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    Republic of the PhilippinesCongress of the Philippines

    Metro Manila

    Twelfth Congress

    Third Regular Session

    Begun and held in Metro Manila, on Monday, thetwenty-eighth day of July, two thousand and three.

    Republic Act No. 9239 February 10, 2004

    AN ACT REGULATING OPTICAL MEDIA,REORGANIZING FOR THIS PURPOSE THEVIDEOGRAM REGULATORY BOARD, PROVIDINGPENALTIES THEREFOR, AND FOR OTHERPURPOSES

    Be it enacted by the Senate and House ofRepresentatives of the Philippines in Congressassembled::

    I. GENERAL PROVISIONS

    Section 1.Short Title. - This Act shall be known asthe "Optical Media Act of 2003".

    Section 2.Policy. - It is hereby declared to be thepolicy of the State to ensure the protection andpromotion of intellectual property rights.

    The unregulated mastering, manufacture, replication,importation and exportation of optical media in allforms is inimical to economic growth and publicinterest. Towards this end, the State shall institute themeans to regulate the manufacture, mastering,replication, importation and exportation of opticalmedia.

    Section 3.Definition of Terms. - For the Purpose of

    this Act, the following terms shall mean:

    (a) Economic Zone- the Special EconomicZones, Industrial Estates, Export ProcessingZones and Free Trade Zones as defined inRepublic Act No. 7916 or the PEZA Lawincluding the Clark Special Economic Zone,the Cagayan Special Economic Zone, theZamboanga City Special Economic Zone,

    the Subic Bay Freeport and other economiczones now in existence in the Philippines oras may be established in the future;

    (b) IP Code- Republic Act No. 8293 also

    known as the Intellectual Property Code ofthe Philippines;

    (c) License- the authority granted by theOptical Media Board (OMB) toestablishments or entities registered with theOMB to engage in the business ofmastering, manufacture, replication,importation or exportation of optical media;

    (d) Magnetic Media- a storage medium ordevice characterized by a base, usuallyplastic, coated with ferric oxide powder, in

    which visual and/or aural information, orsoftware code, may be recorded or stored,including, but not limited to, magnetic tape,cassettes, video tape, diskettes, and floppydiscs;

    (e) Manufacture- the act or business ofproducing optical media or devicescontaining sounds and/or images, orsoftware code, including any work protectedin Part IV of the IP Code, by masteringand/or replication. In relation to equipment,"manufacture" shall refer to the assembly or

    integration of various components into anyequipment useful for the mastering,manufacture and/or replication of opticalmedia;

    (f) Manufacturing Equipment- any and allequipment, machine or device, now knownor to be known in the future, intended ordesign for the production or manufacture, bymastering and/or replication of opticalmedia, optical media masters, or productionparts thereof, including but not limited to,those which shall be listed in the

    Implementing Rules and Regulations (IRR)of this Act or as prescribed by the OMB. Forthe purpose of this Act, optical disc writersand such other devices used in personalcomputers not for commercial purposesshall not be considered as manufacturingequipment;

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    (g) Manufacturing Material- any materialsuch as, but not limited to, optical gradepolycarbonate or polycarbonate substituteswith physical properties suitable for themanufacture of optical media;

    (h) Mastering- the act or business ofproducing a stamper made of glass, metalor other material, intended for themanufacture of optical media;

    (i) Optical Media- a storage medium ordevice in which information, includingsounds and/or images, or software code,has been stored, either by mastering and/orreplication, which may be accessed andread using a lens scanning mechanismemploying a high intensity light source such

    as a laser or any such other means as maybe developed in the future. The term shallinclude, but not be limited to, devices whichshall be listed in the IRR of this Act, or asprescribed by the OMB;

    (j) OMB- the Optical Media Board;

    (k) Replication- the process ofmanufacturing optical media by reproducingor generating copies of the stamper in aninjection molding machine or other forms ofreplicating equipment; and

    (l) Source Identification Code or SID Code -a system of codes to identify the source ofall optical media mastered, manufactured orreplicated by any establishment or entity.

