Rights Protection for Indigenous Peoples

State policy and crisis response

Section 2 declares State policy to adopt urgent and effective measures to address the nationwide water crisis adversely affecting health and well-being, food production, and industrialization.
Section 2 requires government action to address water-crisis issues including supply, distribution, finance, and privatization of state-run water facilities.
Section 2 mandates action on protection and conservation of watersheds and on waste and pilferage of water.
Section 2 specifically targets the serious matter of graft and corruption in all the water agencies.

Joint Executive-Legislative Commission

Section 3 requires the organization of a Joint Executive-Legislative Water Crisis Commission within thirty (30) days after the effectivity of Republic Act No. 8041.
Section 3 makes the Commission chaired by the Executive Secretary, with members including:
- the Secretary of the Department of Public Works and Highways,
- the Secretary of the Department of Environment and Natural Resources, and
- the designated chairmen of the appropriate Senate and House committees, plus a representative of the minority from each House.
Section 3 requires a technical staff constituted by representatives of the National Water Resources Board (NWRB), MWSS, LWUA, appropriate Senate and House committees, and the certified workers’ union in affected water institutions.

Purposes and objectives of Commission

Section 4 requires the Commission to undertake nationwide consultations on the water crisis and in-depth and detailed study and review of the entire water supply and distribution structure.
Section 4 directs the Commission to enhance and facilitate cooperation and coordination between Congress and the executive department in formulating and implementing water-crisis management policy and strategy.
Section 4 requires the Commission to recommend measures ensuring continuous and effective monitoring of the country’s water supply and distribution system.
Section 4 requires continuing studies and research on policy options and strategies, including experiences of other similarly situated countries, and requires recommendations of remedial and legislative measures needed to address the problem.

Commission powers and designated watershed suspension

Section 5 authorizes the Commission to secure from any department, bureau, office, agency, or instrumentality of government the assistance it needs, including technical information, preparation/production of reports, and submission of recommendations or plans.
Section 5 authorizes the Commission to designate by resolution the watershed areas where developmental undertakings are to be suspended.
Section 5 grants the Commission authority to exercise all powers necessary, relevant, and incidental to attain the purposes and objectives for which it is organized.

Negotiated contracts for water projects

Section 6 allows the President to enter into negotiated contracts for water projects under Build-Operate-Transfer (BOT) and/or related schemes for a period of one (1) year from the effectivity of Republic Act No. 8041.
Section 6 limits negotiated contracts to financing, construction, repair, rehabilitation, improvement, and operation of water facilities and projects to increase water supply, including treatment and distribution to industrial and household consumers.
Section 6 prohibits government financing or financing guarantee for the contracts, except for acquisition of right-of-way.
Section 6 requires contracts to be awarded only to contractors with proven competence and experience in similar projects, competent key personnel, efficient and reliable equipment, and sound financial capacity.

Reorganization of MWSS and LWUA

Section 7 empowers the President, within six (6) months from approval, to revamp executive leadership and reorganize the MWSS and the LWUA.
Section 7 permits privatization of any or all segments of these agencies, their operations, or facilities if necessary to make them more effective and innovative to address the looming water crisis.
Section 7 authorizes abolishing or creating offices, transferring functions, equipment, properties, records, and personnel, and instituting drastic cost-cutting and other measures to carry out the objectives.
Section 7 states that Republic Act No. 7430 (Attrition Law) prescriptions shall not apply to the implementation of this reorganization.
Section 7 prohibits diminution of the present salaries and benefits of MWSS and LWUA personnel.
Section 7 entitles any phased-out official or employee, due to reorganization, to benefits determined by existing laws.
Section 7 allows the President to upgrade compensation at rates commensurate to improved and efficient revenue collection as determined by the Board of Trustees, exempt from Republic Act No. 6750 (Salary Standardization Law).
Section 7 conditions the compensation exemption on a reduction of non-revenue water to forty percent (40%) and on approval by the respective Boards of Trustees of MWSS and LWUA of their budgets.

