sePRESEDS

“9

SIXTEENTH CONGRESS ) CEIVED A)

REPUBLIC OF THE PHILIPPINES ) ena

FIRST REGULAR SESSION ) 29 JU i
HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. 1979

EXPLANATORY NOTE

This bill was originally co-authored by the undersigned Rufus B. Rodriguez as
House Bill No. 4374 during the 15" Congress where it was approved by the
Committee on People's Participation and substituted by House Bill No. 6713. It was
‘subsequently approved on 2™ reading, approved on 3” reading and was transmitted
to the Senate where it was not acted upon.

“LESS FOR SELF, MORE FOR COUNTRY, ABUNDANCE FOR ALL”

This is the motto that every Volunteer for Nation Building, strives to live by, as
he or she works individually and solidarily—-hand-in-hand, with other volunteers
across the country and beyond Philippine shores, as they collectively envision our
Filipino people living with dignity and in peace, in a slum-free, squatter-free, poverty-
free Philippines by the year 2024.

Building viable, sustainable and empowered communities, in the Philippines
‘embodies the faith that Filipinos will end poverty in the Philippines through: (1) public-
private partnerships; (2) simultaneous ground-up and top-down development
initiatives; (3) rich and poor working together, bridging the social gap; and (4) the
principle of the "best for the least” and preferential option for the least fortunate giving
those at the bottom of the social and economic pyramid upward aspirations to build a
broader middle-class with enlightened leadership from the Government and private
sectors.

The goal of this legislation is to encourage the private sector to be a supporter
of Government, not just its critic, to restore the faith of our citizens in our Government
institutions through collaboration and cooperation for the common good, to leverage
limited Government resources with added value from the private sector, to go beyond
partisan politics, religious and ideological differences and business rivalries, and to
build a just and prosperous nation—by making every Filipino a nation buiicer.

The 1987 Philippine Constitution is replete with provisions that promote
social-economic and poverty alleviation programs, equitable distribution of
opportunities, income and wealth to uplift the standard of living and quality of life of
all citizens, with the help of independent non-governmental people's organizations to
pursue and protect, citizens interest and welfare, within a democratic framework,
through community-based initiatives.

The Local Government Code of 1990 recognizes the critical “ole of Civil
Society Organizations (CSOs) which include Non-Government Organizations
(NGOs), Volunteer Organizations (VOs) and People's Organizations (Pos) in nation-
building, and empowers local government units (LGUs) to enter into joint ventures


and such other cooperative arrangements to engage in the delivery of certain basic
services, capacity-building and livelihood projects, and to develop local enterprises
designed to improve the productivity and income levels of Filipinos.

The United Nations Universal Declaration of Human Rights also supports the
fostering of a covenant between the State and civil society towards the protection of
the rights and the enhancement of human dignity, by diffusing wealth and political
power and reducing or removing economic, social and cultural injustices and barriers
for the common good.

In the Philippines, Gawad Kalinga or GK, has trail blazed the socio-economic-
political frontiers of Philippine society by employing a unique tool for change calle 4
"Social Engineering’, which exemplifies the “Bayanihan” spirit of “volunteerism”
coupled with “caring” or kalinga. “Bayanihan” and “kalinga’ are indigenous Filipino
practicesitraits that can be traced to our pre-colonial forefathers. The Bayanihan spirit
evokes of local heroism and patriotism, in the midst of the Filipino peopie’s struggle
to fight poverty and other social inequities.

GK’'s trademark is its capacity to mobilize multi-sectoral initiatives from the
ground, by marshaling its “capital resources” of: TRUST equity, SWEAT equity, plus
its sterling record of RESPECT and INTEGRITY with its partners and various
stakeholders from the Government, the private sector, international agencies, foreign
governments, interfaith groups, the academe and CSOs. The GK approach is hinged
on effectively drawing out core Filipino values of faith and patriotism, of generosity
and sharing. And its “secret” formula to success is a genuine and sincere
stewardship founded on unwavering TRUSTWORTHINESS.

Gk as an emerging Philippine and Asian “Model of Development’, has been
instrumental as the “converging point for multi-sectoral partnerships” and as a
“Template for Good Governance” engaged in: community building through shelter
and other infrastructure programs; community child, youth and maternal health; child
and youth education; community entrepreneurship, livelihood and micro-finance; food
sufficiency; gender equality and woman empowerment; peace efforts; culture, eco-
tourism and environmental preservation and protection.

