and ordinances with respect to the manufacture and distribution of tobacco products.

The report shall contain pertinent information on the methods, goals and implementation program of said manufacturers with respect to the requirements of this Act.

PENAL PROVISIONS

Section 32 Penalties. ? The following penalties shall apply:

a. Violation of Sections 5 and 6. - On the first offense, a fine of not less than five hundred pesos (Php500.00) but not more than one thousand pesos (Php1,000.00) shall be imposed.

On the second offense, a fine of not less than one thousand pesos (PhP1,000.00) but not more than five thousand pesos (PhP5,000.00) shall be imposed.

On the third offense, in addition to a fine of not less than five thousand pesos (PhP5,000.00) but not more than ten thousand pesos (PhP10,000.00), the business permits and licenses to operate shall be cancelled or revoked.

b. Violation of Sections 7, 8, 9, 10, and 11. ? On the first offense, any person or any business entity or establishment selling to, distributing or purchasing a cigarette or any other tobacco products for a minor shall be fined the amount of not less than five thousand pesos (PhP5,000.00) or an imprisonment of not more than thirty (30) days, upon the discretion of the court. For succeeding offenses, both penalties shall apply in addition to the revocation of business licenses or permits in the case of a business entity or establishment.

If the violation is by an establishment of business entity, the owner, president, manager, or the most senior officers thereof shall be held liable for the offense.

If a minor is caught selling, buying or smoking cigarettes or any other tobacco products, the provisions of Article 189 of Presidential Decree No. 603 otherwise known as The Child and Youth Welfare Code, as amended, shall apply.

c. Violation of Sections 13 to 27. - On the first offense, a fine of not more than one hundred thousand pesos (PhP100,000.00) or imprisonment of not more than one (1) year, or both, at the discretion of the court shall be imposed.

On the second offense, a fine of two hundred thousand pesos (PhP200,000.00) or imprisonment of not more than two (2) years, or both, at the discretion of the court shall be imposed.

On the third offense, in addition to a fine of not more than four hundred thousand pesos (PhP400,000.00) or imprisonment of not more than three (3) years, or both, at the discretion of the court, the business permits and licenses, in the case of a business entity or establishment, shall be revoked or cancelled.

In the case of a business entity or establishment, the owner, president, manager or officials thereof shall be liable.

If the guilty officer is an alien, he shall summarily be deported after serving his sentence, and shall be forever barred from re-entering the Philippines.

PROGRAMS AND PROJECTS

Section. 33. Programs and Projects. ? For a period not exceeding five (5) years, the National Government and the concerned departments and agencies shall provide the following programs and projects:

a. Tobacco Growers’ Assistance Program ? This program shall be utilized to support financially the tobacco farmers who may be displaced due to the implementation of this Act or has voluntarily ceased to produce tobacco. To avail of this program, a beneficiary shall present convincing and substantial evidence that:

1) He or she has been a tobacco farmer for the last three (3) years prior to January 1, 2004;

2) He or she belongs to the tobacco ? producing provinces;

3) He or she has a certificate of eligibility to apply issued by the Local Government Unit and the National Tobacco Administration, and

4) He or she has ceased to plant tobacco for the next preceding season after the enactment of this Act.

b. Tobacco Growers’ Cooperative. ? This program shall promote cooperative programs to assist tobacco farmers in developing alternative farming systems, plant alternative crops and other livelihood projects. The requirements of subsection a) shall likewise apply.

c. National Smoking Cessation Program. ? A National Smoking Cessation Program shall be undertaken with the approval of the IAC-Tobacco. The implementing rules and guidelines to reinforce this program shall be submitted to the IAC-Tobacco by the Secretary of Health within three (3) months after the effectivity of this Act.

d. Research and Development Program. ? The IAC-Tobacco shall establish a research and development program to be spearheaded by the National Tobacco Administration in cooperation with the Department of Science and Technology, which will undertake studies concerning technologies and methods to reduce the risk of dependence and injury from tobacco product usage and exposure, alternative uses of tobacco and similar research programs.

e. National Tobacco-Free Public Education Program. ? State Universities and Colleges and Technical and Vocational Schools shall provide scholarship programs for dependents of tobacco growers for which the administrator of the NTA shall provide implementing rules and guidelines. The guidelines shall be submitted to the IAC-Tobacco within three (3) months after the effectivity of this Act.