    II. THE OPTICAL MEDIA BOARD

    Section 4.Reorganization . - To implement thepolicies and attain the objectives enunciated in this

    Act, the Videogram Regulatory Board (VRB) createdunder Presidential Decree No. 1987 is herebyreorganized into the Optical Media Board (OMB).

    The OMB shall be placed under the Office of thePresident (OP) and shall have its principal offices inMetropolitan Manila.

    Section 5.Coverage. - The authority of the OMB shallcover the entire territory of the Republic of thePhilippines including the economic zones as definedin this Act and in Republic Act No. 7916.

    Section 6.The Board- The OMB shall be composedof four (4) ex officio members and five (5) regularmembers to be appointed by the President. TheChairperson shall be appointed by the President fromamong the five (5) regular members.

    The ex officiomembers of the Board shall becomposed of the Secretary of the Department ofTrade and Industry (DTI) or his duly authorizedrepresentative; the Secretary of the Department of theInterior and Local Government (DILG) or his dulyauthorized representative; the Secretary of theDepartment of Finance (DOF) or his duly authorizedrepresentative; and the Director-General of theIntellectual Property Office (IPO) or his dulyauthorized representative: Provided, That theauthorized representatives shall have a rank not lowerthan the Assistant Secretary.

    The Five (5) regular members shall be composed ofthree (3) representatives from the private sector, eachof whom shall be appointed from an identified industryrelying on intellectual property protection, one (1)representative from the consumer organizations andone (1) representative from the academe. The regularmembers shall be nominated by their nationallyrecognized associations or organizations.

    The members of the Board shall elect from amongthemselves the Vice-Chairperson.

    The Chairperson and the regular members of theBoard shall hold office for a term of three (3) years,unless sooner removed by the President for cause:Provided, That the Chairperson and the Regularmembers may not serve for more than two (2)consecutive terms: Provided, further, That if anymember fails to complete his or her term, the personappointed to fill the vacancy shall serve only for theunexpired portion of the term.

    Section 7.Qualifications- The regular members ofthe Board shall be Filipino citizens, at least twenty-one(21) years old, of good moral character and standing

    in the community, and with proven competence in theindustry they represent: Provided, that theChairperson shall be at least thirty-five (35) years old,of known probity and managerial and administrativecompetence: Provided, finally, That at least two (2)members of the board must be members of thePhilippine Bar.

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    Section 8.Compensation- The Chairperson shallreceive a salary and allowances based on currentapproved standardized government compensation.

    The Vice-Chairperson and members of the Board

    shall receive honoraria and allowances based onexisting government accounting and auditing rulesand regulations.

    Section 9.Meetings- The Board shall meet regularlyat least once a moth or as often as necessary at thecall of the Chairperson. A majority of the members ofthe Board shall constitute a quorum to do business.

    Section 10.Powers and Functions of the OMB. - TheOMB shall have the following powers and functions:

    (a) Formulate and implement such policies

    and programs as are necessary for theaccomplishment of the purposes of this Act;

    (b) Evaluate the qualifications of anyindividual, establishment or other entity toengage in the mastering, manufacture orreplication of optical media. For thispurpose, the OMB shall require such personto substantiate its capability to engage insaid activities;

    (c) Supervise regulate, grant, or renewlicenses for specific periods, or deny,suspend, or cancel the same, subject tosuch conditions as it may impose, for theactivities enumerated in Section 13(a), (b)and (c);

    (d) Conduct inspections, by itself or incoordination with other competenceagencies of the government, at anytime,with or without prior notice, ofestablishments or entities including thosewithin the economic zones engaged in theactivities as provided in Section 13(a), (b)and (c) of this Act, and employ reasonable

    force in the event that the responsibleperson or persons of such establishment orentity evades, obstructs, or refuses suchinspection. For this purpose, the agents ofthe OMB shall be considered agents inauthority;

