Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

15" Congress
Second Regular Session

COMMITTEE REPORT NO. 1420

Submitted by the Committee on People’s Participation on

298
RE : House Bill No. 5
Recommending its approval in substitution of House Bill No. 1199

Sponsors Representatives Benjamin D. Asilo, Marcelino R.
Teodoro, Cinchona C. Gonzales, and Cresente C. Paez

Mr. Speaker:

The Committee on People's Participation to which was referred House
Bill No. 1199 introduced by Representative Marcelino R. Teodoro, entitled:

AN ACT TO PROVIDE FOR THE DISCLOSURE OF LOBBYING
ACTIVITIES.

has considered the same and recommends that the attached House Bill No.
entitled:

AN ACT PROVIDING FOR THE DISCLOSURE OF LOBBYING
ACTIVITIES IN THE PHILIPPINES, AND PROVIDING
PENALTIES THEREFOR

be approved in substitution of House Bill No. 1199 with Representative
Marcelino R. Teodoro as author and Representatives Benjamin D. Asilo,
Cinchona C. Gonzales, Cresente C. Paez, Catalina G. Leonen-Pizarro, Amel U
Ty, Reena Concepcion G. Obillo, Raymond V. Palatino, Christopher S. Co,


Winston “Winnie” T. Castelo, and Salvador P. Cabaluna Ill as co-authors
thereof.

BENJAMIN D. ASILO

Chairman

Committee on People’s
Participation

THE HONORABLE SPEAKER

HOUSE OF REPRESENTATIVES
QUEZON CITY


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

FIFTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO._ 5298
(In substitution to HB 1199)

Introduced by Reps. Marcelino R. Teodoro, Benjamin D. Asilo, Cinchona Cruz-Gonzales,
Cresente C. Paez, Catalina G. Leonen-Pizarro, Arnel U. Ty, Reena Concepcion G. Obillo,
Raymond V. Palatino, Christopher $. Co, Winston T. Castelo, and Salvador P. Cabaluna IIT

PROVIDING FOR THE DISCLOSURE OF LOBBYING ACTIVITIES
IN THE PHILIPPINES, AND PROVIDING PENALTIES THEREFOR

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

SECTION 1. Short Title. ~ This Act shall be known as the “Lobbying Disclosure
Act.”

SEC. 2, Declaration of Policy. ~ It is hereby declared the policy of the State to
enhance public confidence in the integrity of public office and the decision-making process in
government by implementing a policy of full public disclosure of all lobbying activities and
transactions.

SEC. 3. Definition of Terms. ~ For purposes of this Act:

(a) Lobbying activity refers to the practice of influencing the introduction,
shepherding, or passage of legislation before either House of the Congress of the Philippines,
as well as intervening in the official decisions of public officials and the implementation of
government programs and projects;

(b) Lobbyist refers to any person or juridical entity, including a corporation, a
partnership, or an association, who engages in the practice of lobbying for a regular salary, a
retainer, or other compensation, or a non-monetary benefit;

(©) Disclosure refers to the act of revealing all information related to lobbying

activities and transactions;


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(@) Public officials refer to elective and appointive officials and employees,
permanent or temporary, whether in the career or non-career service, including military and
police personnel, as defined under RA 6713, otherwise known as the Code of Conduct and
Ethical Standards for Public Officials and Employees; and

(©) Government Registering Agencies refer to agencies that issue certificates of
) for

private organizations and corporations; (2) the Department of Labor and Employment-Bureau.

registration such as but not limited to: (1) the Securities and Exchange Commission (

of Labor Relations for unions and worker's associations; (3) the Housing and Land Use
Regulatory Board for homeowners associations; (4) the Cooperative Development Authority
for cooperatives; and (5) the Insurance Commission for mutual benefit associations.
SEC. 4. Coverage of Lobbying Activities. — Lobbying activities shall include any
action or communication intended to influence:
(a) the crafting of any legislative proposal by the government or by a member of
either House of Congress:
(b) the introduction, shepherding, and passage of any legislative proposal or
amendment thereto in either House of Congress;
(¢) the drafting of implementing rules and regulations pursuant to a law:

(@) the introduction of or change in any government policy or program;

(©) the exercise of any authority or power conferred by la

(f) the expenditure of public money.

