REPUBLIC OF THE PHILIPPINES Senat:e Pasay City

Journal

SESSION NO. 77 Wednesday, May 28,2014

SIXTEENTH CONGRESS FIRST REGULAR SESSION SESSION NO. 77 Wednesday, May 28, 2014

CALL TO ORDER ng malaking hamon na aming kina­ kaharap. At 3: 13 p.m., the Senate President, Hon. Franklin M. Drilon, called the session to order. Ang lahat po ng ito ay ibinabalik namin sa Iyo, Panginoon. PRAYER Amen.

Sen. Joseph Victor G. Ejercito led the prayer, ROLL CALL to wit: Mahal na Panginoon, muli kaming Upon direction of the Chair, the Secretary of the nagtitipun-tipon sa hapong ito upang Senate, Atty. Oscar G. Yabes, called the roll, to magampanan ang aming mga tungkulin. which the following senators responded: Ipinapaabot namin ang aming lubos na pasasalamat sa Iyong pagmamahal at Angara, S. Honasan, G. B. sa mga biyayang ipinagkaloob Ninyo Aquino, P. B. IV. B. Lapid, M. L. M. sa amino Binay, M. L. N. S. Legarda, L. Drilon, F. M. Osmefia III, S. R. Sa kabila ng mga pagsubok na Ejercito, J. V. G. Pimentel III, A. K. kinakaharap ng institusyong ito na aming Enrile, J. P. Poe, G. kinabibilangan, kami po ay hindi nawa­ Escudero, F. J. G. Sotto III, V. C. walan ng pag-asa na magiging maayos Estrada, J. Trillanes IV, A. F. din ang lahat at tanging kapakanan ng aming mga kababayan ang higit na With 16 senators present, the Chair declared the mananaig. presence of a quorum. Biyayaan Ninyo nawa kami ng sapat na karunungan at malinis na kalooban Senators Cayetano (A), Recto and Revilla arrived upang patuloy naming magampanan ang after the roll call. aming mga tungkulin. Nawa y hindi po Ninyo pahintulutan na mawala ang aming Senator Cayetano (P), who was on official kagustuhang magsilbi sa bayan sa kabila nrission, likewise arrived after the roll call. r 282 WEDNESDAY, MAY 28, 2014

Senators Marcos and Villar were on official BE AWARDED IN THE SAME mission, the latter abroad. LABOR, CIVIL OR CRIMINAL PROCEEDINGS INSTITUTED BY Senator Defensor Santiago was on indefinite THE DOMESTIC WORKER qualified medical leave as indicated in her letter dated May 14, 2014. Introduced by Senator Maria Lourdes Nancy S. Binay Senator Guingona was absent. To the Committees on Labor, Employment and Human Resources Development; and APPROVAL OF JOURNAL THE Social Justice, Welfare and Rural Development

Upon motion of SenatorAquino, there being no Senate Bill No. 2242, entitled objection, the Body dispensed with the reading of the Journal of Session No. 76 (May 27, 2014) and AN ACT EXPANDING THE LIST OF considered it approved. PROHIBITED ACTIVITIES IN PROTECTED AREAS, INCREASING REFERENCE OF BUSINESS THE PENALTY FOR VIOLATIONS THEREOF AND AMENDING FOR The Secretary of the Senate read the following THESE PURPOSES REPUBLIC ACT matters and the Chair made the corresponding NO. 7586, OTHERWISE KNOWN AS referrals: THE NATIONAL INTEGRATED PROTECTED AREAS ACT OF 1992 BILLS ON FIRST READING (NIPAS ACT OF 1992)

Senate Bill No. 2240, entitled Introduced by Senator Maria Lourdes Nancy S. Binay

AN ACT AMENDING ARTICLE 1773 OF To the Committee on Environment and REPUBLIC ACT NO. 386, OTHER­ Natural Resources WISE KNOWN AS THE NEW CIVIL CODE OF THE PHILIPPINES BY Senate Bill No. 2243, entitled CLARIFYING THE LEGAL EFFECT OF FAILURE TO COMPLY WITH AN ACT PROVIDING FOR THE LEGAL THE FORMAL REQUIREMENTS IN FRAMEWORK TO GOVERN SPECIAL A CONTRACT OF PARTNERSHIP USE AGREEMENTS IN PROTECTED WHERE AN IMMOVABLE PROPERTY AREAS IS CONTRIBUTED Introduced by Senator Maria Lourdes Nancy Introduced by Senator Maria Lourdes Nancy S, Binay S. Binay To the Committee on Environment and To the Committees on Trade, Commerce and Natural Resources Entrepreneurship; and Constitutional Amend­ Senate Bill No. 2244, entitled ments and Revision of Codes AN ACT REPEALING CHAPTER I OF Senate Bill No. 2241, entitled TITLE 1lI OF THE NATIONAL INTERNAL REVENUE CODE OF AN ACT AMENDING REPUBLIC ACT 1997,. AS AMENDED, AND FOR NO, 10361, OR THE DOMESTIC OTHER PURPOSES WORKERS ACT, BY CLARIFYING THAT THE FINE IMPOSED THEREIN Introduced by Senator Maria Lourdes Nancy SHALL INURE TO THE SOLE S. Binay BENEFIT OF THE AGGRIEVED DOMESTIC WORKER, WHICH MAY To the Committee on Ways and Meansr WEDNESDAY, MAY 28, 2014 283

Senate Bill No. 2245, entitled COMMITTEES ON WAYS AND MEANS; HEALTH AND DEMOG­ AN ACT ESTABLISHING THE REGU­ RAPHY; AND FINANCE TO ASSESS LATORY FRAMEWORK FOR THE AND REVIEW, IN AID OF LEGIS­ SAFE OPERATIONS OF THE LATION, THE IMPLEMENTATION LIQUEFIED PETROLEUM GAS (LPG) OF THE SIN TAX LAW (REPUBLIC INDUSTRY, DELINEATE THE POWERS ACT 10351) IN PARTICULAR ITS AND FUNCTIONS OF VARIOUS INTENDED OBJECTIVES OF FUND­ GOVERNMENT AGENCIES, DEFINE ING THE UNIVERSAL HEALTH AND PENALIZE CERTAIN ACTS, CARE PROGRAM AND PROVIDING AND FOR OTHER PURPOSES EFFICIENT MEDICAL ASSISTANCE TO ORDINARY CITIZENS Introduced by Senator Maria Lourdes Nancy S. Binay Introduced by Senator Grace Poe

To the Committees on Trade, Commerce To the Committees on Ways and Means; and Entrepreneurship; Energy; and Finance Health and Demography; and Finance

Senate Bill No. 2246, entitled Proposed Senate Resolution No. 672, entitled

AN ACT SETTING THE LIMITS ON THE RESOLUTION DIRECTING THE PROPER POWER OF THE PRESIDENT TO SENATE COMMITTEES TO INVES­ REAPPOINT BYPASSED NOMINEES TIGATE, IN AID OF LEGISLATION, THE HEALTH CARE NEEDS OF Introduced by Senator Trillanes IV PREGNANT WOMEN IN PHILIPPINE JAILS IN LIGHT OF THE REPORTED To the Committee on Constitutional DEATH OF A DETAINEE'S NEWBORN Amendmeuts and Revision of Codes CHILD ALLEGEDLY DUE TO LACK RESOLUTIONS OF IMMEDIATE AND ADEQUATE MEDICAL ASSISTANCE BY Proposed Senate Resolution No. 670, entitled GOVERNMENT AUTHORITIES

RESOLUTION URGING THE SENATE Introduced by Senator Maria Lourdes Nancy COMMITTEES ON ELECTORAL S. Binay REFORMS AND PEOPLE'S PARTI­ CIPATION AND CONSTITUTIONAL To the Committees on Justice and Human AMENDMENTS AND REVISION OF Rights; and Women, Family Relations and Gender CODES AND LAWS TO CONDUCT Eqnality A STUDY, IN AID OF LEGISLATION, ON THE EFFECTIVENESS OF THE COMMUNICATION ANTI-WIRE TAPPING LAW UNDER Letter from the Bangko Sentral ng Pilipinas, REPUBLIC ACT NO. 4200, TO transmitting to the Senate copies of the following COMBAT ELECTION FRAUD AND certified and authenticated BSP issuances in SIMILAR ELECTORAL VIOLATIONS compliance with Section 15(a) of Republic Act Introduced by Senator Grace Poe No. 7653 (The New Central Bank Act):

To the Committees on Electoral Reforms Circular Letter No. CL-2014-030 dated 08 and People's Participation; and Public Order May 2014; and Dangerous Drugs and Circular No. 831 dated 02 May 2014. Proposed Senate Resolution No. 671, entitled To the Committee on Banks, Financial Institu­ RESOLUTION DIRECTING THE SENATE tions and Currencies r 284 WEDNESDAY, MAY 28,2014

ADDITIONAL REFERENCE OF BUSINESS COMMITTEE ON PUBLIC WORKS TO INVESTIGATE, IN AID OF LEGIS­ BILLS ON FIRST READING LA TION, THE STATUS OF THE RE­ CONSTRUCTION AND REHABILIT­ Senate Bill No. 2247, entitled ATION OF CLASSROOMS, SCHOOL BUILDINGS AND OTHER EDUCA­ AN ACT INCREASING THE PENAL­ TIONAL FACILITIES DAMAGED BY TIES FOR VIOLATIONS OF THE SUPERTYPHOON "YOLANDA", AND TERMS AND CONDITIONS OF WHETHER THE FUNDS APPRO­ ENVIRONMENTAL COMPLIANCE PRIATED FOR THE PURPOSE WERE CERTIFICATE AMENDING FOR RELEASED, IN ORDER TO RESTORE THE PURPOSE PRESIDENTIAL NORMALCY AND ENSURE THE DECREE 1586 WELFARE OF THE STUDENTS AND THE WHOLE ACADEMIC Introduced by Senator Maria Lourdes Nancy COMMUNITY IN THE AREA S. Binay Introduced by Senator Marcos To the Committee on Environment and Natnral Resources To the Committee on Public Works

Senate Bill No. 2248, entitled Proposed Senate Resolution No. 674, entitled

AN ACT STRENGTHENING THE RESOLUTION URGING THE SENATE OPERATIONS OF THE NATIONAL COMMITTEES ON WOMEN, FAMILY LABOR RELATIONS COMMISSION, RELATIONS AND GENDER AMENDING FOR THIS PURPOSE EQUALITY; AND ON JUSTICE AND ARTICLES 213 AND 215 OF P.D. HUMAN RIGHTS TO CONDUCT AN NO. 442, AS AMENDED, OTHER­ INQUIRY, IN AID OF LEGISLATION, WISE KNOWN AS THE LABOR ON THE CONDITION OF FEMALE CODE OF THE PHILIPPINES PRISONERS IN THE COUNTRY, WITH THE END IN VIEW OF Introduced by Senator Sonny Angara INSTITUTING MEASURES FOR THE EQUAL PROTECTION OF WOMEN To the Committee on Labor, Employment IN PRISON AND TO IMPLEMENT and Human Resources Development THE CONSTITUTIONAL GUARAN­ TEE AGAINST SUBSTANDARD OR Senate Bill No. 2249, entitled INADEQUATE PENAL FACILITIES

AN ACT TO STRENGTHEN THE Introduced by Senator Grace Poe SUSTAINABILITY AND COMPETI­ TIVENESS OF THE PHILIPPINE To the Committees on Justice and Human MOTOR VEHICLE MANUFACTUR­ Rights; and Women, Family Relations and Gender ING INDUSTRY Equality

