Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 25

Introduced by: REP. RAUL V. DEL MAR

EXPLANATORY NOTE.

In essence, social justice in a democracy is caring for the poor, a continuing
and sincere concern for the underprivileged, a genuine and serious effort to improve
their quality of life. This is what the attached bill, The Magna Carta of the Poor, is all
about.

It must be recalled that the Magna Carta was approved by this House and the
Senate in the last Congress, but was vetoed by the President on ground of
“substantial infirmities”. They were largely questions of funding and implementation
Which are now sought to be clarified or otherwise addressed by this bill, foremost, is
emphasizing a system of progressive realization for purposes of implementation as
specifically provided in Section 12 hereof which states, “Sec. 12. Principle Governing
Implementation. - Nothing in this Act shall be construed in any manner as requiring
the Government to undertake the immediate implementation of all the mandated
benefits and programs for the poor. The Government shall implement the provisions
of this Act in accordance with a system of progressive realization or program of
progressive measures over time, considering the critical poverty alleviation concerns
and related priorities that need sustained allocation of resources.” Moreover, we
welcome from the Executive Department such additional amendments that will
further provide more effective mechanisms for the alleviation of poverty.

While there may be existing laws touching on the need of the poor, the
jobless, the homeless and the landless as part of an overall national strategy to
alleviate poverty, this proposed legislation puts in sharp focus by stating in
unequivocal terms what is felt to be the basic irreducible rights of the poor as
essential requirements towards poverty alleviation, rights without which it is pointless
to talk about poverty reduction. These rights are: the right to employment, the right
to free healthcare and medicine — the “minimum standards of decency”

More than a bill of rights of the poor, it declares that Government must now
take the side of the poor because the issue of poverty has now become a critical
question of survival; that Government intervention, given the present situation, is the
only realistic route to take to uplift the poor while long term measures, strategies and


solutions for poverty reduction are being put in place, and that government must
invest heavily in anti-poverty programs for the economic empowerment of the poor.

The attached bill recognizes that, under the present economic environment,
the top priority should be the creation of jobs or creation of employment
opportunities. The lack of employment appears to be the core of the problem of
poverty. Jobs mean income and income translates into access to food, shelter, land,
education and healthcare services. This means income spending which means
payment and collection of taxes which in turn means more services to the poor. The
government, therefore, must create jobs, must establish employment opportunities
for the poor.

Likewise, the government must implement a system of subsidy to help the
poor in their food and housing requirements, and a system of free quality education
and free health services and medicine. Employment will not come immediately for
all the poor and the income may be grossly inadequate for those who may be
employed, Hunger and sickness should not incapacitate and disable the poor in the
pursuit of their rights.

The value of education - not mere education but free quality educations even
at the college level is envisioned — in poverty alleviation cannot be denied. Simply
put, an educated poor would have better chances of surviving and enduring, even
prevailing, in the market of employment and business. As stressed somewhere,
those left out of public education programs are likely to be left out of economic
opportunities, a misfortune that will surely be inherited by the next generation. The
government must treat this concept of free quality education as a national
investment, equipping the citizenry with tools for the future, for a better future.

In the end, to make democracy work, the government must firstly work for the
poor, the greater majority of the people. We can only have strong democratic
institutions when such greater majority of the people are given the opportunities to
participate in the benefits, growth and development of a democratic society. Only
when the poor are economically empowered will they be able to participate in the
democratic process of setting national goals that affect their daily lives.

But to put things in a realistic framework, the proposed legislation is not a
demand to put everything in place now, in the first year or first few years or even the
next decade after its passage, knowing that government resources can only do so
much for so many programmed priorities in a given period. For purposes of
implementation, therefore, a system of progressive realization, which is the settled
practice and prerogative of the executive department, is fully recognized. Stated a
little differently, the only way to go, the only way to have this proposed legislation
implemented, which is now expressly provided in the bill, is through a bundle of
progressive measures over time; otherwise it can never be implemented.

In this light, approval of the bill is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

25

HOUSE BILL NO.