SEC. 5. Limitations on Lobbying Activities, Lobbying activities shall not include

actions or communications that are:

(a) Made by a public official, an agency, or any other person holding public office in
their official capacity;

(b) Made in response to a written request from a public official acting in official
capacity;

() Made by an employee of a media organization for the purpose of gathering and

disseminating information to the publi
(d) Made for the purpose of distribution and making available to the public, or
through radio, television, and other media of mass communication;
(€) Incidental to arranging or attending a meeting with a public official that is open to
the public, or is attended by an employee of a media organization for the purpose
of gathering and disseminating information to the public.

() Made in the course of any judicial proceeding; or


ea ae

(g) Made on behalf of the government of a foreign country;

SEC. 6. Registration Requirements. ~ Any person who shall engage in lobbying
activities shall register with the appropriate government registering agencies, and with the
appropriate Secretariat, as referred to under Section 9 hereof, The registration must be
notarized and shall contain the following information:

(a) The name and business address of the lobbyist;

(b) The name and business address of the employer or the principal in whose behalf

the lobbying activity is carried out: Provided, That if the employer is a
corporation, the name and business address of the corporation must be stated;

(c) A description of the employer's or principal's business activities and such other

related information;

(a) A description of the subject matter of the lobbying activity;

(©) Identification of the proposal, policy, program, authority, power, or expenditure

related to the lobbying activity; and

(4) Identification of public officials to whom lobbying activities are directed.

SEC. 7. Issuance of a License to Lobby. — Upon approval of registration, the lobbyist
shall be issued a license to lobby, which shall expire on the last day of December of the year
it was issued.

No license to lobby shall be issued to applicants in Congress without the approval of
the Secretaries of both Houses. Likewise, no license to lobby shall be issued to applicants in
Executive departments without the approval of the concerned Secretaries.

SEC. 8. Establishment of Register of Lobbyists, — The government registering
agencies, the House Secretary-General, the Senate Secretary, and the Secretaries of Executive
Departments, shall submit a Register of Lobbyists and a report of lobbying activities to the
Secretariats, as provided under Section 9 of this Act, which shall be made available to the
public upon request.

The Register shall be comprised of all the information set out in reports lodged under
this Act,

The Register may be compiled in such manner and form as the aforementioned offices
of the Legislative and Executive branches may consider convenient: Provided, That the
Register must be readily available and regularly updated.

The Register must be open to the public and must be posted in the websites of the

Legislative and Executive branches.


eA Re

SEC. 9. Secretariats. - The House of Representatives and the Senate shall create a
Joint Secretariat for both Houses of Congress while each Executive Department shall form a
Sccretariat to attend to the registration of lobbyists and the compilation and maintenance of
the Register of Lobbyists and the publication of the annual report on lobbying activities.

SEC. 10. Reportorial Requirement. ~ A duly licensed lobbyist shall be required to
submit an annual report on the lobbying activities undertaken to the Joint Secretariat for both
Houses of Congress and the Secretariat for the concerned Executive Department. The report
shall include a statement of expenses incurred in the course of lobbying which must be taken
under oath and must be duly notarized.

SEC. 11. Notice Requirement. — The concemed Secretariat shall, in writing, serve
notice to the lobbyists to provide additional information in relation to the report lodged

pursuant to Section 6 of this Act. The notice shall specii

(a) The nature of the additional information required;

(b) The period of compliance within which the additional information must be
provided; and

(c) The person receiving the notice is required to comply with the notice.

‘A person who, without reasonable excuse, fails to comply with a duly served notice,
shall be cited for contempt by the concemed Secretariat, and shall be suspended from
performing or condueting lobbying activities until the requirement stated in the notice has
been complied.

SEC. 12. Penal Provisions. ~

(a) Any person who shall act as a lobbyist without a license shall be fined with not less
than Thirty Thousand Pesos (PhP 30,000.00) nor more than Fifty Thousand Pesos (PhP
50,000.00) and shall be prohibited from acting as a lobbyist for a period of three years from
the date of conviction.

(b) Any lobbyist who fails to file an annual report required under Section 10 of this Act
shall be punished with a fine of not less than Ten Thousand Pesos (PhP 10,000.00) but not
more than Thirty Thousand Pesos (PhP 30,000.00) or by imprisonment not to exceed six (6)
months or both at the discretion of the court.