Introduced by Senator Sonny Angara Proposed Senate Resolution No. 675, entitled

To the Committees on Trade, Commerce and RESOLUTION DIRECTING THE SENATE Entrepreneurship; Ways and Means; and Finance COMMITTEES ON YOUTH, WOMEN AND FAMILY RELATIONS; AND ON RESOLUTIONS NATIONAL DEFENSE AND SECURITY TO CONDUCT AN INQUIRY, IN AID Proposed Senate Resolution No. 673, entitled OF LEGISLATION, ON THE REPORTED INSTANCES OF RECRUITMENT RESOLUTION DIRECTING THE SENATE AND USE OF CHILDREN BY ARMED r WEDNESDAY, MAY 28,2014 285

GROUPS, WITH THE OBJECTIVES Proposed Senate Resolution No, 678, entitled OF CRAFTING EFFECI1VE POLICIES FOR ITS PREVENTION AND REVIEW­ RESOLUTION DIRECTING THE PROPER ING EXISTING MEASURES ON THE SENATE COMMITTEE TO CONDUCT REINTEGRATION OF FORMER CHILD AN INQUIRY, IN AID OF LEGIS­ SOLDIERS IN MAINSTREAM SOCIETY LATION, ON THE REHABILITATION EFFORTS OF THE GOVERNMENT Introduced by Senator Grace Poe PARTICULARLY THE CONSTRUC­ TION OF HOUSING AND/OR DECENT To the Committees on Youth; and National SHELTER FOR THE VICTIMS OF Defense and Security SUPER TYPHOON YOLANDA

Proposed Senate Resolution No, 676, entitled Introduced by Senator Joseph Victor Ejercito

RESOLUTION DIRECTING THE APPRO­ To the Committee on Urban Planniog, Housiug PRIATE SENATE COMMITTEE TO and Resettlement CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE KILLINGS Proposed Senate Resolution No, 679, entitled OF ATTYS, ISAGANI GARCIA, NOEL D, ARCHIVAL, PROSECUTOR RESOLUTION URGING THE SENATE ISAAN SAWADJAAN, ASSISTANT COMMITTEES ON ELECTORAL PROSECUTOR SAIPAL ALAWI, SR" REFORMS AND PEOPLE'S PARTICI­ AND OTHER SLAIN LAWYERS WITH PATION; AND CONSTITUTIONAL THE END IN VIEW OF ENACTING AMENDMENTS AND REVISION OF MEASURES TO SECURE THE SAFETY CODES TO CONDUCT AN OMNIBUS AND WELFARE OF THE MEMBERS REVIEW AND ASSESSMENT OF OF THE PHILIPPINE BAR THE COUNTRY'S SUFFRAGE LAWS, IN THE LIGHT OF THE CONTINU­ Introduced by Senator Pimentel III OUSLY ADVANCING AND EVOLVING TECHNOLOGIES AND PREVENT­ To the Committee on Justice and Human ING FUTURE MORE SCHEMING Rights ELECTION-RELATED FRAUD Proposed Senate Resolution No, 677, entitled Introduced by Senator Grace Poe RESOLUTION DIRECTING THE PROPER SENATE COMMITTEE TO CONDUCT To the Committees on Electoral Reforms AN INQUIRY, IN AID OF LEGIS­ and People's Participation; and Constitutional LATION AS TO THE STATUS OF THE Amendments and Revision of Codes REHABILITATION AND RECON­ STRUCTION OF SCHOOL BUILDINGS COMMITTEE REPORT AND CLASSROOMS OF PUBLIC ELEMENTARY AND mGH SCHOOLS, Committee Report No, 33, submitted by the AND STATE UNIVERSITIES AND Committee on Banks, Financial Institutions and COLLEGES (SUCs) IN THE YOLANDA­ Currencies on Senate Bill No, 2159, introduced HIT REGIONS AND PROVINCES WITH by Senator Osmefia III, entitled THE END VIEW OF ADDRESSING THE SLOW IMPLEMENTATION OF AN ACT AMENDING REPUBLIC ACT THE ON-GOING REHABILITATION NO, 7721, OTHERWISE KNOWN AS PROGRAM OF THE GOVERNMENT AN ACT LIBERALIZING THE ENTRY AND SCOPE OF OPERA­ Introduced by Senator Joseph Victor Ejercito TIONS OF FOREIGN BANKS IN THE PHILIPPINES AND FOR OTHER To the Committee on Public Works PURPOSES, r 286 WEDNESDAY, MAY 28, 2014

Introducto ecommending its approval without that the Arroyo camp cheated their way to amendment, taking into consideration victory. House Bill No. 3984. This presentation is from the painstaking research of Maria Azucena «Marichu" Vera Sponsor: Senator Osmena III Perez-Maceda, and I would like to thank her. The following presentation we are about to show will To the Calendar for Ordinary Business illustrate how Garci and his minions succeeded in subverting the will of the people. PRIVILEGE SPEECH OF SENATOR POE At this juncture, a video presentation was Availing herself of the privilege hour, Senator shown with Senator Poe's own narration: Poe delivered the following speech: liThe presidential elections of 2004 will be ON THE lOT" ANNIVERSARY long remembered as an electoral exercise marred OF "HELLO GARCI" by massive cheating. A year after the elections, the "Hello Garci" tapes surfaced which proved beyond doubt that certain unscrupulous Ten years ago this month, an event changed Comelec officials like Commissioner Garcillano the face of Philippine politics forever, a were in cahoots with Gloria Macapagal Arroyo scandalous event which exposed the labyrinth of to manipulate the election results in her favor. dcceit, malfeasance and fraud that plagued the The "Hello Garci" tapes provided the smoking administration of Gloria Macapagal Arroyo. gun proof that the will of the people was lt is often said that Filipinos are too subverted. Evidence upon evidence showed forgiving-that we have short-term memories. blatant tampering of election documents, lilan na lang ba sa alin ang nakakaalala sa fabricated election results, shameless padding of "Hello Garci"? But I believe that many Filipinos voters' lists, glaring instances of dagdag-bawas, still remember as I do. Aod I know that I won all done with one objective: to manufacture a in the 2013 elections precisely because people fake mandate for Mrs. Arroyo. remember FP J and the great injustice Mrs. "To better understand how they cheated, we Arroyo committed against the voters. "Hello must first follow the vote. Ballots were cast and Garci," for better or worse, changed the course counted in precincts. The tally of votes are sent of history in the Philippines. to the city or municipal hall where votes are I ask that the Body indulge me for the next summarized. Vote totals from each election return few minutes, as I bring you back to our nation's or ER are then sent to the provincial capital, then history in the 2004 Presidential Elections. finally to Congress for canvassing of national positions. Part I: A Manufactured Mandate "Let us take a closer look at the ERs. As Election fraud is nothing new in the required by law, the total number of votes is Philippines. It has been with us even before our closed by signing of names and affixing of right republic was born. In fact, in the very first thumb marks by board of election inspectors. election to decide who should be the leader of There is no way this small round marks, some the new republic, Bonifacio accused Aguinaldo even with artistic designs, were closed with of cheating. Bonifacio refused to abide by the human fingerprints. Notice that the ink nsed results of the Tejeros Convention and in the end were not the same as the grayish black provided he paid the ultimate price at the hands of his own by Comelec. We cannot overemphasize the fact comrades at thc foothills of Maragondon. that the ER is the election document closest to May kasabihan sa Pi/pinas na walang the ballot. The ER, therefore, reflects the tJUe pulitikang natatala, nadadaya lang. This is results of voting. But the scheme did not stop how they trivialize election results. But the case there. The voters' examples show the padding Qf Fernando Poe, II. was very different becanse of the voters' lists. for the very first time, there was real, clear, hard "In the tawas of Santander to Bogo, the evidence to prove that massive cheating did take total number of voters was 325,310. But in the place in 2004. Aside from the notorious "Hello summary of statement of votes, the figure Garci" wiretaps which captured Gloria Arroyo increased to 385,310 votes. talking to then Comelec Commissioner Garcillano, there is a host of other evidentiary proof to show "In the summary of votes in Compostela to r WEDNESDAY, MAY 28, 2014 287

Cordova, the total number of registered voters Mrs. Arroyo: "I was anxious to protect my was 257,800. But in the summary of SOY, the votes and during that time, I had conversations figure increased to 419,470. In these two cases with many people, including a Comelec official. I alone, the total padding of registered voters recognize that making any such call was a lapse amounted to 221,570 fake additional voters. in judgment. I am sorry!" liThe case was no different in Basilan with (End of video presentation) the total number of registered voters who Kung marumi ang halalan, walang actually voted was 130,730. But recorded votes maasahang tunay na serbisyo ang mamamayan. rose to 136,297. Where did the additional 5,567 Ang isang pulitikong nandaya at namili ng votes come from? boto ay hindi kailanman maglilingkod nang "Such padding of registered voters' lists huong katapatan sa ating sambayanan. was consistently repeated in many other To summarize what you have just seen, the districts. The election returns in Poona-Bayabao, 2004 presidential elections was easily one of the Lanao del Sur showed FPJ with 42% of the dirtiest in history. Sa maraming lugar sa PiIi­ votes. But the provincial SOY gave GMA 100% pinos may mga bolo nang naka- "chamberIoad" and zero for FPJ. In this SOY, 100% of the votes para kay Mrs. Arroyo. Sa buong akala ni Mrs. were for GMA and all other candidates scored Arroyo, sapat na ang kanyang mga "naka­ zero. This is a statistical impossibility. bangkong bo/O" para man ala siya. "In Barangay Langan, the ER showed that But the Arroyo camp grossly under­ there were votes for FP J and other candidates. In estimated FPJ's popularity, and a week after the Bumbaran, the ER showed GMA got 27% of the elections Mrs. Arroyo realized that her "buffer" votes and FPJ with 73%. But the municipal votes (or "chamber-loaded" votes) were not canvass and the provincial count revealed an enough to cover the avalauche of FPJ votes unmistakable switch showing GMA with 74% of coming in from Metro Manila and the "Lingayen­ the votes and FPJ with 26%. Lucena Corridor." This is the reason why Mrs. "In Wao, the ER again showed GMA trailing Arroyo had to call Garci. Seeing that she was 33% of the votes and FPJ with 67%. But in the losing heavily in Luzon, Mrs. Arroyo realized municipal canvass and the provincial count, the that she needed Mindanao to win. This is why figure switched again showing FPJ with 39% and she made no less thau fifteen phone calls. GMA GMA with 61 %. A total of 10,074 votes were realized that the fabricated votes that her minions affected by dagdag-bawas in the town of "chamber-loaded" before the elections were not Pangutaran, Sulu alone. enough to make her win. "The fight between FP J and GMA was made The only problem was, Mindanao was FPJ's to appear to be close in the whole of Sulu. The bailiwick - so nahirapan silang manipulahin ER showed FPJ leading, but the lead changed in ang halalan sa pamamagitan lamang ng vote­ municipal and provincial levels. Total votes buying. That is why they resorted to rigging the affected: 53,893. results at the provincial level and then at the national level. As I have shown in my film "A noteworthy discovery in the Munici­ presentation, lumilitaw na sa maraming bayan pality of Isulan in Sultan Kudarat showed that sa Mindanao, panalo si FPJ sa municipal the registered voters were 300; actual voters, canvass level, pero pagdating sa provincial 300. Look now at GMA's total votes: 1,041. level, nabaliktad ang resulta. This was how How did that happen? brazen they were in committing fraud - kaya IIVote tallies in Maguindanao were stranger, sila nabuko. Unlike in certain areas na sinasabi 11 municipalities had no elections, but produced nilang pulido, "malin is " ang pagkagawa, sa election results showing GMA getting 99% of the Mindanao ay hindi. votes. Malinaw na malinaw ang dayaan kahit na Part II: Justice and Reform hindi pa natin isama ang marami pang probinsiya na may pruweba ng dayaan. In our country, mauy wrongdoers do not get punished while good people are made to suffer "In the end, Mrs. Arroyo got what she when they come out and speak the truth. But wauted - a fabricated margin of one million almost all those who were involved in the "Hello Yotes,1I Garci" tapes have not been charged to date, much less spent a single night in jail, perhaps At this juncture, a video of President Arroyo except Lintang Bidol. Worse, some of those was shown: involved are still in government today. r 288 WEDNESDAY, MAY 28, 2014