All these socio-economic themed programs are in line with the eight-point
Millennium Development Goat's (MOGs) which the Philippines, as a signatory to the
United Nations Millennium Declaration has committed to achieve by the year 2015.
Recently, GK has also fostered “peace builds’ for displaced Muslim Filipinos in
Mindanao, in the aftermath of strife and natural calamities.

The fifteen-year solid track-record of GK in continuously providin * 2 Filipino
model for modern day community growth and development, through a “trust-based’
merging of multi-sectoral public-private partnership, and the “bridging-molding-
‘shepherding’ by GK among the poor informal settlers in the country, of the values of
self-help and self-empowerment, through the delivery of basic needs: land and
‘shelter, food, healthcare, livelihood, all contributing to the development of 2,000
‘communities nationwide, to rise-out-of extreme poverty—IS PROOF and a testament
to the effectiveness of the GK framework of grassroots community building, that
indeed in inspiring the poor to help themselves become self-relicnt through
“payanihan” and “kalinga’, we Filipinos can end poverty in the Philippines wi
generation,



With an economy that is anchored on frail economic fundamentals: a budget
deficit hitting the Php 325 Billion mark by the end of year 2010, with 34 % of the
population jobless, and a high poverty rate of 26 %-~all of these will have a negative
impact on whatever poverty alleviation programs, the Philippine Government has
lined up for implementation in the current and coming years. And hardest to be hit
shall be the delivery of basic services to the marginalized Filipinos.

During this free-market, capitalist and fiscally challenging times, when the
world is stil reeling from the inundation of the global economic crisis and financial
recession, there is an urgent need to seek out doable alternative methods of solving
poverty and homelessness, through a strategic “mini-max” sourcing and utilization of
limited but available public resources, and the provision of incentives and a “social
transformation fund’ as Government's counterpart—-these in tandem with the
material and incorporeal equity that Gawad Kalinga can harness, within a structure of
collaborative tripartite public-private partnership among stakeholders: the National
Government, Congressional Districts and LGU's and local CSOs + the constituents of
the locality + private corporate and mult-sectoral partners, to implement a holistic
community building and township development program,

It is about time that the Volunteerism In Nation Building framework be
institutionalized as a means to directly link the various sectors of society: the public
sector, the private sector and the CSOs, through a Government initiated national
development plan on alternative poverty eradication, patterned after the innovative
"Gawad Kalinga Way" of multi-sectoral resources generation and mobilization for
sustainable human development

We have seen how GK, which started as a diminutive’outreach group’
evolve into a distinctive Filipino model for community development, has made it
possible to turn the tide of social transgressions in our country, by addressing
poverty, homelessness, and class struggles, while transcending traditional politics,
‘commercial rivalries and ethnocentric interests. In all these, we find inspiration that
we can BUILD a NATION that every PINOY can be proud of

With hope, optimism, concrete action and a united stand by the entire
country, the community development approach of GK, which in a nutshell, advocates
“THE POLITICS OF CARING, THE ECONOMICS OF SHARING AND THE
CULTURE OF HEROISM’, and embracing these as the new culture and norm of our
times, making it a “Bayaning Pilipino-Bayanihan ng Sambayanan" movement
together with other volunteerism groups, under the inclusive framework of “Nation
Building’, shall be the catalyst to “bring the Philippines out of the Third World; and
make it a First World nation”.*

In view of the foregoing, early passage of this bill is earnestly sought.
RuF#S B. RODR}

MAXIMO B/RODRIGUEZ, JR.

' Me. Tony Meloto of Gawad Kalinga, Philippine Daily Inquirer, 2008.


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No._ 1979

AN ACT
TO STRENGTHEN NATION-BUILDING THROUGH THE INSTITUTIONALIZATION
OF A_ STRATEGIC VOLUNTEERISM BASED MULTI-SECTORA! PUBLIC-
PRIVATE PARTNERSHIP FRAMEWORK IN ALL LOCAL GOVERNMENT UNITS
AND CONGRESSIONAL DISTRICTS IN THE COUNTRY, AND FOR OTHER
PURPOSES

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

Section 1. Short Title. - This Act shall be known as the "Filipino Volunteerism in
Nation- Building (VNB) or Bayanihan sa Bagumbayan (BSB) Act’.

