" 
, " 
" 
.il'Mh' 
{~fh;t lIf t~t! ~l'\'v'fht(~ 
SIXTEENTH CONGRESS OF THE 
) 
'13 
JUL -8 P5 :23 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
RI<~CEI\'ED BY:-f \ 
SENATE 
SENATE BILL NO. 
657 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
EXPLANATORY NOTE 
Republic 
Act 
No. 
10121, 
otherwise 
known 
as 
"An 
Act 
Strengthening the 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 (5%) of the estimated 
revenue from regular sources" and "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 communities or areas stricken by 
disasters, calamities, epidemics, or complex emergencies, may be 
normalized as quickly as possible". 
In the event of a disaster, calamity epidemic or complex 
emergency, the Quick Response Fund is the first fund that is depleted 
and often, found insufficient, This legislative measure therefore 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 from a portion of the LDRRMF of the 
LGUs and will serve to augment the funds available to LGUs to address 
their disaster response and recovery needs. The Solidarity Fund may 
also be used to pay premiums for securing catastrophic insurance for 
the public infrastructure of the LGUs. 
In view of the foregoing, the immediate enactment of this 
measu're is earnestly sought. 
• 
~-" 
JOSEPH VICTOR G. EJERCITO 


• • 
SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
SENATE BILL NO. (;57 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
AN ACT ESTABLISHING THE SOLIDARITY FUND OF THE LOCAL 
GOVERNMENT UNITS FOR DISASTER RESPONSE AND 
RECOVERY 
Be enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Short Title - This Act shall be known as the Local 
Government Units (LGU) Solidarity Fund for Disaster Response and 
Recovery Act. 
SECTION 2. Declaration of Policy - It is the declared policy of 
the State to increase local capacity to build disaster reSilience of 
comml!lnities and to strengthen institutional mechanisms for the 
reduction of disaster risks and enhancement of preparedness and 
response capabilities at all levels. 
SECTION 3. Solidarity Fund - A Solidarity Fund will be held as 
a trust account in a government bank. Disbursement from said fund 
will be subject to the issuance of a release order of the supervisory 
board. 
The Supervisory Board shall be composed of the following: 
Secretary of the Department of Interior and Local Government, and 
representatives from the following; Union of Local Authorities of the 
Philippines, League of Provinces of the Philippines, League of Cities of 
the Philippines, League of Municipalities of the Philippines and the Liga 
ng mga Barangay. They shall serve in an ex-officio capacity. 
SECTION 4. Source of the Solidarity Fund -
All Local 
Government Units are hereby mandated to contribute point five 
percent (0.5%) of their total revenues taken from the Local Disaster 
Risk Reduction and Management Fund (LDRRMF) other than the 
amount set aside for the quick response fund, 


.' . 
Provided that an LGU who availed of the Solidarity Fund shall 
contribute one percent (1 %) of their LDRRMF for the next year; 
Provided further, that the LGU shall revert to the point five 
percent (0.5%) contribution if it did not avail of the solidarity fund for 
the previous year. 
SECTION S. Availment of the Solidarity Fund - In the event 
of a disaster, any affected LGU can avail of the Solidarity Fund upon 
submission of the following: local Resolution declaring a State of 
Calamity and Certificate of Exhaustion of the Quick Response Fund. 
-the maximum payout arising out of any single disaster is 100 
times of the LGU contribution to be released in two equal tranches. 
The second tranche shall be released only upon full liquidation of the 
first tranche released. 
The maximum release shall not exceed 75% of the total 
solidarity fund. If the total claims arising out of a single disaster should 
exceed 75% of the total Solidarity Fund, the pay-out shall be pro-rated 
amongst the claimants. 
SECTION 6. Insurance Premiums - The Solidarity Fund may 
be used to pay premiums for securing catastrophic insurance for public 
infrastructures of LGUs. 
SECTION 7. Use of Fund - The Solidarity Fund shall be used 
exclusively for disaster response and recoveries for LGUs and the 
payment of catastrophic insurance premiums. 
SECTION 8. Separability Cause -
Should any section or 
provision of this Act shall be held unconstitutional or invalid, such 
declaration shall not invalidate other provisions thereof. 
SECTION 9. Repealing Clause - All laws, decrees, executive 
orders, proclamations, rules and regulations inconsistent herewith are 
hereby repealed and/or modified accordingly. 
SECTION 10. Effectivity - This Act shall take effect fifteen (15) 
days following its publication in the Official Gazette in two (2) 
newspapers of general circulation. 
Approved,