Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regular s

HOUSE BILL NO,

INTRODUCED BY CONGRESSMAN ALFRED VARGAS

EXPLANATORY NOTE

Article XII Section 14 of the 1987 Philippine Constitution provides that sustained
development of a reservoir of Filipino entrepreneurs and managers shall be promoted by the
State

‘The Philippines is an entrepreneurial country. Slowly, entrepreneurship is becoming the
backbone of the country’s economy. Small and medium-sized enterprises (SMEs) comprise
around 99% of the establishments in the country and provide 66% of total employment in the
private sector. However, a number of problems continue to hold back Filipinos from realizing
their entrepreneurial aptitude. Among these challenges include lack of adequate knowledge on
financial management, high cost of doing business, lack of access to finance and market
information, and low productivity and competitiveness due to the lack of economic capacity.

Recognizing these caveats, this Representation championed the passage of Republic Act
10679, otherwise known as the "Youth Entrepreneurship Act” in the 16% Congress. This intends
to address the low level of entrepreneurial and financial skills among young Filipinos through
the delivery of highly relevant programs to our students. Now, this Representation seeks to
establish a financial literacy and entrepreneurship education program for Filipino workers to
them to generate more income and ultimately lead a life of economic and financial

empow
freedom,

This bill mandates the Department of Labor and Employment to provide assistance, in
the form of grants or loans, to deserving working entrepreneurs to enable them to launch their
‘own small or medium enterprises. The Department is also directed to offer grants and loans to
eligible entities that will provide financial literacy and entrepreneurship programs to workers.

In view of the foregoing, the passage of this measure is earnestly sought.

‘ALFRED VARGAS


Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regula

Session

13

4
HOUSE BILL NO.

INTRODUCED BY CONGRESSMAN ALFRED VARGAS

AN ACT
PROVIDING FINANCIAL LITERACY AND ENTREPRENEURSHIP PROGRAMS FOR WORKERS

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the “Financial Literacy for Workers
Act of 2019."

SEC. 2. Definition of Terms. - For purposes of this Act, the following terms are hereby
defined:

(A) Eligible entity refers to the employer;

(8) Working entrepreneurs refers to individuals who are employed and engaged in the
operations and /or management of a micro, small or medium enterprise;

(C} Department means the Department of Labor and Employment;

(D) Secretary means the Secretary of Labor and Employment

SEC. 3. Grants and Loans. - The Secretary shall award grants and loans, on a competitive
basis, to eligible entities to enable such entities to provide financial literacy and
entrepreneurship programs to workers. The Secretary may make available to deserving working
entrepreneurs, assistance in the form of grants or loans, to provide for the initial launch of their
small or medium enterprises

SEC. 4, Application, ~ An eligible entity and working entrepreneur that desires to receive
grant and loan under this section shall submit an application to the Secretary accompanied by
itemized budget and other data as the Secretary may oblige.

SEC. 5 Appropriations, The amount necessary for the initial implementation of this Act
shall be sourced from the current budgets and development funds of the Department of Labor
and Employment, Thereafter, the funds necessary for the continuous implementation of this Act
in the ensuing years shall be included in the respective annual appropriations of Department in
the General Appropriations Act


SEC, 6 Implementing Rules and Regulations. The Department of Labor and
Employment, in consultation with relevant stakeholders shall issue within sixty (60) days after
the effectivity of this Act, the rules and regulations for the effective implementation of this Act.

SEC. 7. Separability Clause. If any provision of this Act or any part thereof shall be
declared unconstitutional or invalid, the other provisions, as far as they are separable, shall
remain in force and effect.

SEC. 8. Repealing Clause. All laws, decrees, orders, rules and regulations or thereof
which are inconsistent with the provisions of this Act are hereby repealed, amended or modified
accordingly.

SEC. 22. Effectivity. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in at least two (2) newspapers of general circulation

Approved.