Committee Daily Bulletin Vol. III No. 57 COMMITTEE Bicameral Conference Committee A publication of the Committee Affairs Department December 15, 2015 BICAMERAL CONFERENCE COMMITTEE MEETING MEASURES SUBJECT MATTER ACTION TAKEN/ DISCUSSION PRINCIPAL NO. AUTHOR HB 1039 & Rep. Expanding the benefits and privileges of The Bicameral Conference Committee, coSB 2890 Romualdez & persons with disability (PWD) presided by Rep. Romero “Miro” Quimbo (2nd Sen. Recto District, Marikina City), Chair of the House Committee on Ways and Means, and Senator HB 3675 & Rep. Quimbo & Removing the conditions for the Juan Edgardo “Sonny” Angara, Chair of the SB 2518 Sen. Recto condonation of all unpaid income taxes Senate Committee on Ways and Means, Bicameral Conference due from local water districts, amending approved the for the purpose Section 289-A of the Committee Reports on HB 1039 and SB 2890, National Internal Revenue Code (NIRC), and on HB 3675 and SB 2518. as amended Other conferees who were present during the bicameral conference committee meeting were the following: On the part of the House, Reps. Estrellita Suansing (1st District, Nueva Ecija), Nicasio Aliping Jr. (Baguio City) and Raneo Abu (2nd District, Batangas), Party-List Reps. Victoria Noel (AN WARAY), Jonathan Dela Cruz (ABAKADA) and Terry Ridon (KABATAAN); on the part of the Senate, Senate President Pro-Tempore Ralph Recto. COMMITTEE MEETINGS COMMITTEE Banks and Financial Intermediaries MEASURES PRINCIPAL NO. AUTHOR HBs 588 & Rep. Belmonte 853 (J.) & Deputy Speaker Apostol SUBJECT MATTER ACTION TAKEN/DISCUSSION Further strengthening the non-stock savings and loan associations (NSSLAs), amending for the purpose Republic Act No. 8367, otherwise known as the Revised Non-Stock Savings and Loan Associations Act of 1997 The Committee, chaired by Rep. Sonny Collantes (3rd District, Batangas), decided to deliberate further on the two bills. Bangko Sentral Deputy Governor Vicente Aquino reiterated the agency’s reservations and recommendations on the proposed measures. The Chair noted the absence in the meeting of representatives from the Confederation of Savings and Loan Associations, Inc. (CONSLAI). Meanwhile, Rep. Collantes sought the comments of the Insurance Commission (IC) and the Philippine Insurers and Reinsurers Association (PIRA) regarding the effect of lowering the taxes on micro insurance. IC Deputy Insurance Commissioner Ferdinand George Florendo stated that based on the study conducted by the IC, the tax revenue base may increase from the present 7% to as high as 30% to 50% if taxes on insurance will Continuation… Banks and Financial Intermediaries be reduced. It means, more people will get insurance coverage if taxes and premium costs are lower, thus eventually increasing tax revenues in this sector. He added that the current taxes on micro insurance range from 25% to 27% compared to only 6-12% in other countries. Florendo was requested to provide the Committee with a copy of the said study conducted by the IC. Likewise, PIRA Chair Michael Rellosa favors a tax reduction for non-life and micro insurance premiums. He claimed that based on PIRA’s meetings with concerned government agencies, the estimated foregone revenues in case of such tax reduction may be recovered in a short span of time as more insurance transactions are created due to lower costs. Motu Proprio Inquiry Inquiry into the Reformed Compulsory Third Party Liability (CTPL) Insurance coverage for motor vehicles The Committee will deliberate further on the issues regarding the reformed CTPL insurance coverage for motor vehicles being implemented by the Land Transportation Office (LTO) . Noting the repeated absence of the LTO officials in the meetings called by the Committee despite the invitations extended to them, the Committee decided to issue them a subpoena to compel their attendance in its next meeting. One of the issues that the LTO needs to explain is the alleged P1.5 billion discrepancy in the CTPL insurance fee collection, as reported by the BIR and the LTO, vis-a-vis the number of vehicles registered in the past two years. Economic Affairs HBs 5544 & 6325 Deputy Speaker Aggabao & Rep. Del Rosario (A.) Removing/amending investment restrictions in specific laws governing adjustment companies, lending companies, financing companies and investment houses cited in the foreign investment negative list, except those in the Constitution The Committee, chaired by Rep. Anthony Del Rosario (1st District, Davao del Norte), agreed to create a technical working group (TWG) to deliberate further on HBs 5544 and 6325. Deputy Speaker Giorgidi Aggabao (4th District, Isabela), author of HB 5544, is confident that removing or reducing the limitations on foreign investments or participation in certain business activities listed in the foreign investment negative list (FINL), specifically in the areas of adjustment, lending, financing and investment, would attract more foreign direct investments into the country. (The FINL is a list of business activities or areas which foreign investors could not engage in or could not fully own.) Rep. Del Rosario, author of HB 6325, likewise underscored the need to remove or reduce such restrictions in order to comply with the country’s commitments to the ASEAN Economic Community (AEC), specifically in line with the regional economic integration agenda. 