    (e) Apply for or obtain search warrants fromany court of law, or take into preventive

    custody any optical media and/or material orequipment, including parts, accessories andparaphernalia used for the mastering,manufacture or replication of optical mediawhich are found in any premises if the OMB

    has reasonable ground to believe or suspectthat these are evidence of violation of theprovisions of this Act;

    (f) Act as complainant in the criminalprosecution of violators of this Act;

    (g) Hear and resolve administrative casesagainst violators of this Act and imposeadministrative sanctions including, but notlimited to, the imposition of fines andpenalties; confiscation of optical media; andsuspension, non-renewal or cancellation of

    the license to operate and/or closure ofestablishments or entities that violate theprovisions of this Act. For this purpose, theBoard shall have the power to issuesubpoena or subpoena duces tecum tocompel the attendance of witnesses andproduction of documents and other effects;

    (h) Call upon law enforcement agencies andthe managing authorities in the economiczones for assistance in the implementationand enforcement of its decisions, orders,rules and regulations;

    (i) To deputize, whenever necessary,provincial governors, city and municipalmayors, and representatives of the nationalgovernment agencies, organizationsrepresenting copyright owners, neighboringrights owners and concerned sectors to helpmonitor compliance with and report to theOMB any violation of this Act;

    (j) Require persons, establishments andentities engaged in the activities in Section13 to keep and maintain for a period of at

    least five (5) years true and completerecords of all activities related to the conductof its business. For this purpose, the Boardmay, at any time, require the production ofsuch records and samples of optical mediafrom each mastering, manufacturing orreplicating line;

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    (k) Levy, assess and collect, andperiodically adjust and/or revise the rates offees and charges for the issuance oflicenses granted under this Act;

    (l) Establish support offices as may benecessary;

    (m) Create and maintain a database, andregularly publish data containing the list andactivities of registered and/or licensedoptical media and other relatedestablishments. Any enforcement agency,including the Bureau of Customs, may referto this database for enforcement and/orseizure;

    (n) Prescribe the internal and operational

    procedures for the exercise of its powersand functions, the performance of its dutiesand responsibilities and other relatedmatters; and

    (o) Exercise such other powers andfunctions as may be necessary or incidentalto the attainment of the purposes andobjectives of this Act, and to perform otherrelated duties and responsibilities as may bedirected by the President.

    Section 11.Chief Executive Officer. - The

    Chairperson of the Board shall be the Chief Executiveofficer (CEO). The CEO shall exercise the followingpowers and functions:

    (a) Execute and administer the policies,decisions, orders, resolutions and the rulesand regulations issued by the Board;

    (b) Establish the internal organization andadministrative procedures of the OMB, andrecommend to the Board the appointment,transfer, detail, and suspension or dismissalfor cause of its administrative and

    subordinate personnel;

    (c) Direct and supervise the operations andthe internal affairs of the OMB;

    (d) Submit an annual budget to the Boardfor its approval;

    (e) Delegate his or her authority, in whole orin part, to other members of the Board, inaccordance with the rules and regulations ofthe OMB; and

    (f) Perform such other powers and functionsas may be authorized by the Board or thePresident.

    Section 12.The OMB Secretariat. - The OMB shallhave a Secretariat, herein created, headed by anExecutive Director who shall assist theChairperson/CEO in the day-to-day operations of theOMB.

    The Executive Director shall be appointed by theChairperson subject to the approval of the Board. Histerm shall be coterminous with the CEO.

