FIFTElmTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Fll'sl RegulaI' SessiOIl 
) 
" 
,SENATE 
·,1 
MR 17 P3 :31 
S B. No. 2753 
lntroduced by Senator TEOFTSTO "TG" GDn"GONA HI 
EXPI~ANATORY NOTE 
Under Republic Act No. 10121, "An Act Strengthening Ihe Philippine Disaster Risk 
Reduction And Management System, Providing For the National Disaster Risk Reduction And 
Management Framework And Institutionalizing The National Disaster Risk Reduction And 
. Management Plan, Appropriating Funds and For Other Purposes", the Local Disaster Risk 
Reduction and Management Fund (LDRRMF) is composed of "not less than five percent (5%\) or 
the estimated revenue from regular sources" "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 ':ommunities or areas stricken 
by disasters, calamities, epidemics, or Gomplex emergencies, mll'l be normalized as quickly as 
possible." 
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In the event of' a disaster, calamity, epidemic or complex c'nergency, the Quick Response 
Fund is the first fund that is depleted and often, found insufficient This legislative measure 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 iI-om a portion of the 
LDRRMF of the LGUs and will serve to augment the funds avai i1ble to LGUs to address their 
disaster response and recovery needs, The Solidarity Fund may 21so be Llsed to pay premiums 
for securing catastrophic insurance for the public intra structures of !.he LGTJs 
I n view of the foregoing, the imt1:1ediate enactment of this n:easure is earnestly sought 
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TEO '(STO "TG" GUINGONA In 
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Senator 


FIFTEF,NTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Firsl liei'll/a,. Session 
) 
SENATE 
S. B. No. 2'753 
'11 
liAR 17 P 3 :31 
" 
. 
",I 
Introduced by Senator TEOFISTO "TG" GU1'"GONA In 
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AN ACT leSTABLlSHING THE SOLiDARITY FUN') OF THE LOCAL 
GOVERNMENT VNITS FOR' DISASTER RESPONSE AND HECOVEHV 
, 
He it enacted by the Senate and the HOllse oj Represc;Jalil'es l!f the Philippines ill 
COllgress assel1lhled: 
1 
SECTrON I. Short Title. -- This act shall be known as the Local Government Units 
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(LGU) Solidarity Fund for Disaster Response and Recovery Act. 
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S ECTlON 2. Declaration of Policy. - It is the declared policy of the state to increase 
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local capacity to build disaster resilience of communities and to strengthen institutional 
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mechanisms tor the reduction of disaster risks and enhancement ,,[ preparedness and response 
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capabilities at all levels. 
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SI~CTrON 3. Solidarity Fund. -'- A Solidarity Fund will be held as a trust account in a 
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government bank. Disbursement f)-om s~id fund will be subject to 'he issuance of a release oreier 
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of the supervisory board. 
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The supervisory board shall be composed of the followine. SecretaIY of the Department 
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of Interior and Local Government, and representatives from t},c following: Union of Local 
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Authorities of the Philippines, League of Provinces of the Philippines, League of Cities of the 
13 
Philippines, League of Municipalities of the Philippines, and Liga ng mga Barangay. They shall 
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serve in an ex-offiCio capacity. 
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SECTION 4. Source of the Solidarity Fund. - All Local :}overnmenl Units are hereby 
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mandated to contribute point t1ve percept (0.5%) of their total revenues taken from the Local 
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Disaster Risk Reduction and Management Fund (LDRRMF) othe: than the amount set aside for 
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the quick response fi.ll1d, 
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Provided that an LGU who availed of the Solidarity Fun!! shall contribute one percent 
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(1%) of their LDRRMF for the next year; 
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Provided fhrther, that the LGlJ shall revert to the point five percent (0.5%) contribution if 
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it did not avail of the solidarity nll1d for the previous year. 
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ST~CTJON 5. Al'ailment of the Solidarity Fund. - In the event ofa disaster, any affected 
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LGU can avail of the solidarity fund upon submission of the following: local resolution declaring 
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a state of calamity and certit1cate of exhaustion of the quick response fund 
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The maXllTIUm payout arising 'but of any single disast ,;r is 100 times of the LGU 
, 
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contribution to'be released in two equal V·anches. The second tratl'ohe shall be released only upon 
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full liquidation of the first tranche relea~ed 
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The maximum release shall not exceed 75% of the total so;;rlarity fund. If the total claims 
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arising out of a single disaster should exceed 75% of the total solidarity fund, the pay-out shall 
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be pro rated amongst the claimants 
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SECTION 6. Insl/rance premillllls. -- The solidarity fund may be used to pay premiums 
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for securing catastrophic insurance for public infhstructures ofLCUs. 
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SI~CTION 7. Use (!f'the Fllnd. - The Solidarity Fund shall be used exclusively for 
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disaster response and recoveries for LGl,ls and the payment of cat8.strophic insurance premiLlms 
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SECTION 8. Separability Clfll~se. - Should any section ')1' provision of this act be held 
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unconstitutional or invalid, such declaration shall not invalidate ot<'cr provisions hereof 
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SECTION 9 . . - Repealing Clall~e . . - Ali laws, decrees, ez 'cutive orders, proclamations, 
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rules and regulations inconsistent herewlth are hereby repealed a110 !Dr modified accordingly. 
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SIi:CnON 10 .. - Eflectivity. -. This Act shall take effect :'fteen (15) days following its 
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publication in the Omcial Gazette or in two (2) newspapers of gewral circulMion 
Approved, 
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