Sec, 2. Declaration of Policy. - (a) t shall be the policy of the State to promote the
Participation of the various sectors of Filipino society in public and civic affairs, adopt
and strengthen the practice of volunteerism as a strategy in national and local
development, and to inculcate the "Bayanihan “spirit as a way of life

(b) The State recognizes and respects the vital role of civil society
organizations (CSOs), which include, among others, non-government organizations
(NGOs), volunteer service organizations (VSOs) and people's organizetions (POs),
as effective conduits in harnessing people power to promote and achive nation-
building through a strategic volunteerism multi-sectoral public-private partnership
approach.

(c) The State shall ensure the institutionalization of a committed, participative,
and sustained partnership between the local government units (LGUs), congressional
districts and the private sector in the process of community-bullding through
volunteerism.

Sec. 3. Statement of Goals and Objectives. - Pursuant to the foregoins policy, the
government shall attain the following goals and objectives:
a. To provide a framework for a strategic multi-sectoral public-private
partnership through voluntee:ism;
b. To institutionalize volunteerism as a strategy for local development; and
¢. To establish a coordinating mechanism to harmonize national and local
volunteering efforts.

Sec. 4. Definition of Terms. - For purposes of this Act, the following terms shall be
defined as follows:
a. Accreditation refers to the formal recognition by LGUs of CSOs, for
the purpose of registering, certifying, and enabling them to participate
in the VNB program;


b. Civil society organizations refer to NGOs, POs, cooperatives, trade
unions, professional associations, faith-based organizations, media
groups, indigenous peoples’ movements, foundations, and other
citizen groups formed primarily for social and economic development,
to monitor government programs and projects, engage in policy
discussions, and actively participate in collaborative activities with
government;

c. Congressional District refers to a territorial division which under the
1987 Philippine Constitution is entitled to elect one member to the
Philippine House of Representatives;

d. Volunteer refers to an individual or group who, for reasons arising
from their socio-developmental, business and corporate orientation,
commitment or conviction, contribute time, service and resources
whether on fulltime or part-time basis to a just and essential social
development cause, mission or endeavor in the belief that their activity
is mutually meaningful and beneficial to public interest as well as to
themselves;

e. Volunteer service organization refers to a local or foreign group that
recruits, trains, deploys and supports volunteer workers to programs
and projects implemented by them or by other organizations or any
group that provides services and resources, including but not limited
to, information, capability building, advocacy and networking for the
attainment of common good; and

f Volunteerism refers to an act involving a wide range of activities,
including traditional forms of mutual aid and developmental
interventions that provide an enabling and empowering environment,
both on the part of the beneficiary receiving and the volunteer
rendering the act, undertaken for reasons arising from socio-
developmental, business or corporate orientation, commitment or
conviction for the attainment of the public good and where monetary
and other incentives or reward are not the primary motivating factors.

Sec. 5. VNB Mission-Vision. National Government Agencies (NGAs), LGUs, and the
volunteer sector shall be committed to the VNB mission and vision, which shall
harness the spirit of volunteerism as stimulus for local development and as a way of
life for each Filipino in recognition of the time-honored tradition of "Bayanihan” that
has evolved to include the participation of organized groups and institutions as
volunteer partners of government in local development and governance. The LGUs
and congressional districts shall also perform critical roles in mobilizing, harmonizing,
and sustaining volunteering efforts.

The VNB program shall harness the support of the abovestated sctors in the
following areas of governance: (a) community building through shelter and other
infrastructure support; (b) community, child, youth, and maternal health; (c) child and
youth education; (d) community entrepreneurship; (e) food sufficiency; (f) gender
equality and women empowerment; (g) peace efforts; (h) cultural preservation and
promotion; (i) eco- tourism; (j) environmental preservation and protection and (k)
micro-finance and livelihood.