Whatever happened to these individuals who a brigadier general, currently head of the figured in the "Hello Garci" scandal? First Marine Brigade in Sultan Kudarat. We have Benjamin Abalos Sr., fanner The best deterrent to corruption is to punish Comelec chairman, resigned after he was the wrongdoers and reward legitimate whistle­ implicated in the NBN-ZTE scandal, rumored to blowers. I stress "legitimate" because many are have plans to run again for public office after he now coming out in the woodwork volunteering was briefly imprisoned for the NBN-ZTE scandal. to be whistleblowers pero a/am naman natin puna pa rin sila ng kasinungalingan. There is Virgilio Garcillano - former Comelec a difference between the initiation of a patriot Commissioner, overall point person in the "Hello and that of a snitch or a weasel. One is a selfless Garci." He has a current perjury and falsification act to uphold the truth, the other is a selfish one of public documents case pcnding in thc Office to save his or her own hide. We need to dis­ of the Ombudsman. He ran for Congress in tinguish and protect a true whistleblower. We Bukidnon and lost. need to pass a "Whistleblower Protection Act." Lintang Bedol - provincial election Together with my declaration of support for supervisor for Sultan Kudarat. He was the point­ the immediate enactment of the Whistleblowers person for the COC manipulation in Cotabato Protection Act, I filed Proposed Senate City, currently detained at Camp Crame. Resolution No. 679 this morning calling for the Rey Sumalipao - provincial election omnibus review of the Electoral Code of the supervisor in Lanao del Sur for May 2004. Philippines. The resolution seeks to assess the Alleged role: manipulated election results in provisions of Batas Pambansa 88 I (Philippine Lanao del Sur. Currently, he is ARMM regional Electoral Code), in particular the provisions on election director. "new election fraud" situations and the implications of information technology, innova~ Ignacio Bunye - former Press Secretary. tions and hardware on such election offense. Role: covered up the Garci scandal. Status: Likewise, a review of the following laws are in recently left the Monetary Board of the Bangko order: the institutionalization of an automated Senn'al ng Pilipinas, a cozy job given to him after system of election and the additional refonns in being involved. the electoral system such as those in Republic On the other hand, whatever happened to Act Nos. 8436, 9369, 7166, 6646, 8045 and 8173. those courageous individuals who risked life, By institutionalizing refonns, we protect not family, comfort and career to speak the truth? only the present generation but especially future I. General Francisco Gudani - originaIIy generations. assigned as head of Task Force Lanao. He The silver lining in this unfortunate travesty fearlessly testified on the massive fraud in is that the Filipino people finally realized the Lanao del Sur. He initiated a campaign for urgent need to refonn our electoral system and electoral reforms. Status: retired. to help our country's "migration" from manual to 2. Sergeant Vidal Doble - leaked the existence automated elections. Automated elections, of Project Lighthouse, spoke in the Senate. though less than perfect, substantially lessened Status: whereabouts unknown. Every now the possibility of human intervention and error, and then, we see him. reduced the opportunity for fraud, and abbre­ viated the long-tedious procedure of canvassing. 3. Michaelangelo Zuce Candidates spend less because they do not have 4. Abdullah Daligdig - recently passed away a to hire a poll watcher for every precinct. year or two ago. He died and he was not Concurrent with the resolution I filed this even rewarded for his role in exposing the morning, I wiII be submitting legislation that will truth. address the new dynamics of automated 5. Atty. Samuel "Sammy" Ong - deputy elections and reformulate our outdated laws by director of NBI who released the three-hour creating a new set of penalties for computer­ mother of all tapes; a brave NBI officer who aided, technology-driven election offenses. fought for the truth but had to hide because We need to prevent "high-tech" election fraud there was an arrest warrant against him. that can make a mockery of our electoral systems He died on May 22, 2009. once again. 5. Alexander Balutan - worked with General Likewise, the Anti-Wiretapping Law should Gudani as member of Task Force Lanao, now be amended to include not only terrorism, r WEDNESDAY, MAY 28, 2014 289

espionage and other crimes involving national Ang iba ay nagsabi, "Sayang naman. Baki! security, but also election fraud as one of the pa pumasok sa pulitika si FPJ. Nasayang lang crimes in which a court could authorize a wiretap. ang kanyang pagtakbo." Ngunit hindi po Last May 26, I filed Senate Resolution No. 670 nasayang. Ang ehemplong ipinakita ni FPJ urging the Committee on Electoral Refonns to tulad ng tunay na pagkalinga sa kapwa at conduct a study, in aid of legislation, on the dahil nga sa mga nangyaring dayaan ang effectiveness of the Anti-Wiretapping Law (R.A. pagpapatunay na mahalaga ang bawa't boto No. 4200) in preventing election fraud and similar ng Pilipino, mahirap man 0 mayaman. lisa offenses. We need to equip the proper authorities lamang ang ating boto. Ang sabi nga ng ating with the proper tools so they can successfully kasamang si Sen. Chiz Escudero, "Ang boto ng detect, preempt and prosecute would-be cheaters bawa't isa ay higit na sapat upang sabihin na and unscrupulous defrauders of elections. siya ay nagtagumpay." When FP J was asked what he thought about the events following the Moreover, I will also be proposing that the elections, he spoke for the most marginalized prescriptive period for election offenses be members of society when he answered, "Huwag increased, from the current five (5) years to ten nating alisin ang pag-asa sa ating mga (10) years. As we have seen, almost none of the kababayan. Baka iyon na lang ang natitira sa "Garci Boys" or those mentioned in the "Hello kanila. " Garci" tapes have spent a day in jail simply because they enjoyed protection from the And so, please allow me to pay tribute not powers-that-be. The President is also immune just to my father but to the millions of Filipinos from suit for the duration of his or her six-year who waited long hours under the heat and rain, tenn, thus no charges can be filed against Mrs. and who made the long journey just to cast their Arroyo for her complicity in the 2004 election votes, sometimes under dangerous conditions, fraud until her term ended in 2010. and those who carne out to defend the truth even in the most trying times. Mrs. Arroyo became president through fraudulent means. What she had was merely a This is for them. mandate "manufactured" for her by her election operators. This ultimately proved to be her weak­ At this juncture, another video presentation ness. Mrs. Arroyo had no real mandate and no was presented. moral ascendancy, that is why she became utterly dependent on those unscrupulous individuals REMARK OF SENATOR SOTTO who helped manufacture her mandate. And this dependence has only resulted in a cycle of Senator Satta congratulated Senator Poe for never-ending series of corruption scandals during her nine years in office - the NBN-ZTE delivering a well-crafted speech. He expressed his deal, fertilizer fund scam, the Jose Pidal accounts, concurrence to its contents and associated himself the overpriced Macapagal Boulevard, NAIA with its message. Tenninal 3 fiasco, the Euro-Generals/"Pabaon" scandal, Northrail project, Jueteng-gate. The list REMARKS OF SENATOR LEGARDA and litany of corruption goes on and on. We should prevent these from happening Senator Legarda conunended and congratulated again. We should ensure that our right to vote Senator Poe for her timely speech about what and to choose our leaders are protected. transpired during and after the 2004 elections. She said that it was a rare and unique privilege for her to Robert F. Kennedy once said: "Few will have been selected as the running mate of Fernando have the greatness to bend history itself; but Poe, Jr. She disclosed that after she lost in the vice each of us can work to change a small portion of events, and in tlle total of all those acts will be presidency race, there were many who told her that written the history of this generation." it was a foolish decision on her part because she could have run for one more term as senator Many of our colleagues here have worked considering that she was still young. Nonetheless, with FPJ either in the film industry or during the she pointed out that the historical records of the 2004 campaign. I am sure they have witnessed Supreme Court would show that they fought a good his generosity, humility, and genuine spirit. FPJ identified with the poor, he feIt their pain. He fight for three years, from 2004 to 2007, after was for them unlike others who profess to be but Fernando Poe Jr. passed away in December of 2004, act otherwise. to contest the election results. Like Senator Sotto, 290 WEDNESDAY, MAY 28, 2014 she said that she was associating herself with the like him and his sister Senator Pia who would give up message of the speech. their posts as senators just to be with their father, Senator Poe would give up anything, even her being Senator Legarda disclosed that copies of all number one in the senatorial race, just to be with her election retnrns (ERs) and certificate of canvass father. He also believed that Senator Poe draws (COCs), similar to those shown by Senator Poe in comfort from people, including her mother and the her speech, those in possession of Congress and members of her family in the gallery, when they tell even those in the archives of the Supreme Court, her how very proud her father was of her. are stored in a sacred cabinet in her home which she has not opened since she closed her electoral Asked by Senator Cayetano (A) whether she battle in 2007. believes in the biblical saying that "What you sow is what you reap," Senator Poe believed that there is She recalled that she once assured Ms. Marichu "karma," only that nobody would know when and Vera-Perez that she has already moved on, but how justice would be served. upon seeing the pictnres and videos shown in Senator Poe's speech, she realized that there was still pain Senator Cayetano (A) presumed that mothers in her. She said that among those who also waited teach their children what is right and what is wrong. for the election results and thereafter fought with He wondered what would happen if a mother them as they contested the results were Senators would condone the wrongdoings of their children Honasan, Satta, Jinggoy Estrada, Enrile, JV Ejercito, or spoil them, or allow them at a young age to Escudero who was then the spokesperson, and discern on their own the concept of what is right Osmei'ia who was the strategist, former Senator and what is wrong, with their wrongdoings getting Nene Pimentel, and Makati Mayor Jejomar Binay. unpunished or unreprimanded. Senator Poe replied that mothers should show to their children the wrongs She expressed gratitnde to Senator Poe for that they committed, accompanied by reprimands letting not only the senators but the entire Filipino or punishments. nation recall the greatness of the late Fernando Poe Jr. She also hoped that the framed letter sent to her Senator Cayetano (A) lamented that in the same by Fernando Poe Jr. last January 1,2004, asking her manner, when the nation allowed the "Hello Garci" to be his running mate was already received by scandal perpetrators to go scot-free, it is once again Senator Poe. Finally, she said that they may have lost a witness of a replay of scandalous events, specifically the election but history proved otherwise. mentioning the Napoles scam. He noted that the "Hello Garci" scandal was in its tenth year, while ACKNOWLEDGMENT next month would be the ninth year since the scandal OF THE PRESENCE OF GUESTS was investigated by the House of Representatives. He recalled how he, along with the members of the At this junctnre, Senator Cayetano (A) acknowl­ team that sought the impeachment of President edged the presence in the gallery of Senator Poe's Arroyo, namely, Senators Escudero and Guingona, guests, namely: Boots Cadsawan, leader of the Fernando Secretary Joel Villanueva, Congressman Romualdo Poe Jr. (FPJ) For President Movement; Ms. Marichu Zamora and many others, worked hard so that the Vera-Perez Maceda; Ms. Conchita Razon; Mr. Adonis truth would come out. Samson; Ms. Norma Lim and family; Ms. Elizabeth Poe and Evangeline Poe Quesada, sisters of FPJ; Senator Cayetano (A) then proceeded to cite and Mr. Freddie Poe, brother of FPJ. some similarities in both the "Hello Garci" scandal and the Napoles scam - both involved "dagdag­ Senate President Drilon welcomed the guests to bawas" in the sense that then Secretary Bunye the Senate. came out with two tapes of the wiretapped phone conversation, while in the Napoles scam, several lists INTERPELLATION were coming out; and most notably, the personalites OF SENATOR CAYETANO (A) of both scandals thought that they can get away with it, although Napoles is in jail but for another At the outset, Senator Cayetano (A) congratnlated crime, while Garcillano is still enjoying life and has Senator Poe for her timely speech. He believed that never spent a day in jail. r WEDNESDAY, MAY 28, 2014 291