2 Continuation… Economic Affairs Bangko Sentral ng Pilipinas (BSP) Assistant Governor Johnny Noe Ravalo said the BSP supports further liberalization of foreign companies’ ownership of domestic enterprises but still subject to the rules and regulations by the regulatory agencies. The representatives of the National Economic and Development Authority (NEDA) and the American Chamber of Commerce expressed their reservations on the inclusion of a reciprocity provision in the bills, saying that it would be difficult to implement and monitor. (Reciprocity prevents a foreign firm from participating in a particular business in the Philippines if its own country does not allow Filipinos to engage in the same business as well.) Rep. Aggabao explained that the reciprocity provision is not a new concept as it is already stipulated in existing laws governing foreign investments. Ravalo agreed with Rep. Aggabao, adding that the concept of reciprocity is also explicitly stated in the ASEAN framework. Human Rights HR 74 Rep. Colmenares Urging the Philippine Government to immediately sign and ratify the United Nations International Convention for the Protection of all Persons from Enforced Disappearances especially in the light of the growing number of victims of enforced disappearance in the country The Committee, presided by its Vice Chair Rep. Ibarra “Barry” Gutierrez III (Party-List, AKBAYAN), adopted HR 74. The Secretariat was directed to prepare the corresponding Committee Report on the resolution. HB 6024 Rep. Gutierrez Amending certain provisions of Republic Act 10368 or the law providing for reparation and recognition of victims of human rights violations during the Marcos regime, documentation of said violations, appropriating funds therefor The Committee will deliberate further on HB 6024 in its next meeting. HB 6024 seeks to extend the term of the Human Rights Victims’ Claims Board (HRVCB), which will end on May 12, 2016, for at least another year in order to give the Board sufficient time and funds to complete its work. The HRVCB is an independent and quasijudicial body attached to the Commission on Human Rights (CHR) tasked to evaluate, investigate and adjudicate applications for claims of victims of human rights violations during Martial Law which covers the period September 21, 1972 to February 25, 1986. HRVCB chair Lina Sarmiento informed the Committee that out of the 75,730 applications for reparation and/or recognition received by her office, only 11,071 or 14.61% have been processed due to lack of personnel complement and budget constraints. Sarmiento proposed an increase in the number of personnel and an increase of the budget ceiling of the Board to up to P100 million. The bill seeks to increase the budget ceiling of the HRVCB from P50 million to P75 million. 3 Continuation… Human Rights Representatives from the CHR and the Department of Justice (DOJ) expressed support for the bill. However, both emphasized that the increase in the operations budget of the HRVCB should be utilized for the benefit of the claimants and not to augment the salaries and benefits of the Board members. On the other hand, the Samahan ng mga ExDetainees Laban sa Detensyon at Aresto (SELDA) objects to the bill, particularly the provision which proposes to increase the compensation and benefits of the Board members and officers. Doing so will diminish the funds intended for claims of human rights victims, the group said. Rep. Neri Colmenares (Party-List, Bayan Muna) was amenable to the proposal of the HRVCB to increase the number of personnel in order to facilitate the processing of the claims but not to extend the term of the HRVCB. The proposed increase in the budget ceiling of the HRVCB should be discussed during the deliberations on the national budget by the Committee on Appropriations. The resource persons present were asked to submit to the Committee their respective position papers on the bill. InterParliamentary Relations and Diplomacy HR 2535 Speaker Belmonte Establishing the Philippines-Indonesia Parliamentarians’ Friendship Group The Committee, chaired by Rep. Raul Del Mar (1st District, Cebu City), adopted HR 2535 subject to amendment. The establishment of a friendship group between the legislative bodies of the Philippines and Indonesia will further enhance political cooperation and parliamentary alliances. COMMITTEE Public Order and Safety (Technical Working Group TECHNICAL WORKING GROUP