Sec. 6. VNB Key National and Cooperating Agencies. - To harmonize and facilitate
the support of various government agencies in the implementation of the VNB, the
following NGAs, including their concerned bureaus/attached agencies, shall take lead
roles in the following key areas: the Department of Social Welfare And Development
(DSWD) in the review and implementation of VNB socio-welfare projects and
activities; the Housing and Urban Development Coordinating Council (HUDCC) in the
approval of the VNB local shelter plan and coordination of all shelter agencies for the


provision of support to the VNB program; the Department of the Interior and Local
Government (DILG) in the coordination of LGUs with local VNB projects; the
Department of Finance (DOF) in the promulgation of guidelines for the availment of
tax exemption and other related incentives and benefits and for the oversight of their
implementation and supervision: and the Department of Budget and Management
(DBM) in overseeing and monitoring the budget utilization of concerned lead or
‘cooperating government agencies in the implementation of the VNB program.

Other government agencies shall provide the necessary support for the VNB
program, namely: Office of the President (OP), National Economic and Development
Authority (NEDA), Department of Environment and Natural Resources (DENR), Land
Registration Authority (LRA), Department of Trade and Industry (DTI), Technology
Resource Center (TRC), Department of Health (DOH), Department of Labor and
Employment (DOLE), Department of Eduction (DepEd), Technical Education and
Skills Development Authority (TESDA), Commission on Higher Education (CHED),
Department of Public Works and Highways (DPW), Department of Agriculture (DA),
Department of Agrarian Reform (DAR), Department of Energy (DOE), National
Electrification Authority (NEA), and Cooperative Development Authority (CDA).

Sec. 7. VNB Coordinating Agency. - The Philippine National Volunteer Service
Coordinating Agency (PNVSCA) shall serve as the coordinating agency for the
implementation of the VNB program. More specifically, the PNVSCA shall have the
following functions:
‘a. Formulate and review policies and guidelines on the VNB program;
b. Develop and implement a monitoring and evaluation system for the
VNB program;
¢. Develop and implement an advocacy campaign for the implementation
of the VNB program;
d. Provide a report to the OP and both Houses of Congress on matters
related to the implementation of the VNB program; and
e. Administer all funds related to the VNB program.

‘The VNB Program Management Unit shall be created as an attached unit to
the Office of the Executive Director of the PNVSCA to perform technical and
administrative tasks to carry out the abovementioned functions. This unit shall be
headed by an officer who shall supervise a team of volunteer service oiticers. The
PNVSCA, in coordination with the DBM, shall prepare the staffing pattern of the
program management unit.

Sec, 8. Inter-Agency Coordinating Committee. - The existing Multi-Sectoral Advisory
Body (MSAB) of the PNVSCA shall serve as the inter-agency coordinating committee
which shall perform the following responsibilities:
a. Provide advice in the formulation of policies and guidelines for the
VNB program;
b. Serve as link between and among lead and cooperating national
government agencies in the implementation of the VNB; and
c. Serve as forum for the review of the VNB implementation with VNB
stakeholders.

For this purpose, the composition of the MSAB shall be expanded to include
HUDCC, DOF, and DBM. The MSAB may call on the other VNB. cooperating
agencies and concerned institutions on matters pertaining to the implementation of
the VNB program.

Sec. 9. VNB Coordinating Desk. - All lead and other cooperating agencies shall
establish their respective VNB coordinating desk or tap existing related unit to serve
asthe focal unit in coordinating the delivery of support services in the
implementation of the VNB


At the LGU, the VNB coordinating desk shall serve as the focal unit to
perform, but not limited to, the following functions:
a. Undertake the identification of VNB projects and activities;
b. Accredit volunteer partners for the implementation of VNB projects
and activities;
c. Monitor and evaluate the progress of the VNB projects, including
submission of reports to the Local Development Council and the
MSAB.
At the district level, the representative concerned shall designate a VNB
liaison officer to serve as the link with the lead and cooperating national government
agencies and concemed LGU VNB desk officers.

Sec. 10. Accreditation of VNB Partners and Stakeholders. - All VNB program
partners shall be required to be accredited by LGUs concerned, in coor jination with
the appropriate agencies, to enable them to participate in the VNB progrei.

‘A system of accreditation shall be developed for adoption and impiementation
by the LGUs with proper consultation with the concerned agencies.

