Public Service Act

Sec 23

In the interest of national security, the President, after review, evaluation and recommendation of the relevant government department or Administrative Agency, may, within sixty (60) days from the receipt of such recommendation, suspend or prohibit any proposed merger or acquisition transaction, or any investment in a public service that effectively results in the grant of control, whether direct or indirect, to a foreigner or a foreign corporation. The Philippine Competition Commission (PCC) may be consulted on all matters relating to mergers and acquisitions. The NEDA shall promulgate rules and regulations to implement the provisions of this section.

Sec 24

Investments by an Entity Controlled by or Acting on Behalf of the Foreign Government, or Foreign State-owned Enterprises. - An entity controlled by or acting on behalf of the foreign government or foreign state-owned enterprises shall be prohibited from owning capital in any public service classified as public utility or critical infrastructure: Provided, That the prohibition shall apply only to investments made after the effectivity of this Act: Provided, further, That foreign state-owned enterprises which own capital prior to the effectivity of this law are prohibited from investing in additional capital upon the effectivity of this Act: Provided, finally, That notwithstanding the immediately preceding clause, the sovereign wealth funds and independent pensions funds of each state may collectively own up to thirty percent (30%) of the capital of such public services. In the interest of national security, an entity controlled by or acting on behalf of the foreign government or foreign-owned enterprises shall not make any date or information disclosure, nor extend assistance, support or cooperation to any foreign government, instrumentalities or agents. The NEDA shall promulgate rules and regulations to implement the provisions of this section.

Sec 25

Foreign nationals shall not be allowed to own more than fifty percent (50%) of the capital of entities engaged in the operation and management of critical infrastructure unless the country of such foreign national accords reciprocity to Philippine Nationals as may be provided by foreign law, treaty or international agreement. Reciprocity may be satisfied by according rights of similar value in other economic sectors. The NEDA shall promulgate rules and regulations for this purpose. Unless otherwise provided by law, or by any international agreement, a public service shall employ a foreign national only after the determination of non-availability of a Philippine National who is competent, able and willing to perform the services for which the foreign national is desired. Any foreign national seeking admission to the Philippines for employment purposes and any public service which desires to engage a foreign national for employment in the Philippines must obtain an employment permit pursuant to Presidential Decree No. 442, otherwise known as the "Labor Code of the Philippines", as amended. Public services employing foreign nationals issued employment permits in industries to be determined by the Department of Labor and Employment (DOLE) shall implement an understudy/skills development program to ensure the transfer of technology/skills to Filipinos, whether next-in-rank or otherwise, with the potential of succeeding the foreign national in the same establishment or its subsidiary, within a specific period as may be determined by the DOLE, upon consultation with relevant government agencies and industry experts.

Sec 26

Persons and companies engaged in the telecommunications business shall obtain and maintain certifications from an accredited certification body attesting to compliance with relevant ISO standards on information security, as prescribed by the DICT: Provided, That the maintenance of these certifications shall be a continuing qualification for retention of franchise or other authority to operate: Provided, further, That this section shall not apply to micro, small and medium enterprises under Republic Act No. 6977, otherwise known as the "Magna Carta for Micro, Small and Medium Enterprises (MSMEs)", as amended.

Sec 27

The NEDA shall conduct regular studies on whether regulatory reform is warranted in a public service sector to improve consumer welfare and to submit its recommendation to Congress. The NEDA, in coordination with the relevant government agencies and local government units, shall conduct a comprehensive baseline survey of public services governance within six (6) months from the effectivity of this Act. Copies of the results of said survey shall be furnished to the Congress, the NEDA and the PCC.

Sec 28

A Congressional Oversight Committee shall be created that will monitor and evaluate the implementation of this Act every five (5) years commencing from the effectivity of this Act. The Congressional Oversight Committee shall be composed of the Chairperson of the Senate Committee on Public Services, the Chairperson of the House of Representatives Committee on Economic Affairs, and representatives of other relevant congressional committee.

Sec 29

Administrative agencies must ensure the annual conduct of performance audit by an independent evaluation team to monitor cost, the quality of services provided to the public, and the ability of the public service provider to immediately and adequately respond to emergency cases: Provided, That in the case of critical infrastructure and public utilities, the performance audit shall include risk assessment, emergency response, and cybersecurity, among others. Metrics for various types of services must be established to sustain reliability, security, and safety of the public.