(c) Any lobbyist who shall file a false or incomplete report or registration shall be
punished by a fine of not less than Thirty Thousand Pesos (PhP 30,000.00) but not more than
Fifty Thousand Pesos (PhP 50,000.00), or by imprisonment of not less than six (6) months

nor more than two (2) years, or both fine and imprisonment at the discretion of the court.


is)

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Seowmiuy3) 86

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(@ Any person who shall willfully interfere with, restrain, coerce or commit any
violation of any provision of this Act shall, upon conviction, be punished by a fine of not less
than Thirty Thousand Pesos (PhP 30,000.00) but not more than Fifty Thousand Pesos (PhP
50,000.00), or imprisonment of one (1) year to six (6) years, or both fine and imprisonment at
the discretion of the court,

(€) If the offender is a public official, the court may impose the additional penalty of
disqualification from public service in addition to the penalties provided in the preceding
paragraph.

SEC. 13. Appropric

this Act shall be charged against the current year’s appropriations of the implementing

ions. ~ The amount necessary to carry out the implementation of

agencies under the General Appropriations Act. Thereafter, such sums as may be necessary
for the continued implementation of this act shall be included in the annual general
appropriations act.

SEC. 14. Implementing Rules and Regulations. ~ The Secretariats created under
Section 9 of this Act shall promulgate the implementing rules and regulations as may be
necessary to carry out the provisions of this Act within ninety (90) days from the effectivity

thereof.

SEC. 15. Separability Clause. ~ If any provision or part hereof, is declared invalid ot
unconstitutional, the remainder of the law not otherwise affected shall remain valid and
subsisting.

SEC. 16. Repeating Clause. ~ Any law, Presidential Decree or issuance, Executive
Order, Letter of Instruction, Administrative Order, rule or regulation contrary to. or
inconsistent with, the provisions of this Act, are hereby modified, repealed, or amended
accordingly.

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

Approved,

ow


HOUSE OF REPRESENTATIVES
COMMITTEE AFFAIRS DEPARTMENT

FACT SHEET

House Bill No. 5298
(In Substitution of HB No. 1199)

AN ACT PROVIDING FOR THE DISCLOSURE OF LOBBYING ACTIVITIES
AND PROVIDING PENALTIES THEREFOR
Introduced by: REP. MARCELINO “MARCY” R. TEODORO

Committee Referral : COMMITTEE ON PEOPLE’S PARTICIPATION
Committee Chairperson: REP. BENJAMIN D. ASILO

OBJECTIVES:

* To make public the lobbying activities between the officials of the Executive and the
Legislative Branches and lobbyists.

* To enhance public confidence in the integrity of public office by implementing a policy of full
Public disclosure of lobbying activities and transactions in the country

KEY PROVISIONS:

+ Identifies the coverage of lobbying activities to include the following:
1. any action or communication intended to infiuence the formulation, introduction,
shepherding, or passage of legislation:
2. the drafting of implementing rules and regulations;
3. the formulation of policies, the exercise of public authority; and
4. the expenditure of public money

+ Delineates activities which shall not be considered as lobbying activities
‘+ Directs lobbyists to register with appropriate government registering agencies
+ Lists the requirements needed to merit the issuance of license to lobby

* Directs certain government agencies to establish a Register of Lobbyists and to submit a
Report of Lobbying Activities,

* Creates a Joint Secretariat for both Houses of Congress and another Secretariat for the
Executive Department which shall attend to the registration of lobbyists and the compilation
and maintenance of related records

* Requires lobbyists to submit annual reports on their lobbying activities with the Joint
Secretariat of the Houses of Congress or the Secretariat for the Executive Department

+» Mandates the punishment of certain lobbying acts and provides penalties thereto, such as
the failure to register with proper authorities and to file accurate annual reports.

RELATED LAW:

* Republic Act No. 1827, entitled, “An Act to Regulate Lobbying in the Congress of the
Philippines and in the Commission on Appointments,” enacted on June 22, 1957.

As of August 10, 2011


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

FIFTEENTH CONGRESS
First Regular Session
1199

House Bill No.

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO.