Anti-pilferage prohibitions

Section 8 declares unlawful any person who:
- destroys, damages, or interferes with specified water-utility structures and appurtenances, whether the entity is public or private;
- does any malicious act that injuriously affects quantity or quality of water or sewage flow, or interferes with supply, conveyance, measurement, or regulation of water or sewage, including preventing or interfering with authorized persons performing related duties;
- prevents, obstructs, or interferes with survey, works, and construction of access roads, water mains, distribution network, and related works;
- taps, makes, or causes to be made any connection with water lines without prior authority or consent from the concerned water utility;
- tampers, installs, or uses tampered water meters or devices (including sticks, magnets, reversing water meters, shortening vane wheels and other devices) to steal water, interfere with accurate registry or metering, or divert water in a manner that results in stealing or wasting;
- uses or receives direct benefit of water service with knowledge that diversion, tampering, or illegal connection existed at the time of use, or that the use or receipt was otherwise without authorization;
- steals or pilfers water meters, main lines, pipes, and related or ancillary facilities; and
- steals water for profit or resale.
Section 8 also prohibits knowingly possessing stolen or tampered water meters and knowingly or willfully allowing the occurrence of any of the above.
Section 8 covers acts affecting both water supply and sewerage systems and includes interference with authorized duties connected with supply and measurement.

Prima facie evidence and tenant limitation

Section 9 provides that specified circumstances constitute prima facie evidence of theft, pilferage, or of any unlawful acts enumerated in Section 8.
Section 9 lists circumstances that create prima facie evidence, including illegal/unauthorized tapping; illegal connections such as reversed meter/bypasses/shortened vane wheel; bored holes in meter covers or parts of the meter; tampered or fake seals; reversed meter insertion devices (rod/wire/stick) and alterations; destruction of meter protection and accessories; and abnormal imprints, traces, or marks in the meter assembly.
Section 9 requires inspection of tampered water meters in the presence of the registered water consumer.
Section 9 states that prima facie does not apply to tenants who have occupied the house or dwelling for ninety (90) days or less.

Aggravating circumstances

Section 10 provides that the following are special aggravating circumstances:
- commission in conspiracy with at least another person, with both considered principals;
- commission by, or in connivance with, a private plumber, officer, or employee of the water utility concerned, who are all considered principals; and
- commission coupled with sale from a source that is illegal, unregistered, unauthorized, or has a tampered meter.

Disconnection authority and criminal penalties

Section 11 authorizes the water utility concerned to disconnect water services five (5) days after service of written notice, except on Sundays and holidays, without need of a court or administrative order, and to deny restoration when prima facie evidence of theft or pilferage is established under Section 8.
Section 11 requires issuance of notice even upon discovery for the first time of the presence of any circumstances enumerated in Section 8.
Section 11 requires that water service must not be disconnected, or must be immediately restored, upon deposit by the person concerned of the difference in billing made by the water utility.
Section 11 provides that the deposit is credited against future billings with legal interest when the alleged theft, pilferage, or current diversion has not been committed, without prejudice to indemnification for damages under the Civil Code and other existing laws.
Section 11 requires a written notice of seventy-two (72) hours to effect disconnection upon the discovery for the second time of any circumstances enumerated in Section 8.
Section 11 imposes criminal punishment for violation of Section 8: imprisonment of six (6) months to two (2) years and a fine not exceeding double the amount of the value of the water stolen or the value of the damaged facilities.
Section 11 increases liability where the offender is assisted by a plumber, officer, or employee of the water utility concerned: the employee/officer/plumber is punished by imprisonment of two (2) years to six (6) years.
Section 11 imposes higher penalty where water is stolen for profit or resale: imprisonment of six (6) to twelve (12) years for the offender.
Section 11 provides that if the offender is a juridical person, the penalty is imposed on the chairman, president, general manager, administrator, and the officers who knowingly permitted, or are otherwise responsible for, commission of the offense.

Implementing guidelines, reporting, sunset

Section 12 requires the Commission, within one (1) month from its organization, to cause the issuance of guidelines, implementing rules, and regulations necessary to carry out Republic Act No. 8041.
Section 13 requires the Commission to submit a quarterly report to the President and to Congress on implementation of Republic Act No. 8041.
Section 14 requires the Commission to complete its report and submit its recommendation to the President and Congress within six (6) months after formal organization, after which it ceases functus officio.

Separability, repeals, effectivity

Section 15 provides separability: if any provision is declared unconstitutional or invalid, the remaining parts not affected continue in full force and effect.
Section 16 provides repealing/modification: all laws, decrees, orders, rules, and regulations, or portions thereof, inconsistent with Republic Act No. 8041 are repealed or modified accordingly.
Section 17 provides effectivity fifteen (15) days after publication in at least two (2) national newspapers of general circulation or in the Official Gazette.