SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
Third Regular Session )

sono 877

18 M16 P4333

—

Introduced by Senator Grace Poe

AN ACT TO
EXPAND THE CONDITIONAL CASH TRANSFER PROGRAM, APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES

Explanatory Note

Ina recent survey by the Social Weather Surveys (SWS), it was found that self-rated
poverty among Filipinos rose to 46% in 2017, a two-point increase from 44% in 2016.1
Meanwhile, self-rated food poverty was recorded at 33%, two points above the record-
low of 31% in 2016.

Such oscillations in self-rated poverty ratings point to the dynamics of poverty in the
country. Decreases in poverty are rarely sustainable over time. This gives credence to
the findings of a paper published by the Philippine Institute for Development Studies
(PIDS), 2 which concluded that there is a distinction between the chronic and the
transient poor. “Chronic poor” are those that are consistently income poor, while
“transient poor” refers to those who move in and out of poverty.

To demonstrate this concept, the paper estimates that 47.4% of those who were poor
from 2003 to 2009 were “chronic poor”. The remaining 52.6% were “transient poor”
or had moved in and out of the poverty during that time. This would imply that there
are different poverty “demographics” which need different policy interventions. Or, as
the paper states, there is a need for social security measures which are “intermittent
in nature but are widely and easily accessible by both poor and non-poor households.”

+ ttps://www.sws.org.ph/swsmain/artcldisppage/?artesyscode=ART-20180116180434

2 Reyes, C. Tabuga, A. et. al. “Dynamics of Poverty in the Philippines: Distinguishing the Chronic from the
Transient Poor” Discussion Paper Series No. 2011-31. Retrieved from
https://dirp4.pids.gov.ph/ris/dps/pidsdps1131.0df



Policy makers must provide a basic guarantee of social security to all Filipinos,
especially the poor and the marginalized. The International Labor Organization (ILO)
refers to this mechanism as a “social protection floor”, which are “...nationally defined
sets of basic social security guarantees that should ensure, as a minimum that, over
the life cycle, all in need have access to essential health care and to basic income
security which together secure effective access to goods and services defined as
necessary at the national level.”

The Conditional Cash Transfer program is one pillar of our social security mechanisms.
Derided by critics as a “dole-out” which promotes “mendicancy”, the evidence shows
that the program has increased school participation rates and health outcomes among
its beneficiaries and their children.

This measure seeks to institutionalize and expand the Conditional Cash Transfer
program. Under this bill, eligible beneficiaries shall receive a Maternal, Infant and Child
Health grant of at least Php 1,000 and an educational grant of at least Php 500 per
child per beneficiary family. These amounts shall be revised every 6 years to account
for inflation.

As an innovation, the bill adds a “convergence” clause in which beneficiaries of the
program shall be enrolled and covered under the National Health Insurance program
of the Philippine Health Insurance Corporation (PhilHealth) and shall be provided with
micro-insurance mechanisms under the Social Security System (SSS). It also includes
a “graduation” clause in which the DSWD, DOLE, TESDA, and stakeholders from the
private and non-government sectors shall facilitate employment for program
beneficiaries.

This measure also provides for the non-diminution of benefits. This means that the
Act cannot be construed to reduce existing benefits granted under existing laws,
decrees, executive orders, or any contract, agreement, or policy between the
employer and employee.

Finally, the bill seeks to prohibit government officials from using the Program for
partisan political activity. Government officials who violate this prohibition shall, upon
conviction, suffer the penalty of imprisonment of six (6) months to one (1) year and/or
a fine of not less Fifty Thousand Pesos (Php 50,000.00) to One Hundred Thousand
Pesos (Php 100,000.00), at the discretion of the court, and without prejudice to further
prosecution and conviction under other administrative and criminal laws.

3 http://www. jlo.org/secsoc/areas-of-work/policy-development-and-applied-research/social-protection-
floor/lang--en/index.htm



In view of the above considerations, and the directive under Article II, Section 9 of
the 1987 Philippine Constitution directs 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”*, speedy approval of this measure is eagerly sought.