Asked to comment on the statement of Comelec At this juncture, Senator Cayetano (A) read into Chainnan Sixto Brillantes that nothing else could be the record the transcript of what transpired on done in the case of Garcillano because it was beyond October 5, 2011, at the session hall during Chairman the prescription period, Senator Poe admitted that Brillantes' confirmation in the Commission on anyone would be upset and disgusted, but on the Appointments: other hand, she said that she also understands the limitations that Chairman Brillantes has because of Senator Cayetano (A): Assuming we are very the rules that govern the agency and the laws that liberal, Mr. Chair, assuming we will give one year govern the country. It was for reason, she said, that to reform the Comelec, what guarantee can you she was proposing to amend the election law by, give the Commission? Kasi ang problema hindi among others, extending from five years to ten years naman every year ang confirmation. Once we the prescription period for election offenses in give your confirmation, that's it. Ibig sabihin wala nang bawian. What guarantee do we have, consideration of the fact that the President serves a for example, that by October or December of six-year term during which he cannot be charged for 2012, six months or nine months before the 2013 or be made to answer any case against him, and by the election, ay nalinis na as much as possible aug time he leaves office, the prescription period already Comelec?" expires. She said that the "Hello Garci" scandal was a wakeup call on the need to amend the election law. Chairman Brillante.: Mali/inis ko ho iyon, I think within the next six months up to one year. If you are giving me one year, okay. Ito lang Senator Cayetano (A) said that like the late ho ang gusto kong sabihin no guarantee sa Fernando Poe Jf. who suffered at the hands of the COlrunission on Elections. Hindi ko hiningi ang "Hello Garci" scandal in 2004, he, too, suffered position na ito. Pag hindi ko na-reporma ang the same fate at the hands of Chairman Brillantes, Comelec in one year's time, magre-resign na aka. whom he called as a Garcillano in a sheep's skin. Senator Cayetano (A): So you are giving that guarantee. Senator Cayetano (A) stated that while Garcillano cannot be prosecuted for an election offense, like Al Chairman Brillantes: Hindi ko na ho tatapusin. Capone who was jailed not for the crime of which Senator Cayetano (A): So you are giving the he was directly accused but for tax evasion, Garcillano guarantee to the Commission that by October or could be prosecued for perjury which he, together December next year, if the Comelec has not been with Senators Lacson and Guingona and Secretary reformed, meaning, that people who should be Villanueva, filed before the Fiscal's Office in Quezon taken out, take them out, and the people who City. He explained that the perjury case stemmed should be rewarded, rewarded them - that you from Garcillano's claim under oath that he did not will not need any prodding, but you will simply leave the country which was proven to be a lie when resign and give up your position. a reproduction of his passport that was submitted as Chairman Brilliantes: Let me add that I will evidence showed that he went actually to Singapore. even resign earlier if! think I will not be able to Unfortunately, he said, most perjury cases in the reform the Comelec within one year. country are being taken for granted and left to languish in the courts. But Senator Cayetano (A) pointed out that despite those assurances Director Ferdinand Rafanan was Asked if she thought that Garcillano pulled off removed from the investigating committee because the fraud all by himself, Senator Poe stated that based he had stated, as the head of the legal department, on the Garci tapes, there were a lot of conspirators that no investigation was conducted by the Comelec involved, and that illegal detention and attempted on the "Hello Garci" scandal, contrary to Chairnlan kidnapping, among others, were also committed. She Brillanes' statement that there was an investigation, believed that Garcillano was one of the masterminds. and the statement of Mr. James Jimenez that the evidence had been burned. He also revealed that in Senator Cayetano (A) presumed that aside from a memorandum he sent to the Chainnan, Attorney the President, there were also the "Garci boys", and Rafanan enumerated the reasons why he was being he believed that Chairman Brillantes could be directly relieved, and what he got was a reply from the blamed because he promoted the "Gard boys" when Chairman which read: "Your memo is noted. It he was installed as chairman of the Comelec. simply confirmed your self-centered righteousness." r 292 WEDNESDAY, MAY 28, 2014

Senator Cayetano (A) recalled that most of the Senator Estrada affirmed Senator Poe's state­ legislators who sided with Fernando Poe Jr. during ments on the kind-heartedness and generous nature the "Hello Garci" scandal were called "self-righteous" of Fernando Poe Jr. He emphasized how Fernando by Chairman Brillantes. He also mentioned that Poe Jr. and his father related with the poor. Gilbert Remulla actually investigated the scandal and got the ire of many powerful people in the country. REMARKS OF SENATOR POE

Senator Cayetano (A) stated that Senator Poe For her part, Senator Poe said that even though was the perfect person to speak on the issue of Chairman Brillantes was the lawyer of Fernando election reforms. He added that even the chairman Poe Jr., they never enj oyed any favors from him as of the Committee on Electoral Reforms and People's Comelec chairman. Participation had experienced election fraud, and he warned that it might happen again in the 2016 REMARKS OF SENATOR LEGARDA election especially since there were moves to do Senator Legarda stated that she was not privy to away with automation and revert to manual count. whatever problem or sentiment that Senator Cayetano (A) has with Chainnan Brillantes. She said that Senator Cayetano (A) also disclosed that Chainnan Brillantes was Fernando Poe Jr.'s lawyer Chairman Brillantes had claimed that he already during the campaign as well as her own pro bono disbanded his law office and that he no longer has lawyer when she pursued her electoral protest from connections with his fonner clients, but it was not 2004 to 2007. She described Chainnan Brillantes as the case, Senator Cayetano (A) refuted, because he being loyal not only to Fernando Poe Jr. and herself hired a child of his law partner as staff of his office. but also to the cause of uncovering the fraud. He lamented that Chairman Brillantes had promised She stated that Chainnan Brillantes, together with to implement refonns, but nothing was realized. Congressman Rufus Rodriguez and ACCRA lawyer Atty. Ave Cruz, were with her all throughout the REMARKS OF SENATOR ANGARA process, and helped her slip out of depression.

Senator Angara said that as he watched the MANIFESTATION video presentation, he was reminded of the time OF SENATOR CAYETANO (A) when he first ran for representative of the lone district of Aurora. He infonned the Body that in that Senator Cayetano (A) explained that his statements election, he ran under the party of which Fernando do not reflect his personal dealings with Chairman Poe Jr. was the standard bearer and he thanked Brillantes, but that he was simply placing on record Senator Poe for the support that her father gave him that Chainnan Brillantes did not pursue the "Garci in that particular election. boys" but instead promoted them. He said that friend­ ship should not get in the way of pursuing the truth. Senator Angara also remembered that their campaign in Baler, Aurora saw the biggest crowd Senator Cayetano (A) hoped that the Body ever gathered, something that has not been surpassed would join in the clean-up of Comelec, otherwise, no ever since. He said that the people of Aurora were electoral refonn would prosper. He acknowledged really happy to see Fernando Poe Jr. and Senator that lawyers have a special relationship with their Legarda who both topped the election poll in the clients, therefore, he understands where the other province. He said that without the help of Fernando Members are coming from. However, he cautioned Poe Jr. and Senator Legarda, he would have not that if Chainnan BriJIantes does not retire by next become a senator. year, and he modifies the system, then there would be no change in the 2016 elections. MANIFESTATION OF SENATOR ESTRADA MANIFESTATION OF SENATOR SOTTO Senator Estrada congratulated Senator Poe for her speech, recalling that he was one of those Preliminarily, Senator Sotto proposed that the privileged to run under the ticket of Fernando Poe Jr. speech and the debates be referred to the Committee in 2004. He said that running with Fernando Poe Jr. on Electoral Refonns and People's Participation at was a contributory factor to his success. the proper time. r WEDNESDAY, MAY 28, 2014 293

Senator Sotto related an anecdote that happened Participation, he was appealing to election com­ during the campaign in the 2004 elections, He said plainants to come forward and submit their evidence that he was witness to FPJ's disapproval of using and proof. He said that since the automated election slanderous tactics against his opponents. system is not a perfect one, the Comelec should be asked if it would continue using the same technology MANIFESTATION OF SENATOR PIMENTEL in the next election. If the same technology would be used, he said that it should be hack-proof because Preliminarily, Senator Pimentel congratulated election cheaters could find ways to take advantage Senator Poe for a well-crafted and very informative of the weakness of the automated election system. speech, as well as for her video presentation which vividly illustrated the evidence of fraud in the 2004 Senator Poe expressed appreciation to the presidential elections. Members of the Body, especially to Senator Pimentel for giving her a book with data provided by the Center Referring to Senator Poe's statement that nobody for People Empowerment in Government (CENPEG). loses in the elections because losers always claim to have been cheated, Senator Pimentel noted that at At this juncture, Senator Pimentel reminded the least in the country, someone, who lost in the elections, Body that the Senate panel in the Joint Congressional was really cheated because he fought for it. He Oversight Committee on the Automated Election System believed that the real message of Senator Poe's has not yet been convened and he suggested that the speech was that justice would be served to those Body prioritize the same. who fought for it.

Senator Pimentel stated that justice would be MANIFESTATION OF SENATOR EJERCITO achieved eventually, citing his case wherein justice came only after four years and two months, and had Senator Ejercito congratulated Senator Poe for her speech which, he said, brought back so many the position been a three-year term, the protest would have been rendered moot and academic given memories. He also thanked her for reminding the the length of time to resolve it. Thus, he believed Body of the need for electoral reforms to protect the country's fragile democracy. that one of the electoral reforms that the Body should pursue is the speedy disposition of election He expressed hope that the Body could prioritize protests. He agreed with Senator Poe's proposal to measures that would prevent the recurrence of elec­ extend the prescriptive period for electoral protests toral fraud to safeguard the sacred vote of every because the cheating in the 2004 presidential elections Filipioo. showed the weakness of the existing election law.