    III. LICENSING AND OTHER REGULATORYPROVISIONS

    Section 13.Licensing and Registration. - Any person,establishment or entity shall, prior to engaging in oneor more of the business or activities enumeratedhereunder, register with, and secure the appropriatelicenses from the OMB:

    (a) Importation, exportation, acquisition, saleor distribution of optical media,manufacturing equipment, parts andaccessories and manufacturing materialsused or intended for use in the mastering,manufacture or replication of optical media;

    (b) Possession or operation ofmanufacturing equipment, parts andaccessories, or the possession acquisition,sale or use of manufacturing materials forthe mastering, manufacture or replication ofoptical media; and

    (c) The mastering, manufacture, replication,

    importation or exportation of optical media.

    With respect to the preceding paragraph (c), thelicenses issued by the OMB are conditions precedentfor securing the necessary business permits, licenses,or registration from the appropriate authorities, andshall also be necessary requirement for the release ofmanufacturing equipment, parts and accessories, andmaterials intended for use in mastering and/or

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    manufacturing optical media, from customs oreconomic zones exercising independent custom laws.

    Those engaged or intending to engage in more thanone of the above mentioned activities and/or conduct

    or intend to conduct business in more than onelocation shall separately register with and secure thelicense from the OMB for every business activity ateach place of business.

    No business activity registered and licensed by theOMB for a specific place of business shall beconducted in a place and/or location other than thatindicated in the license, without the prior writtenapproval of the OMN. The registration and licenseissued by the OMB shall be prominently displayed atthe designated place of business.

    Section 14.Form, Term, Amendment and Renewal ofLicense. - Every license shall be in a form prescribedby the OMB and shall be valid for a period of three (3)years subject to conditions as the OMB may impose.The OMB may amend or renew a license uponapplication made by the licensee in accordance withthis Act.

    Failure to register and obtain a license from the OMBshall automatically cancel any permit, license orregistration issued by any national or localgovernment unit, agency or office.

    Section 15.Grounds for Non-issuance or Non-renewal of License. - The OMB may refuse to grant alicense, or to renew a license, upon the followinggrounds:

    (a) The applicant has failed to comply withany requirement imposed by the Boardpursuant to this Act and its implementingrules and regulations;

    (b) The applicant or, in the case of juridicalpersons, any of its officers, directors,managers, shareholders, or partners, is

    convicted by final judgment of an offenseunder this Act or any law relating to theprotection of intellectual property rights;

    (c) The application involves a place, locationor premises where an offense has beencommitted under this Act or under any lawrelating to the protection of intellectual

    property rights: Provided, That the offendershave finally been convicted of such offense;

    (d) The applicant has furnished the OMBwith any false or misleading information in

    connection with any application for orrenewal of a license; or

    (e) The applicant has been previouslyissued a license that has been cancelled forcause within the preceding five (5) yearsfrom the date of the application.

    The OMB shall decide whether or not to grant orrenew a license within fifteen (15) working days fromthe filing of the application.

    Section 16.Grounds for Suspension or Cancellation

    of License. - The OMB may, motu proprio or uponmotion of any interested party, after notice andhearing, suspend or cancel a license on any of thefollowing grounds:

    (a) when requested by the license holder;

    (b) when the license holder has ceased toengage in the activities authorized under thelicense or in the place, location or premisesindicated in the license;

    (c) when the license holder has beenconvicted of an offense under this Act orunder any other Law relating to theprotection of intellectual property rights; or

    (d) when the license holder is in breach of,or is unable to comply with any of theconditions prescribed in the license.

    Section 17.Registration of Present Licenses. - Allexisting establishments or entities in the Philippinesengaged in activities enumerated in Section 13 shall,within thirty (30) calendar days after the effectivity of

    the rules and regulations implementing this Act,register with and secure the necessary licenses fromthe OMB.

    Section 18.Source Identification (SID) Codes. - TheOMB shall determine, develop and/or adopt a systemof Source Identification (SID) codes that is ofinternational recognition and acceptance.

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    The OMB shall prescribe SID codes for all persons,establishments or entities registered with and licensedby the OMB to engage in the mastering, manufactureor replication of optical media, including such othercodes as it may determine or require. Such codes

    shall be applied to each and every optical mediamastered, manufactured or replicated including glassmasters, stampers or other parts used for themanufacture of optical discs.

