FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 29 0 1 
'11 
JUL 25 P 6 :54 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
"It is said that any country that has struggled with poverty knows how extremely 
expensive it is for them to be poor," and the Philippines, belonging to the third world country 
category knows that we are paying a steep price for being poor and vulnerable. 
According to the 2009 Official Poverty Statistics, released this February 8, 2011, there 
was an increase of about 185,000 from 3.67 million in 2006 to 3.86 million in 2009, it terms of 
magnitude of poor families. With the never-ending spate of price increases on fuel, energy. food 
and non-food commodities and services, the incidence of job displacements for local and 
overseas workers, the continued natural calamities that we have experienced over the past two 
(2) years, it is very likely that this number of poor families have swollen, considering that the 
current minimum wage is inadequate to compensate for all these. 
With a majority of the Philippine population living below or at the borderline of poverty 
threshold despite our continued efforts in eradicating if not reducing poverty among the people, 
we do need to come up with a legislation which will resolutely reiterate in explicit terms the basic 
and primary rights of the marginalized sector, which as advocates pronounce, "the poor can 
demand as a matter of right and which the government must do as a matter of obligation." 
As enshrined in Article II, Section 9 of the 1987 Philippine Constitution, "the State shall 
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." 
The fundamental rights to (1) employment and livelihood (2) food and food assistance 
(3) decent shelter (4) free quality education (5) health service and medicines, are essential 
requisites towards poverty reduction and in guaranteeing the survival of those living below the 
poverty line. These are the advocacies contained in this Magna Carta of the Poor, coupled with 
provisions on ensuring that the poor beneficiaries under this program will be provided with 
means not only to survive but to improve their lives and uplift their economic status in order to 
pull them out of poverty and direct them towards productivity and sustainability. 
Hence, the approval of this Bill is earnestly sought. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
'11 
JUL 25 P 6 :54 
Senate Bill No. 2901 rtf:( EH~':,:) BY:_~ 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
PROVIDING FOR A MAGNA CARTA OF THE POOR 
Be it 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 "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 sustained growth and development. 
Every poor 
Filipino family must be empowered to meet their minimum basic needs, such as 
food, shelter, education and health services, through the partnership of the 
government and the basic sectors, 
Poverty alleviation is a government 
responsibility that primarily requires the creation and expansion of employment 
opportunities geared towards providing decent and productive employment to the 
poor. This will pull them out from the poverty threshold, thereby reducing the 
poverty incidence in the country, 
To attain the foregoing policy: 
a) Government must invest in anti-poverty programs to empower the poor to 
participate in the country's growth and development; 
b) All government departments, agencies and instrumentalities must provide 
full access to government services for the poor at all levels; 
c) Government interventions shall address the genuine concerns of the poor 
for daily survival, while long term strategies and solutions for the economic 
empowerment of the poor are being put in place in order to advance their 
economic status above the poverty threshold; and 
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d) The capabilities and competencies of the basic sectors, the non-
government 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 refer to individuals or families whose combined income fall 
below the poverty threshold as defined by the National Economic 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; 
(d) 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 common social and economic 
end. 
Sec. 4. Basic Rights of the Poor. - The poor shall have the following rights, for 
the enjoyment of which are an essential requirement towards poverty alleviation: 
a) Right to employment and livelihood; 
b) Right to food and food assistance; 
c) Right to decent shelter; 
d) Right to free quality education; and 
e) Right to free basic health services and medicines. 
SEC. 5. Right to Food and Food Assistance. - The Department of Social 
Welfare and Development (DSWD) shall develop a program of granting free food 
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to the poor or a system of giving food assistance or subsidy to help the poor 
meet their minimum food necessities. 
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. 
To help ensure the implementation of the grant of free food for the poor 
program, all food items and food products, including rice, corn, sugar and other 
prime commodities seized and forfeited with finality in favor of government for 
violations of customs laws shall be automatically transferred to or turned over to 
the DSWD for its disposition. 
SEC. 6. Right to Employment and Livelihood. - The Department of Labor and 
Employment (DOLE), in coordination with the National Anti-Poverty Commission 
(NAPC), local government units (LGUs) through their respective Public 
Employment Service Office (PESO) and the Technical Education and Skills 
Development Administration (TESDA) and other relevant government agenCies 
and government financial institutions, shall primarily be responsible in ensuring 
that the poor shall have preferential access to employment and livelihood 
opportunities in both 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. 
Government departments and agencies, including government-owned and 
controlled corporations, are hereby authorized and mandated to earmark funds 
from their budgetary outlays to immediately undertake viable projects for 
employment purposes. The government shall likewise allocate more funds from 
official development assistance for projects and activities that will have greater 
impact on generation of employment for the poor. 
It shall be mandatory for all government infrastructure projects and 
government-funded contracts or government-assisted undertakings to utilize 
workers who are poor in areas where the projects or contracts are to be 
implemented. 
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SEC. 7. Right to Decent Shelter. - The right of the poor to decent housing shall 
not be abridged. The government shall develop and implement an appropriate 
housing program that will provide decent housing to the poor with the least 
financial burden through a system of subsidy or no-down payment acquisition 
schemes and long term interest-free loans. 
The 
government shall, through the Housing and Urban Development 
Coordinating Council (HUDCC) and the National Housing Authority (NHA) in 
coordination with the LGUs immediately construct and provide free housing 
facilities in pre-determined development or resettlement sites for residents of 
identified hazardous or danger zones or areas where housing needs for the poor 
are urgent and greatest. 
In ensuring the exercise and enjoyment of this right of the poor, the 
government shall put in place a system of simple requirement and procedures 
and expeditious processing and approval. 