Senator Pimentel said that in the event that REFERRAL OF SPEECH Senator Poe's speech and Senator (A) Cayetano's TO COMMITTEE interpellations would be referred to his committee, Upon motion of Senator Cayetano (A), there he would ask for the names of the boys mentioned being no objection, the Chair referred the speech of in the "Garci tapes," one of which was Rey Sumalipao Senator Poe and the interpellations and manifestations who, according to Senator Poe, is still the incumbent thereon to the Committee on Electoral Reforms and ARMM regional election director. He said that he People's Participation. would call for a hearing and ask for justification of Director Sumalipao's continued employment at the Senator Cayetano (A) also stated for the record Comelec. that he would request the Commission on Appoint­ ments to furnish Senator Pimentel with the names As regards the Whistleblowers Protection Act, that he was asking for. Senator Pimentel assured that his Committee would fast-track the bill together with the other witness SUSPENSION OF SESSION protection bills in order to improve the witness protection program. Upon motion of Senator Cayetano (A), the session was suspended. Senator Pimentel said that in his capacity as chair of the Committee on Electoral Reforms and People's It was 4:39 p.m. r 294 WEDNESDAY, MAY 28, 2014

RESUMPTION OF SESSION fonnation with them. It is important for them to learn values that will make them good At 4:43 p,m., the session was resumed. entrepreneurs in the future. People exposed to entrepreneurship COSPONSOR frequently express that they have more opportunity to exercise creative freedoms, higher Acting on her request, Senator Villar was made self-esteem and an overall greater sense over cosponsor of Senate Bill No. 2212. their own lives. As a result, many experienced business people, political leaders, economists COSPONSORSHIP SPEECH and educators believe that fostering a robust OF SENATOR VILLAR entrepreneurial culture will maximize individual and collective economic and social success on a local, national and global scale. Pursuant to the manifestation of Senator Aquino, the cosponsorship speech of Senator Villar on Senate As we promote entrepreneurship and we Bill No. 2212 was deemed read and inserted into the develop a new generation of entrepreneurs, we Journal and Record of the Senate. also pave the way for the creation of more micro, small and medium enterprises or MSMEs - a strong engine of growth in our country. MSMEs The full text of Senator Villar's speech follows: comprise nearly 90% of the business in our country and provide more than 50% jobs or I rise to sponsor Senate Bill No. 2212, entitled employment. Wealth and a high majority of jobs "An Act to Actively Promote Entrepreneurship are created by small businesses started by and Financial Education Among Filipino Youth," entrepreneurially-minded individuals, many of uuder Committee Report No. 26, submitted by whom go on to create big businesses. the Committee on Youth. Senate BiIl No. 2212 is the substitute biIl of the various bills filed on the But oftentimes, when we urge people to subject tackling entrepreneurial education for the venture into a business of their own, ang youth, foremost of which is Senate Bill No. 147 sinasagot nila ay wala silang pera para gawing which I authored which caIls for the inclusion of puhunan. But capital is not the most important entrepreneurship as a separate subject in the factor in becoming an entrepreneur. It is not the secondary curriculum of schools. be-all and end-all. I know Ibat based from my own experience As you may be aware of, my husband, fonner Senate President Manny Villar, and I are Ang real estate company namin ay nag­ active advocates of entrepreneurship As entre­ umpisa bilang maliit na gravel and sand preneurs ourselves, we know that entrepreneur­ company. Nang mag-resign si Manny sa ship is the key to economic freedom of Filipinos kanyang trabaho noong 1975, umutang siya sa - whether youth, women or overseas Filipino bangko ng P70,000 and with our PlO,OOO savings workers (OFWs). Moreover, entrepreneurship bumili kami ng dalawang second-hand trucks is the key towards lifting poor Filipinos out of na ginamit namin sa pag-deliver ng graba at poverty. buhangin sa mga real estate developers. Sa awa ng Diyos at dahil sa aming sipag at tiyaga, We have been promoting entrepreneurship napaunlad namin aug aming negosyo. as a way out of poverty because it generates employment. Unemployment is a major problem Manny and I are living examples of what in our couutry. When we get the chance tu talk entrepreneurs can accomplish and achieve with to the youth, students, and new graduates, we hard work and persistence coupled with fairness urge them not to aspire to merely landing a good and integrity. Noong panahon na iyon, wala job or getting employed. Anyone can be an pang entrepreneurship subjects or courses, so employer or a creator of jobs. we can just imagine how good an entrepreneur our youth will be in the future if they will be We need a new generation of entrepreneurs. educated and trained about entrepreneurship And we need to start them youug, as tbe cliche early on in their lives. goes. Thus, incorporating entrepreneurship in the school curriculum is the most logical thing to On that note, I can confidently say that the do. While I have misgivings in introducing Youth Entrepreneurship Act of 2014 is an entrepreneurship to elementary or grade school investment to our future - the youth of today students as they may not be able to grasp the who will be tomorrow's entrepreneurs, concepts yet, I believe we can start with value employers, decision-makers and leaders.r WEDNESDAY, MAY 28, 2014 295

Furthermore, the inclusion of entrepreneurship in As the title states, this bill seeks to expand the curriculum of our studies will allow our the participation of qualified foreign banks in our country to flourish and emerge to be one of the financial sector to allow our economy and our leading economies in Asia and the world. people to reap the benefits therefrom. Promulgated in 1994, Republic Act No. 7721 SPECIAL ORDER intended to create a more competitive Philip­ pine banking and financial system. It allowed Upon motion of Senator Angara, there being no the entry of foreign banks through any of the objection, the Body approved the transfer of following modes: Committee Report No. 33 on Senate Bill No. 2159 from the Calendar for Ordinary Business to the 1. Acquisition of up to 60% of the voting stock Calendar for Special Orders. of an existing domestic bank; 2. Investing up to 60% of a new banking COMMITTEE REPORT NO. 33 subsidiary incorporated under the laws of ON SENATE BILL NO. 2159 the Philippines; and 3. Establishment of branches in the Philippines. Upon motion of Senator Angara, there being no obj ection, the Body considered, on Second Reading, In 2000, Republic Act No. 8791, also known Senate Bill No. 2159 (Committee Report No. 33), as the General Banking Act, expanded the first entitled mode of entry to allow foreign banks to own up to 100% of a domestic bank, but this privilege was limited to seven years. AN ACT AMENDING REPUBLIC ACT NO. 7721, OTHERWISE KNOWN AS On the other hand, the third mode of entry "AN ACT LIBERALIZING THE which allows foreign sub-branches was made ENTRY AND SCOPE OF OPERA­ available for only five years from the effectivity TIONS OF FOREIGN BANKS IN THE of Republic Act No. 7721. PHILIPPINES AND FOR OTHER This bill seeks to amend Republic Act PURPOSES." No. 7721 to further liberalize the entry offoreign banks in the country to create a more competitive Pursuant to Section 67, Rules XXIII of the Rules banking industry and in preparation for the of the Senate, with the permission of the Body, upon Association of Southeast Asian Nations' motion of Senator Angara, only the title of the bill (ASEAN) Financial Integration. In keeping with our commitment to join the ASEAN Banking was read without prejudice to the insertion of its full Integration Framework under which qualified text into the Record of the Senate. ASEAN banks may operate within ASEAN jurisdictions on equal terms as domestic banks, Thereupon, the Chair recognized Senator Osmena subject to certain prudential and governance for the sponsorship. standards and the approval of the Bangko Sen/ral ng Pilipinas, among the amendments SPONSORSHIP SPEECH introduced in this bill are as follows: OF SENATOR OSMENA 1. To allow the increase in foreign ownership of domestic banks to up to 100% without time Senator Osmena presented to the Body Senate limit; Bill No. 2159, otherwise known as "Liberalizing the 2. Allowing entry in the Philippines of Entry and Scope of Foreign Banks in the Philippines." established, reputable and financially sound foreign banks, and requiring foreign bank The full text of Senator Osmefia's sponsorship applicants to be widely-owned and publicly speech follows: listed in their own countries unless such bank is owned by the government in its Senate Bill No. 2159 was introduced by this country of origin; Representation and approved by the Committee on Banks, Financial Institutions and Currencies 3. Granting the Monetary Board the power to without amendments, taking into consideration suspend the entry or any further entry of House Bill No. 3984, introduced by Congressman foreign banks under any or all of the modes Nelson P. Collantes and others. of entry as national interest warrants; 296 WEDNESDAY, MAY 28, 2014

4, To increase the number of bank branches For these reasons, I urge my distinguished from three to five sub-branches as may be colleagues in this Chamber to join me in enacting approved by the Monetary Board; this measure. 5, Granting locally incorporated subsidiaries of foreign banks the same banking privileges SUSPENSION OF CONSIDERATION as domestic banks of the same category; OF SENATE BILL NO. 2159 6, Allowing the Monetary Board to prescribe Upon motion of Senator Angara, there being a higher single borrower limit for a foreign bank branch up to the equivalent of its nO objection, the Body suspended consideration of permanently assigned capital for the purpose the bill. of promoting foreign investments; and SUSPENSION OF SESSION 7. Allowing foreign banks to participate in foreclosure proceedings subject to certain restrictions. Upon motion of Senator Angara, the session was suspended. By way of a background, the opening of the banking sector to established foreign banks was It was 4:51 p.m. spurred by the economic benefits of a liberalized economy brought about by the General Agreement on Trade and Tariff, or the GATT. RESUMPTION OF SESSION The Philippines benefitted from this move by fostering competition in the banking industry At 5:04 p.m., the session was resumed. which, in tum, raised the efficiency levels of banks through the adoption of new technology COMMITTEE REPORT NO. 19 and the euhancement of human resource skills, ON SENATE BILL NO. 27 reduced operating costs, instilled corporate (Continuation) governance structural refonus, encouraged more transparency and further developed the super­ Upon motion of Senator Angara, there being no visory and regulatory framework. It can also be objection, the Body resumed consideration, on Second said that by allowing international players in the Reading, of Senate Bill No. 27 (Committee Report banking industry, the Philippines witnessed an No. 19), entitled increase in the availability of funds at competi­ tive rates and increase in the types of hybrid financial instruments or products available in AN ACT TO EFFECTIVELY INSTILL the market. HEALTH CONSCIOUSNESS THROUGH PICTURE-BASED WARNINGS ON With the recent credit rating upgrade of the TOBACCO PRODUCTS. Philippines to and beyond investment grade, the Bangko Sentral ng Pilipinas has received an Senator Angara stated that the parliamentary increased number of queries from foreign banks wishing to establish a presence in the Philippines. status was still the period of amendments.

More importantly, the greater foreign Thereupon, the Chair recognized Senator participation in the banking and financial sector Cayetano (P), sponsor of the measure. is expected to augment the financial resources to which the Philippine economy may have access, REOPENING OF THE PERIOD thereby supporting the initiatives of the present OF COMMITTEE AMENDMENTS administration in implementing various infraw structure projects and rehabilitation programs. The greater influx of capital coming into the Upon motion of Senator Angara, there being no Philippines and the injection of additional capital objection, the Body reopened the period of committee into the domestic economy would see the expan­ amendments. sion of enterprises and trades, create more jobs and livelihood opportunities for our fellow AMENDED COpy OF SENATE Filipinos. BILL NO. 27 AS OF MAY 26, 2014 The Philippines stands to gain from the proposed expansion of the financial sector and The Chair stated that for purposes of debate and proposed individual amendments, the amended copy the entry of more foreign banks into the country. r WEDNESDAY, MAY 28, 2014 297 of Senate Bill No. 27 as of May 26, 2014 should be upon motion of Senator Angara, there being no used as the working draft. objection, the Body closed the period of committee amendments and proceeded to the period of individual FURTHER COMMITTEE AMENDMENTS amendments.