    The SID Codes shall be visible and legible and mustconform to such specifications as prescribed by theOMB.

    IV. PENAL PROVISIONS

    Section 19.Offenses and Penalties. -

    (a) Imprisonment of at least three (3) yearsbut not more than six (6) years, and a fine ofnot less than Five Hundred thousand pesos(Php 500,000.00) but not exceeding OneMillion five hundred thousand pesos (Php1,500,000.00), at the discretion of the Court,shall be imposed on any person, natural or

    juridical, who shal l:

    (1) Engage in the importation,exportation, acquisition, sale ordistribution of, or possess oroperate manufacturing equipment,

    parts and accessories without thenecessary licenses from the OMB;

    (2) Engage in the mastering,manufacture, replication,importation or exportation ofoptical media without thenecessary license from the OMB;

    (3) By himself, or through another,cause the mastering, manufactureor replication of any intellectualproperty in optical media intended

    for commercial profit or pecuniarygain without authority or consentof the owner thereof;

    (4) Engage in the Mastering,manufacture, or replication ofoptical media without affixing orinstalling in the resulting productsthe SID Code, and/or such other

    codes prescribed, assigned andauthorized by the OMB. Theabsence of the codes prescribed,assigned and authorized by theOMB in any optical media shall be

    prima facie evidence that saidoptical media are in violation ofthis Act;

    (5) Engage in the mastering,manufacture, or replication ofoptical media using, affixing orinstalling in the resulting productsfalse SID or other codes. Thepresence of false or unauthorizedcodes shall be prima facieevidence that said optical mediaare in violation of this act;

    (6) Engage in the mastering,manufacture, or replication ofoptical media using, affixing orinstalling in the resulting productsfalse SID or other codes that havebeen assigned by the OMB toanother person, or, having beenassigned and authorized saidcodes by the OMB, allow orauthorize another person,establishment or entity to use,affix or install such codes in thelatter's products;

    (b) Imprisonment of at least one year but notmore than three years and a fine not lessthan one hundred thousand pesos, but notexceeding five hundred thousand pesos, atthe discretion of the court, for the followingoffenses:

    (1) Engaging in the importation,exportation, sale or distribution of,or possess or acquire incommercial quantities

    manufacturing materials used orintended for use in the mastering,manufacture or replication ofoptical media without thenecessary licenses from the OMB;

    (2) Knowingly performing orrendering the service ofmastering, manufacture orreplication of optical media, after

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    having been licensed by the OMB,to any person, in respect of anyintellectual property, who does nothave the consent by the owner ofthe intellectual property or his

    representatives or assigns;

    For this purpose, any person,establishment or entity that islicensed by the OMB to engage inthe above mentioned activitiesshall be considered to have actedin good faith in respect of anytransaction entered into by him inrespect to the precedingparagraph, if he notifies the OMBof such transaction within fiveworking days from receipt of the

    order, furnishing to the OMB allmaterial information thereof;

    (3) Refusing to submit toinspection by the OMB, orsurrender for preventive custodyany optical media, equipment,manufacturing materials, includingparts, accessories andparaphernalia found duringinspection operations to be inviolation of the provisions of this

    Act;

    For purposes of this subsection, violators who willemploy armed resistance against agents of the OMBshall be penalized under other applicable laws inaddition to those provide in this Act; and

    (a) Imprisonment of at least 30 days but notmore than 90 days or a fine of not less than25,000.00 pesos but not exceeding fiftythousand pesos at the discretion of thecourt:

    (1) Knowingly possess items of

    the same content or title,produced in violation of this Act,and used for the purpose with theintent to profit;

    (2) Engaging in the sale, rental,distribution, importation,exportation of, or any othercommercial activity involving

    optical media that are in violationof this Act.

