THIRTEENTH CONGRESS OF THE 
) 
First Regular Session 
1 
Republic of the Philippines 
1 
"04 dkN 38 PI223 
Introduced by SENATOR LUISA "LOP P. EJERCITO ESTRADA 
Setator 
EXPLANATORY NOTE 
The nurture, care, support and development of the child is the utmost 
responsibility of the family. There are instances, however, in which the family cannot 
function as such, hence the need for alternative care. When problems of broken home, 
unwed motherhood, abandonment, illness or extreme poverty and the like seriously 
disrupt family relationships, substitute parental care becomes necessary. 
Foster care is a planned substitute parental care for a child by a licensed foster 
parent when his bioIogica1 parents cannot care for him, Children who are abandoned, 
neglected or with delayed development and poor health can be placed in foster homes. 
Instead of putting the child in an institution, foster homes can be the best substitute 
because of the social and emotional values they can offer to children who are in need of 
love, care and attention and can provide an atmosphere where a child can experience a 
healthy family life. 
The passage of this bill on foster care is indeed significant in the light of the 
growing proportion of Filipino children urgently needing alternative family care. 
Hence, the immediate passage of this bill is earnestly sought. 
LUISA "LOI" P. ,bJERCITO ESTRADA 
\ 


THIRTEENTH CONGRESS OF THE 
1 
First Regular Session 
1 
Republic of the Philippines 
) 
”ry” 
Jy 30 pl2 2 3  
Introduced by SENATOR LUISA “LOI” P. EJERCITO ESTRADA 
AN ACT 
TO STRENGTHEN AND PROPAGATE FOSTER CARE FOR ABANDONED AND 
NEGLECTED CHILDREN AND OTHER CHILDREN WITH SPECIAL NEEDS, 
PROVIDING APPROPRIATIONS THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
Article I 
GENERAL PROVISIONS 
SECTION 1. Title. - This Act shall be known as the “Foster Care Act of 2004“. 
SEC. 2. Declaration of Policy. - The Constitution, Article 15 provides that the 
State shall defend the right of children to assistance, including proper care and nutrition, 
and special protection from all forms of neglect, abuse cmelty, exploitation, and other 
conditions prejudicial to their development. 
It is hereby declared the policy of the State to provide every child who is abused, 
neglected, surrendered, dependent, abandoned and with developmental and physical 
disability with an alternative family that will provide love and care as well as 
opportunities for growth and development. 
The State shall guarantee that all the rights of the child enumerated under Article 
3 of Presidential Decree No. 603 otherwise known as “The Child and Youth Welfare 
Code“, as amended, and the rights found under Article 20 of the United Nations 
Convention on the Rights of the Child, shall be observed. 
Towards this end, the State shall systematize and enhance foster care program in 
the country. It shall ensure that the foster family shall provide a wholesome atmosphere 
for the foster child. 


The State shall also protect the rights of the biological child of the foster family 
and ensure that in no case shall he/she be disadvantaged as a result of the placement of a 
foster child. 
SEC. 3. Definition of Terms. - For purposes of this Act, the following terms are 
"Agency" refers to any child care or child placement institution licensed 
and accredited by the DSWD to implement the foster care program; 
"Child" refers to a person below eighteen (1 8) years of age, or those over 
but is unable to fully take care of himselfherself or protect himself/herself 
from abuse, neglect, cruelty, exploitation or discrimination because of a 
physical or mental disability or condition; 
"Child Case Study Report" refers to a written report prepared by a social 
worker containing all the necessary information on a child; 
"Child With Special Needs'' refers to a child with physical or mental 
disability or condition; 
"Foster Care" refers to the provision of planned temporary substitute 
parental cxe to a child by a foster parent; 
"Foster Family Care License" refers to the document issued by the DSWD 
authorizing the foster parent to provide foster care; 
"Foster Parent" refers to a person, duly licensed by the Department of 
Social Welfare and Development (DSWD), to provide foster care to a 
child; 
"Foster Placement Authority" refers to the document issued by the DS WD 
authorizing the placement of a particular child with the foster parent; 
"Home Study Report" refers to a written report prepared by a social 
worker containing the necessary information on a prospective 
parent/family members; 


"Matching" refers to the judicious pairing of a child with a foster parent 
and family members based on the capacity and commitment of the foster 
parents to meet the individual needs of a particular child and the capacity 
of the child to benefit from the placement; 
"Parents" refers to the biological or adoptive parents or guardian; 
"Placement" refers to the physical transfer of the child with the foster 
parent; and 
"Social Worker" refers to the registered or licensed Social Worker of the 
DSWD, Local Government Unit (LGU) or Agency. 
Article I1 
ELIGIBILITY 
SEC. 4. Who May Be Placed on Foster Care. - A child may be placed on foster 
care if he/she is in need of special protection, as assessed by a Social Worker, due, but 
not limited, to any of the following circumstances: 
Child who is abandoned, surrendered, neglected, dependent or orphaned; 
Child who is a victim of sexual, physical, or any other form of abuse or 
exploitation; 
Child with developmental and/or physical disability; 
Child whose parents or guardians are temporarily or permanently unable to 
provide the child with adequate care; 
Child awaiting adoptive placement and would have to be prepared for 
family life; 
Child who needs long-term care and close family ties but who cannot be 
placed for adoption; 
Child whose adoption has been disrupted; 


