FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
First Regular Session 
S E N A T E  
Senate Bill No. 697 
I 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The nurture, care, support and development of the child is the utmost 
responsibility of the family. There are instances, however, in which the family 
cannot function as such, hence the need for alternative care. When problems of 
broken home, unwed motherhood, abandonment, illness or extreme poverty and 
the like seriously disrupt family relationships, substitute parental care becomes 
necessary. 
Foster care is a planned substitute parental care for a child by a licensed 
foster parent when his biological parents cannot care for him. Children who are 
abandoned, neglected or with delayed development and poor health can be 
placed in foster homes. Instead of putting the child in an institution, foster homes 
can be the best substitute because of the social and emotional values they can 
offer to children who are in need of love, care and attention and can provide an 
atmosphere where a child can experience a healthy family life. 
The passage of this bill on foster care is indeed significant in the light of 
the growing proportion of Filipino children urgently needing alternative family 
care. 
Hence, the immediate passage of this bill is earnestly sought. 


FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
;,j,, 
.1 
7 J\L -3 
a i &  d6 
OF THE PHILIPPINES 
First Regular Session 
) 
S E N A T E  
f\ECCEt\tED flv : 
Senate Bill No. 697 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
’ 
AN ACT 
TO STRENGTHEN AND PROPAGATE FOSTER CARE FOR ABANDONED 
AND NEGLECTED CHILDREN AND OTHER CHILDREN WITH SPECIAL 
NEEDS, PROVIDING APPROPRIATIONS THEREFOR AND FOR OTHER 
PURPOSES. 
Be it enacfed by fhe Senate and House of Representatives of the Philippines in 
Congress assembled: 
ARTICLE 1 
GENERAL PROVISIONS 
SECTION 1. Title. - This Act shall be known as the “Foster Care Act of 
2007”. 
SEC 2. Declaration of Policy. - The Constitution, Article 15 provides that 
the State shall defend the right of children to assistance, including proper care 
and nutrition, and special protection from all forms of neglect, abuse cruelty, 
exploitation, and other conditions prejudicial to their development. 
It is hereby declared the policy of the State to provide every child who is 
abused, neglected, surrendered, dependent, abandoned and with developmental 
and physical disability with an alternative family that will provide love and care as 
well as opportunities for growth and development. 
The State shall guarantee that all the rights of the child enumerated under 
Article 3 of Presidential Decree No. 603 otherwise known as “The Child and 
Youth Welfare Code”, as amended, and the rights found under Article 20 of the 
United Nations Convention on the Rights of the Child, shall be observed. 
Towards this end, the State shall systematize and enhance foster care 
program in the country. It shall ensure that the ofrster family shall provide a 
wholesome atmosphere for the foster child. 
The State shall also protect the rights of the biological child of the foster 
family and ensure that in no case shall he/she be disadvantaged as a result of 
the placement of a foster child,. 
SEC. 3. Definition of Terms.- For purposes of this Act, the following terms 
are defined as: 


"Agency" refers to any child care or child placement institution 
licensed and accredited by the DSWD to implement the foster care 
program; 
"Child" refers to a person below eighteen (18) years of age, or 
those over but is unable to fully take care of himself/herself or 
protect himselWherself from abuse, neglect, cruelty, exploitation or 
discrimination because of a physical o mental disability or condition; 
"Child Case Study Report" refers to a written report prepared by a 
social worker containing all the necessary information on a child; 
"Child With Special Needs" refers to a child with physical or mental 
disability or condition; 
:Foster Care" refers to the provision of planned temporary 
substitute parental care to a child by a foster parent; 
"Foster Family Care License" refers to the document issued by the 
Department of 
Social Welfare 
and Development (DSWD) 
authorizing the foster parent to provide foster care; 
:Foster Parent" refers to a person, duly licensed by the DSWD, to 
provide foster care to a child; 
"Foster Placement Authority" refers to the document issued by the 
DSWD authorizing the placement of a particular child with the foster 
parent; 
"Home Study Report" refers to a written report prepared by a social 
worker containing the necessary information on aprospective 
parentlfamily members; 
"Matching" refers to the judicious pairing of a child with a foster 
parent and family members based on the capacity and commitment 
of the foster parents to meet the individual needs of a particular 
child and the capacity of the child to benefit from the placement; 
"Parents" refers to the biological or adoptive parents or guardian; 
"Placement" refers to the physical transfer of the child with the 
foster parent; and 
"Social Worker" refers to the registered or licensed Social Worker of 
the DSWD, Local Government Unit (LGU) or Agency. 
ARTICLE II 
ELIGIBILITY 
SEC 4. Wrio May Be Placed on foster Care. - A child may be placed on 
foster care if he/she is in need of special protection, as assessed by a Social 
Worker, due, but not limited, to any of the following circumstances: 