    (b) For subsequent offenses in Section19(a), uniform imprisonment of six (6) years

    but not more than nine (9) years and a fineof not less than One Million five hundredthousand pesos (Php 1,500,000.00) but notexceeding Three million pesos (Php3,000,000.00) at the discretion of the Court,shall be imposed.

    (c) For subsequent offenses in Section19(b), uniform imprisonment of three (3)years but not more than six (6) years and afine of not less than Five hundred thousandpesos (Php 500,000.00) but not exceedingOne million five hundred pesos (PHp

    1,500,000.00) at the discretion of the Court,shall be imposed.

    The offenses listed under this section shall bepunished without prejudice to the application ofappropriate penalties or sanctions provided underSection 216 and such other appropriate sections ofthe IP Code or Republic Act No. 8792 also known asthe Electronic Commerce Act, the Revised PenalCode or other applicable laws.

    Section 20.Determination of Penalties- Indetermining the number of years of imprisonment, or

    amount of fine to be imposed, the court shall considerthe size of the operations of the offender, the value ofthe articles involved in the violation, and the period ofviolation. In imposing administrative penalties, theOMB shall likewise consider the said circumstances.

    Section 21.Persons Liable. - If the offender is analien, the person shall immediately be deported afterserving his sentence, and shall, thereafter, be refusedentry into the country.

    If the offender is a government official or employee, heshall suffer perpetual disqualification from public office

    and forfeiture of his right to vote and participate in anypublic election for ten (10) years.

    Should the offense be committed by the juridicalperson, the stockholder, chairperson, president,officer, director, trustee, partner or managerresponsible for such violation shall be liable.

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    Section 22.Enforcement- The OMB may solicit thedirect assistance of other agencies, the managingauthorities in the economic zones andinstrumentalities of the national and localgovernments, and may deputize for a limited period

    the heads or personnel of agencies to performenforcement functions for the OMB, insofar as suchfunctions are concerned shall be subject to thedirection and supervision of the OMB.

    Section 23.Disposal of Seized Materials. - Anyoptical media, equipment or materials found to be inviolation of the provisions of this Act, any books,records, or paraphernalia providing evidence of anyviolation committed by any person, establishment orentity, shall be confiscated and forfeited in the favor ofthe government and shall be disposed in accordancewith pertinent laws and regulations: Provided, That

    confiscated optical media may, pending considerationof the case, be immediately destroyed upon finaldetermination by the OMB in an administrative case,or by a court in a civil or criminal case, that are thesame are in violations of this Act: Provided, further,That a sufficient representative sample shall beretained for evidentiary purposes.

    The retained representative sample shall remain incustodia legis until the final resolution of proceedingsthereon.

    Equipment and materials imported of this Act shall be

    subject to seizure and immediate disposal by theBureau of Customs.

    IV. TRANSITORY PROVISIONS

    Section 24.The Videogram Regulatory Board (VRB)and Secretariat- The incumbent Chairperson, Vice-Chairperson, members of the Board and Secretariatshall continue to perform their duties and functions ina hold-over capacity, and shall receive theircorresponding salaries and benefits until such timethat the new chairperson and at least majority of theBoard shall have been appointed and qualified.

    The Present officials and employees of the VRB shallbe given priority, on the basis of experience, merit andfitness, in appointments to new positions to which theymay qualify under the new staffing pattern: Provided,That those who shall be given new appointments shallbe entitled to all compensation and benefits due themunder existing laws: Provided, further, that those who

    shall be separated from service shall receive allseparation pay and benefits due under existing laws.

    The transition period shall not exceed six months aftereffectivity of this Act.

    Section 25.Transfer of Funds, Assets, Liabilities andRecords. All unexpended appropriations , real andpersonal property, contracts, records, documents, andassets and liabilities of the VRB shall be transferred tothe OMB.

    Section 26.Regulation of Magnetic Media. - Theprovisions of this Act shall apply mutates mutandis tothe regulation of magnetic media.

