school I wish…),” as part of a cultural caravan campaign raising awareness of the plight of students belonging to indigenous communities and the condition of their schools which are occupied by military and paramilitary forces.

In welcoming the participants, Rep. Catamco gave assurance that all possible solutions to protect indigenous children will be exhausted. As a member of the Manobo Tribe herself, she said, she shares the aspirations of the cultural communities and offers her full assistance and support to them.

Rep. Catamco mentioned that the issue about the presence of soldiers and other elements of the military and the conduct of military operations inside school campuses is now being investigated by the Committee on Human Rights pursuant to House Resolutions 848 and 1639.

Rep. Emmi de Jesus (Party-List. GABRIELA), author of HR 1639, expressed her strong determination to continually fight for the protection of the rights of children, including those belonging to the indigenous communities.

Likewise, Reps. Noel Villanueva (3rd District, Tarlac) and Fernando “KaPando” Hicap (Party-List, ANAKPAWIS) decried the human rights violations reportedly perpetrated by some members of the military, urging victims and witnesses to come forward and identify them.

The forum also featured a recital of poems by Leo Martinez and Ericsson Acosta, a former political detainee and cultural worker/artist; a play presented by students of the Salugpongan Ta Tanu Igkanugon Community Learning Centers (STTICLC); and a film showing featuring “Pahiyum ni Buye,” depicting the life of the members of the Manobo Tribe in .

Rep. Catamco announced that her Committee intends to conduct on-site visit and hearing in communities where the rights and lives of the indigenous peoples are at risk.

Comments, suggestions and requests for copies may be sent to the Editorial Unit, Committee Administrative Support Service, 3rd Floor, Ramon V. Mitra, Jr. Bldg., Batasan Complex, Constitution Hills, . Tel. Nos. 9326118; 9315001 local 7122. Also available at http://www.congress.gov.ph

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