Child who is abandoned, surrendered, neglected, dependent or 
orphaned; 
Child who is a victim of sexual, physical, or any other form of abuse 
or exploitation; 
Child with developmental andlor physical disability; 
Child whose parents or guardians are temporarily or permanently 
unable to provide the child with adequate care; 
Child awaiting adoptive placement and would have to be prepared 
for family life; 
Child who needs long-term care and close family ties but who 
cannot be placed for adoption; 
Child whose adoption ahs been disrupted; 
Child under social difficulties such as, but ot limited to, street child, 
child in armed conflict and those who are victims of child labor or 
trafficking; and 
Child who has committed a minor offense but has been released on 
recognizance or on custody supervision or hidher case dismissed 
but whose family or relatives are not capable of providing him/her 
with care. 
SEC. 5. Who May Be a Foster Parent. - Any applicant must meet allt he 
following qualifications: 
a) 
b) 
Must have a genuine interest, capacity and commitment in 
Must be of legal age; 
parenting and be able to provide a family atmosphere for the child; 
Must have a healthy and harmonious relationship with each family 
member; 
Must have good moral character, emotional maturity, be physically 
and mentally capable and whose resources are able to provide for 
the family's needs; and 
Must be willing to be trained to further hone hislher knowledge, 
attitudes and skills in caring for a child. 
c) 
d) 
e) 
The relatives of the child shall be given priority to be the foster parent. 
An alien possessing the above qualifications and has resided in the 
Philippines for at least six (6) months may qualify as a foster parent. 


ARTICLE 111 
PROCEDURE 
SEC. 6. 
Recruitment and Development of Foster Parents. - Social 
Workers shall reach out to communities to recruit applicants for foster care. 
SEC. 7. lssuance of License. - The DSWD shall issue a license based on 
the home study report submitted by the Agency to determine the motivations, 
capacities and potentials for development of applicants. 
The license is 
renewable every three (3) years unless earlier revoked by the DSWD. 
SEC. 8. Matching. - Matching shall be done by the Agency only after the 
child case study and the home study have been conducted. The child case study 
report shall establish the needs of the child for consideration in the selection of 
the foster parent. Likewise, the home study report shall establish the foster 
parent‘s capacity and resources to provide a safe, secure and loving home to the 
child. 
SEC. 9. Placement. - The physical transfer of the child to the foster 
parent shall be allowed only after the Foster Placement Authority (FPA) has been 
issued. 
SEC. 10. 
Supetvision of Foster Placement. - 
Supervised foster 
placement begins as soon as the foster parent receives the child into hislher 
care. 
During the foster placement, the Social Worker shall conduct regular 
home visits to monitor the child’s adjustment in the foster home and shall submit 
progress reports to the DSWD. 
In case of incident, injury or death of a foster child, or if he/she runs away 
or gets lost, such case shall be reported immediately to the Agency, which, in 
turn, shall immediately report the same to the DSWD. 
SEC. 11. Termination of Placement. - Termination of placement shall be 
done by the DSWD upon the recommendation of the Agency. 
ARTICLE IV 
ADOPTION OF A FOSTER CHILD 
SEC. 12. Conditions. - A foster parent may adopt hidher foster child 
through the following conditions: 
a) 
The foster parent must have all the qualifications as provided for by 
Republic Act No. 8552, otherwise known as the “Domestic Adoption 
Act of 1998”. Or Republic Act No. 8043, otherwise known as “lnter- 
Country Adoption Act of 1995”, as the case may be; 


b) 
The trial custody, as required in adoption, may be waived; 
Provided, that a harmonious relationship exists between the child 
and hidher foster parents and family members; and 
The procedures for adoption, for purposes of this Act, shall be 
governed by Republic Act No. 8552 or Republic Act No. 8043, as 
the case may be. 
c) 
ARTICLE V 
ASSISTANCE AND INCENTIVES 
SEC. 13. Assistance to a Foster Child.- 
a) 
Foster Child Subsidy. - A foster child, through the Agency, shall be 
entitled to a monthly subsidy from the DSWD, subject to existing 
government auditing rules and regulations. The subsidy is primarily 
aimed to support the expenses of the child to lessen the financial 
burden of the foster parent. 
Health lnsurance - 
A foster child shall be entitled to health 
insurance benefits subject to the guidelines to be used by the 
DSWD and PHILHEALTH. 
b) 
SEC. 14. Assistance and Incentives to a Foster Parent. - 
Special Discounts - To the extend possible, the government may 
grant special discounts to a foster parent on the purchase of basic 
commodities for the exclusive use of a foster child subject to the 
guidelines to be issued for the purpose by the Department of Trade 
and Industry (DTI). 
Suppor7 Care Services - The DSWD, the social service units of 
local governments and Agencies shall provide support care 
services to include, but not limited to, counseling, visits, training on 
child care and development, respite care, skills training and 
livelihood assistance. 
Personal Exemption - For purposes of determining the taxable 
income of a foster parent who is either unmarried, widow/widower 
or legally separated, a foster child shall be treated as a dependent 
by the said foster parent, that would qualify him/her as "head of the 
family" entitled to the P25,OOO.OO personal exemption under the 
provisions of Section 35 (A) of the National Internal Revenue Code 
of 1997. 
Additional Exemption for Dependents. - For purposes of claiming 
the P8,OOO.OO additional exemption of foster parentls for each 
dependent not exceeding four (4), the definition of the term 
"dependent" under Section 35 (B) of the NlRC of 1997 shall be 
amended to include "foster child", provided, however, that all the 
other conditions provided for under the aforesaid section of the Tax 
Code are complied with. Provided, further, that this additional 


