CCoommmmiitttteeee DDaaiillyy BBuulllleettiinn

Vol. II No. 95 A publication of the Committee Affairs Department March 17, 2015

COMMITTEE MEETINGS MEASURES COMMITTEE PRINCIPAL SUBJECT MATTER ACTION TAKEN/DISCUSSION NO. AUTHOR Good HR 622 Rep. Dela Cruz Inquiry into the anomalies relating to the The Committee, chaired by Rep. Oscar Government and exercise of functions and authority by the Rodriguez (3rd District, ), Public Land Transportation Franchising and terminated its deliberations on HR 622. The Accountability Regulatory Board (LTFRB), particularly on Secretariat was directed to prepare the draft the granting of special franchises and Committee Report. other considerations to certain bus companies LTFRB Chair Winston Ginez explained that the agency may suspend the operations of a bus company involved in a serious accident for a period of up to 30 days even before the conduct of a hearing on the incident, and may suspend or cancel its Certificate of Public Conveyance (CPC) if there is gross negligence or violation of the terms and conditions of its franchise.

On the unauthorized issuance of CPC in Region III, Ginez reported that appropriate charges have been filed in court against several officials and personnel of LTFRB Region III involved. The case against former Regional Director Bruno Patricio, who has retired from the service, will be brought to the Ombudsman for the filing of criminal and civil charges.

Ginez added that the hearing for the cancellation of the questionable CPCs issued in Region III is still ongoing. The subject of the ongoing cancellation proceedings includes 112 bus units of Solid North, 50 units of Pangasinan Five Star, 80 units of First Luzon and 14 units of Luzon Cisco Lines.

On the labor claims against the Grand Star Coach Bus Co. Inc., raised in the Petition for the Cancellation of CPCs filed by its former employees, Atty. Angelo Cunanan, counsel for Grand Star, said the bus company has paid 115 drivers and conductors in the amount of P4.53 million in settlement. The payment for the remaining 11 unpaid employees, he added, is scheduled for settlement before the National Labor Relations Commission (NLRC) Regional Arbitration Branch No. IV on March 18, 2015.

The Committee Members agreed that aside from the audited financial statements the LTFRB requires from public utility operators prior to the issuance of the annual franchise clearance, the latter should also be required to submit tax clearance and clearances form the Continuation… courts, the police and the Bureau of Customs Good (BOC). Government and Public In view of Ginez’s statement that the LTFRB’s Accountability operations are governed by memoranda and circulars issued by its board, aside from Executive Order 202 issued in 1987 which created the agency, the Committee Members also agreed that all these issuances be codified to formulate a cohesive and a more permanent mandate for the agency.

HR 1306 Rep. Oaminal Inquiry into the reported gross and The Committee assumed jurisdiction and gave inordinate anomalies in the conduct of due course to HR 1306. public bidding and implementation of infrastructure projects of the Department Rep. Henry Oaminal (2nd District, Misamis of Health (DOH), most particularly in Occidental), author of HR 1306, was asked to Region X, allegedly perpetuated by the submit to the Committee the list of resource Regional Infrastructure Engineer in persons and documents necessary to proceed conspiracy with other regional officials with the Congressional inquiry.

Higher and Substitute Rep. Hernandez Establishing the South State The Committee, chaired by Pasig City Rep. Technical Bill to HB College in the Municipality of Surallah, Roman Romulo, approved the substitute bill to Education 4251 , appropriating funds HB 4251. therefor

HB 431 Rep. Benitez Converting the Carlos Hilado Memorial The Committee approved HB 431. State College in the City of Talisay, , into a state university to be known as the Carlos Hilado State University, and appropriating funds therefor

HB 1546 Rep. Converting the Cordova Public College in The Committee approved HB 1546. Quisumbing the Municipality of Cordova, into a state college to be known as the Cordova State College of Science and Technology

HB 1944 Rep. Providing the Cebu Normal University- The Committee approved HB 1944. Salimbangon Medellin Campus a budget separate from Cebu Normal University Main Campus, and appropriating funds therefor

HB 2450 Rep. Rodriguez Appropriating funds for the construction of The Committee approved HB 2450. (R.) additional classrooms, laboratories and dormitories in the Central Mindanao University

HB 2454 Rep. Rodriguez Appropriating funds for the construction of The Committee approved HB 2454. (R.) additional classrooms, laboratories and dormitories in the State College of Agriculture and Technology

HB 2758 Rep. Castelo Providing for the repair, construction and The Committee approved HB 2758. rehabilitation of existing structures of the Polytechnic University of the Philippines- City Campus, and appropriating funds therefor

HB 3078 Rep. Cosalan Establishing a State Polytechnic College in The Committee approved HB 3078. the Municipality of Kabayan, , to be known as the Kabayan State Polytechnic College, and appropriating funds therefor 2

Continuation… HB 4745 Rep. Abueg Creating the State University The Committee approved HB 4745 with Higher and System in Palawan and Puerto Princesa amendments and subject to the compliance of Technical City, amending for the purpose RA 7818 the Palawan State University (PSU) with the Education or the law converting the Palawan State requirements set by the Commission on Higher College into a state university Education (CHED).