EXPLANATORY NOTE

Lobbying activities are being carried out today in the Philippines and greatly
influence the making of government's policies and decisions and even the

creation of laws.
The Constitution, Article 2, Section 28 states:
“Article 2. Subject to reasonable conditions prescribed by the law, the State adopts

and implements a policy full public disclosure of all its transactions involving public
interest.”

This proposal upholds the above quoted provision by making lobbying
activities more public, as well as, ensuring openness, honesty and integrity in
dealings of and between Members of Congress and lobbyist or lobbying group.
Specifically, the measure makes it possible for citizens to,communicate their views
on controversial issues.

The recurring and numerous Senate and House inquiries investigating
alleged anomalous deals of the government are proof of public distrust in the way
government transactions and contracts are being done. It must be remembered
that while records of the deliberations of the Senate and the House of
Representatives are open to the public, the “behind-the-scenes” negotiations are

not,

Thus, it is important that lobbying activities be legislated for it will greatly
help in restoring the people's trust and confidence in the government, and
ultimately instill responsibility to those people infuencing policy makers.

In view of the foregoing statements, approval of this bill is earnestly sought.

i cwetent ye, oe
HON. MARCELINO “MARCY” R. TEODORO.

1®* District, Representative
City of Marikina


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

FIFTEENTH CONGRESS
First Regular Session

House Bill No. 1199

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO

AN ACT
TO PROVIDE FOR THE DISCLOSURE OF LOBBYING ACTIVITIES

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

SECTION 1. Short Title. - This Act may be cited as the Lobbying
Accountability Act 2010.”

SECTION 2. Declaration of Policy. - Itis the policy of the State to enhance
public confidence in the integrity of public office and the decision-making process
in government by implementing a policy of full public disclosure of all its
transactions involving public interest.

SECTION 3. Lobbying activity defined. - For the purposes of this Act, but
subject to this section, lobbying activity means:

(1) Any oral or written communication (including an electronic
communication) with a public official intended to influence:

(a) the develoment of any legislative proposal by the government or
bya member of either House of Congress; or

(6) the introduction of any bill in either House of Congress or the
passage or amendment of any bill that is before either House of
Congress; or

(c)the making or amendment of any delegated legisiation; or

(@) introduction of or change to any government policy or program; or
(e) the exercise of any authority or power conferred under a written
law; or

(f) the éxpenditure of public money.

(2) Lobbying activity does not include oral or written communication
{including an electronic communication) that

{a) made by a public official , an agency, or any other person holding
office under a written Iaw in his, ner or is offical capacity; or

(b) made on behalf of the government ; or

(c) made on behalf of the government of foreign country: ot

(d) constituled by any application required or authorized by a written
law; or

(e) made in response to a written request from a public official acting
in his or her official capacity; or


((f) made by 2 representative or employee of a media organization
for the purposes of gathering and disseminating news and
information to the public; or .
(g) made in a speech, article, publication or other material that is
distributed and made available to the public, or through redio,
television, or other medium of mass communication; or 7
(h) made in a petition to either House of Congress or in evidence of
submissions to a committee of either of those Houses, or a joint
committee of both Houses of Congress; or
(J) made in the course of any judicial proceedings.
(3) Lobbying activity does not include arranging or attending a meeting with
a public official:
(a) that is open to members of the public; or
(b) by a representative or employee of a media organization for the
purposes of gathering and disseminating news and information to
the public. . :

SECTION 4. Requirement of Registration. - (1) A person or group
engaged in lobbying activities must register with the Securities and Exchange
Commision setting out the information referred to in subsection (2) below.

(2) A registration lodged in accordance with subsection (1) must be
notarized and shall set out the following information in relation to all of the lobbying
activity carried out by the lobbyist:

(a) the name and business address of the lobbyist;

(b) the name and busines address of the employer or the person in whose
behalf the — lobbying acitvity is carried out;

(c) if the employer is corporation, the name and business address of any
related entity of the employer that, to the knowledge of the lobbyist, has a
direct interest in the outcome of the lobbying activity;

(d) any other person that, to the knowledge of the lobbyist, has direct
interest inthe outcome of the lobbying activity;

(e) a description in summary form of the employer's business or activities
and such other information to identify the nature of the employer's business or
activities as is prescribed;

(f) a description, in summary form, of the subject matler of the lobbying
activity, and such other information regarding the subject matter as is prescribed;

(g) particulars to identify any legislative proposal, bill, delegated legistation,
policy, program, authority, power or expenditure to which the lobbying
activity related:

(h) the names and designations of the public officials in relation to whom
lobbying _ activity was directed;

(I) such other information in relation to lobbying activity as is prescribed.

