CONGRESS OF THE PHILIPPINES
THIRTEENTH CONGRESS
First Regular Session

HOUSE OF REPRESENTATIVES
House Bill No._ 1476

INTRODUCED BY HON. CYNTHIA A. VILLAR

EXPLANATORY NOTE

The Filipino overseas workers are aptly called the economic heroes of our
times. Indeed, the Philippine economy would be very bleak without the support of
the Filipino worker who toils, while being separated from his home and country, in
his desire to provide a better life for his family. The foreign exchange that he sends
to the country serves as a life rope to the economy.

Remittances from abroad average more than $5 billion. However, despite the
big contribution of the overseas workers to the economy, very few incentives are
accorded to them. There are very few measures to ensure that the fruits of their
labor are safely guarded and managed: so that eventually they don’t have to be
separated from their loved ones anymore in order to survive.

It is a sad but common plight to see overseas workers who, after long
periods of working away from home, come back to the Philippines with only a few
pesos and perhaps a few pieces of small appliances to show for their long years of
work abroad. -

It is in this light that we are proposing the passage of this Bill which seeks
to provide investment opportunities and incentives to the overseas workers and
their families by allowing OCWs and their beneficiaries to purchase participatory
stocks from an investment fund that will manage their money under a trust
arrangement. Under the proposed Bill, the overseas contract workers will likewise
be given priority in subscribing to government-owned or controlled corporations
(GOCCs) in a privatization program by mandating that these GOCCs reserve at
least twenty percent (20%) of their total initial public offering (IPO) of shares for
overseas workers.

This Bill hits two birds with one stone: First, it enables business to harness
an erstwhile untapped yet rich source of investment capital; and Second, it gives
overseas contract workers an investment alternative so that they may increase
their income and at the same time manage their hard-earned money wisely.

It is high time that we acknowledge the importance and contribution of our
new economic heroes, not only in words or in plans but in concrete programs. It is
for this reason that we seek the immediate passing and implementation of the Bill.

hagp


CONGRESS OF THE PHILIPPINES
THIRTEENTH CONGRESS
First Regular Session

HOUSE OF REPRESENTATIVES

House Bill No. 1476

INTRODUCED BY HON. CYNTHIA A. VILLAR

AN ACT REQUIRING GOVERNMENT-OWNED OR CONTROLLED
CORPORATIONS (GOCC's) ON THE PRIVATIZATION PROGRAM TO
RESERVE AT LEAST TWENTY PERCENT (20%) OF THEIR TOTAL
INITIAL PUBLIC OFFERING (IPO) OF SHARES TO OVERSEAS
WORKERS, AUTHORIZING THE OVERSEAS WORKERS INVESTMENT
(OWI) FUND UNDER R.A. NO. 7111 TO MANAGE AN INVESTMENT FUND
PORTFOLIO FOR OVERSEAS WORKERS AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Declaration of Policy - It is hereby declared the policy of
the State to protect and promote the welfare of the Filipino of overseas
workers; to develop ways to efhcouragé them to prudently manage their
hard-earned income from abroad by providing them with opportunities and
institutional mechanisms for a healthy return of their savings and
investments and by educating and enlightening them with presently-

available financial tools and opportunities for the best returns of their

investments.

SECTION 2. Reserved Shares for Overseas Workers. - Privatized
government-owned or controlled corporation (GOCC) are hereby required to
reserve at least twenty percent (20%) of their initial public offering of shares
for subscription to overseas workers: Provided, that if such shares are not

subscribed within thirty (30 )days from date of formal offer, said shares may


be offered to the public: Provided, further, That the Board of Directors of
government-owned or controlled corporations (GOCCs) to be privatized may
extend the period of subscription at their discretion: Provided, finally, That
the GOCCs may formulate rules limiting the number of shares that may be

subscribed by an individual overseas worker.

SECTION 3. Modes of Investment - Investment by overseas workers in
privatized GOCCs may be in either of the following investment modes:

(a) Individual investment - Overseas workers may subscribe or
purchase shares directly from the GOCCs upon presentation of a
certification of eligibility from the Philippine Overseas Employment
Administration (POEA).

(b) Institutional investment - Overseas workers may purchase units of
participation from an "Investment Fund” as created under Republic Act No.
7111. The Investment Trust Fund may be invested in subscription or
purchase of shares of stocks of GOCCs, stocks of private companies, bonds,
treasury bills, commercial papers, common trust funds, treasury shares,

convertible stocks, and other investment-grade commercial papers.

SECTION 4, Funding for Investment Trust Fund. - Initial funding for
the Investment Trust Fund shall be sourced from the Overseas Workers
Investment (OWI) Fund as provided for under Section II of Republic Act No.
7111. Thereafter, the OWI shall charge reasonable management fees to the

Investment Trust Fund.

SECTION 5, Submission of Reports. - The Overseas Workers
Investment (OWl) Fund shall ‘issue quarterly reports on the Investment
Trust Fund to members on its investment performance, portfolio

distribution income to date, expenses and other pertinent matters on the
2


Investment Fund. The OWI Fund shall likewise submit comprehensive

yearly reports to Congress.

SECTION “6. Rules and Regulations, - The Overseas Workers
Investment Fund shall issue’ pertinent and regulations as the nature,
composition, structure and make-up of the Investment Trust Fund, its
convertibility options, maturity periods, surcharges and other fees for pre-

termination and other relevant features of the Investment Trust Fund.

SECTION 7. Repealing Clause. - Any provision of law, decree, order or
rules and regulation inconsistent with the provision of this Act is hereby

repealed or modified accordingly.

SECTION 8. Separability Clause. - If, for any reason, any provision of
this Act is declared invalid or unconstitutional, the remaining provisions not

affected thereby shall continue to be in full force and effect.

SECTION 9. Effectivity Clause. - This Act shall take effect fifteen (15)
days following its publication in the Official Gazette or in at least two (2)

newspapers of general circulation.

Approved,