HBs 1510, Reps. Teodoro, Strengthening the Commission on Higher The Committee agreed to create a technical 3022 & 3307 Piamonte & Education (CHED), amending for the working group (TWG) to consolidate the four Rodriguez (R.) purpose RA 7722, otherwise known as the bills. Higher Education Act of 1994, appropriating funds therefor CHED Chair Patricia Licuanan informed the Committee that the Commission has drafted its HB 5139 Rep. Escudero Rationalizing the distribution of own version of the bills amending RA 7722. government grants, scholarships and similar programs, amending for the Rep. Romulo requested the CHED to submit to purpose RA 7722 the Committee the bill it has drafted and promised to review the same.

HB 5493 Rep. Romulo Establishing the Tertiary Education The Committee will deliberate further on HB Transition Fund to develop and sustain 5493 in its next meeting. tertiary education institutions during the transition period of the Enhanced Basic Lawyer Ada Abad, legal counsel for the Education Act of 2013 Coordinating Council of Private Educational Associations (COCOPEA), supports the establishment of a tertiary education transition fund saying that most higher education institutions (HEIs) now face logistical and financial problems due to the huge cut in the number of their enrollees when the K-12 program is fully implemented in 2016. The HEIs will most likely not be able to pay the retrenchment or separation benefits of the affected teaching and non-teaching personnel, Abad added.

Rep. Mariano Piamonte Jr. (Party-List, A TEACHER) recommended that the Committee request the Office of the President to certify as urgent HB 5493.

Information and Substitute Rep. Ridon Providing free public wireless internet The Committee, presided by its Vice Chair Communications Bill to HB access in public buildings, terminals, parks Rep. Mariano Michael Velarde Jr. (Party-List, Technology 1550 and plazas throughout the country BUHAY), approved the Substitute Bill to HB 1550 as amended.

One of the amendments agreed upon was the deletion of Section 6 (Appropriations), to be replaced with the following provision:

“Sec. 6. Non-Collection of Data – The government shall respect the privacy of citizens who use the public broadband hotspots. In no case shall the administration or management of said public broadband hotspots engage in the collection, use, or disclosure of user data, including the collection of anonymous traffic data, in accordance with existing laws.”

Substitute Rep. Abaya Promoting consumer protection on the The Committee approved the Substitute Bill to Bill to HB purchase of mobile communications HB 5027 subject to style. 5027 devices by allowing consumers to unlock the mobile wireless devices prior to the expiration of the lock-in period under the contract 3

Revision of HBs 2352, Reps. Lagman, Amending/repealing Arts. 333, 334 and The Committee, presided by its Vice Chair Laws 2390, 3639, Garcia (G.), 344 of Act No. 3815, otherwise known as Rep. Leni Gerona-Robredo (3rd District, 4033 & 4377 Gutierrez, the Revised Penal Code (RPC) ), agreed to create a technical Deputy Speaker working group (TWG) to consolidate the five Abad & Rep. De bills. Jesus Rep. Gerona-Robredo explained that HBs 2352, 2390 and 4033 seek for the equal treatment of men and women in the prosecution of the crime of adultery (or marital infidelity) and concubinage, while HBs 3639 and 4377 seek to decriminalize adultery and concubinage.

The resource persons from the Department of Justice (DOJ) and the Office of the Solicitor General (OSG) reported to the Committee the number of cases prosecuted and appealed in relation to violations of Articles 333 and 334 of the Revised Penal Code (Act No. 3815).

The Supreme Court, however, was not able to provide a similar report because it does not have available information which classifies the cases brought up to and decided upon by the Supreme Court.

The Philippine Commission on Women (PCW) will release the official stand of the agency on the matter after the PCW board meeting on April 21 during which the matter will be discussed.

The St. Thomas More Law Center encouraged the Committee Members to study the proposed law on a broader perspective aside from numbers and statistics.