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GRACE POE

‘ Article I, Section 9, 1987 Philippine Constitution.



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SEVENTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
Third Regular Session ) "3 ML 16 P4333
SENATE
5B. No. 1877 fle r _

Introduced by Senator Grace Poe

AN ACT
TO EXPAND THE CONDITIONAL CASH TRANSFER PROGRAM,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

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

ARTICLE I
GENERAL PROVISIONS
Section 1. Short Title.- This Act shall be known as the "Expanded Conditional

Cash Transfer Act of 2018”.

Sec. 2. Declaration of Policy.- The State recognizes that the establishment of
a national social protection floor is essential to promoting a just and dynamic social
‘order that will ensure the shared prosperity of the nation, free the people from
poverty, and provide an improved quality of life for all, The State further recognizes
the role of cash transfers in providing a pathway out of poverty and in breaking the
inter-generational cycle of poverty. To this end, the State hereby institutionalizes
and expands the Conditional Cash Transfer program as an essential mechanism in
promoting poverty reduction and inclusive growth.

Sec. 3. Objectives. The Objectives of this Act are as follows:

* Provide assistance to the poor to alleviate their immediate needs;

Protect the poor from the effects of inflation;

«Break the intergenerational cycle of poverty;

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* Prevent children from leaving the school system; and
* Reduce maternal, infant and child mortality;
ARTICLE II
THE EXPANDED CONDITIONAL CASH TRANSFER PROGRAM

Sec. 4. The Conditional Cash Transfer Program.- In order to meet the
declared policy above, the Conditional Cash Transfer program, hereafter referred to
as "The Program’, is hereby institutionalized. The program shall provide for the
following benefits:

a.) Maternal, Infant and Child Health Grant- This grant shall be an amount of
at least One Thousand Pesos (Php 1,000.00) per month for each eligible
household: Provided, that every five (5) years after the effectivity of this
Act, the cash grant shall be reviewed and adjusted to its present value
using the Consumer Price Index (CPI) as published by the Philippine
Statistics Authority (PSA);

b.) Educational Grant- This grant shall be a fixed grant of at least Five
Hundred Pesos (Php 500.00) for each child aged 3 to 18 years old in every
eligible household: Provided, that the grant shall be given to a maximum
of three (3) children per household: Provided further, that every five (5)
years after the effectivity of this Act, the cash grant shall be reviewed and
adjusted to its present value using the Consumer Price Index (CPI) as
published by the Philippine Statistics Authority (PSA);

¢.) Skills and Livelihood Training and Employment Facilitation- The
Department of Social Welfare and Development (DSWD), in coordination
with the Department of Labor and Employment (DOLE), the Technical
Skills and Development Authority (TESDA), and qualified private and civil
society organizations (CSOs) shall also provide for livelihood training and
employment facilitation programs for the eligible and compliant
beneficiaries of this Act.

d.) Convergence of Social Services.- Beneficiaries of the program shall also be
automatically enrolled and covered under the National Health Insurance
program of the Philippine Health Insurance Corporation (PhilHealth). The
Social Security System (SSS) shall also provide micro-insurance

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mechanisms to beneficiaries of the program. The DSWD shall coordinate
with PhilHealth and the SSS to implement this provision.

Provided, that in order to avail of the benefits under this Act, the beneficiary
must meet the eligibility requirements under Section 6 of this Act and the
conditions under Section 8 of this Act: Provided further, that when fiscal
space is available, the DSWD may provide for additional grants and benefits
which may be necessary to achieve the objectives of this Act.