Sec 30

All Administrative Agencies under Section 3 of this Act shall, in coordination with the NEDA, promulgate rules and regulations to implement the provisions of this Act within six (6) months from the effectivity of this Act.

Sec 32

The application ad implementation of the pertinent provisions of this Act shall not impair vested rights or obligations of contracts. Current and subsisting concession agreements and other similar contracts of juridical persons with government agencies or government-owned and -controlled corporations covering activities hereunder classified as public utilities shall remain valid and in force in accordance with the existing terms and conditions the parties agreed to thereunder until the expiration or termination thereof.

Sec 33

Should any portion or provision of this Act be declared unconstitutional, the remainder of this Act or any provision not affected thereby shall remain in force and effect.

Sec 34

All laws, decrees, orders, rules and regulations, or other issuances or parts thereof, inconsistent with the provisions of this Act are hereby repealed or modified accordingly. The provisions on limitation on foreign ownership in the following laws are hereby amended or modified: (a) Republic Act No. 6957, entitled, "An Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector, and for Other Purposes", as amended; (b) Republic Act No. 9295, otherwise known as the "Domestic Shipping Development Act of 2004", as amended; (c) Republic Act No. 9497, otherwise known as the "Civil Aviation Authority Act of 2008", as amended; (d) Republic Act No. 776, otherwise known as the "The Civil Aeronautics Act of the Philippines", as amended; (e) Presidential Decree No. 1112, otherwise known as the "Toll Operation Decree", as amended; (f) Department of Transportation Department Order No. 2018-13, as amended, on the classification of the Transport Network Companies and Transportation Network Vehicles Service as public utilities; and (g) Republic Act No. 7925, otherwise known as the "Public Telecommunications Policy Act of the Philippines", as amended, on the classification of all telecommunications entities as public utilities. Nothing herein shall be construed as amending or repealing laws and administrative regulations deregulating or delisting services, industries and/or rates.

Sec 35

This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation. Approved: March 21, 2022 ________________________ Approved: November 7, 1936.

Sec 41

A substantial compliance with the requirements of this Act shall be sufficient to give effect to all the rules, orders, acts, and regulations of the Commission and they shall not be declared inoperative, illegal, or void for any omission of a technical nature in respect thereto.

Sec 42

Copies of all official documents and orders filed or deposited in the office of the Commission, certified by either of the Commissioners, or by the Secretary to be a true copy of the original, under the seal of the Commission, shall be evidence In like manner as the originals in all courts of the Philippines.

Sec 43

The Commission created under this Act shall succeed the Commission created under Act Numbered Thirty-one hundred and eight in the dispatch, hearing, and determination of all pending matters before the latter; and shall take charge of its archives, books, furniture, equipment, and other properties of whatsoever nature.

Sec 44

In addition to the sum appropriated for the former Commission under Act Numbered Forty-one hundred and thirty-two, the General Appropriation Act for nineteen hundred and thirty-six, the sum of six thousand seven hundred and sixty-eight pesos and thirty-four centavos is hereby appropriated out of any funds in the Philippine Treasury not otherwise appropriated; and in addition to the sum appropriated under Act Numbered Thirty-eight, the General Appropriation Act for nineteen hundred and thirty-seven, the sum of twenty-three thousand six hundred and ten pesos, or so much thereof as may be necessary, is hereby appropriated out of any funds in the Philippine Treasury not otherwise appropriated, for carrying out the purposes of this Act.

Sec 45

If, for any reason, any section, subsection, sentence, clause, or term of this Act is held to be constitutional, such decision shall not affect the validity of the other provisions of this Act.

Sec 46

Act Numbered Thirty-two hundred and forty seven and Act Numbered Thirty-five hundred and eighteen shall continue in force and effect; but all provisions of Act Numbered Thirty-one hundred and eight and amendments thereof, and all other acts or parts of acts inconsistent with the provisions of this Act are hereby repealed.

Sec 47

This Act shall take effect upon its approval. Other Provisions from RA No 11659