HOUSE oF REPRESENTATIVES

RECEIVED
Republic of the Philippines oe JUL 2016

HOUSE OF REPRESENTATIVE:
Quezon City

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REGISTRATION UNIT
BILLS AND INDEX SERVICE

SEVENTEENTH CONGRESS
First Regular Session

House Bill No.__ 823

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

EXPLANATORY NOTE

In the Philippines, poverty remains to be the most critical socio-
economic problem that needs to be addressed. According to the Philippine
National Statistics Authority, although reportedly the lowest in 9 years,
poverty incidence is at 26.3 % in the first semester of 2015. The same report
also stated that 16% of Filipino families do not have enough income to buy
their basic food and non-food needs.

Still, the government hopes to lower the incidence of poverty. This
can be achieved through the implementation of various programs and
projects, which will ensure the delivery of appropriate and sufficient basic
services to the people such as food security, educational and health services
among others.

One such program is the Pantawid Pamilyang Pilipino Program (4Ps)
originally known as the Conditional Cash Transfer (CCT) Program. The
program, patterned after the Latin American Conditional Cash Transfer
Program, was the flagship anti-poverty program of the two previous
administrations,

Its main objective is to impact on the hunger situation of the poorest
families in the country by granting them conditional cash benefits and
investing in human capital. The conditionalities of the grant are primarily for
the parents to send their children to school and to health care centers on a
regular basis

This measure aims to institutionalize the implementation of the
program by providing for the statutory authority therefor, ensure continuous
funding and lay down the basic parameters for the determination of target-
beneficiaries and conditions for their compliance. Likewise, the bill provides
for monitoring and assessment mechanisms for the evaluation of the


program and defines the duties and obligations of concerned government
agencies tasked for the implementation of the program.

For the foregoing reasons, the immediate passage of the bill, filed as
House Bill No. 195 by the undersigned in the Sixteenth Congress, is
eamestly sought.

AR’ YAP
Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 823

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

AN ACT

TO INSTITUTIONALIZE THE CONDITIONAL CASH

SUBSIDY PROGRAM OF THE GOVERNMENT,

PROVIDING FUNDS THEREFOR, AND FOR OTHER

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

SECTION 1. Short Title. - This Act shall be known as the
“Conditional Cash Subsidy Institutionalization Act of 2016”

SECTION 2. Declaration of Policy. - The State recognizes the need
to strengthen the solidarity of the family and actively promote its total
development, Likewise, the State recognizes its obligation 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. To these ends, the State shall

endeavor to protect the weak and under-privileged, especially the extremely

poor households through:


1) Adoption of mechanisms to reduce poverty by providing grants to
extremely poor households to improve their health, nutrition and
education, particularly of children age 0-14;

2) Making available basic requirements for a healthy and productive
citizenry, such as basic education and nutrition to the poorest
household, and

3) Expansion of opportunities and empowerment of the marginalized
groups to enhance their capacities.

SECTION 3. Definition of Terms - as used in this Act, the following

terms and phrases shall mean:

a) “Department” - the Department of Social Welfare and Development;

b) “Individual-Beneficiary” — the legitimate spouse, legitimate,
legitimated, legally adopted and illegitimate children who belong to
identified and selected poorest households in the country;

c) “Beneficiary-Household” — the poorest household in the country
identified / targeted by the Department for entitlement of the Monthly
Conditional Cash Subsidy;

d) “Responsible Person” — the parent or guardian in the targeted
household -beneficiary;

e) “Child” — a minor child belonging to the household-beneficiary aged
0-14;

f) “Proxy Mean Testing” — an instrument using multi-dimensional

indicators to assess socio-economic status; and

g) “Conditional Cash Subsidy” ~ the monthly cash grant to be received

by each identified houschold-beneficiary.


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SECTION 4. Conditional Cash Subsidy, — Subject to certain
conditions, each identified / targeted household-beneficiary shall receive a
conditional cash subsidy equivalent to Five Hundred Pesos (P500.00) per
month for health and nutrition expenses or the equivalent of Six thousand
Pesos (6,000.00) per household-beneficiary per year, and an additional
Three Hundred Pesos (P300.00) per month per child for educational
expenses or the equivalent of Three Thousand Pesos (P 3, 000.00) per a 10-
month school year, A maximum of three (3) children per household-
beneficiary shall be allowed.

SECTION 5. Periodic Assessment of Amounts of Cash Subsidy. —
The amounts indicated in the preceding section shall be made available to
the household-beneficiaries during the first two (2) years of the
implementation of this Act and may thereafter be made subject to reasonable
adjustment/s by the President, if necessary, upon recommendation by the
Department, after taking into account the rates of inflation and similar
economic indicators.

SECTION 6. Qualified Household-Beneficiaries. — Household-
beneficiaries shall belong to the poorest household in the country selected
through a uniform, objective and transparent set of criteria.

SECTION 7. Conditions for Entitlement of Cash Subsidy. —To avail
of the Conditional Cash Subsidy, the individual beneficiary/ies or the
parent/s or guardian/s, in case of a child, must meet the following specific
conditionalities:

(a) Pregnant women must get a pre- and post natal care and be attended

by a skilled or trained health care professional during childbirth;


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(b)Parents or guardians must attend responsible parenthood sessions,
mother’s classes and parent effectiveness seminars;

(c)Children 0 to 5 years old must receive regular preventive health
check-ups:

(d)Children 3 to 5 years old must attend day care or pre-school classes at
least 85% of the time;

(e)Children 6 to 14 years old must enroll in the elementary or high
school and attend at least 85% of the time;

() Children 6 to 14 years old must avail of de-worming pills at least
every five months and,

(g)Household-beneficiary shall join and complete at least two (2)
recognized government-sponsored livelihood training programs.
SECTION 8. Consequences for Non-Compliance with

Conditionalities. — A reported household-beneficiary which fails to comply
with the conditionalities set forth in the preceding section shall at first be
notified in writing directed to the person legally responsible for the family.

