14& CONGRESS OF THE PHILIPPINFS 
First Regular Session 
SENATE OF THE PHILIPPIPJES 
Pasay City 
\ \ :&[: 
Z > J C { * ’ , >  
I;,?. 
. . 
4 
5” 425 
S. BILL NO. 
EXPLANATORY NOTE 
Statistics show that 36.8% of the Philippine population subsists below the national 
poverty lime’. Worse, the incidence of child maInutrition in the Philippines stands at 
30% of all children under 5 years old2. This means that around five million Filipino 
children are suffering from malnutrition. 
Our national hero Dr. Jose Protacio R i d  once said that: 
“[Tlhe youth is the hope of our Fatherland”. 
With Filipino children literally dying from extreme poverty, hunger and malnutrition, 
the f5ture of the Philippines is clearly in grave peril. 
The passage of Republic Act 84253 otherwise known as the “Social Reform and 
Poverty Alleviation Act” is a step towards the right direction. However, considering 
the fact that the said law is actually focused on social reform and long term 
development, the National Anti-Poverty Commission (NAPC), which was created as a 
coordinating body under the law, is apparently not equipped to immediately address 
the problem. 
The problem of extreme poverty, child malnutrition and hunger is a not a problem 
requiring strategic or long term solutions only. The problem is here and we must 
provide immediate remedies and short-term solutions now. It is time we stop paying 
lip service to this grave national problem and to put our money where our mouth is, so 
to speak. 
Indeed, it is not enough that we adopt a long-term strategy to combat child 
malnutrition and extreme poverty. In the long-run, many of these children will be 
dead! Hence, there is an imperative necessity for the Government to immediately act 
on this problem. 
‘ Asian Development Bank (ADB) Database and Development Indicators. 
’ADB Poverty and Inequality Indicators (Principal Source: National Statistics Coordinating Board: 
1997 Philippine Poverty Statistics). 
Effective 30 June 1998. 
1 


This Bill aims to provide significant and continuing intervention by Government into 
this grave problem by providing literally billions of pesos annually to fund school and 
community-based supplemental feeding programs and related poverty alleviation 
efforts using the minimum basic needs (MJ3N) approach among the poorest of the 
poor communities in the country. 
The Bill aims to harness the revenue-earning potential of at least two (2) controversial 
Government-Owned or Controlled Corporations (GOCCs), in particular the Philippine 
Games and Amusement Corporation (PAGCOR) and the Philippine Charity 
Sweepstake Office (PCSO), among others, and using the same to fund the poverty- 
alleviation efforts of the Government. In the end, this Bill will not only provide much 
needed funds to a worth-while cause, it will also serve to provide redeeming social 
value for these two (2) controversial GOCCs. 
The Bill is expected to generate billions of pesos to help ameliorate if not totally put a 
stop to the prevalence of child malnutrition in the country. 
The immediate passage of this Bill is, thmfore, earnestly sought. 
A&TONIO F. TRILLANES IV 
Senator 
2 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
FOURTEENTH CONGRESS OF THE REPUBLIC ) 
First Regular Session 
1 
OF THE PHILIPPINES 
) 
7 hili; -2 
, I  1 . .> 
Introduced bv Senator Antonio F. Trillanes IV 
AN ACT 
CREATING A SPECIAL POVERTY ALLEVIATION FUND TO BE USED TO 
PROGRAMS AND RELATED POVERTY ALLEVIATION EFFORTS USING 
THE MINIMUM BASIC NEEDS (MBN) APPROACH IN THE POOREST OF 
THE POOR COMMUNITIES IN TEE COUNTRY AND FOR OTHER RELATED 
PURPOSES 
FINANCE SCHOOL AND COMMUNITY-BASED SUPPLEMENTAL FEEDING 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. 
of 2007'! 
This law shall be known as the "Poverty Alleviation Fund 
SEC. 2. Declaration ofPoliq. 
It is the policy of the State 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 [Section 9, Article 11, 1987 Philippine Constitution]. 
Towards this end and to help combat the growing problem of malnutrition, hunger 
and abject poverty particularly among children, the Government shall institute a 
systematic and well-studied direct intervention program by conducting sustained 
supplemental feeding targeting school children, out-of-school youth and children of pre- 
schooling age as well as related poverty-alleviation efforts using the basic human needs 
approach, particularly among those belonging to the poorest of the poor or the lowest 
twenty percent (20%) of Philippine social strata in terms of income and resources. 
SEC. 3. Creation of A Special PoveQ Alleviation Fund 
There 
is 
hereby 
created a Special Poverty Alleviation Fund ("Fund'? to be funded from the sources 
1 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
provided herein below and to be managed and administered by the National Anti- 
Poverty Commission (NAPC) under a Program to be implemented by the Department 
of Social Welfare and Development (DSWD). 