Sec. 11. Incentives for VNB Partners and Stakeholders. - Any VNB and BIR-
accredited donor and donee under a VNB program, project, or activity shall enjoy the
following incentives:

a. All donations in cash and in kind, including land, all of which are actually,
directly and exclusively used by the VNB movement, in its programs,
projects, and activities that provide shelter, basic utilities of electricity and
water, education, healthcare, livelihood, environment and peace efforts,
that shall inure to the benefit of poor communities identified by the
PNVSCA shall be fully tax deductible from the gross income of the donor,
under the new nomenclature of donations for *nation-building’, upon
submission to the BIR of the VNB requirements for that purpose. The
implementation of this incentive shall be patterned after the applicable
provisions on "Allowable Deductions" under RA 8424, as amended,

b. A donor's tax exemption shall be enjoyed by the VNB conor, upon
submission to the BIR of the VNB requirements for that purpose. The
DOF, in coordination with the PNVSCA, the BIR, the BOC, and the DBM
shall set the guidelines for the screening, evaluation, and approval of all
tax incentives and benefits used for VNB purposes, as well as the
Implementing Rules and Regulations (IRR) specifically to implement the
incentives provided herein. in line with proper fiscal administration
Policies, the DOF in coordination with VNB, shall determine the
compliance criteria for “utiization’, ‘valuation’, "deductibility’, "proof of
utilization” and "proof of deductions” of all VNB donations, whether in
cash or in kind, as basis to determine the availment of, and continued
applicability or withdrawal of all such tax incentives and benefits, in
accordance with RA 8424, as amended.

c. The socialized housing tax as authorized to be imposed by LGUs, under
Section 43 of RA 7279, otherwise known as "the Urban Development and
Housing Act of 1992" shall be used as additional government equity under
the VNB framework, subject to an inter-agency memorandum of
‘agreement.

d, Priority in the grant of acquired land. The government shall aiso consider
VNB partners as priorities in the grant of land for socialized housing
acquired under R.A. No. 7279 which shall include community mortgage,
land swapping, land assembly or consolidation, land banking, donation to
the government, joint-venture agreement, negotiated purchase, and
expropriation.



e. All donations from foreign sources to the VNB shall be exempt from
customs duties, provided that the donees are duly accredited with the
BOC.

The mechanics, criteria, qualifications, all documentary proof of donation in
cash or in kind, and proof of utilization of donation requirements, and the
implementation guidelines for all the incentives and benefits provided under this
section, shall be carried out in accordance with the 1987 Constitution, RA 8424, as.
amended, and other applicable laws, rules and regulations, and shall be included and
clearly specified in the IRR, to ensure that these incentives and benefits shall
properly benefit the intended recipients, to fully and faithfully implement the true
intent and spirit of the VNB Act.

The incentives provided under this Act shall be effective for a period of eight
(8) years, with one extension of another six (6) years, subject to satisfactory
submission of and compliance with all VNB requirements, terms and conditions,
including all documentary proof of donation in cash or in kind, and proof of utilization
of donation requirements, for purposes of the VNB Act. Thereafter, upon evaluation
of and recommendation by the PNVSCA-MSAB and the Department of Finance,
further extension to the effectivity of the said incentives, and corollarily, to the
continued existence and operation of the VNB shall be subject to congressional
action.

Sec. 12. Incentives for VNB Volunteers. - All VNB program pariners shall provide
volunteers with recognition and incentive package.

Sec. 13. Special Provision-VNB Framework Guide Book. - A VNB Framework Guide
Book shall be prepared and disseminated to all LGUs and congressional districts to
assist them in the implementation of the VNB program.

Sec. 14. Appropriations. The amount necessary to implement the provisions of this
Act shall be included in the annual General Appropriations Act. The LGUs shall
likewise allocate the necessary funds for the implementation of the VNB program.

Sec. 15. Implementing Rules and Regulations (IRR).- The PNVSCA, in consultation
with the MSAB, the DSWD, the HUDCC, the DILG, the DOF, and the DBM, shall
promulgate the implementing rules and regulations (IRR) necessary to implement
this Act within sixty (60) days after its effectivity.

Sec. 16. Separability Clause. - If any provision of this Act is declared invalid or
unconstitutional, other provisions hereof which are not affected thereby shall remain
in full force and effect.

Sec. 17. Repealing Clause. -Any iaw, Presidential Decree or issuance, Executive
Order, Letter of Instruction, Administrative Order, rule, or regulation contrary to or
inconsistent with any provision of this Act is hereby repealed, amended, or modified
accordingly.

Sec. 18. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in any newspaper of general
circulation.

Approved,