CCoommmmiitttteeee DDaaiillyy BBuulllleettiinn Vol. III No. 49 A publication of the Committee Affairs Department December 1, 2015 BICAMERAL CONFERENCE COMMITTEE MEETINGS MEASURES COMMITTEE PRINCIPAL SUBJECT MATTER ACTION TAKEN/ DISCUSSION NO. AUTHOR Bicameral HB 5587 & Rep. Umali (R.) Amending Republic Act No. 9367, The Bicameral Conference Committee, co- Conference SB 2622 & Sen. Osmeña otherwise known as the Biofuels Act of presided by Rep. Reynaldo Umali (2nd District, Committee 2006, by allowing natural gas power Oriental Mindoro), Chair of the House Committee generating plants in the country to use on Energy, and Senator Sergio Osmeña III, Chair neat diesel as an alternative fuel, of the Senate Committee on Energy, harmonized exempting them from the requirements of the disagreeing provisions of HB 5587 and SB Paragraph 5.3, Section 5 of RA 9367 2622, and subsequently approved the harmonized version. Other conferees who were present during the bicameral conference committee meeting were the following: On the part of the House, Reps. Edgardo Masongsong (Party-List, I-CARE), Nicasio Aliping (Baguio City), Sharon Garin (Party-List, AAMBIS-OWA), and Arnel Ty (Party- List, LPGMA); On the part of the Senate, Senators Gregorio Honasan II, Paolo Benigno “Bam” Aquino IV, and Cynthia Villar. HB 6132 Rep. Ungab Appropriating funds for the operation of The Bicameral Conference Committee, co- the Government of the Republic of the presided by Rep. Isidro Ungab (3rd District, Philippines from January 1 to December Davao City), Chair of the House Committee on 31, 2016 Appropriations, and Senator Loren Legarda, Chair of the Senate Committee on Finance, met to reconcile the conflicting provisions of HB 6132 or the General Appropriations Bill (GAB) and the Senate’s proposed amendments to the bill. Minority Leader Ronaldo Zamora (San Juan City) and Senator Vicente “Tito” Sotto III moved to authorize Rep. Ungab and Senator Legarda to discuss the details of the proposed amendments to the GAB. Other conferees who were present during the bicameral conference committee meeting were the following: On the part of the House, Majority Leader Neptali Gonzales II (Mandaluyong), Minority Leader Ronaldo Zamora (San Juan City), Reps. Eleandro Jesus Madrona (Romblon), JC Rahman Nava M.D. (Guimaras), Thelma Almario (2nd District, Davao Oriental), Rolando Andaya Jr. (1st District, Camarines Sur), Eric Singson (2nd District, Ilocos Sur), Maria Zenaida Angping (3rd District, Manila), Pryde Henry Teves (3rd District, Negros Oriental), Magtanggol Gunigundo I (2nd District, Valenzuela City), and Romero “Miro” Quimbo (2nd District, Marikina City); On the part of the Senate, Senate President Pro-Tempore Ralph Recto, Minority Leader Juan Ponce Enrile and Senators Sergio Osmeña III, Cynthia Villar, and Paolo Benigno “Bam” Aquino IV. COMMITTEE MEETINGS MEASURES COMMITTEE PRINCIPAL SUBJECT MATTER ACTION TAKEN/DISCUSSION NO. AUTHOR Banks and HB 6197 Rep. Collantes Providing for the regulation and The Committee, chaired by Rep. Sonny Financial supervision of payment systems Collantes (3rd District, Batangas), approved HB Intermediaries 6197. Acting Deputy General Counsel Teofilo Ragadio of the Bangko Sentral ng Pilipinas (BSP) posed no objection to the bill saying that the proposed law will facilitate the payment system of goods through the use of automatic teller machine (ATM) cards, credit cards and checks. Bankers Association of Philippines (BAP) president Connie Justiniani and Chamber of Thrift Banks executive director Suzanne Felix expressed their support for the bill. Rep. Collantes enjoined all stakeholders to submit to the Committee their official position paper for reference. Motu Inquiry into the Reformed Compulsory The Committee will deliberate further on the Proprio Third Party Liability (CTPL) Insurance issues regarding the reformed CTPL insurance Inquiry coverage for motor vehicles issued by the coverage for motor vehicles. Land Transportation Office (LTO) The LTO issued on October 21, 2015 Memorandum Circular No. AVT-2015-1975 implementing the reformed CTPL insurance system under which the issuance of CTPL insurance policies and administration of payment and settlement will be assigned to two pools of insurance companies: one group to handle vehicles with plate numbers ending with an odd number, and another for vehicles with plate numbers ending with an even number. One insurance company from each pool shall be chosen to serve as the Administrator. The new system was established by the LTO in order to address the complaints from the public of alleged overpricing, delays in the processing of claims, issuance of multiple Certificates Of Cover (COCs) for the same vehicle, and tax leaks, among others. The Philippine Insurers and Reinsurers Association (PIRA) opposes the reformed CTPL insurance system. PIRA General Manager Fortunato Peralta said this new policy of the LTO will give rise to a cartel that will monopolize the issuance of third- party liability insurance to motor vehicle owners. He added that insurance companies have vowed to take legal action against LTO’s MC 2015-1975 for violation of Sections 193, 388 and 390 of the Insurance Code. Salvador Navidad, president of the Bukluran ng mga Manggagawa sa Industriya ng Seguro (BMIS), agreed with the stand of the PIRA, adding that the memorandum circular will 2 “institutionalize corruption” in the LTO. Continuation… Insurance Commission (IC) Deputy Banks and Commissioner Ferdinand Florendo informed the Financial Committee that the IC, in a letter to LTO Chief Intermediaries Alfonso Tan, sought an explanation on the validity of the Reformed CTPL Insurance System and an assurance that it will not result in monopoly, restraint of trade, and unfair competition. Rep. Collantes requested the IC to submit to the Committee a report on CTPL payments for the past two years. All the stakeholders present were also asked to submit to the Committee their position papers on issue. Overseas Draft Reps. Aglipay- Instituting the Magna Carta of Filipino The Joint Committee, co-presided by Rep. Workers Affairs Substitute Villar, Gutierrez Seafarers Raymond Democrito Mendoza (Party-List, TUCP) jt. w/ Labor and Bill to HBs and Violago of the Committee on Overseas Workers Affairs, Employment 122, 3754 and Rep. Karlo Alexei Nograles (1st District, & 3895 Davao City), Chair of the Committee on Labor and Employment, will deliberate further on the draft substitute bill in its next meeting. Commenting on Section 25 (Repatriation), lawyer Jesus Gabriel Domingo of the Philippine Overseas Employment Administration (POEA) said that all costs related to the repatriation of seafarers regardless of the reason for the termination of employment should be borne primarily by the shipowner or manning agency. Domingo added that the repatriation cost can be refunded if it is determined that the seafarer was at fault. (Section 25 provides that all costs related to the repatriation of seafarers should be borne by the shipowner or manning agency, except when the employment was terminated due to the seafarer’s fault.) Joint Manning Group (JMG) Director Jose Albar Kato said that manning agencies and shipowners rarely run after seafarers who were repatriated or terminated, the reason being that it is more costly to file cases in courts than to shoulder the repatriation costs. Philippine Inter-Island Shipping Association (PISA) corporate secretary and legal counsel Pedro Aguilar objected to the proposal made by Bienvenido Lorque of the United Filipino Seafarers (UFS) to provide a standard monthly allowance to cadets undergoing training on-board ships. Aguilar argued that requiring the shipping companies to provide monthly allowance to cadets will increase their cost of operation and eventually increase domestic shipping costs. The resource persons present during the meeting were requested to submit to the Committee their respective position papers on the bill. 3 Revision of HB 5546 Rep. Mercado Declaring March 31 as a non-working The Committee, chaired by Rep. Marlyn Laws holiday in the whole Province of Southern Primicias-Agabas (6th District, Pangasinan), Leyte in commemoration of the first mass approved the bill. in the Philippines in Limasawa Island HB 5613 Rep. Sakaluran Declaring November 10 of every year as a The Committee approved the bill. special non-working holiday in the Municipality of President Quirino, Province of Sultan Kudarat HB 6190 Rep. Del Mar Declaring September 21 of every year as The Committee approved the bill. a special working holiday in the cities and Province of Cebu, including all its highly urbanized and component cities, to be known as Cebu Press Freedom Day HBs 5438, Reps. Abaya, Declaring special non-working holidays in The Committee approved HBs 5438, 6019, 6099 6019, 6099 De Venecia, certain parts of the country and 6177 subject to the submission of required & 6177 Cosalan & Villar documents. Ways and Substitute Rep. Yap (A.) Making first-time home ownership easier The Committee, presided by its Vice Chair Rep. Means Bill to HB and more affordable by making the cost of Raneo Abu (2nd District, Batangas), approved 414 the purchase cheaper, reducing the Section 6 (Discount for First-Time Home financing cost, granting tax incentives for Purchase; Incentive for Granting a Discount) of the purchase, enhancing private sector the Substitute Bill to HB 414. participation in housing construction and financing, providing penalties for violation Rep. Abu underscored that in the previous thereof, and appropriating funds therefor