REPUBLIC OF THE PHILIPPINES SECEIVED \

HOUSE OF REPRESENTATIVES ic WUL_1 0 ang: &

Quezon City “HE iar ae |
EIGHTEENTH CONGRESS , ae

First Regular Session

House Bill No. _ 1964

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN II

EXPLANATORY NOTE

Economic growth hardly made a dent in poverty incidence in the Philippines, as the
percentage of Filipinos living below the poverty line remained practically the same in the
recent years. Reports have also shown that over half a million school-aged children
nationwide have been suffering from severe malnutrition. With Filipino children literally
dying from extreme poverty, hunger and malnutrition, the future of the Philippines is clearly
in grave peril

The passage of Republic Act 84253 otherwise known as the "Social Reform and Poverty
Alleviation Act” is a step towards the right direction. However, considering the fact that the
said law is actually focused on social reform and long-term development, the National Anti-
Poverty Commission (NAPC), which was created as a coordinating body under the law, is
apparently not equipped to immediately address the problem. Indeed, it is not enough that we
adopt a long-term strategy to combat child malnutrition and extreme poverty. In the long-run,
many of these children will be dead. Hence, there is a necessity for the government to provide
swift response on this problem.

This bill aims to provide significant and continuing intervention of the government by
providing budget annually to fund school and community-based supplemental feeding
programs and related poverty alleviation efforts using the minimum basic needs (MBN)
approach among the poorest of the poor communities in the country. It is expected that
through this measure, billions of pesos will be generated to help ameliorate, if not totally put
a stop, to the prevalence of child malnutrition in the country.

The immediate passage of this bill is, therefore, earnestly sought.

Ho

MANU }GABOCHAN IL

Representath
Magdalo Para sa Pilipino Party-List



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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No; __1964

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN Il

AN ACT
CREATING A SPECIAL POVERTY ALLEVIATION FUND TO BE USED TO
FINANCE SCHOOL AND COMMUNITY-BASED SUPPLEMENTAL FEEDING
PROGRAMS AND RELATED POVERTY ALLEVIATION EFFORTS USING THE
MINIMUM BASIC NEEDS (MBN) APPROACH IN THE POOREST OF THE POOR
COMMUNITIES IN THE COUNTRY AND FOR OTHER RELATED PURPOSES

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

SECTION 1. Short Title. - This law shall be known as the "Poverty Alleviation
Fund".

SEC. 2. Declaration of Policy. - It is the policy of the State to promote a just and
dynamic social order that will ensure the prosperity and independence of the nation and free
the people from poverty through policies that provide adequate social services, promote full
employment, a rising standard of living, and an improved quality of life for all.

‘Towards this end and to help combat the growing problem of malnutrition, hunger
and abject poverty particularly among children, the Government shall institute a systematic
and well-studied direct intervention program by conducting sustained supplemental feeding,
targeting school children, out-of-school youth and children of pre-schooling age as well as
related poverty-alleviation efforts using the basic human needs approach, particularly among
those belonging to the poorest of the poor or the lowest twenty percent (20%) of Philippine
social strata in terms of income and resources.

SEC. 3. Creation of a Special Poverty Alleviation Fund. - There is hereby created a
Special Poverty Alleviation Fund ("Fund") to be funded from the sources provided herein
below and to be managed and administered by the National Anti-Poverty Commission
(NAPC) under a Program to be implemented by the Department of Social Welfare and
Development (DSWD).


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SEC. 4. Sources of the Fund. - The Fund shall be constituted from the following
sources:

(a) Ten percent (10%) share from the net income of the Philippine Games and
Amusement Corporation (PAGCOR), to be given and delivered by PAGCOR to
the NAPC on a quarterly basis, no later than ninety (90) days after the end of each
quarter, subject to final accounting and/or adjustments at the end of each calendar
year,

(b) Ten percent (10%) share from the net income of the Philippine Charity
Sweepstakes Office (PCSO), to be given and delivered by PAGCOR to the NAPC
on a quarterly basis, no later than ninety (90) days afier the end of each quarter,
subject to final accounting and/or adjustments at the end of each calendar year;
and

(©) Ten percent (10%) share from the net profits of all Duty Free Shops (DFS) or, in
case of the privatization of the DFS, twenty percent (25%) of the proceeds of
privatization of DFS plus fifty percent (50%) of the franchise tax collected
thereon.