MEETINGS MEASURES SUBJECT MATTER PRINCIPAL NO. AUTHOR Draft Reps. AglipayStrengthening the private security industry, Substitute Villar, Escudero repealing for the purpose Republic Act No. Bill to HBs & Briones 5487 or the law regulating the organization 123, 1731 & and operation of private detective, 2722 watchmen or security guard agencies, as amended ACTION TAKEN/ DISCUSSION The technical working group (TWG), presided by its Vice Chair Rep. Romeo Acop (2nd District, Antipolo City), will deliberate further on the draft substitute bill in its next meeting. Rep. Evelina Escudero (1st District, Sorsogon) inquired about the maximum number of working hours per day per worker allowed by law, noting that some security guards are required to work for 12 straight hours daily and even up to 24 consecutive hours. Citing the provisions of the Labor Code, lawyer Benjo Santos Benavidez of the Bureau of Labor Relations of the Department of Labor and Employment (DOLE) said the law provides for an 8-hour work per day and any excess shall be considered an overtime work subject to overtime pay. 4 Continuation… Public Order and Safety (Technical Working Group Retired General Angel Quizon of the Laging Handa Security Agency disclosed that sometimes, legitimate security agencies give in to their clients’ demand to let security guards work for 12 hours but without overtime pay. He explained that if the agencies do not accede to their clients’ requirement, the latter can just turn to fly-by-night security agencies which offer much lower contract costs. Quizon appealed to the DOLE to intervene and stop these illegal labor practices in the security business. Asked to comment on Section 9 (Administrative Fee of Private Security Agencies) of the bill, Benavidez said the administrative fee should not be more than 20% of the total contract price, and not less than 20% as espoused in the bill. P/CSupt. Noel Constantino, officer-in-charge of the Supervisory Office for Security and Investigation Agencies (SOSIA) of the Philippine National Police (PNP), proposed that the minimum number of security personnel for every security agency, to be given a license to operate, be reduced to 50 (instead of the proposed 100). He added that security personnel assigned to guard banks and armored vehicles may be issued up to two firearms per guard. Constantino also suggested that graduates of criminology opting to work as private investigators should first secure a license from the SOSIA-PNP. On the contrary, Ramil Gabao, Chair of the Board of Criminology of the Philippine Regulation Commission (PRC), argued that criminology graduates who passed the licensure examination for criminology given by the PRC no longer need to get a license from the SOSIA-PNP as a prerequisite for working as private investigator. Rep. Acop requested the Secretariat to seek the opinion of the Department of Justice (DOJ) and the Office of the Solicitor-General (OSG) on this matter. Special Committee on Southern Tagalog Development (Technical Working Group) Draft Substitute Bill to HBs 5623 & 3741 Reps. Lanete & Suarez Mandating the construction of additional expressways leading to Southern Luzon The technical working group, chaired by Rep. Scott Davies Lanete (3rd District, Masbate), concluded its deliberation on the draft substitute bill. The draft substitute bill will be submitted to the mother Committee for consideration and approval. Among the points agreed upon by the TWG are: The Quezon-Bicol Expressway (QuBE) shall link the regions of Quezon and Bicol 5 Continuation… Special Committee on Southern Tagalog Development (Technical Working Group) starting from Malicboy, Quezon and terminating at the Province of Sorsogon in Bicol. It will be financed, constructed, operated and maintained by a consortium under the Build-Operate-Transfer (BOT) Law. (Section 3 - Establishment of Expressways) The Department of Public Works and Highways (DPWH) shall be the lead implementing agency for this project (Section 4); The amount necessary to defray the cost of undertaking and completing the feasibility study for this project shall be charged against the current appropriations of the DPWH. Thereafter, such sums may be included in the annual General Appropriations Act. (Section 7Appropriations) DPWH project manager Noel Berina, Department of Transportation and Communications (DOTC) legal officer Erwin Cabantug, South Luzon Tollway Corporation (SLTC) manager Thelma Mahinay, and Toll Regulatory Board (TRB) consultant Alberto Suansing all manifested their support for the bill. Comments, suggestions and requests for copies may be sent to the Editorial Unit, Committee Administrative Support Service, 3rd Floor, Ramon V. Mitra, Jr. Bldg., Batasan Complex, Constitution Hills, Quezon City. Tel. Nos. 9326118; 9315001 local 7122. Also available at http://www.congress.gov.ph 6
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