As proposed by Senator Cayetano (P), there being SUSPENSION OF SESSION no objection, the following committee amendments were approved by the Body, one after the other: Upon motion of Senator Enrile, the session was suspended. 1. On page 3, line IS, after the words "such as" and the comma (,), retain the phrase "but not It was 5:14 p.m. limited to"; 2. On page 9a, line 17nun, replace the word RESUMPTION OF SESSION "whenever" with WHETHER; At 5:14 p.m., the session was resumed. 3. On page 10, line 25, between the words "enter" and "inspect," delete the comma (,) and in lieu thereof, insert the word AND. ENRILE AMENDMENTS

The session was suspended and was resumed On page 2, line 9, as proposed by Senator Enrile shortly thereafter. and accepted by the Sponsor, there being no objection, the Body approved the insertion of words OR 4. On page 9a, lines 17n and 170, replace the NUMBERS after the word "descriptors." words and figure in parentheses "TEN MILLION PESOS (P10,OOO,OOO.OO)" wi1h FNE Senator Enrile stated that the reason for the pro­ MILLION PESOS (p5,OOO,OOO.00); posal was to further refine the objective of the measure 5. On the same page, delete Jines 17q to 17y with respect to prohibiting any markings, specifically starting with the colon (:) and the words descriptors or numbers of the tobacco product pack­ "Provided, that", and in lieu thereof, replace ages, which may give the impression that a certain it with the following provision: tobacco product is less harmful than the others. THE IMPOSITION OF THE ADMINIS­ TRATIVE FINE SHALL TAKE INTO As regards page 2a, lines 28 and 29, Senator CONSIDERATION THE ANNUAL GROSS Enrile asked if the DOH has been replaced as the SALES, CAPITAL INVESTMENT AND implementing agency of the proposed law. In reply, EMPLOYEES SIZE OF THE MANUFAC­ Senator Cayetano (P) clarified that only the full TURERS, IMPORTERS AND DISTRIBU­ name was deleted to avoid repetition but the acronym TORS, AND IN THE CASE OF RETAILERS AND SELLERS, THEIR TOTAL ASSETS. DOH was retained.

6. On line 17n and 170, replace the words and Senator Enrile proposed that on page 3, line lOe, figure in parentheses "TEN MILLION PESOS the words and figure "sixty percent (60%)" be (P10,OOO,OOO.OO) wi1hFNE MILLION PESOS (p5,OOO,OOO.OO); replaced with the phrase AT LEAST THIRTY PERCENT (30%) BUT NOT MORE THAN FIFTY 7. On page 7, lines 14a to 15a, replace "Twenty PERCENT (50%). Million Pesos (P20,OOO,OOO.OO) but not more than Thirty Million Pesos (P30,OOO,OOO.OO)" willi TEN MILLION PESOS (plO,OOO,OOO.OO) SUSPENSION OF SESSION BUT NOT MORE THAN TWENTY MILLION PESOS (P20,OOO,OOO.OO); and Upon motion of Senator Cayetano (P), the session 8 On page 4, line 16, replace llie word and was suspended. figure ''twelve (12)" willi TWENTY-FOUR (24); It was 5:19 p.m. TERMINATION OF THE PERIOD OF COMMITTEE AMENDMENTS RESUMPTION OF SESSION

At 5:22 p.m., the session was resumed. There being no further committee amendment, r 298 WEDNESDAY, MAY 28, 2014

Following consultation with Senator Cayetano PACKAGES, PACKAGES CONTAINING (P), on page 3, line 10, as proposed by Senator ONE PRODUCT UNIT, OR OTHER Emile, there being no objection, the Body approved, CONTAINERS OF TOBACCO PRODUCTS subject to style, to replace the word and figure "sixty CONTAINING 1HE LOGO OR TRADEMARK OF THE TOBACCO COMPANIES percent (60%)" with FIFTY PERCENT (50%). CUSTOMARILY OFFERED FOR SALE TO CONSUMERS. Senator Emile said that the purpose of fixing the percentage was to allow the government to use 50% Senator Emile stated that the reason for the of the display area on the tobacco packaging, and to principal requirement to print picture-based health accommodate the intellectual property rights of warnings on the packaging materials was to allow the cigarette manufacturer or producer also to the consumers to see them once they buy tobacco the extent of 50%. products; hence, it is no longer necessary to print them on transparent/clear wrappers, boxes, cartons Senator Cayetano (P) clarified that the 50% or master cases since only the distributors and would be for the graphic warning and the other 50% retailers, not the consumers, customarily see them. would be for the manufacturer's use, subject to the other requirements required by the panel. Adverting to the proposed amendments on lines IS, 16, 17 and 18a, Senator Cayetano (P) explained Senator Emile proposed the following amend­ that boxes, cartons and master cases are included in ments on page 3, Section 4(e): the bill because they are customarily used for display within the sites. Although they may not necessarily be I. On line 14, after the word "sale," insert the the primary mode of display of the tobacco product, she word AND; pointed out that there are instances that the boxes 2. On the same line, after the word "distribu­ could be seen in plain view inside retail establishments. tion," insert the phrase IN THE DOMESTIC She said that it is very common, in fact, in groceries, MARKET; even in high-end ones, to see the boxes placed on the 3. Still on the same line, after the word "or," floor while merchandise are refilled, so that all the insert the word FOR; more in sari-sari stores considering that their display 4. On line 15, after the word "tins," delete the area is also the storage area. word "boxes"; Senator Cayetano (P) explained that even as the 5. On line 16, after the word "packages," delete the word "cartons"; boxes referred to in the provision may not be customarily used in tenus of offering the product for 6 On line 17, after the word "unit," delete the sale, they are still customarily seen by the consumers words "master cases"; She said that she made it very clear during the period 7. On line 18, delete the word "THAT"; of interpellations that the youth are the primary target 8. On the same line, replace the word "contain" of the proposed bill. She said that there are cases with CONTAINING; that the cigarette boxes are used as materials for 9. On line 18a, after the word "companies," school projects and are therefore seen by the youth, insert the phrase CUSTOMARILY OFFERED so subsection "e" was worded in such a way that any FOR SALE TO CONSUMERS. packaging material that contains the logo or trademark must also carry the corresponding graphic warning. As amended, Section 4 (e) would then read as follows: SUSPENSION OF SESSION E. "TOBACCO PRODUCT PACKAGE" MEANS THE PACKET AND PACKAGE OF Upon request of Senator Cayetano (P), the session TOBACCO PRODUCTS AND ANY OUTSIDE was suspended. PACKAGING AND LABELLING OF TOBACCO PRODUCTS FOR SALE AND DISTRIBUTION IN THE DOMESTIC It was 5:31 p.m. MARKET, IMPORTATION, TRADE, EXCHANGE, OR FOR EXHIBITION, SUCH RESUMPTION OF SESSION AS, BUT NOT LIMITED TO, PACKS, TINS, POUCHES, FLIP-TOPS, SLIDE AND SHELL At 5:33 p.m., the session was resumed. r WEDNESDAY, MAY 28, 2014 299

Senator Enrile withdrew his proposed amend­ RESUMPTION OF SESSION ments, except the following: At 5:46 p.m., the session was ·resumed. 1: On page 3, line 14, between the word "sale" and "distribution," insert the word AND; Senator Cayetano (P) said that she was willing ,2. On the same page and line, replace the word to accept the proposed amendment to place the "exportation" with the phrase IN THE graphic warning at the lower portion of the principal DOMESTIC MARKET; display area provided that the implementing agency 3: On the same page, line 18, replace the words can require that the graphic warning be placed in the "that contain" with the word CONTAINING. upper portion if it detennines that there are obstructions in the lower portion. Accepted by the Sponsor, there being no objec­ tion, the Enrile amendments were approved. Senator Enrile agreed with the modifications of Senator Cayetano (P). As proposed by Senator Enrile and accepted by the Sponsor, there being no objection, the Body There being no objection, the Body approved the approved to change "60%" on line 28 of page 3a and Enrile amendment, as amended, which shall read as on line 1 of page 4 with 50%. follows:

On page 3a, line 29, after the word "surfaces," B. IT SHALL BE LOCATED AT THE Senator Enrile proposed to insert a comma (,) and LOWER PORTIONS OF THE SAID the words FRONT AND BACK. PANELS OR PRINCIPAL DISPLAY AREAS; PROVIDED, THAT IN Senator Cayetano (P) did not accept the proposed THE EVENT THAT THE DOH amendment, as she pointed out that the packaging DETERMINES THAT THERE ARE referred to on page 3, items 2 and 3 (lines 5 to 10h) OBSTRUCTIONS IN THE DISPLAY are of different styles and sizes. She explained that , THE DOH CAN REQUIRE THAT item no. 2 would not have a front and back side since THE PICTURE-BASED WARNINGS the packaging refers to cylindrical and conical MAY BE MOVED TO THE UPPER containers, while item no. 3 refers to other packaging PORTIONS OF THE SAID PANELS sizes that do not fall under item nos. 1 and 2 and that OR PRINCIPAL DISPLAY AREAS also do not have front and back sides. WHEN THE NEXT SET OF Senator Enrile withdrew his amendment but he TEMPLATES IS RELEASED. explained that it should be understood that only 50% of the display area of every pack of cigarette, both As regards the amendment on subsection (e), back and front, would be used by the government for Senator Enrile said that the authority to come up picture-based warning so that the 50% would be with the guidelines should not be given to the DOH used by the manufacturer for his own purpose. because it has already been given the power to implement the law. He said that complications would Still on page 4, Senator Enrile proposed to change occur if an agency would be made the judge, the the word "upper" to LOWER on line 3; and after the prosecutor, and the beneficiary of the fines collected word "warnings" on line 6, to add the phrase OR under the law. He suggested instead to give the duty THE LOCA nON WHERE THE INTERNAL to the Inter-Agency Committee on Tobacco (IACT) REVENUE STRIP STAMP IS TO BE AFFIXED of which the DOH is also a member agency. Senator AS MAYBE ACQUIRED BY THE BUREAU OF cayetano (P) replied that government agencies that INTERNAL REVENUE (BIR). are tasked to implement laws such as DTI, LTFRB , FDA, MMDA, and DENR, have multiple functions SUSPENSION OF SESSION and that it is customary to put such functions under one government agency. She said that she cannot Upon request of Senator Cayetano (P), the accept the proposal to make the IACT the implement­ session was suspended. ing body because it is actually the regulated body, part of the membership of which is the PTI, adding It was 5:44 p.m. that the nature of the bill is to implement healthr 300 WEDNESDAY, MAY 28, 2014 warnings and the most appropriate agency that would Upon resumption, Senator Cayetano (P) presented formulate the guidelines would be the DOH and its the Enrile amendment, as amended, to wit: attached agencies, G A MAXIMUM OF SIXTEEN (16) VARIA­ Senator Enrile did not insist on his proposed TIONS OF PICTURE-BASED HEALTH amendment, WARNINGS SHALL BE PRINTED SIMUL­ T ANEOUSLY AND THESE SHALL BE Still on page 4, Senator Enrile proposed to replace ROTATED PERIODICALLY FOR EACH the word "minimum" on line 12 with MAXIMUM, BRAND F AMILY AND ALSO FOR EACH Senator Cayetano (P) explained that the proviso was VARIANT, SO THAT AT ANY TIME a subject of a committee amendment which reduced WITHIN THE TWENTY-FOUR (24) MONTH PERIOD, WHEN A SET OF PICTIJRE-BASED the resolution from 600 to 300 dpi to ensure that the WARNINGS ARE SCHEDULED TO BE picture-based warnings are clear, ROTATED, THE VARIATIONS OF THE WARNINGS SHALL APPEAR IN THE On line 12, as proposed by Senator Cayetano MARKET WITH APPROXIMATELY EQUAL (P), there being no objection, the Body approved to FREQUENCY AND EQUAL DISPLAY OF replace the article "the" with "A" and thereafter HEALTH WARNINGS AND MESSAGES ON delete the word "minimum"; RETAIL PACKAGES.