(h) 
Child under social difficulties such as, but not limited to, street child, child 
in armed conflict and those who are victims of child labor or trafficking; 
and 
(i) 
Child who has committed a minor offense but has been released on 
recognizance or on custody supervision or hidher case dismissed but 
whose family or relatives are not capable of providing him/her with care; 
SEC. 5. Who May Be A Foster Parent. - Any applicant must meet all the 
following qualifications: 
(a) 
Must be of legal age; 
(b) 
Must have a genuine interest, capacity and commitment in parenting and 
be able to provide a family atmosphere for the child; 
(c) 
Must have a healthy and harmonious relationship with each family 
member; 
(d) 
Must have good moral character, emotional maturity, be physically and 
mentally capable and whose resources are able to provide for the family's 
needs; and 
(e) 
Must be willing to be trained to fwther hone hidher knowledge, attitudes 
and skills in caring for a child. 
The relatives of the child shall be given priority to be the foster parent. 
An alien possessing the above qualifications and has resided in the Philippines for 
at least six (6) months may qualify as a foster parent. 
Article III 
PROCEDURE 
SEC. 6. Recruitment and Development of Foster Parents. - Social Workers 
shall reach out to communities to recruit applicants for foster care. 


SEC. 7. Issuance of License. - The DSWD shall issue a license based on the 
home study report submitted by the Agency to determine the motivations, capacities and 
potentials for development of applicants. The license is renewable every three (3) years 
unless earlier revolted by the DSWD. 
SEC. 8. Matching. - Matching shall be done by the Agency only after the child 
case study and the home study have been conducted. The child case study report shall 
establish the needs of the child for consideration in the selection of the foster parent. 
Likewise, the home study report shall establish the foster parent’s capacity and resources 
to provide a safe, secure and loving home to the child. 
SEC. 9. Placement. - The physical transfer of the child to the foster parent shall 
be allowed only after the Foster Placement Authority (FPA) has been issued. 
SEC. 10. Supervision of Foster Placement. - Supervised foster placement begins 
as soon as the foster parent receives the child into hisher care. 
During the foster placement, the Social Worker shall conduct regular home visits 
to monitor the child’s adjustment in the foster home and shall submit progress reports to 
the DSWD. 
In case of incident, injury or death of a foster child, or if he/she runs away or gets 
lost, such case shall be reported immediately to the Agency, which, in turn, shall 
immediately report the same to the DSWD. 
SEC. 11. Termination of Placement. - Termination of placement shall be done 
by the DSWD upon the recommendation of the Agency. 
Article IV 
ADOPTION OF A FOSTER CHILD 
SEC. 12. Conditions. - A foster parent may adopt hidher foster child through the 
following conditions: 
(a) 
The foster parent must have all the qualifications as provided for by 
Republic Act No. 8552, otherwise known as the “Domestic Adoption Act 
of 1998”, or Republic Act No. 8043, otherwise known as “Inter-Country 
Adoption Act of 1995”, as the case may be; 


(b) 
The trial custody, as required in adoption, may be waived; Provided, That 
a harmonious relationship exists between the child and hidher foster 
parents and family members; and 
(c) 
The procedures for adoption, for purposes of this Act, shall be governed 
by Republic Act No. 8552 or Republic Act No. 8043, as the case may be. 
Article V 
ASSISTANCE AND INCENTIVES 
Sec. 13. Assistance To A Foster Child. - 
(a) 
Foster Child Subsidy. - A foster child, through the Agency, shall be 
entitled to a monthly subsidy ffom the DSWD, subject to existing 
government auditing rules and regulations. The subsidy is primarily aimed 
to support the expenses of the child to lessen the financial burden of the 
foster parent. 
(b) 
Health Insurance - 
A foster child shall be entitled to health insurance 
benefits subject to the guidelines to be used by the DSWD and 
PHILHEALTH. 
SEC. 14. Assistance and Incentives To A Foster Parent. - 
(a) 
Special Discounts - To the extent possible, the government may grant 
special discounts to a foster parent on the purchase of basic commodities 
for the exclusive use of a foster child subject to the guidelines to be issued 
for the purpose by the Department of Trade and Industry (DTI). 
(b) 
Support Care Services. - The DSWD, the social service units of local 
governments and Agencies shall provide support care services to include, 
but not limited to, counseling, visits, training on child care and 
development, respite care, skills training and livelihood assistance. 
(c) 
Personal Exemption. - For purposes of determining the taxable income of 
a foster parent who is either unmarried, widow/widower or legally 
separated, a foster child shalI be treated as a dependent by the said foster 