    Section 27.Classification of Motion Pictures andCinematographic Works. - The classification for

    audience suitability of motion pictures andcinematographic works in optical media includingrelated publicity materials thereto shall be the functionof the Movie and Television Review and ClassificationBoard (MTRCB).

    Section 28.Prosecution of Pending Cases- for thepurpose of this Act, all pending cases for violation ofpresidential Decree No. 1987 shall continue to beprosecuted.

    V. MISCELLANEOUS PROVISIONS

    Section 29.Organization Structure- theorganizational structure and staffing pattern of theOMB shall be established in coordination with theDept. of Budget and Management (DBM) and inaccordance with Civil Service laws, rules, andregulations.

    Section 30.Period of Implementation- The OMB andthe DBM shall prepare the necessary work programsto cover the staggered implementation of this Act for aperiod not exceeding five (5) years.

    Section 31.Appropriations. - The appropriations forthe VRB under the current General Appropriations Actshall be used to carry out the initial implementation ofthis Act. Thereafter, such sums as may be necessaryfor its implementation shall be included in the General

    Appropriations Act.

    Section 32.Annual Report. - The OMB shall, withinninety days after the end of every fiscal year, submitto the President and to Congress an annual report on

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    its accomplishments under this Act, together with itsplans and recommendations to improve and developits capability to enforce the provisions of this Act, anda complete accounting of transactions with respect tothe use of income.

    Section 33.Congressional Oversight Committee onthe OMB.- The Congressional oversight committee onthe optical media board shall be composed of thechairs of the senate committees on public informationand mass media and trade and commerce and thehouse of representatives committees on trade andindustry and public information, and two memberseach from the senate and house of representativeswho shall be designated by the senate president andthe speaker of the house of representatives: Provided,That one of the two senators and one of the twohouse members shall be nominated by the respective

    minority leaders of the senate and the house ofrepresentatives.

    The COC-OMB is hereby mandated to oversee theimplementation of this Act for a period of five years.For this purpose, COC-OMB shall set theimplementation of this act and shall adopt its internalrules of procedure.

    The Secretariat of the COC-OMB shall be drawn fromthe existing Secretariat personnel of the Senate andHouse of Representatives Committees comprising theCOC-OMB.

    To carry out the powers and functions of the COC-OMB, the initial sum of five million pesos shall becharged against the current appropriations ofcongress. Thereafter, the amount necessary for itscontinued operations shall be included in the annualGeneral Appropriations Act.

    Section 34.Implementing Rules and Regulations. -The OMB shall within three months from the effectivityof this Act submit to the COC-OMB, the implementingrules and regulations (IRR) governing this Act. TheCOC-OMB shall approve the IRR within thirty days.

    Section 35.Separability Clause. - If, for any reason,any provision of this Act is declared invalid orunconstitutional, the other sections or provisions notso declared shall remain in full force and effect.

    Section 36.Repealing Clause. - Presidential DecreeNo. 1987 is hereby repealed. Presidential Decree No.1986 or the MTRCB Law and other laws, rules,

    regulations, decrees, executive orders, and otherissuance or parts thereof which are inconsistent withthe provisions of this Act are hereby repealed ormodified accordingly.

    Section 37.Effectivity- This Act shall take effectfifteen (15) days after its publication in the OfficialGazette or in at least two (2) newspapers of generalcirculation.

    Approved,

    FRANKLIN DRILONPresident of the Senate

    JOSE DE VENECIA JR.Speaker of the House of Represe

    This Act which is a consolidation of house Bill No.5225 and Senate Bill No. 2586 was finally passed bythe House of Representatives and the Senate onDecember 17, 2003 and January 13, 2004,respectively.

    OSCAR G. YABESSecretary of Senate

    ROBERTO P. NAZARENSecretary General

    House of Represenatives

    Approved: February 10 2004

    GLORIA MACAPAGAL-ARROYOPresident of the Philippines