Introduced by: REP, RAUL V. DEL MAR

AN ACT
PROVIDING FOR A MAGNA CARTA OF THE POOR

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

SECTION 1. Title — This Act shall be known as the "Magna Carta of the Poor’

SEC. 2. Declaration of Policy - It is the declared policy of the State to uplift
the standard of living and quality of life of the poor and provide them with sustained
opportunities for growth and development. Every poor Filipino family must be
empowered to meet their minimum basic needs, through the partnership of the
government and the basic sectors. It is likewise vital that the State complies with its
international obligations to eradicate poverty, such as our commitment to achieve the
Millennium Development Goals which include the eradication of extreme poverty and
hunger, achievement of universal primary education, promotion of gender equality
and empowerment of women, reduction of child mortality, improvement of maternal
health, combating HIV/AIDS, malaria and other diseases, ensuring environmental

sustainability and development of a global partnership for development

To attain the foregoing policy:


(a) Government must prioritize investments in anti-poverty programs to enable
the poor to participate responsibly in the country's growth and development;

(b) All government departments, agencies and instrumentalities must provide
full access to government services for the poor;

(c) Government interventions must be strengthened to address the genuine
concerns of the poor, while long-term strategies and solutions for the empowerment
of the poor are being put in place; and

(d) The capabilities and competencies of the basic sectors, the
nongovernment organizations (NGOs) and people's organizations (POs), as partners
of the government for the effective delivery and implementation of a wide range of
anti-poverty programs and basic services, shall be enhanced and promoted.

SEC. 3. Definition of Terms. - As used in this Act, the following terms are
hereby defined:

(a) Poor shall be refer to individuals or families whose income fall below the
poverty threshold as defined by the National Economics and Development Authority
(NEDA) and/or cannot afford to provide their minimum basic needs of food, health,
education, housing and other essential amenities in a sustained manner.

(b) Basic sectors shall refer to the disadvantaged sectors of Philippine
society, namely: farmer-peasants, artisanal fisherfolk, workers in the formal and
informal sectors, migrant workers, indigenous people and cultural communities,
women, differently-abled persons, senior citizens, victims of calamities and disasters,
youths, students, children and the urban poor.

(c) Hazardous or danger zones shall refer to areas which when occupied
for residential purposes actually pose a danger to the life and safety of the occupants

or of the general community.


(4) People’s organization (PO) shall refer to any recognized or accredited
self-help association or cooperative of the basic sectors or disadvantaged groups
composed of members having a common bond of interest, who voluntarily join
together to achieve a lawful commen social and economic end

(e) Development partners shall refer to nongovernment organizations
(NGOs), the POs and private corporations which are engaged in programs and
activities aimed at alleviating the conditions of the poor.

SEC. 4. Basic Rights of the Poor - The poor shall have the following rights,
the enjoyment of which is an essential step towards poverty alleviation: (a) the right
to food; (b) the right to employment and livelihood; (c) the right to quality education;
(d) the right to shelter; and (e) the right to basic health services and medicines.

The government shall, as a matter of duty and obligation, establish a system
of progressive realization or implementation to provide the requirements, conditions
and opportunities for the full enjoyment of these rights of the poor.

4.1 The Right to Food. - The Department of Social Welfare and Development
(DSWD) shall expand a program of subsidy to help the poor meet their minimum
food requirements.

To help ensure the implementation of the food assistance program, the DSWD
shall be the main beneficiary, recipient or transferee of all food items and food
products, including rice, com, sugar and other prime commodities, seized and
forfeited with finality or declared abandoned in favor of the government for violations

of customs laws.

The DSWD, in coordination with the Department of Agriculture (DA), shall
develop plans and projects to complement existing food subsidy programs of the
government so that the poor can engage in productive activities. These shall
promote food self-sufficiency among the poor. In addition, the DA shall, through its
local buying stations purchase the agricultural produce of the poor farmers

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4.2. The Right to Employment and Livelihood. ~ The Department of Labor and
Employment (DOLE), in coordination with the POs, the National Anti-Poverty
Commission (NAPC), the local government units (LGUs), and relevant government
agencies and government financial institutions, shall primarily be responsible for
providing facilitation assistance to the poor to ensure better access to livelihood
opportunities and employment openings in private enterprises and in government
programs and projects. The DOLE and other concerned government agencies are
likewise tasked to address the emergency employment needs of displaced families

In the hiring of workers needed for the implementation of government
infrastructure projects and/or government-funded contracts or government-assisted
undertakings, it shall be mandatory to prioritize qualified laborers from the poor
sector who are residents of the LGUs where the project is located, as provided in the
implementing rules.