parent, that would qualify himher as "head of the family" entitled to the 
P25,OOO.OO personal exemption under the provisions of Section 35(A) of 
the National Internal Revenue Code of 1997. 
Additional Exemption for Dependents. - For purposes of claiming the 
P8,OOO.OO additional exemption of foster parenth for each dependent not 
exceeding four (4), the definition of the term "dependent" under Section 
35(B) of the NIRC of 1997 shall be amended to include "foster child," 
Provided, however, that all the other conditions provided for under the 
aforesaid section of the Tax Code are complied with. Provided, further, 
that this additional exemption shall be allowed only if the period of foster 
care is at least a continuous period of one (1) taxable year. 
The foregoing provisions to the contrary notwithstanding, for purposes of this 
section, only one foster parent can treat the foster child as dependent for a particular 
taxable year to the exclusion of the parents and other foster parents of the child, if any. 
SEC. 15. Incentives To Agencies and Donors. - 
(a) 
Agencies. - Agencies and donations to agencies shall be entitled to the 
following tax incentives: 
(1) 
Exemption from Income Tax - An Agency, which must be an 
accredited Non-Governmental Organization (NGO), shall be 
exempt from income tax on the income derived by it under the 
provision of Sec. 30 of the Tax Code, as implemented by Revenue 
Regulations (RR) No. 13-98; and 
(2) 
It can also apply for qualification as a qualified-donee institution 
entitled to receive donations from donors who shall be exempt 
from Donor's Tax. 
(b) 
Donors. - Donations to an accredited NGO shall be entitled to the 
following : 
(I) 
Full deductibility from the gross income of the donor of the 
amount donated subject to the conditions provided for under Sec. 
34 (H) of the Tax Code of 1997;and 


(2) 
Exemption from donor's tax under Sec. 101 of the Tax Code 
provided that not more than 30% of the amount of donations shall 
be spent for administrative expenses. 
Article V 
PENALTIES 
SEC. 16. Penalties. - 
(a) 
Any foster parent, found to be committing any act of neglect, abuse, 
cruelty or exploitation and other similar acts prejudicial to the child's 
development, shall be penalized in accordance with Republic Act No. 
7610, otherwise known as "An Act Providing For Stronger Deterrence and 
Special Protection Against Child Abuse, Exploitation and Discrimination, 
Providing For Its Violation, And For Other Purposes", and other 
applicable laws. 
(b) 
Any person, natural or juridical, who violates any provision of this Act 
shall be penalized with imprisonment of not less that three (3) months but 
not more than three (3) years, or a fine of not less than Ten Thousand 
Pesos (P10,OOO.OO) but nor more than One Hundred Thousand Pesos 
(P100,000.00), or both at the discretion of the court. 
(c) 
An Agency which violates any provision of this Act and its implementing 
rules and regulations shall suffer the following penalties: 
(1) 
For the first violation, a fine of not less than Five Thousand Pesos 
(P5,OOO.OO) but not 
exceeding Twenty Thousand Pesos 
(P20,OOO.OO); and 
(2) 
For any subsequent violation, a fine of not less than Twenty 
Thousand Pesos (P20,OOO.OO) but not exceeding One Hundred 
Thousand Pesos (P100,OOO.OO) and revocation of its license to 
operate. 


Article VI1 
FINAL PROVISIONS 
SEC. 17. Foster Care Committee. - The Regional Child Welfare Specialist 
Group of the DSWD shall serve as the Foster Care Committee, which shall have the 
following functions : 
Review and deliberate issues affecting the placement of a particular child; 
Make recommendations to resolve any dispute between and among the 
agency, the parents, foster parents and the child; 
Monitor the implementation, review and recommend changes in policies 
concerning foster care and other matters related to the child's welfare; 
Submit to the President of the Philippines and to Congress an annual 
report of the policies, programs and activities relative to the 
implementation of this Act; and 
Perform such other functions and duties as may be prescribed by the 
DSWD. 
SEC. 18. Appropriation. - The amount necessary to carry out the provisions of 
this Act shall he included in the General Appropriations Act of the year following its 
enactment into law and thereafter. An initial amount of Twenty Five Million Pesos 
(P25,000,000.00) shall be allocated for the first year of its operations. Such sum shall be 
in the allocation for child-related programs of the DSWD. 
SEC. 19. Implementing Rules and Regulations. - The DSWD, as lead agency, 
Department of Justice (DOJ), Department of Health (DOH), Bureau of Internal Revenue 
(BIR), Council for the Welfare of Children (CWC), and other concerned government 
agencies, in consultation with accredited child-caring institutions and organizations with 
foster care programs, are hereby mandated to prepare and draft the implementing rules 
and regulations to operationalize the provisions of this Act within three (3) months from 
its effectivity. 
SEC. 20. Repealing Clause. - Any law, presidential decree, issuance, executive 
order, letter of instruction, administrative order, rule and regulation contrary to or 


inconsistent with the provisions of this Act is hereby repealed, modified, or amended 
accordingly. 
SEC. 21. Separability Clause. - If any provision of this Act is held invalid or 
unconstitutional, the other provisions not affected hereby shall remain valid and 
subsisting. 
SEC. 22. Effectivity Clause. - This Act shall take effect fifteen (15) days 
following its complete publication in two (2) newspapers of general circulation or in the 
Official Gazette. 
Appvoved,