If despite due notice, the responsible person continues in his/her non-
compliance, the benefits under this Act may be suspended.

Should the person so notified persist in his or her failure to so comply
as directed, the cash subsidy shall finally be cancelled after one-year of non-
compliance.

SECTION 9. Mode of Cash Transfer. — The Conditional Cash
Subsidy shall be released quarterly and shall be received by the most
responsible person of the household-beneficiary or any of his/her duly

authorized representative through the Land Bank Cash Card.


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Should transfer through the Cash Card be not feasible, an alternative
mode of transfer shall be effected such as over the counter transactions
through the nearest Land Bank Branch or off-site payments through the
authorized rural bank.

SECTION 10. Five-Year Maximum Limit for Receipt of
Conditional Cash Subsidy. — Each household-beneficiary shall receive the
Conditional Cash Subsidy for a maximum period of five (5) years

SECTION 11. Method for Selecting Household-Beneficiary. —
Household-beneficiaries shall be identified and screened by utilizing the
multi-dimensional indicators such as the Proxy Mean Testing or other more
appropriate, effective and cost efficient methods that may be devised for the
purpose.

SECTION 12. Lead Agency. —The Department shall serve as the
central planning, coordinating, implementing and monitoring body,

In the implementation of this Act, the Department shall have the
following functions:

(a) Identify and select the target household-beneficiaries on the basis of a
uniform, objective and transparent selection process,

(b)Conduct seminar-workshop and training programs in order to ensure
household-beneficiary awareness of the conditionalities and other
actions pertinent to this Act;

(c)Coordinate with different national and local agencies, including
organizations from the private sector to ensure full implementation of

herein statutory commitments;


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(d)Set up monitoring and evaluation systems and methodologies on
compliance of conditionalities, implementation of operations, and
output and impact assessments. It shall also coordinate with the
Advisory and Monitoring Committees at the national, regional and
municipal levels to verify compliance once a month using the
monitoring and evaluation systems designed for the purpose;

(e)Conduct periodic studies concerning the strengthening of
conditionalities monitoring, fine-tuning of targeting, expansion of
coverage, oversight and controls;

(Q Recommended to the President measures and policies for the
responsive implementation of the commitments under this Act;

(g)Maintain and update objective poverty maps and registry of target
household-beneficiaries which will be checked and cross-checked
periodically for duplications and/or inaccurate or erroneous
information;

(h)Formulate implementing rules and guidelines for the enforcement of
this Act;

(i) Submit an annual report to Congress including, but not limited to, all
aspects of its operations, financial status and other relevant data; and
(j) Perform such other functions as may be necessary and/or incidental to
the proper enforcement of the statutory commitments under this Act.

SECTION 13. Advisory Council. — There shall be created an
Advisory Council at the municipal, regional and national levels to be
composed of representatives from the Department of Education, Department

of Health, Department of Interior and Local Government, National Anti-


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Poverty Commission, and the Local Government Unit concerned. The
Advisory Council is principally tasked to cooperate and coordinate with the
Department in the monitoring and assessment of actions and activities
relative to the implementing process.

SECTION 14. Grievance Committee. — There shall likewise be
created Grievance Committees in the municipal, regional and national levels
composed of representatives from the Department of Education, Department
of Health, Department of Interior and Local Government, National Anti-
Poverty Commission, and the Local Government Unit concerned with the
principal task of accepting complaints and grievances that may arise within
their respective territorial jurisdictions, conducting investigations in specific
cases and disposing case/s filed in connection thereto,

SECTION 15. Appropriation. — The funds necessary for the
implementation of this Act shall be included in the yearly budget allocation
of the Department as provided for under the General Appropriation Act

SECTION 16. Penalties. — Any person, public or private, whether
acting in conspiracy with the public officials or not, who by act or omission,
inserts or allows the insertion of data or false information or who diverts
from what ought to be inserted in the registry, with the view of altering the
fact, or aiding in the grant of person other than the intended beneficiary,
shall be held liable civilly, criminally and administratively in accordance
with the implementing rules and regulations.

Without prejudice to penal sanctions, the beneficiary who fraudulently
uses the benefit shall be obliged to effect reimbursement of the amount

received with interest of one (1%) percent every month.


SECTION 17. Implementing Rules and Regulations. - Within sixty
(60) days from the effectivity of this Act, the Secretary of the Department
shall promulgate the rules and regulations necessary for the effective
implementation of this Act,

SECTION 18. Separability Clause. - If any of the provisions of this
is declared invalid or unconstitutional, the remaining parts or provisions
hereof not affected thereby shall remain in full force and effect.

SECTION 19. Repealing Clause. - All laws, decrees, executive
orders, proclamations, rules and regulations, and issuances, or parts thereof,
inconsistent with the provisions of this Act are hereby repealed or modified
accordingly

SECTION 20. Effectivity Clause - This Act shall take effect fifteen
(15) days after its complete publication in the Official Gazette or in at least
two (2) newspapers of general circulation.

Approved.