Sec. 6. Program Eligibility.- The following shall be eligible for the benefits

under this Act:

a.) Those identified as poor and near poor based on National ‘Household
Targeting System of the DSWD, and the official poverty threshold of the city,
municipality or province based published by the PSA;

b.) Those vulnerable households who are living under precarious circumstances,
such as those who are members of the informal economy, informal sectors,
Indigenous peoples, and those living in geographically isolated and
disadvantaged areas: Provided, that in including such groups in the program's
coverage, the DSWD shall ensure that the program is sufficiently modified
and adjusted for their specific needs and circumstances; and

c.) Those households which, at the time of registration with the program, have
members who are aged 0 to 18 years old or have members who are
pregnant;

The Department of Social Welfare and Development shall establish and
maintain a database of beneficiaries under this Act: Provided, that such
collection of information shall be compliant with the provisions of Republic Act
No. 10173, otherwise known as the "Data Privacy Act of 2012” and its
implementing rules and regulations.

Sec. 7. Conditions for Retention.- Eligible households shall comply with the

following conditions:

a.) Children zero (0) to five (5) years old must receive regular preventive
health check-ups and vaccinations;

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b.) Children in elementary school must avail of multivitamin supplements and

deworming services at least twice a year;

c.) Children aged three (3) to four (4) years old must attend kindergarten

classes at least seventy-five percent (75%) of the time;

d.) Children must attend elementary or high school classes at least eighty-five

percent (85%) of the time;

e.) Pregnant women must avail of pre-and pos-natal care and give birth with

the assistance of a skilled health care professional in a health facility; and

f.) At least one (1) responsible person of the beneficiary household must

attend family development sessions conducted by the DSWD once a
month.

Sec. 8. Disqualification and Forfeiture of Grant.- The payment of cash grants
will be terminate if a beneficiary no longer meets the eligibility criteria provided
under Section 6 of this Act or if they do not meet conditions under Section 8 of this
Act.

If a beneficiary is found to be non-compliant with the conditions for a
particular month, they will not be able to avail of the benefits of this Act for that
period. The third offense of non-compliance will result in suspension from the
program for five (5) months.

Sec. 9. Program Monitoring.- The Department of Education (DepEd), the
Department of Health (DOH), the National Nutrition Council (NNC) and the DSWD
shall conduct periodic impact evaluation to assess the impact of Program, and shall
regularly submit reports on the same matters to Congress.

ARTICLE IIT
FINAL PROVISIONS

Sec. 10. Nondiminuition of Benefits. - Nothing in this Act shall be construed
to reduce existing benefits granted under existing laws, decrees, executive orders, or
any contract, agreement, or policy between the employer and employee.

Sec. 11. Prohibition on Utilization of the Program for Partisan Purposes.- It
shall be prohibited for government officials to use the Program for partisan political
activity. For the purpose of this Act, “Partisan political activity” refers to activities,



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statements or manifestations, which solely or primarily serve to campaign for or
against any particular political party or candidate for any elective public office.

Any government Official who violates the preceding paragraph shall, upon
conviction, suffer the penalty of imprisonment of six (6) months to one (1) year
and/or a fine of not less Fifty Thousand Pesos (Php 50,000.00) to One Hundred
Thousand Pesos (Php 100,000.00), at the discretion of the court, and without
prejudice to further prosecution and conviction under other administrative and
criminal laws.

Sec. 12. Appropriations.- The amount needed for the initial implementation of
this Act shall be charged against the appropriations for the DSWD. Thereafter, such
sums as may be necessary for the continued implementation of this Act shall be
included in the annual General Appropriations Act.

Sec. 13. Implementing Rules and Regulations.- Within six (6) months from
the effectivity of this Act, the DSWD, in coordination with the DepEd, DOH, NNC,
PSA, PhilHealth, SSS, and DBM shall promulgate the necessary rules and regulations
to carry out the provisions of this Act.

Sec. 14. Separability Clause.- If any provision or part of this Act is declared
unconstitutional, the remaining parts or provisions not affected shall remain in full
force and effect.

Sec. 15. Repealing Clause- All laws, decrees, executive orders,
proclamations, and administrative regulations or parts thereof inconsistent with the
provisions of this Act are hereby repealed or amended accordingly.

Sec. 16. Effectivity Clause.- This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in a newspaper of general circulation.

Approved,