(3) The Commissioner may, on the application oof a lobbyist, extend the
time within which the registration required by subsection (1) must be made by not
more than fourteen (14) days.

SECTION 5. Establishment of register of lobbying activities. - (1) The
Commissioner must compile and maintain a register to be called the Register of
Lobbying Activity.

(2) The register is to comprise all of the information set out in returns lodged
under this Act.

(3) The register may compiled in such manner and form as the
Commissioner considers convenient, except that the register must be available
and up-to-date for inspection.


(4) The register must be open to inspection by any person at such place
and at such reasonable times as the Commissioner may determine.

SECTION 6. Appropriations. - There shall be authorized to be
appropriated such amounts as necessary to carry out the provisions of this Act.

SECTION 7..Separability Clause.- If any provision, or part thereof, is
declared invalid or unconstitutional, the remainder of the law not otherwise
affected shall remain valid and subsisting. ‘

SECTION 8. Repealing Clause. - Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation
contrary to or inconsistent with, the provisions of this Act, are hereby modified,
repealed, or amended accordingly.

SECTION 9. Effectivity Clause.- This Act shall take effect fifteen (15) days
after its publication in at least two (2) newspapers of general circulation.

Approved,


Republic of the Philippines
House of Representatives
Quezon City

MINUTES OF THE MEETING OF THE COMMITTEE ON PEOPLE'S PARTICIPATION
HELD ON AUGUST 3, 2011, 1:30 P.M. AT CONFERENCE ROOM 11, MITRA BLDG.,
HOUSE OF REPRESENTATIVES.

1 CALL TO ORDER/ROLL CALL

The Chairperson of the Committee on People’s Participation, Rep.
Benjamin D. Asilo, presided over the meeting, which he called to order at
1:57 PM. The Chair also determined the presence of a quorum and dispensed
with the calling of the roll.

Ml ACKNOWLEDGEMENT OF MEMBERS AND GUESTS

The Chair introduced the members of the committee who were
present during the meeting, namely Vice- Chair Cresente V. Paez (PL-Coop
NATCCO), Reps. Winston T. Castelo (2"¢ District, Quezon City], Rafael V.
Mariano [PL-ANAKPAWIS); Godofredo V. Arquiza (PL-Senior Citizens),
Christopher S. Co (PL-Ako Bicol) and Salvador P. Cabaluna ill (PL-1Care). The
Chair also acknowledged the presence of Reps. Loreto Leo Ocampos (2¢
Dist., Misamis Occidental}, the author of House Bill 3912, and Raymond V.
Palatino (PL-Kabataan).

Upon the authority of the Chair, the Committee Secretary
acknowledged the presence of the following resource persons: Executive
Director Joselito De Vera and Angie Gabino of Philippine National Volunteer
Service Coordination Agency (PNVSCA); and Malou Tiquia and Suzette Lopez
of Publicus Asia.

Later, the following guests were also acknowledged: Director
Carmencita N. Delaniar of the Department of Budget and Management
(DBM); Atty. Jay R. Villegas of Philippine Health Insurance (PhilHealth);
Director Nelia Tabliago of the Office of Civil Defense of the Department of
National Defense, representing the National Disaster Risk Reduction
Management Council (NDRRMC}; and Ms. Amie Pombuena of the National
Barangay Operations Office of the Department of the Interior and Local
Government (DILG}

Ml. APPROVAL OF THE MINUTES OF THE PREVIOUS MEETINGS

Upon the motion of Rep. Cabaluna, duly seconded by Rep. Paez, the
Committee approved the minuies of the meeting dated May 25, 2011.