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 Housing Act of 1992." 
SEC.S. Right to Free Quality Education. -
The right of the poor to free 
elementary and secondary public 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-Iater plans, 
programs on education shall be expanded in statellocal/private universities and 
colleges, as well as higher education institutions: Provided, That the students 
enroll in priority courses, as determined by the Commission of Higher Education, 
so as to ensure high employability after college. 
It shall also include the right to free availment of in-demand vocational and 
technical training and manpower skills development, through scholarships, 
subsidies and financial assistance, to ensure access to decent and productive 
employment. 
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At least five percent (5%) discount shall be granted by establishments that 
sell reference books for tertiary level and school supplies and uniforms to poor 
students, subject to the guidelines to be issued by CHED; Provided, that these 
establishments may claim the cost as allowable tax in accordance with the 
provisions of the National Internal Revenue Code of 1997, as amended. 
The DepEd, CHED and TESDA in coordination with other government 
agencies and government educational institutions, concerned, shall ensure the 
full enjoyment of the poor's right to education. 
SEC. 9. Right to Basic Health Services and Medicines. - The Department of 
Health (DOH) and the LGUs shall ensure and promote the health of populace in 
a rational manner, including the availability of quality primary healthcare service 
and access to secondary and tertiary healthcare services and public health care 
programs. 
The DOH shall 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 
services that will promote the health and well-being of every Filipino, especially 
the poor. 
The Philippine Health Insurance Corporation (PhiIHealth) 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, LGUs and Philhealth shall define an expanded primary health 
package that every citizen is entitled and can readily avail of. 
Clear 
responsibilities must be defined and allocated between the three partners, 
ensuring also that services provided are consistent with the epidemiological 
profile and population needs. 
SEC. 10. Other rights of the Poor. - All other rights and benefits for the poor 
provided under existing laws shall remain in fuJI force and effect. Nothing herein 
contained shall be construed in a manner that will diminish the enjoyment of such 
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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. 11. System of Targeting of Beneficiaries. - The DSWD, in coordination 
with the NAPC and other relevant government agencies, LGUs, NGOs and POs 
shall come up with a single system of 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. 12. Ensuring the Promotion of the Beneficiaries' Economic Status 
Towards Productivity and Self-Sufficiency. - The NEDA in coordination with 
the NAPC, DSWD, LGU and all other concerned stakeholders, shall formulate a 
policy in order to ensure that the poor beneficiaries under this program would 
eventually improve their economic status and advance into becoming productive 
and self-sufficient citizens. 
Sec. 13. Funding Requirements. - To carry out the provisions of this Act, the 
following amounts shall be appropriated as follows: 
a) The sum of Fifty Million Pesos (Php50,000,000.00) as initial operating 
fund is hereby appropriated out of any available funds in the National 
Treasury. 
The amount necessary in subsequent years to help 
implement this Act shall be included in the annual appropriation of the 
National Economic and Development Authority (NEDA); 
b) Twenty percent (20%) of the share of the national government in the 
earnings of the Philippine Amusement and Gaming Corporation 
(PAGCOR); 
c) Twenty percent (20%) of the share of the national government in all 
lotteries conducted by the Philippine Charity Sweepstakes Office 
(peSO); 
d) Fifty percent (50%) of the share of the government in the proceeds 
from sale or disposition of sequestered assets; and 
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e) Fifty percent (50%) 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 (BOC). 
The share from the PAGCOR, the PCSO, the sale of sequestered 
assets and forfeited goods and article shall be directly remitted to NEDA on a 
quarterly basis for its disposition in accordance with this Act. 
SEC. 14. Rational Allocation of Funds. - The NEDA in coordination with 
NAPC 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 the rights of the poor. 
SEC. 15. 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, DOLE, DepEd, DOH, NAPCDA, CHED, TESDA, 
HUDCC, NHA are hereby authorized to solicit donations, aids or grants, in cash 
or in kind, from whatever source, and/or enter partnerships with private/public 
institutions to meet the demands of the basic rights to employment and 
livelihood, food and food assistance, free quality education, decent shelter, basic 
health services and medicines, and other rights. 
SEC. 16. Tax Exemptions. - Any donation, contribution or grant which may be 
made to the programs and projects entered into pursuant to this law 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. 17. 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 sections on the basic rights of 
the poor as provided herein. 
SEC. 18. Penalty. - Any public official or employee who negligently permits the 
violation of any provision of this Act shall be punished with a fine not exceeding 
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the equivalent of six (6) months salary or suspension not exceeding one (1) year 
or removal from office depending on the gravity of the offense, after due notice 
and hearing, without prejudice to the filing of appropriate case if warranted under 
the circumstances. 
SEC. 19. Implementing Rules and Regulations. - The NAPC, in coordination 
with the government departments and 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. 20. Compliance and Accomplishment Report. - The NAPe shall, in 
coordination with all 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 Congress on the accomplishment and compliance with the provisions 
of this Act. 
SEC. 21. Separability Clause. - If any provision or part of this Act is declared 
invalid or unconstitutional, the remaining parts or provisions not affected shall 
remain in full force and effect. 
SEC. 
22. 
Repealing Clause. -
All 
laws, decrees, 
executive orders,' 
proclamations, rules and regulations, and issuances, or parts thereof, which are 
inconsistent with the provisions of this Act are hereby repealed or amended 
accordingly. 
SEC. 23. Effectivity. -
This Act shall take effect fifteen (15) days after 
publication in the Official Gazette or in two (2) national newspapers of general 
circulation. 
Approved, 
8