Science and Substitute Rep. Gonzalez Amending RA 8439, otherwise known as The Committee, chaired by Rep. Victor Yu (1st Technology Bill to HB (F.) the Magna Carta for Scientists, Engineers, District, ), approved 5155 Researchers and Other Science and Substitute Bill to HB 5155 subject to style and Technology Personnel in Government, by amendment. extending the services of a scientist who is due for compulsory retirement for a Dr. William Padolina of the Department of maximum period of five years Science and Technology (DOST) expressed concern that extending the services of a scientist who is due for compulsory retirement for another five years will put on hold the hiring or promotion of younger scientists who are also up to the job.

Rep. Fernando Gonzalez (3rd District, ), author of the bill, explained that under the proposed measure, it is the prerogative of the DOST Secretary to recommend to the Civil Service Commission (CSC) the extension of services of retiring scientists depending on the project that needs to be completed prior to retirement.

Substitute Rep. Yu Strengthening the ‘Balik Scientist Program’ The Committee approved the Substitute Bill to Bill to HB and appropriating funds therefor HB 5388 subject to perfecting amendments 5388 based on the position papers to be submitted by the CSC, Department of Trade and Industry, Department of Justice and the Professional Regulation Commission.

4

Social Services Substitute Rep. Paez Establishing a comprehensive system for The Committee, chaired by San Jose Del Bill to HB registration and licensing of social welfare Monte City Rep. Arturo Robes, approved the 3411 and development agencies and Committee Report on the Substitute Bill to HB accreditation of social welfare and 3411. development programs and services, and appropriating funds therefor

Substitute Deputy Speaker Allowing the rectification of simulated The Committee approved the substitute bill Bill to HBs Aggabao, Reps. births and providing for administrative subject to style. 119, 872, Macapagal- adoption proceedings for the purpose 2255 & 3496 Arroyo (G), Romualdo & Relampagos

HR 1575 Rep. Robes Urging the Department of Social Welfare The Committee adopted HR 1575. and Development (DSWD) to include all families with family members who have Joselito Domingo of Parents Advocate for disability, especially those with cerebral Visually Impaired Children and Benjamin palsy, as automatic beneficiaries of the Bernandino, Secretary General of Life Haven Pantawid Pamilyang Pilipino Program Independent Living Center, agreed that the (4Ps), and providing for reasonable DSWD should grant financial support to poor accommodation for these families by families with PWDs, taking in consideration modifying the conditionalities of the 4Ps the disability-related expenses and program to ensure effective and opportunities lost due to one’s disability. reasonable compliance Mateo Lee Jr., deputy executive director of the National Council on Disability Affairs (NCDA), urged DSWD to develop programs specifically benefitting PWDs.

Venus Reboldela, DSWD 4Ps focal person, explained that PWDs are included as beneficiaries of the 4Ps. Based on DSWD’s household assessment of 2009, out of the total 224,499 household-beneficiaries, 26,161 or 16% have visually impaired PWDs as members and 31,671 households or 14% have PWDs with orthopedic type of disability.

Trade and Draft Reps. Rodriguez Allowing foreign vessels to transport and The Joint Committee, co-presided by Rep. Industry jt. w/ Substitute (R.), Chipeco, co-load foreign cargoes for domestic Anthony Del Rosario (1st District, Davao del Ways and Bill to HBs Fuentebella, transshipment and for other purposes Norte), Vice-Chair of the Committee on Trade Means and 1789, 2146, Paez, Teodoro, and Industry; Rep. Romero “Miro” Quimbo (2nd Transportation 2563, 2623, Villar, Baguilat & District, Marikina City), Chair of the Committee 2863, 5109, Manalo on Ways and Means; and Rep. 5126, 5222 Cesar Sarmiento, Chair of the Committee on & 5223 Transportation, approved the draft substitute bill subject to style.

Rep. Quimbo said the draft substitute bill, amending the Cabotage Law, was the product of several consultations with representatives from the Maritime Industry Authority (MARINA), Department of Trade and Industry (DTI), Bureau of Customs (BOC), Philippine Ports Authority (PPA), the private sector and other stakeholders. The substitute bill is similar in content to Senate Bill No. 2486, which has been approved by the Senate on third reading.

The Philippine Cabotage Law, as embodied in the Tariff and Customs Code of the Philippines (TCCP), reserves the right to engage in coastwise trade to Philippine-registered vessels and prohibits foreign vessels from the transshipment of cargo between Philippine

5

Continuation… ports. Likewise, Section 6 (Foreign Vessels Trade and Engaged in Trade and Commerce in the Industry jt. w/ Philippines’ Territorial Waters) of Chapter III of Ways and RA 9295 or the Domestic Shipping Means and Development Act of 2004, states that “No Transportation Foreign vessel shall be allowed to transport passengers or cargo between ports or place within the Philippine territorial waters, except upon the grant of special permit by the MARINA when no domestic vessel is available or suitable to provide the needed shipping service and public interest warrants the same.”