f. Displaced Cigarette Factory Workers’ Assistance Program. ? The Secretary of Labor and Employment, with the concurrence of the IAC-Tobacco shall establish a program to assist displaced, terminated/separated or retrenched cigarette factory workers as a result of the enactment of this Act. The Secretary of Labor in coordination with the NTA and DTI shall provide the rules and guidelines to effectuate this program and submit the same to the IAC-Tobacco within three (3) months after the effectivity of this Act.

g. Health Programs. ? The IAC-Tobacco, in consultation with the DOH, shall be responsible for awarding grants to all medical institutions for the purpose of planning, carrying out, and evaluating activities related to smoking-related illnesses. The IAC-Tobacco shall submit to Congress and the President the annual report of expenditures related to this program.

h. Withdrawal Clinics. ? The DOH shall establish smoking withdrawal clinics to provide counseling regarding the hazardous health effects of tobacco/cigarette smoking and to rehabilitate smokers from the hazardous effects of such products.

If a smoker-minor voluntarily submits himself for treatment, counseling, or rehabilitation in a smoking withdrawal clinic located in any medical institution in the

Philippines, or through his parent/guardian, the expenses incurred shall be a reimbursable outpatient service of the Philippine Health Insurance Corporation.

INFORMATION PROGRAM

Section 34. Information Drive. ? Consistent with the provisions of this Act, the DOH shall, in cooperation with the DepEd and with the assistance of the Philippine Information Agency (PIA), undertake a continuous information program on the harmful effects of smoking.

The DOH shall enlist the active participation of the public and private sectors in the national effort to discourage the unhealthy habit of smoking.

Section 35. Instruction on the Hazardous Effect of Smoking as Part of School Curricula. ? Instruction on the adverse effects of cigarette/tobacco smoking, including their health, environmental and economic implications, shall be integrated into the existing curricula of all public and private elementary and high schools.

The DepEd Secretary shall promulgate such rules and regulations as may be necessary to carry out the abovestated policy hereof, and, with the assistance of the Secretary of Health, and with the approval of the IAC-Tobacco, shall cause the publication and distribution of materials on the unhealthy effects of smoking to students and the general public.

MISCELLANEOUS PROVISIONS

Section 36. Congressional Oversight Committee on Tobacco ? A Congressional Oversight Committee on Tobacco (COC-Tobacco) is hereby constituted which is mandated to monitor and review the implementation of this Act for a period not exceeding three (3) years. The COC-Tobacco shall be composed of the Chairpersons of the Senate Committees on Health, Trade and Commerce, Agriculture and Public Information and the House of Representatives Committees on Trade and Industry, Health, Public Information and Agriculture and a Member of the House of Representatives representing the tobacco producing provinces, to be nominated by all the Members of the House of Representatives from tobacco producing districts.

The Secretariat of the COC-Tobacco shall be drawn from the existing secretariat personnel of the standing committees comprising the Congressional Oversight Committee and its funding requirements shall be charged against the

appropriations of both the House of Representatives and the Senate of the Philippines.

Section 37. Implementing Rules. ? The IAC-Tobacco shall promulgate such rules and regulations necessary for the effective implementation of this Act within six (6) months from the date of publication of this Act. The said rules and regulations shall be submitted to the COC-Tobacco for its review. The COC-Tobacco shall approve the implementing rules and regulations within thirty (30) working days of receipt thereof: Provided, That in the event the implementing rules and regulations are not promulgated within the specified period, the specific provisions of this Act shall immediately be executory.

Section 38. Appropriations. - The amount necessary to implement the provisions of this Act shall be charged against the current year’s appropriations of the concerned national government agencies. Thereafter, such funds as may be necessary for the continued implementation of this Act shall be included in the budgets of the concerned national government agencies under the annual General Appropriations Act.

Section 39. Repealing Clause. ? DOH Administrative Orders No. 10 s. 1993 and No. 24 s. 2003 are hereby repealed. Article 94 of Republic Act No. 7394, as amended, otherwise known as the Consumer Act of the Philippines, is hereby amended.

All other laws, decrees, ordinances, administrative orders, rules and regulations, or any part thereof, which are inconsistent with this Act are likewise repealed or amended accordingly.

Section 40. Separability Clause. ? Should any provision of this Act be subsequently declared unconstitutional, the other provisions not so declared shall remain in full force and effect.

Section 41. Effectivity. ? This Act shall take effect fifteen (15) days after its publication in the Official Gazette and at least two (2) newspapers of national circulation.

Approved,