NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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SENATE
S. No. 3°92
of ii)f £■>; : rrr<irp
■22 JUL 12 PI 47
Rf:CEi v t;D Bv'.
INTRODUCED BY SENATOR JOSEPH VICTOR "JV" G. BERCITO
AN ACT
ESTABLISHING THE SOLIDARITY FUND OF THE LOCAL GOVERNMENT 
UNITS FOR DISASTER RESPONSE AND RECOVERY
EXPLANATORY NOTE
Republic Act No. 10121, otherwise known as "Philippine Disaster Risk Reduction 
and Management Act of 2010" created the Local Disaster Risk Reduction and 
Management Fund (LDRRMF) which is composed of "not less than (5%) of the 
estimated revenue from regular sources". Further, it also provides that "of the amount 
appropriated for LDRRMF, thirty percent (30%) shall be allocated as Quick Response 
Fund or stand-by relief and recovery programs in Oider 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 emei gency, 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 measure is earnestly
sought.
JOSEPH VICTOR ”3V" G. EJERCITO
"A.


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
of tije r-r-tarp
•22 JUL12 P1 :47
SENATE 
s. No. 392
Ri;cE!v;:ti sv
INTRODUCED BY SENATOR JOSEPH VICTOR "JV" G. EJERCITO
AN ACT
ESTABLISHING THE SOLIDARITY FUND OF THE LOCAL GOVERNMENT 
UNITS FOR DISASTER RESPONSE AND RECOVERY
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Short Title. - This Act shall be known as the "Local Government
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Units (LGU) Solidarity Fund for Disaster Response and Recovery Act/'
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Sec. 2. Declaration of Policy. - It is the declared policy of the State to increase
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local capacity to build disaster resilience of communities and to strengthen institutional
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mechanisms for the reduction of disaster risks and enhancement of preparedness and
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response capabilities at all levels.
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Sec. 3. Solidarity Fund. - A Solidarity Fund will be held as a trust account in a
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government bank. Disbursement from said fund will be subject to the issuance of a
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release order of the supervisory board.
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The Supervisory Board shall be composed of the following: Secretary of the
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Department of Interior and Local Government, and representatives h orn the following
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who shall serve in an ex-officio capacity: Union of Local Authorities of the Philippines,
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League of Provinces of the Philippines, League of Cities of the Philippines, League of
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Municipalities of the Philippines, and the Liga ng mga Barangay.
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Sec. 4. Source of the Solidarity Fund. - All Local Government Units are hereby
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mandated to contribute point five percent (0.5%) of their total revenues taken from
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the Local Disaster Risk Reduction and Management Fund (LDRRMF) other than the
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amount set aside for the quick response fund.


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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.
Sec. 5. Avaiiment of the Soiidarity 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.
Sec. 6. Insurance Premiums. - The Solidarity Fund may be used to pay 
premiums for securing catastrophic insurance for public infrastructure of LGUs.
Sec. 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.
Sec. 8. Separability Clause.- If any provision of this Act is held Invalid or 
unconstitutional, the other provisions not so declared shall remain in force and effect.
Sec. 9. Repealing Clause. - All laws, presidential decrees, executive orders, rules 
and regulations contrary to or inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly.
Sec. lO.Effectivity. - This Act shall take effect fifteen (15) days after its 
publication In the Official Gazette or in a newspaper of national circulation.
Approved,