On lines 13 to 20, Senator Enrile proposed to There being no objection, the Enrile amendment, reword subsection (0) to read as follows: as amended, was approved by the Body.

G, [F] A MAXIMUM OF EIGHT (8) On page 4a, Senator Enrile proposed to delete VARIATIONS OF PICTURE-BASED HEALTH subparagraph (h) on lines 21 to 24. He explained that WARNINGS SHALL BE PRINTED SlMULTANE­ instead of having a minimum size of the health OUSLY AND THESE SHALL BE ROTATED warning, it would be more reasonable to simply require PERIODICALLY FOR EACH BRAND F AMIL Y AND ALSO FOR EACH VARIANT, SO THAT a certain percentage of the pack to be covered by AT ANY TIME WITHIN THE TWENTY-FOUR the health waming to allow the current standard sizes (24)-MONTH PERIOD, WHEN A SET OF in the market and to no longer impose on the PICTURE-BASED HEALTH WARNINGS ARE manufacturers or distributors the burden of changing SCHEDULED TO BE ROTATED, THE VARIA­ the sizes of tobacco product packages. He assumed TIONS OF THE WARNINGS SHALL APPEAR that Section 8, as amended by the Committee, already IN THE MARKET WITH APPROXIMATELY addressed the intended purpose of the subsection. EQUAL FREQUENCY. SUSPENSION OF SESSION Senator Enrile explained that the measure, in effect, confers on the regulatory agency the unlimited Upon request of Senator Cayetano (P), the discretion to set the number of designs which can be session was suspended, cost-prohibitive on the part of the manufactnrers, given that each additional design may require additional changes in the printing, equipment and paraphernalia. It was 6:08 p.m. Thus, he said that a maximum limit is being proposed to limit the discretion of the regulator. RESUMPTION OF SESSION

SUSPENSION OF SESSION At 6:12 p.m., the session was resumed,

Upon request of Senator Cayetano (P), the Senator Cayetano (P) said that she would accept session was suspended, the amendment if Senator Enrile would assist her during the Bicameral Conference Committee hearing, It was 6:02 p.m. so that no major changes will occur. She explained that the only reason for specifying the measurement RESUMPTION OF SESSION in the bill was to prevent having a smaller display size if the tobacco companies would opt to distribute their At 6:05 p.m., the session was resumed. products in smaller packaging. r WEDNESDAY, MAY 28, 2014 301

Senator Enrile acceded to the request of Senator Senator Enrile admitted that he was not aware Cayetano (P). that it was just one side panel. However, he said that he still would want to deal with it similarly as with Senator Cayetano (P) also mentioned that Senator the principal display areas so that the government Recto had told her that it would be difficult for the and the property owners will share the same side companies to sell profitably in a different or smaller panel equally. With the further clarification that lines type of packaging. 20a and 20c would be retained, Senator Cayetano (P) accepted the proposed amendment. On page 5, as proposed by Senator Enrile and accepted by the Sponsor, there being no objection, Senator Enrile then read the amended Section 6, the Body approved the following amendments, one to wit: after the other: SECTION 6. SIDE PANEL. - CIGARETTE 1. On line 8, replace the word "English" with PACKAGES, AS WELL AS OTHER TOBACCO FILll'INO; PRODUCT PACKAGES FOUND IN THE 2. On line 9, replace delete the word "Filipino" MARKET, SHALL BEAR, ON ONE SIDE with ENGLISH; PANEL, ADDITIONAL INFORMATION WHICH SHALL BE ISSUED BY THE DOH TOGETHER 3. On lines 9 and 10, delete the phrase "and WITH THE TEMPLATES IN ACCORDANCE alternately, Filipino on the front panel and WITH SECTION 15 OF THIS ACT, NAMELY, English on the back panel"; and ADDITIONAL HEAL TH WARNINGS, 4. On line 12, delete the word "likewise"; HOTLINES OR WEB SITES FOR TOBACCO­ RELATED CONCERNS, OR TIPS ON HOW TO Still on page 5, Senator Enrile proposed the STOP SMOKING. THIS INFORMATION SHALL BE PROMINENTLY DISPLAYED AND THE following: TEXTS THERETO SHALL APPEAR IN 1. On line 13, delete the phrase "In addition to CLEARLY LEGmLE TYPE AND IN CONTRAST the Picture-based Health Warning"; BY TYPOGRAPHY, LAYOUT AND COLOR, WITHOUT THE USE OF ANY BORDER OR 2. On line 14, capitalize letter C on the word FRAME OR ANY OTHER DESIGN THAT WILL "cigarette"; EFFECTIVELY LESSEN THE SIZE OF THE ADDITIONAL HEALTH WARNINGS; 3. On line 16, after the word "Act," replace the PROVIDED, THAT, SUCH ADDITIONAL words "such as," with the word NAMELY; INFORMATION SHALL NOT OCCupy MORE 4. On line 20, replace the period (.) with a THAN 50% OF THE DISPLAY SURFACE OF semicolon (;), and thereafter insert the THE SIDE PANEL. THIS IS IN ADDITION TO following proviso: PROVIDED, THAT, SUCH ANY FISCAL MARKINGS AS MAY BE ADDITIONAL INFORMATION SHALL NOT REQUIRED BY OTHER GOVERNMENT OCCUpy MORE THAN 50% OF THE AGENCIES SUCH AS THE BUREAU OF DISPLAY SURF ACE OF THE SIDE PANEL. INTERNAL REVENUE.

Senator Cayetano (P) clarified that the side panel There being no objection, the Enrile amendment requirement for additional health warning is only on was approved by the Body. one side. She asked if it was the intention of Senator Enrile to use only 50% of one side panel. Proceeding to Section 7, Senator Enrile proposed the following: SUSPENSION OF SESSION I· On line 22, delete the word "teun"; Upon request of Senator Enrile, the session was 2· On line 22a, replace the word "descriptor" suspended. with DESCRIPTORS, and add OR NUMBERS;

It was 6:18 p.m. 3· On line 23, delete the phrase "trademark, figurative or any other sign"; RESUMPTION OF SESSION Thereafter, Senator Enrile read the first paragraph At 6: 18 p.m., the session was resumed. of the amended Section 7, to wit: r 302 WEDNESDAY, MAY 28, 2014

SECTION 7. DESCRIPTORS. - ONE (I) Senator Enrile read Section 10, as amended, YEAR AFTER THE ISSUANCE OF THE to wit: TEMPLATES BY THE DOH. NO CIGARETTE PACKS OR OTHER TOBACCO PRODUCT SECTION 10. PROHIBITION OF SALES. - PACKAGES SHALL BEAR ANY DESCRIPTORS, NO PERSON ORLEGALENTITY SHALL SELL OR ORNUMBERS SUCH AS, BUT NOT LIMITED TO, COMMERCIALLY DISTRIBUTE OR DISPLAY "LOW TAR," "LIGHT," ''ULTRA-LIGHT,'' OR ANY CIGARETTE OR TOBACCO PRODUCT "MILD," "EXTRA," "ULTRA," AND SIMILAR WITHOUT ENSURING THAT THE LABELS TERMS IN ANY LANGUAGE THAT CLAIMS OR AND PACKAGES, AS WELL AS ANY OTHER MISLEADS A CONSUMER TO BELIEVE THAT CONTAINER USED IN DISPLAYING THE THE TOBACCO PRODUCT OR VARIANT IS CIGARETTE OR TOBACCO PRODUCTS, MEET HEAL THIER, SAFER OR LESS HARMFUL. THE REQUIREMENTS UNDER THIS ACT. Senator Enrile explained that certain descriptors Senator Enrile opined that forcing the manu­ and numbers may indeed convey to the public a false facturers and distributors to remove or recall non­ impression that certain tobacco products are less harm­ compliant products within one year from the effectivity ful. However, he stated that the other items enumerated of the law would be confiscatory and violative of the in the section, particularly trademark, figurative or constitutional prohibition against ex post facto laws. any other sign such as colors and signages, already He believed that non-compliant products that are cover a much broader characteristic of tobacco products already in the market before the transition date takes which are otherwise covered by the intellectual pro­ effect should continue to be allowed to remain in the perty rights of the manufacturers. He cautioned that market until the supplies are exhausted in the regular indiscriminate ban on such rights, such as the use of course of business. colors, images or other product designs or features, ultimately translates to a plain packaging regime, In response, Senator Cayetano (P) explained that which is actually a subject of a pending case before the extension of the implementation period from the WTO. He maintained that for the purpose of the ninety (90) days to one (1) year for the manufaclnrers measure, it would be sufficient that such descriptors and distributors to come up with the new templates, and numbers give the false impression that a certain would effectively give them ample time to exhaust tobacco product is less harmful than others. the stocks already in the market. Senator Cayetano (P) agreed to accept the amendment, and clarified that the term "descriptors" Senator Enrile did not insist on his proposed is very general and could cover a broad range of amendment. images, colors or numbers which would be used by the manufacturers to mislead the public. She said As proposed by Senator Enrile and accepted by the Sponsor, there being no objection, the Body that she would leave to the courts to decide whether the descriptors would fonn part ofthe manufaclnrers' approved the following amendments, one after the intellectual property or are covered by their trademark. other: She reiterated that if the descriptor would be used to Page 6a mislead the public into thinking that the product is healthier, even if in conjunction with other qualitie.s 1. On line 28, delete the word "owner; they are considered as intellectual property, then It 2. On line 29, between the words "thereof' and may be a subject of concern by the implementing "shall," insert a comma (,) and the phrase agency later on. OWNER IN THE CASE OF A SOLE PROPRIETORSHIP, AND PARTNERS IN There being no objection, the Enrile amendment THE CASE OF PARTNERSHIP; was approved by the Body. 3. On line 30, after the word "accountable," Senator Enrile proposed the following amend­ insert the phrase WHEN SUCH OFFICIALS ments on page 6, Section 10: DIRECTLYPARTICIPATEDINVIOLATING ANY PROVISION OF THIS ACT; 1. On line 17, delete the word "Manufacturers," Page 7 as amended ; and 2. Delete lines 17a to 19d. 4. Delete the word "owner" and the comma (,); r WEDNESDAY, MAY 28, 2014 303