IV. PRELIMINARY REMARKS OF THE CHAIRPERSON

The Chair explained that the meeting will initially consider Substitute Bill
to House Bill 1199, or the Lobbying Disclosure Act, a re-filed measure which
reached 2nd reading in the past Congress, to be followed by the
Consideration of Substitute Bill to House Bill 3912, or the Barangay Volunteers
Act, which is a product of several committee and technical working group
meetings.

v. CONSIDERATION AND APPROVAL OF SUBSTITUTE BILL TO HOUSE BILL 1199

Ms. Ma. Lourdes N. Tiquia, the Founder and General Manager of
Publicus Asia Inc., introduced the lobby firm to the body and reacted on the
measure at hand. She stated that Publicus Asia welcomes the measure
because it addresses certain problems encountered under RA 1827, the
existing but largely unimplemented lobbying law. She recommended several
refinements of the measure, the most important of which is the inclusion of
shepherding measures in the scope of lobbying activities.

Ms. Tiquia brought to light certain issues which pertain to lobbying such
as the difference between direct and indirect lobbying; the need to level the
playing field in lobbying; and other ethical issues related to lobbying. She also
enumerated the benefits derived from lobbying, namely: (a) creating ferorms
for diverse opinions; (b) providing checks and balances; (c) granting access
to reliable data and impact evaluation of measures; and (d) preventing
regulatory capture.

At this juncture, Rep. Cabaluna pointed out the need to refine Section
7 of the measure, to clarify that lobbyists need io separately register in
Congress and/or in the Executive Departments, depending on the objective
of their lobby.

After getting the concurrence of Ms. Tiquia, Rep. Paez moved to
approve the bill with amendmenis and subject to style. Duly seconded by
Rep. Cabaluna, the committee approved the measure as moved.

VI. | CONSIDERATION AND APPROVAL OF SUBSTITUTE BILL TO HOUSE BILL 3912

Rep. Ocampos, the author of the measure, conceded that he is
amenable fo any amendment deemed appropriate by the committee such
as the deletion of the section earmarking thirty percent (30%) of the income
of the local government units (LGUs} to the allowances of Barangay
volunteers and the deletion of the tem “volunfeers.”

Ms. Amie Pombuena of the DILG agreed with the deletion of the
section earmarking funds, reasoning out that LGUs have to deal with a lot of
other mandatory expenditures.

Boro.


On the deletion of the term “volunteer.” Rep. Paez opined that doing
so may render the bill futile. Executive Director De Vera of PNVSCA likewise
forwarded that deleting the term may be tantamount to creating an
employer-employee relationship between the LGU and the volunteer.

Nonetheless, the guests from the DILG and the PNVSCA are in
agreement that volunteers may be provided benefits. Ms. Pombuena of DILG
suggested that volunteers can be given transporation and food allowance,
as well as insurance benefits. However, she recommended that instead of
itemizing the benefits, the measure must state that volunteers be given equal
benefits as those given to regular Barangay officials. Likewise, Executive
Director De Vera of PNVSCA stressed that granting benefits to volunteers is
accepted intemationally, particularly in the form of monthly subsistence
allowances fo cover their meals and transportation costs. He added that
volunteers can also be provided life and accident insurance, especially if the
volunteer is working on hazardous assignments.

The Chair verified with the DILG and the DBM whether it is legal to
provide volunteers with compensation. Ms. Pombuena of DILG replied that
this is provided under the Local Government Code (LGC), subject to the
availability of funds. Director Delantar of the DBM explained that positions for
Barangay volunteers may be created as non-mandatory positions under
Section 387 of the LGC.

Dir. Delantar further informed the committee of other relevant LGC
provisions, such as (a) Section 325, which limits the use of funds for Personal
Services (PS) or salaries and other benefits of personnel to 45 to 55% of the
budget: (b) Section 393, which provides that positions in Barangays may be
funded on an honorarium basis, until there is a compensation plan to warrant
payment on salary basis; and {c) Section 286, which precludes the National
Government from earmarking from the Internal Revenue Allotment (IRA) of
LGUs. She detailed that only the percentage budgetary allocation for senior
citizens and specially-abled persons, as well as programs on gender, AIDS,
and protection of children are mainstreamed within local budgets through
the local budget memorandum given at the start of the budget preparation.

Rep. Ocampos complained about the recent Joint Memorandum
Circular of the DBM and the DILG prohibiting the charging of honorarium to
20% of the Local Development Fund (LDF). Director Delantar justified that at
least 20% of the IRA share shall be for development projects, to ensure that
there is capital expenditure or local investment, and went on to detail the
menu of projects listed under the circular. Finally, she suggested that instead
of using the 20% of the LDF for honorarium, these must be paid out of the
remaining 80% of the IRA, which is specifically provided for administrative
costs.