‘The Department of Finance, through its appropriate agencies, is hereby mandated to
ensure the proper collection of the shares and/or charges intended for the Fund from the
sources provided herein and (o tum-over the same quarterly to the NAPC through the DSWD.

SEC. 5. Authorized Use of the Fund; The Program - The Fund shall principally be
used to finance the National Supplemental Feeding and Poverty Alleviation Program
("Program"), The Program shall provide for the generation of an annual listing of priority or
target schools, communities, barangays and/or other localities where the Government shall
undertake direct feeding and/or supplemental feeding activities on a sustained basis targeting
school children, out-of-school youth and children of pre-school ages who belong to the
poorest of the poor or the lowest twenty percent (20%) of the Philippine social strata in terms
of income or financial resources. The Program shall also incorporate other poverty-alleviation
efforts using the Minimum Basic Needs (MBN) approach targeted at poor communities.

The Program shall be prepared by the DSWD for the approval of the NAPC. The
Program shall likewise be implemented by the DSWD.

In connection with the foregoing, subject to the approval of NAPC, the DSWD shall:
(a) Devise and formulate plans, strategies and programs to carry out effectively and

efficiently the disposition of the Fund in accordance with declared purpose
thereof,


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(b) Direct the management, operations and administration of the Fund;

(c) Authorize expenditures of the Fund as are in accordance with the purpose for
which it was set up; and

(d) Exercise such other powers as may be necessary to accomplish the purpose for
which the Fund was created.

SEC. 6. Limitations. ‘The Fund shall not be used for any purpose other than to
finance the feeding and/or supplemental feeding program of the Government, as prepared by
the DSWD and approved by the NAPC. Moreover, no more than three percent (3%) of the
proceeds of the Fund may be used for administrative purposes.

SEC. 7. Administration and Control of the Fund.- The Fund shall be under the
control of the DSWD, which shall administer the same in accordance with the above stated
powers, functions and limitations.

SEC. 8. Investment of the Fund. - Any portion of the Fund not otherwise disposed of
as provided for in this Act shall be invested in government securities and such other high-
yielding securities as determined by the DSWD, upon approval of the NAPC. The earnings
therefrom shall accrue to the Fund.

SEC, 9. Audit.- The Chairman of the Commission on Audit (COA) shall act as the ex-
officio auditor of the Fund.

SEC. 10, Annual Report. - The Secretary of the DSWD shall submit, within fifteen
(15) working days from the opening of the regular session of Congress, to the President of the
Philippines as NAPC Chair and to the Presiding Officers of both Houses of Congress, an
annual report which shall include an account of the program, projects and detailed expenses
undertaken pursuant to this Act.

SEC. 11. Penal Clause.- Any person who fails or refuses to tum over collections of
the charges or shares mentioned in this Act within the period prescribed herein, or who
delays, obstructs or prevents the same; or who fails or refuses to effect release from the Fund,
or who obstructs, or prevents the same; or who orders, causes, or effects the transfer or
diversion of the collections of this Fund shall be punished with a fine not exceeding One
hundred thousand pesos (P 100,000.00) or imprisonment not exceeding six (6) years, or both
at the discretion of the Court. If the offender is a government official or employee, he shall, in
addition, be dismissed from the service with prejudice to reinstatement and with
disqualification for election or appointment to any public office. If the offender is a
corporation or any other juridical entity, the penalty provided herein shall be imposed on its
directors or officers who may be responsible for the violation.


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SEC. 12. Rules and Regulation.- The Secretary of the DSWD, in consultation with
the NAPC, shall promulgate the rules and regulation relating to the collection and remittance
of the revenue sources accruing to the Fund as may be necessary for the effective
implementation of this Act.

SEC. 13. Separability Clause. - The provisions of this Act are hereby declared to be
separable, and in the event that any part, section or provision of this Act is held invalid or
unconstitutional, no other part, section or provision thereof shall be affected thereby.

SEC. 14. Repealing Clause.- The pertinent provisions of the National Internal
Revenue Code, as amended, the charters of the PAGCOR and PCSO, as amended, and any
other provisions of law, decree, executive order, letter of instructions, rule or regulation or
parts thereof that are in conflict with any provisions of this Act are hereby repealed, amended
or modified accordingly.

SEC. 15. Effectivity. - This Act shall take effect fifteen (15) days following the

completion of its publication in the Official Gazette and in two (2) newspapers of general
circulation in the Philippines.

Approved,