5. On the same line, after the word "thereof," 2. On line 25, delete the phrase "from the insert a comma (,) and the phrase OWNER IN manufacturing facility, imported into the THE CASE OF SOLE PROPRIETORSHIP, Philippines"; AND PARTNERS IN THE CASE OF PARTNERSHIP; 3. On line 26, delete the phrase "transferred to other facilities, or delivered to the retail Page 7a establishments"; 6. On line 21, replace the word "forever" with 4. On line 28, replace the word 'Impose" with PERMANENTLY; IMPOSED; and 7. On the same line, replace the word "may" 5. On line 29, delete the phrase "or other with the phrase FOR VIOLATION OF THIS appropriate body"; ACT SHALL; 8. On the same line, after the acronym "DOH," Senator Enrile explained that the amendment insert the phrase SUBJECT TO THE would clarify what activity constitutes one count of APPROVAL OF THE SECRETARY OF offense punishable under this Act. HEALTH; At this point, Senator Enrile asked for clarification At this juncture, Senator Enrile asked on the about the necessity of the amendment in page 8, lines rationale of the inclusion of the words "or group" at 12a and 12b when prior amendments have already the end of line 23. In response, Senator Cayetano (P) been made setting the range for the fmes that the court explained that it was included to emphasize that the may impose. In reply, Senator Cayetano (P) explained filing of the case may be done by a private citizen, that the amendment was solely for the purpose of an NGO or an organized group. guiding the court that the economic circumstance of the retail establishment must be considered in the But Senate President Drilon pointed out that imposition of penalty, using existing laws that govern the case could be filed by anyone because it is, by small and medium scale enterprises as basis. nature, a public offense, As proposed by Senator Enrile and accepted by the DRILON AMENDMENT Sponsor, there being no objection, the Body approved the following amendments, one after the other: On page 7a, lines 21 to 23, as proposed by Senate President Drilon and accepted by the Sponsor, 1. On page 8, line 15, replace the word "forever" with PERMANENTLY; and there being no objection, the Body approved the deletion of the following sentence: "Filing of the 2. On the same page, lines 15 to 17, delete the appropriate case may be commenced by the DOH; last sentence which reads: "Filing of the the Philippine National Police (PNP); a Prosecutor appropriate case may be commenced by the by himself; or any private citizen or group." DOH, the Philippine National Police (PNP); a Prosecutor by himself; or any private citizen or group." As proposed by Senator Enrile and accepted by the Sponsor, the Body approved the following amend­ Still on page 8, line 19, between the words ments, one after the other: "retailers" and "after," Senator Enrile proposed to insert the words ONE YEAR. Senator Cayetano (P) ENRILE AMENDMENTS did not accept the amendment, explaining that the (Continuation) proposal to provide additional exhaustion period has previously been turned down. As proposed by Senator Enrile and accepted by the Sponsor, there being no objection, the Body approved CAYETANO (P) AMENDMENTS the following amendments, one after the other: As proposed by Senator Cayetano (P), there Page 7a being no objection, the Body approved the corrections 1. On line 24, after the word "withdrawal," insert of the following typographical errors on page 8: the phrase OR IMPORTATION INTO THE PHILIPPINE CUSTOMS TERRITORY; 1. On line 1, after the word "apply," insert the r 304 WEDNESDAY, MAY 28,2014

word TO, and replace the word "etailers" I. On Section B, line 17p, after the word with RET AlLERS; "which," delete the words "WILL BE" and the rest of the line, and in lieu thereof, insert 2. On line 19, after the word "after," replace the the phrase SHALL ACCRUE TO THE word ''pliance'' with COMPLIANCE; NATIONAL TREASURY;

ENRILE AMENDMENTS 2. On line 17q, delete the phrase "CAMP AlGNS ON TOBACCO CONTROL OF THE DOH." On page 8a, Senator Enrile proposed the following: Senator Enrile said that the proposed amendment I· On line 23, replace the word and fignre seeks to preserve the partiality and objectivity of the "(30)," with NINETY (90); and DOH as the implementor of the law because to vest the said agency with the authority to simultaneously 2· One line 29, between the words "of' and act as administrative adjudicator and beneficiary is "leading," insert the phrase THE MANU­ not consistent with due process. FACTURERS, AND IMPORTERS OF CIGARETTE AND TOBACCO PRODUCTS Senator Cayetano (P) replied that while she AS WELL AS; understands Senator Enrile's concern, she has encountered, while chairperson of the Committee on SUSPENSION OF SESSION Health and Demography, and now its vice-chair, that after passing the budget, there was very little fund Upon request of Senator Cayetano (P), the left for health promotion. She said that she wanted to session was suspended. ensure that the funds would be retained by DOH for health promotion purposes because once the fund It was 6:50 p.m. goes back to the National Treasury, it might not be allocated back. RESUMPTION OF SESSION At this point, Senator Enrile suggested to state in At 6:50 p.m., the session was resumed. the law, subject to style, that the collection of funds would go to the National Treasury but would be Senator Cayetano (P) stated that since a number returned back to DOH through the budget so the of templates were added, the DOH should be given legislators could scrutinize its usage. more time; and as regards recommendations, she said that at the end of the day, it still depends on the Senator Cayetano (P) said that her concern was decision of the DOH. just practical, having experienced that while chair­ person of the Committee on Environment and Natural Senator Enrile proposed the following amend­ Resources, it took so long for the FDA and BF AD ments on page 9: to obtain their funds from DOH such that the said agencies would continuously ask her to intervene in 1. Delete lines 7 to 10; securing their budget. 2. Reinstate lines 11 to \2, to wit: "Tobacco manufactnrers and importers shall have no Senator Enrile withdrew his proposed amend­ more than two (2) months to comply with ment. any new templates issued"; and 3. On line JI, replace the word and number Still on page 9a, as proposed by Senator Enrile "two (2) months" with EIGHT (8) MONTHS. and accepted by the Sponsor, the Body approved the following amendments, one after the other: Senator Cayetano (P) said that in the committee 1. On line 17gg, after the word "NECESSARY," amendments, the period of compliance was already replace the words "LOCAL GOVERNMENT' increased to one (I) year and since it is already with the phrase LAW ENFORCEMENT contained in another provision, lines II and 12 may AGENCIES; remain deleted. 2. Delete lines 17 to 17hh and 17ii; and On page 9a, Senator Enrile proposed the following 3· On line 17jj, delete the words "CONCERNED amendments: SECTORS"; r WEDNESDAY, MAY 28, 2014 305

Senator Emile stated that the reason was to limit would approve the filing of a formal civil, criminal or the deputized entities only to law enforcement agencies administrative complaint against the erring manufac­ since they are equipped with the knowledge and turer or importer; otherwise, any person may just file experience to lawfully execute the powers granted harassment suits against the manufacturer, which is by law, what he wants to avoid.

On page 11, Senator Enrile proposed the follow­ Thereupon, Senator Cayetano (P) suggested that ing amendments: the entire Section 18 be deleted since a citizen suit is recognized under existing jurisprudence. 1, On lines 7 to 9, replace the title of Section 18 "Citizen Suits" with ENFORCEMENT There being no objection, the deletion of Sec­ PROVISIONS; tion 18 was approved by the Body. 2· On line 8 after the word "regulations," insert . the phr~se CIVIL, CRIMINAL AND CLEAN COPY ADMINISTRATIVE PROCEEDINGS UNDER THIS ACT SHALL BE COMMENCED IN At this juncture, Senate President Driion BEHALF OF THE PHILIPPINE GOVERN­ instructed the Senate Secretary to produce a clean MENT, SUBJECT TO THE APPROVAL copy of the bill containing Senator Eurile's OF THE SECRETARY OF HEALTH; and amendments as approved by the Body. thereafter, delete the rest of line 8; 3' Delete line 9 except the word "against"; SUSPENSION OF CONSIDERATION OF SENATE BILL NO. 27 Senator Enrile explained that the reason was to be consistent with Section 14 for the purpose of an Upon motion of Senator Cayetano (A), there ordinary implementation of the law, since the amend­ being no objection, the Body suspended consideration ment seeks to clarify that any action brought under of the bill. the Act should be brought in the name of the govern­ ment of the Philippines, subject to the approval of the COMMITTEE REPORT NO. 29 Secretary of Health. ON SENATE BILL NO. 2226 (Continuation) SUSPENSION OF SESSION Upon motion of Senator Cayetano (A), there Upon motion of Senator Emile, the session was being no objection, the Body resumed consideration, suspended. on Second Reading, of Senate Bill No. 2226 (Committee Report No. 29), entitled It was 7:00 p.m. AN ACT PROTECTING THE AMATEUR RESUMPTION OF SESSION NATURE OF STUDENT-ATHLETES IN THE PHILIPPINES BY REGULAT­ At 7:01 p.m., the session was resumed. ING THE RESIDENCY REQUIRE­ MENT AND PROHIBITING THE Upon resumption, Senator Cayetano (P) stated that COMMERCIALIZATION OF STUDENT­ the intention of a citizen suit was to allow any citizen ATHLETES. to file for an action; and with the proposed deletion, the NGO or a private individual would now be required Senator Cayetano (A) stated that the parlia­ to file the complaint with the DOH Secretary. She mentary status was the period of committee pointed out that unlike in the other provisions which amendments. no longer specity who may file because the DOH may act motu proprio, the proposal would disempower and COMMITTEE AMENDMENTS prevent the citizens from taking action on their own. As proposed by Senator Cayetano (P), there being Senator Enrile posited that any citizen or NGO no objection, the following committee amendments can write a complaint to the DOH Secretary who were approved by the Body, one after the other:r 306 WEDNESDAY, MAY 28, 2014

Page 1 IMPLEMENTING AGENCIES. - THE PSC AS THE LEAD AGENCY, TOGETHER WITH 1. On lines 3 and 4, delete the entire Section 2 DEPED AND CHED, SHALL IMPLEMENT and renumber the succeeding sections and THE PROVISIONS OF THIS ACT; subsections accordingly; 16. Renumber the succeeding sections Page 3 accordingly. 2. On lines 8 to 13, delete the entire Section 5 and renumber the succeeding sections TERMINATION OF THE PERIOD accordingly; OF COMMITTEE AMENDMENTS 3. On the same page, line 21, after the word "Tuition," delete the phrase "board, and There being no other committee amendment, lodging" and insert the phrase MISCELLANE­ upon motion of Senator Cayetano CAl, there being no OUS SCHOOL FEES, BOOKS AND OTHER objection, the Body closed the period of committee LEARNING MATERIALS; amendments and proceeded to the period of individual amendments. 4. On line 22, insert a new subsection (b) which will read as follows: B. BOARD AND LODGING, and re-Ietter the succeeding TERMINATION OF THE PERIOD subsections accordingly; OF INDIVIDUAL AMENDMENTS Page 4 There being no individual amendment, upon motion 5. On line 4, after the word "Other," insert the of Senator Cayetano CAl, there being no objection, words REASONABLE AND; the Body closed the period of individual amendments. 6. Still on the same line, replace the words "and incentives" with THAT WOULD FURTHER APPROVAL OF SENATE BILL NO. 2226 ENHANCE THE STUDENT-ATHLETES' ON SECOND READING ACADEMIC AND ATHLETIC PERFORM­ ANCE; Submitted to a vote, there being no objection, 7. On line 7, after the word "Section," replace the Chair declared Senate Bill No. 2226 approved the numbers "7" with 5; on Second Reading. 8. On lille 15, after the word "schools," insert SUSPENSION OF CONSIDERATION the phrase OR THEIR ALUMNI; OF SENATE BILL NO. 2226 9. Still on the same line, after the phrase "or any person," delete the word "who"; Upon motion of Senator Cayetano (A), there 10. On lilles 15 and 16, after the phrase "or any being no objection, the Body suspended consideration entity," delete the word "which" and insert of the bill. the phrase IN BEHALF OF A STUDENT­ ATHLETE WHO OR A SCHOOL WHICH; ADJOURNMENT OF SESSION 11. On line 23, after the acronym "PSC," insert the phrase TOGETHER WITH THE; Upon motion of Senator Cayetano (A), there being no objection, the Chair declared the session 12. On the same line, delete the comma (,) after adjourned until three o'clock in the afternoon of the word "DepEd" and insert the word AND; Monday, June 2, 2014, 13. On lines 23 and 24, delete the phrase "as well as representatives from the athletic associa­ It was 7:12 p.m. tions," and insert the phrase AFTER CON­ SULTATION WITH RELEVANT STAKE­ I hereby certify to the correctness of the HOWERS; foregoing. Page 5

14. On line I, replace the word and figure "thirty OSCAR ES (30)" with SIXTY (60); r/ecretaYJ! ? s'f';ate~ 15. On line 4, insert a new section to read as follows: Approved on June 2, 2014