exemption shall be allowed only if the period of foster care is at 
least a continuous period of one (1) taxable year. 
The foregoing provisions to the contrary notwithstanding, for purposes of 
this section, only one foster parent can treat the foster child as dependent for a 
particular taxable year to the exclusion of the parents and other foster parents of 
the child, if any. 
SEC. 15. Incentives to Agencies and Donors. - 
a) 
Agencies - Agencies and donations to agencies shall be entitled to 
the following tax incentives: 
(1) 
Exemption from Income Tax -An Agency, which must be an 
accredited Non-Governmental Organization (NGO), shall be 
Exempt from income tax on the income derived by it under 
the provision of Sec. 30 of the Tax Code, as implemented by 
Revenue Regulations (RR) No. 13-98; and 
It can also apply for qualification as a qualified-donee 
institution entitled to receive donations from donors who 
shall be exempt from Donor’s Tax. 
(2) 
b) 
Donors - Donations to an accredited NGO shall be entitled to the 
following: 
(1) 
Full deductibility from the gross income of the donor of the 
amount donated subject to the conditions provided for under 
Sec. 34 (H) of the Tax Code of 1997; and 
Exemption from donor’s tax under Sec. 101 of the Tax Code 
provided that not more than 30% of the amount of donations 
shall be spent for administrative expenses. 
(2) 
ARTICLE V 
PENALTIES 
SEC. 16. Penalties. - 
Any foster parent, found to be committing any act of neglect, abuse, 
cruelty or exploitation and other similar acts prejudicial to the child’s 
development, shall be penalized in accordance with Republic Act 
No. 7610, otherwise known as “An Act Providing for Stronger 
Deterrence and 
Special Protection Against 
Child Abuse, 
Exploitation and Discrimination. Providing For Its Violation, and For 
Other Purposes”, and other applicable laws. 
Any person, natural or juridical, who violates any provision of this 
Act shall be penalized with imprisonment of not less than three (3) 
months but not more than three (3) years, or a fine of not less than 
Ten Thousand Pesos (PlO,OOO.OO) but not more than One Hundred 
Thousand Pesos (PlOO,OOO.OO), or both at the discretion of the 
court. 


c) 
An Agency which violates any provision of this Act and its 
implementing rules and regulations shall suffer the following 
penalties: 
1) 
For the first violation, a fine of not less than Five Thousand 
Pesos (P.5,OOO.OO) but not exceeding Twenty Thousand 
Pesos (P20,OOO.OO); and 
For any subsequent violation, a fine of not less than Twenty 
Thousand Pesos (P20,OOO.OO) but not exceeding One 
Hundred Thousand (PlOO,OOO.OO) 
and revocation of its 
license to operate. 
2) 
ARTICLE VI1 
FINAL PROVISIONS 
SEC. 17. 
Foster Care Committee. - 
The Regional Child Welfare 
Specialist Group of the DSWD shall serve as the Foster Care Committee, which 
shall have the following functions: 
a) 
Review nd deliberate issues affecting the placement of a particular 
child; 
b) 
Make recommendations to resolve any dispute between and 
among the agency, the parents, foster parents and the child; 
Monitor the implementation, review and recommend changes in 
policies concerning foster care and other matters related to the 
child’s welfare; 
Submit to the President of the Philippines and to Congress an 
annual report of the policies, programs and activities relative to the 
implementation of this Act; and 
Perform such other functions and duties as may be prescribed by 
the DSWD. 
c) 
d) 
e) 
SEC. 18. 
Appropriation. - The amount necessary to carry out the 
provisions of this Act shall be included in the General Appropriations Act of the 
year following its enactment into law and thereafter. An initial amount of Twenty- 
Five Million Pesos (P25,000,000.00) shall be allocated for the first year of its 
operation. Such sum shall be in the allocation for child-related programs of the 
DSWD. 
SEC. 19. lmplemenfing Rules and Regulations. - The DSWD, as lead 
agency, Department of Justice (DOJ), Department of Health (DOH), Bureau of 
Internal Revenue (BIR), Council for the Welfare of Children (CWC), and other 
concerned government agencies, in consultation with accredited child-caring 
institutions and organizations with foster care programs, are hereby mandated to 
prepare and draft the implementing rules and regulations to operationalize the 
provisions of this Act within three (3) months from its effectivity. 


SEC. 20. Repealing Clause. - Any law, presidential decree, issuance, 
executive order, letter of instruction, administrative order, rule and regulation 
contrary to or inconsistent with the provisions of this Act is hereby repealed, 
modified, or amended accordingly. 
SEC. 21. Separability Clause. - If any provision of this Act is held invalid 
or unconstitutional, the other provisions not affected hereby shall remain valid 
and subsisting. 
SEC. 22. Effectivity Clause. - This Act shall take effect fifteen (15) days 
following its complete publication in two (2) newspapers of general circulation or 
in the Official Gazette. 
Approved,