4,3. The Right to Quality Education. — The right of the poor to free public
elementary and secondary education shall not be impaired.

The right to education shall include access to quality education at the college
level. Consistent with the government's goal of providing socialized college
education, including the student loans or study-now-pay-later plans, programs on
education shall be expanded in state/local/private universities and colleges, as well
as higher education institutions: Provided, That the students qualify and maintain
good academic standing: Provided, further, That the students enroll in priority
courses, as determined by the Commission on Higher Education (CHED).

It shall also include the right to avail of quality technical vocational education
and training through scholarships, subsidies and financial assistance, to ensure

access to decent and productive employment.

At least five percent (5%) discount shall be granted by establishments that sell
reference books for college and school supplies to poor but deserving students,
subject to the guidelines to be issued by the CHED: Provided, That these
establishments may claim the cost as allowable tax deduction from the gross income

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in the computation of their income tax in accordance with the provisions of the
National Internal Revenue Code of 1997, as amended.

The Department of Education (DepED), the CHED and the Technical
Education and Skills Development Authority (TESDA), in coordination with
government agencies concerned, shall ensure the full enjoyment of the poor of the
rights to education.

4.4. The Right to Shelter ~ The right of the poor to decent housing shall not be
abridged. The government shall develop and implement a housing program for the
poor which shall include a well-targeted and responsive subsidy scheme that will
provide decent housing with the least financial burden.

In all cases, the government, in ensuring the exercise and enjoyment of the
right of the poor, shall put in place a system consisting of simple requirements and
procedures, and expeditious processing and approval.

The government, through the Housing and Urban Development Coordinating
Council (HUDCC) and the National Housing Authority (NHA), in coordination with the
LGUs, shall prioritize the implementation of the socialized housing and resettlement
for the poor especially those residing on hazardous or danger zones.

The implementers of the socialized housing and resettlement programs shall
enjoy the incentives stated in Section 20 of Republic Act No. 7279, otherwise known
as the “Urban Development and Housing Act of 1992”

4.5. The Right to Basic Health Services and Medicines. ~ The LGUs shall
ensure and promote the health of their populace in a rational manner, including the

availability of quality primary healthcare services and access to secondary and

tertiary healthcare services and public healthcare programs.

The Department of Health (DOH) shalll provide the highly specialized level of
quality healthcare in a rational manner as well as technical assistance to LGUs, POs
and other members of civil society in effectively implementing programs, projects and

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services that will promote the health and well-being of every ino, especially the

poor.

The Philippine Heath Insurance Corporation (PhilHealth), in coordination with
the DOH, shall ensure that every Filipino, especially the poor, is covered and entitled
to an adequate package of health services. The out-of-pocket expenses of every
Filipino, especially the poor, shall be substantially reduced, with the end view of
totally eliminating such expenses. The current payment and enrollment mechanisms
shall also be reformed.

The DOH, the LGUs and the PhilHealth shall define an expanded primary
health package that every citizen is entitled to and can readily avail of. Clear
responsibilities must be defined and allocated among the three partners, ensuring
also that services provided are consistent with the epidemiological profile and

population needs.

4.6. Other Rights of the Poor. ~ All other rights and benefits for the poor
provided under existing laws shall remain in full force and effect. Nothing herein
shall be construed to diminish the enjoyment of such rights by the poor who shall
have the right to avail of the greater rights or benefits offered by existing laws,
including those granted under this Act.

SEC. §. System for Targeting of Beneficiaries. - The DSWD, in
coordination with the NAPC and other relevant government agencies, the LGUs, the
NGOs and the POs, shall come up with a single system of the classification to be
used for targeting beneficiaries of the government's anti-poverty programs and
projects to ensure that such programs reach the intended beneficiaries.