Rep. Del Rosario said the proposed measure will balance the interests of the local shipping industry and the people who depend on it for livelihood, the exporters and importers, and the consumers.

Rep. Sarmiento recalled that during the Committee on Transportation’s review of the Cabotage Law, problems as a consequence of allowing foreign vessels to engage in the coastwise trade were identified. One of which, he said, is the serious threat to national security if foreign vessels were allowed to freely ply within our territorial waters.

He also said that the reasons for amending the Cabotage Law are to address the high shipping rates and to improve the quality of service and the ports around the country.

DTI Undersecretary Victorio Mario Dimagiba said the Department supports the proposed law, adding that the DTI requests to be included among the agencies that will craft the proposed law’s Implementing Rules and Regulations (IRR).

PPA Ports Operations Manager Francis Mancile clarified that the issuance of clearance to foreign vessels going to or coming in Philippine ports is a function exclusive to port authorities and not the BOC’s. He also suggested not to open all the ports in the country for coastwise trade of foreign vessels saying that not all ports in the country are capable or big enough to allow entry of foreign vessels and that there are ports that are hardly unmanned and with lax security which may be taken advantage of by smugglers.

Atty. Jesus Nathaniel Gonzales, Director III of the Department of Finance (DOF) said the Department supports the proposed law which, among others, gives enough leeway to the transport industry to conduct their business without violating the Constitution. He suggested that the Department of Transportation and Communications (DOTC) be involved in the formulation and promulgation of the IRR since the proposed law will, in effect, amend certain provisions of the transportation laws.

6

SUBCOMMITTEE MEETING

COMMITTEE SUBJECT MATTER DISCUSSIONS

Subcommittee on Review of the Smokey Mountain Development The Subcommittee, presided by Rep. Rodel Batocabe (Party-List, Smokey Mountain and Reclamation Project (SMDRP) dispute AKO BICOL), began its review of the dispute among parties involved Development and in the implementation of the Smokey Mountain Development and Reclamation Project Reclamation Project (SMDRP), both in aid of legislation and pursuant (Housing and Urban to the recommendation made by the Joint Committees on Housing Development) and Urban Development and Good Government and Public Accountability in the previous Congress.

The SMDRP involves the conversion of the garbage dumpsite Smokey Mountain in Tondo, Manila into a housing project and the reclamation of about 79 hectares of land from Manila Bay.

The said Joint Committee recommended that the contending parties, namely the National Housing Authority (NHA), Home Guaranty Corporation (HGC) and the R-II Builders Inc. (RBI), enter into mediation to immediately resolve the dispute in order to save the government from further incurring expenses in shouldering the cost of interest. The Committee on Housing shall serve as the venue for such mediation.

Reghis Romero II, chairman of the Board of RBI, maintained that the NHA must pay its outstanding liabilities to the company amounting to P4.4 billion, consisting of the principal amount of P1.8 billion and interest of P2.6 billion, for the additional works undertaken by RBI under its supplemental agreement with the NHA.

Romero said RBI is willing to advance to the HGC its exposure of P2.9 billion and to advance the payment of the remaining unpaid investors such as the Social Security System in the amount of P1.1 billion. But, he added, the HGC must convey to RBI the residual values of the Smokey Mountain Asset Pool (SMAP).

However, Atty. Sinforoso Dagunsan of the NHA reiterated the agency’s position that payments were already made to RBI approximating its P1.8 billion claim, which could be supported by several documents including various Special Allotment Release Orders (SAROs) issued for this purpose.

The NHA, RBI and HGC were requested to submit to the Subcommittee their respective reports on their claims, their respective roles in the SMDRP, and recommendations which will be presented in the next meeting.

The Subcommittee likewise, directed the NHA to submit a copy of the following:  The letter of former NHA General Manager Federico Laxa requesting the Department of Budget and Management (DBM) to issue the SARO and Notice of Cash Allocation (NCA) for the payment of NHA’s P4.4 billion obligation to the Asset Pool and the breakdown of this amount; and  The 2003 Memorandum of Agreement (MOA) between the NHA and RBI.

The Commission on Audit (COA) was also requested to submit its post audit reports on the SMDRP.