The Chair inquired on other possible sources of income of the
Barangay. Ms. Pombuena of the DILG replied that the Barangay’s revenue
raising power is limited to fees and charges. In addition, she related that
Barangays cannot collect community taxes unless mandated by the higher
LGU. Nonetheless, she pointed out that the share of the Barangay in real
property taxes (RPT) can be a source of funds.

Dir. Delantar stressed that under Sec. 325 of the LGC, the discretionary
amount of the LGU shall not exceed 2% of the proceeds from the RPT. She
reiterated that the Barangay should use the 80% for administrative cost for
compensation.

Rep. Castelo conferred with Dir. Delantar to confirm that once the IRA
is received by the LGUs, these may give allowances, subject to the
availability of funds. Dir. Delantar concurred but emphasized that the use of
funds must also be subject to accounting and budgeting rules.

Rep. Cabaluna propounded that since the allowances of Barangay
volunteers can only be taken from the 80% administrative budget, then these
must be exempted from the 55% PS cap. Dir. Delantar agreed that if these
were paid on volunteerism basis, then these are not covered by the PS cap.

The Chair also asked Atty. Villegas of Philheaith to react on the
provision on Philhealth benefits. Atty. Villegas asked that the word “free”
under Section 9 be deleted since this may connote that all medical expenses
will be paid by PhilHealth. On financing PhilHealth, he recommended that it
be fully subsidized by the local government concerned or through cost-
sharing between local governments and other sponsors, including the
legislators. In addition, he proposed that if the volunteers are indigents, then
the national government shall take care of their coverage. Finally, he
recommended that the definition of civilian volunteer organization be revised
to include Barangay health workers and Barangay nuirition scholars.

At this juncture, Reps. Castelo and Arquiza verified the status of
implementation of the provision reserving one percent (1%) of the LGU
budget for senior citizens, asserting that there are Local Chief Executives
(LCEs) who do not follow the provision. Dir. Delantar explained that all LCEs
should include this in the budget. Rep. Arquiza added that RA 7876, or the
Senior Citizens Law, even provides for a senior citizen center in every city and
municipality, which unfortunately, remains unimplemented.

Rep. Castelo also asked the DBM and the DILG to identify the
reviewing authorities of LGUs. Ms. Pombuena of the DILG expressed that the
depariment does not review nor regulate LGUs but only reminds them to
follow the pertinent rules. For the budget, Dir. Delaniar explained that the
reviewing authorities are the higher LGUs, and the DBM only reviews the
budgets of provinces and highly urbanized cities. Dir. Delantar further related

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that these should have been considered at the level of the concerned Local
Development Council, which is mandated io map out the plan and identify
the programs for senior citizens, persons with disabilities, and other identified
sectors.

The Chair inquired with the DBM and the DILG of their course of action
when the LDC is not convened. Ms. Pombuena of the DILG and Dir. Delantar
of the DBM explained that there are committees who do the work when the
LDC is not convened. The Chair decried the practice of coming up with
budgets even when LDCs are not convened.

The Chair also asked Dir. Tabliago of the NDRRMC to share her views on
the provision on disaster management training. Dir. Tabliago related that this
is specifically provided under Section 13 of RA 10021, or the Philippine Disaster
Risk Reduction and Management Act of 2010. She informed the body that
disaster trainings should be part of the calamity plan, and should be funded
out of the calamity fund, which should comprise of at least 5% of the total
LGU budget.

Rep. Ocampos requested that the technical working group (TWG) be
tasked to polish the bill. After ascertaining that the body is unanimous in
recognizing the import of the measure, Rep. Castelo moved for its approval
subject to the amendments discussed by the body and the refinements of
the TWG. The Chair expressed that all inputs were noted and approved the
motion. The Committee approved the measure subject to amendments and
style.

Vil. ADJOURNMENT
There being no other matters to discuss, the Chair thanked the guests

and the resource persons for their valuable insights, and adjourned the
meeting at 4:05 P.M.

LZ os Reviewed
LORENA A. FERNANDEZ ROLANDO CG. CRONICO, PhD.
SLSO II Committéé Secretary

Noted by:

HON. BENJAMIN D. ASILO
Chairperson
Committee on People's Participation

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