SEC. 4. 
following sources: 
Sources of the Fund 
The Fund shall be constituted from the 
(a) 
Ten percent (10%) share from the net income of the Philippine Games and 
Amusement Corporation (PAGCOR), to be given and delivered by PAGCQR to the 
NAPC on a quarterly basis, no later than ninety (90) days after the end of each 
quarter, subject to final accounting and/or adjustments at the end of each calendar 
year; 
(b) 
Ten percent (10%) share from the net income of the Philippine Charily 
Sweepstakes OEce (PCSQ), to be given and delivered by PAGCOR to the NAPC on 
a quarterly basis, no later than ninety (90) days after the end of each quarter, subject 
to final accounting and/or adjusments at the end of each calendar year; 
(c) Ten percent (10%) share from the net profits of all Duty Free Shops (DFS) or, in 
case of the privatization of the DFS, twenty percent (25%) of the proceeds of 
privatization of DPS plus fifty percent (50%) of the franchise tax collected thereon. 
The Department of Finance, through its appropriate agencies, is hereby 
mandated to ensure the proper collection of the shares and/or charges intended for the 
Fund from the sources provided herein and to turn-over the same quarterly to the 
NAPC through the DSWD. 
SEC. 5. 
Authorized Use of the Fund; The Program 
The 
Fund 
shall 
principally be used to finance the National Supplemental Feeding and Poverty 
Alleviation Program ("Program"). The Program shall provide for the generation of an 
annual listing of priority or target schools, communities, barangays and/or other localities 
where the Government shall undertake direct feeding and/or supplemental feeding 
activities on a sustained basis targeting school children, out-of-school youth and children 
of pre-school ages who belong to the poorest of the poor or the lowest twenty percent 
n 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
(20%) of the Philippine social strata in terms of income or financial resources. The 
Program shall also incorporate other poveity-alleviation efforts using the minimum basic 
needs ( m N )  approach targeted at poor communities. 
The Program shall be prepared by the DSWD for the approval of the NAPC. The 
Program shall likewise be implemented by the DSWD. 
In connection with the foregoing, subject to the approval of NAPC, the DSWD 
shall: 
(a) 
efficiently the disposition of the Fund in accordance with declared purpose thereof; 
Devise and formulate plans, strategies and programs to carry out effectively and 
(b) Direct the management, operations and administration of the Fund; 
(c) Authorize expenditures of the Fund as are in accordance with the purpose for whch 
it was set up; and 
(d) 
which the Fund was created. 
Exercise such other powers as may be necessav to accomplish the purpose for 
SEC. 6. Limitations. The Fund shall not be used for any purpose other than to finance 
the feeding andor supplemental feeding program of the Government, as prepared by the 
DSWD and approved by the NAPC. Moreover, no more than three percent (3%) of the 
proceeds of the Fund may be used for administrative purposes. 
SEC. I. Administration and Control of the Fund The Fund shall be under the control 
of the DSWD, which shall administer the same in accordance with the above staled 
powers, functions and limitations. 
SEC. 8. Znvestment of the Fund 
Any portion of the Fund not otherwise disposed of 
as provided for in this Act shall be invested in government securities and such other high- 
yielding securities as determined by the DSWD, upon approval of the NAPC. The 
earnings therefrom shall accrue to the Fund. 
3 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
SEC. 9. Audit. 
ex-oficio auditor of the Fund. 
The Chairman of the Commission on Audit (COA) shall act as the 
SEC. 10. Annual Report. 
The Secretary of the DSWD shall submit, within fifteen 
(15) working days from the opening of the regular session of Congress, to the President 
of the Philippines as NAPC Chair and to the Presiding Officers of both Houses of 
Congress, an annual report which shall include an account of the program, projects and 
detailed expenses undertaken pursuant to this Act. 
SEC. 11. 
Penal Clause. 
Any person who fails or refuses to turn over 
collections of the charges or shares mentioned in this Act within the period prescribed 
herein, or who delays, obstructs or prevents the same; or who fails or refuses to effect 
release from the Fund, or who obstructs, or prevents the same: or who orders, causes, or 
effects the transfer or diversion of the collections of this Fund shall be punished with a 
fine not exceeding one hundred thousand pesos (PIO0,OOO.OO) or imprisonment not 
exceeding six (6) years, or both at the discretion of the Court. If the offender is a 
government official or employee, he shall, in addition, be dismissed from the service with 
prejudice to reinstatement and with disqualification for election or appointment to any 
public office. If the offender is a corporation or any other juridical entity, the penalty 
provided herein shall be imposed on its directors or officers who may be responsible for 
the violation. 
SEC. 12. 
Rules and Regulation. 
The Secretary of the DSWD in consultation 
with the NAPC shall promulgate the rules and regulation relating to the collection and 
remittance of the revenue sources accruing to the Fund as may be necessary for the 
effective implementation of this Act. 
SEC. 13. 
The provisions of this Act are hereby declared to be 
separable, and in the event that any part, section or provision of this Act is held invalid or 
unconstitutional, no other part or section or provision thereof shall be affected thereby. 
Separability Clause. 
SEC. 14. 
The pertinent provisions of the National Internal 
Revenue Code, as amended, the charters of the PAGCOR and PCSQ, as amended, and 
any other provisions of law, decree, executive order, letter of instructions, rule or 
Repealing Clause. 
4 


1 
2 
3 
4 
SEC. 15. 
Effectivity. This Act shall take effect fifteen (15) days following the 
5 
coinpletion of its publication in the Official Gazette and in two newspapers of general 
6 
circulation in the Philippines. 
regulation or parts thereof that are in conflict with any provisions of this Act are hereby 
repealed, amended or modified accordingly. 
Approved, 
5