7

TECHNICAL WORKING GROUP MEETINGS MEASURES COMMITTEE PRINCIPAL SUBJECT MATTER ACTION TAKEN/ DISCUSSION NO. AUTHOR Basic Education HBs 2277, Reps. Velarde. Providing for mandatory annual inspection The technical working group (TWG), co- and Culture jt. 2646 & Arroyo (D.) & of all public and private school buildings by presided by Pasay City Rep. Emi Calixto- w/ Higher and 2886 Calixto-Rubiano the city or municipal engineer or building Rubiano, for the Committee on Basic Technical official Education and Culture, and Rep. Mariano Education Piamonte Jr. (Party-List, A TEACHER), for the (Technical Committee on Higher and Technical Working Group) Education, agreed to consolidate the three bills and harmonize the same with the relevant provisions embodied in the Implementing Rules and Regulations (IRR) of the Revised Fire Code (Republic Act 9154) and the National Building Code of the Philippines (RA 1096).

The Bureau of Fire Protection (BFP), Department of Education (DepEd), Commission on Higher Education (CHED), Philippine Association of State Universities and Colleges (PASUC), Association of Local Colleges and Universities (ALCU) and Coordinating Council of Private Educational Associations (COCOPEA) expressed their support for the bills.

The TWG agreed to provide for a longer inspection period - at least six months prior to the start of the school year - to allow repairs and maintenance check of school buildings.

Anna Peñaflorida of CHED said the Department issued a memorandum order directing all higher education institutions (HEIs) to adhere to the National Building Code and the Fire Code in the design and construction of school buildings. The CHED Regional Offices were also authorized to monitor the compliance of HEIs with this directive and to report any violation to the Commission, she added.

The Committee requested all the resource persons present to submit their respective position papers on the proposed law.

Transportation Draft Reps. Madrona, Regulating harbor pilotage services and The technical working group (TWG), presided (Technical Substitute Nograles & the conduct of harbor pilots in all ports in by Committee Vice Chair and Rep. Working Group) Bill to HBs Tupas the Philippines, reorganizing port Eleandro Jesus Madrona, terminated its 1848, 2068 authorities deliberations on the draft substitute bill. The & 3224 Secretariat was directed to incorporate in the bill the recommendations of the resource persons before the bill is presented to the mother Committee for its consideration and approval.

Among the proposals that the TWG will recommend to the mother Committee are as follows:  Pilotage services in domestic ports shall be optional unless declared under compulsory pilotage by the Pilotage Commission;  Investigations of maritime accidents 8

Continuation… shall be under the sole jurisdiction of Transportation the Philippine Coast Guard (PCG); (Technical  A harbor pilot’s liability should not be Working Group) limited to P500,000.00 for damages or loss caused by willful misconduct or gross incompetence and/or negligence; and  The government shall have a share “in the gross income of harbor pilots derived from rendering pilotage services.”

The TWG requested the submission of the following:  List of membership of the Philippine Inter-Island Shipping Association (PISA); and  List of existing port operators from the Philippine Ports Authority (PPA).

FORUM

COMMITTEE SUBJECT MATTER DISCUSSIONS

Land Use Forum on the measures towards the The Special Committee on Land Use, chaired by Dinagat Island Rep. (Special Committee) improvement of the economic conditions of the Kaka Bag-ao, conducted a forum to discuss the development of the coconut farmers and the development of the coconut industry and the improvement of the economic conditions of coconut industry the coconut farmers, especially the poor farmers, through the establishment of the coconut farmers’ trust fund and the proper disposition of the coconut levy assets.

Rep. Bag-ao said a bill will be drafted to institutionalize the recommended policies benefitting the coconut farmers and the industry itself. The bill shall be filed in the House of Representatives not later than April 8, 2015, she added.

The forum was also attended by Reps. Leni Gerona-Robredo (3rd District, Camarines Sur), Ibarra “Barry” Gutierrez (Party-List, AKBAYAN) and Teddy Brawner Baguilat ().

The coconut farmers were represented by organizations, such as the Pambansang Magbubukid sa Pilipinas (PMP); Mamamayan Liberal; Coconut Industry Reform Movement (COIR) and Katipunan ng Maliliit na Magniniyog ng Pilipinas ( KAMMPIL).

The coconut farmers talked of their long struggle in staking a claim to the coconut levy fund, which benefitted the Philippine Coconut Authority (PCA) and other parties instead of the poor farmers.

Undersecretary Jasmin Banal of the Office of the Presidential Assistant for Food Security and Agricultural Modernization (OPAFSAM) promised to immediately inform OPAFSAM Secretary Francis “Kiko” Pangilinan about the sentiments of the coconut farmers.

All the resource persons present agreed to meet on March 20, 2015 to finalize the draft bill.

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, Quezon City. Tel. Nos. 9326118; 9315001 local 7122. Also available at http://www.congress.gov.ph

9