SEC. 6. Funding Requirements. — The funding for the pro-poor programs
and projects implemented under this Act shall be taken from the existing
appropriations of the different departments and agencies implementing pro-poor
programs. In addition to these, funding shall be taken from the following


(a) Twenty percent (20%) of the proceeds from the sale or disposition by
public auction of goods or articles forfeited in favor of the government by the Bureau
of Customs.

The President, upon the recommendation of the Secretary of Finance and
National Economic and Development Authority, may increase or adjust the above
rates or percentages of share no later than two (2) years from the effectivity of this

Act and every three (3) years thereafter.

Deficiencies in the existing appropriations of the pro-poor programs of the
different departments and agencies shall be included in the General Appropriations
Act of the year following the enactment of this Act and thereafter.

SEC. 7. Rational Allocation of Funds. - The Department of Budget and
Management shall be principally responsible for the efficient and rational allocation
of available funding requirements as may be needed by the different government

departments and agencies in implementing this Act.

SEC. 8. Private Sector Participation. - The private sector is highly
encouraged to be an active partner for the empowerment of the basic sectors.

As such, the DSWD, the DOLE, the DepED, the DOH, the NAPC, the DA, the
CHED, the TESDA, the HUDCC and the NHA are hereby authorized to solicit

donations, aids or grants, in cash or in kind, from whatever source, and/or enter

10


partnerships with private/public institutions to meet the demands of the basic rights
to food, employment and livelihood, quality education, shelter, basic health services
and medicine, and other rights.

SEC. 9. Tax Exemptions. - Any donation, contribution or grant which may be
made to the programs and projects entered into pursuant to this Act shall be exempt
from the donor's tax and the same shall be considered as allowable deduction from
the gross income in the computation of the income tax of the donor in accordance
with the provisions of the National Internal Revenue Code of 1997, as amended

SEC. 10. Role of the Local Government Unit. - LGUs shall be responsible
for the formulation and implementation of local anti-poverty programs and projects in
their jurisdictions and ensure that these are consistent with, and complementary to,
national programs and projects set forth in the basic rights of the poor as provided in
Section 4 of this Act.

SEC. 11. Consultative Council, — A convergence of all anti-poor agencies of
the government, composed of the NAPC, the DSWD, the Presidential Commission
‘on Urban Poor, the LGUs, one (1) representative each from the civil society
organizations and the POs, shall be formed into a Consultative Council to ensure the
continuity and institutionalization of all the initiatives and programs of the government
for the poor. The Council is tasked to strengthen the mechanism and uniformity of

procedures in the implementation of the program

SEC. 12. Principle Governing Implementation. - Nothing in this Act shall be
construed in any manner as requiring the Government to undertake the immediate
implementation of all the mandated benefits and programs for the poor. The
Government shall implement the provisions of his Act in accordance with a system of
progressive realization or program of progressive measures over time, considering
the critical poverty alleviation concems and related priorities that need sustained

allocation of resources.

SEC. 13. Implementing Rules and Regulations. ~ The NAPC, the DSWD,
the LGUs, in coordination with the concerned government departments and

ll


agencies, shall promulgate rules and regulations to carry out the provisions of this
Act within three (3) months from its effectivity. The rules shall set priority target
areas for the initial implementation of this Act, with the end in view of ensuring the
successful replication of the program nationwide.

SEC. 14. Compliance Report. - The NAPC, in coordination with all
government departments and agencies concerned, shall within six (6) months from
the effectivity of this Act and every six (6) months thereafter, submit a report to the
Joint Congressional Oversight Committee on the compliance with the provisions of
this Act.

SEC. 15. Separability Clause. - If any provision of this Act is declared
unconstitutional, the other provisions not affected thereby shall remain in full force
and effect.

SEC. 16. Repealing Clause. - All laws, decrees, orders, rules and
regulations or parts thereof which are inconsistent with the provisions of this Act are

hereby repealed or modified accordingly.

SEC. 17. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in two (2) national newspapers of general circulation

Approved,