Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

House sriino,__ 4509

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

Republic Act No. 10121, otherwise known as “An Act Strengthening
the Philippine Disaster Risk Reduction And Management System, Providing
For Thé National Disaster Risk Reduction And Management Framework And
Institutionalizing The National Disaster Risk Reduction and Management
Pian, Appropriating Funds and For Other Purposes,” the Local Disaster Risk
Reduction and Management Fund (LDRRMF) is composed of “not less than
(5%) of the estimated revenue from regular sources” and “of the amount
appropriated for LDRRMF, thirty percent (30%) shall be allocated as Quick
Response Fund or stand-by relief and recovery programs in order that
situation and living conditions of people in communities or areas stricken by
disasters, calamities, epidemics, or complex emergencies, may be
normalized as quickly as possible’.

In the event of a disaster, calamity epidemic or complex emergency,
the Quick Response Fund is the first fund that is depleted and often, found
insufficient. This legislative measure therefore seeks to provide for a
Solidarity Fund of the Local Government Units (LGUs) which will serve as a
second layer of Quick Response Fund. The Solidarity Fund shall be taken
from a portion of the LORRMF of the LGUs and will serve to augment the
funds available to LGUs to address their disaster response and recovery
needs. The Solidarity Fund may also be used to pay premiums for securing
catastrophic insurance for the public infrastructure of the LGUs.

In view of the foregoing, the immediate enactment of this measure Is
eamestly sought. -

Rep. JOSEPH VICTOR G. EJERCITO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILE NO. = 4600

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

AN ACT ESTABLISHING THE SOLIDARITY FUND OF THE LOCAL
GOVERNMENT UNITS FOR DISASTER RESPONSE AND RECOVERY

Be_enacted by the Senate and the House of Representatives of the
Philippines in Conaress assembied:

SECTION 1. Short Title - This Act shall be known as the Local
Government Units (LGU) Solldarity Fund for Disaster Response and Recovery
Act.

SECTION 2. Decfaration of Policy — It is the declared policy of the
State to increase local capacity to bulld disaster resilience of communities
and to strengthen institutional mechanisms for the reduction of disaster risks
and enhancement of preparedness and response capabilities at ail levels,

SECTION 3. Solidarity Fund - A Solidarity Fund will be held as a
trust account in a government bank. Disbursement from said fund will be
subject to the Issuance of a release order of the supervisory board.

The Supervisory Board shall be composed of the following: Secretary
of the Department of Interior and Local Government, and representatives
from the following; Union of Local Authorities of the Philippines, League of
Provinces of the Philippines, League of Cities of the Phillppines, League of
Municipalities of the Philippines and the Liga ng mga Barangay. They shall
serve in an ex-officio capacity.

SECTION 4. Source of the Solidarity Fund - All Local Government
Units are hereby mandated to contribute point five percent (0.5%) of thelr
total revenues taken from the Local Disaster Risk Reduction and
Management Fund (LORRMF) other than the amount set aside for the quick
response fund,

Provided that an LGU who availed of the Solidarity Fund shall
contribute one percent (1%) of their LORRMF for the next year;

Provided further, that the LGU shall revert to the point five percent
{0.5%) contribution if it did not avail of the solidarity fund for the previous
year.


SECTION 5. Availment of the Solidarity Fund - In the event of a
disaster, any affected LGU can avail of the Solidarity Fund upon submission
of the following: focal Resolution dectaring a State of Calamity and
Certificate of Exhaustion of the Quick Response Fund,

The maximum payout arising out of any single disaster is 100 times of
the LGU contribution to be released In two equal tranches. The second
tranche shall be released only upon full liquidation of the first tranche
released.

The maximum release shall not exceed 75% of the total solidarity
fund. If the total claims arising out of a single disaster should exceed 75% of
the total Solidarity Fund, the pay-out shall be pro-rated amongst the
claimants.

SECTION 6. Insurance Premiums - The Solidarity Fund may be
used to pay premiums for securing catastrophic insurance for public
Infrastructures of LGUs.

SECTION 7. Use of Fund - The Solidarity Fund shall be used
exclusively for disaster response and recoveries for LGUs and the payment
of catastrophic insurance premiums,

SECTION 8. Separability Cause — Should any section or provision of
this Act shal! be heid unconstitutional or invalid, such declaration shall not
invalidate other provisions thereof.

SECTION 9. Repealing Clause — All laws, decrees, executive orders,
prociamations, rules and regulations inconsistent herewith are hereby
repealed and/or modified accordingly.

SECTION 10. Effectivity - This Act shall take effect fifteen (15) days

following its publication In the Official Gazette in two (2) newspapers of
general circulation.

Approved,