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Fifteenth Congress
First Regular Session

HOUSE BILLNO._ 4962

Introduced by Honorable Cinchona Cruz-Gonzales, Benjamin D. Asilo, Godofredo V. Arquiza,
Catalina G. Leonen-Pizarro, and Cresente C. Paez

EXPLANATORY NOTE

This bill seeks to strengthen people’s participation in community development and to
institutionalize the One Village One Product (OVOP)-based programs of the government .

The convergence of resources through the clustering of Local Government Units (LGU)
has been proven as effective in supporting local development and in engendering people’s
participation. While the One Town One Product (OTOP) project of the Department of Trade and
Industry (DTI) has increased employment opportunities and stimulated local economic growth,
the One Cluster One Vision program of the Department of Interior and Local Government
(DILG) has helped certain contiguous LGUs address common needs and interests; improve
service delivery; and spur socio-economic development in the area. Both OVOP-based
programs have also increased the sense of community acceptance and ownership of products
of the people, given their direct involvement in its projects. Unfortunately, the OTOP project
has ended in 2010 while the OCOV program has remained a mere advocacy at the DILG. The
undue termination and relegation of these OVOP-based programs deprive the LGUs and the
people of an effective strategy to strengthen their capacities to become self-reliant

communities.

Institutionalizing these OVOP-based programs will bring forth a more stable, defined
and sustained strategy to alleviate poverty in the countryside with the help of the people, in the
process strengthening the participation of CSOs in community development.

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

CATALINA G) N-PIZARRO



Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

Fifteenth Congress
First Regular Session

HOUSE BILLNO.__4962.

Introduced by Reps. Cinchona C. Gonzales, Benjamin D. Asilo, Godofredo V. Arquiza, Catalina
G. Leonen- Pizarro and Cresente C. Paez

‘AN ACT
STRENGTHENING CIVIL SOCIETY ORGANIZATIONS (CSOs) PARTICIPATION IN COMMUNITY
DEVELOPMENT THROUGH THE INSTITUTIONALIZATION OF “ONE VILLAGE ONE PRODUCT”
(OVOP)-BASED PROGRAMS OF THE GOVERNMENT, AND FOR OTHER PURPOSES

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

assembled:

SECTION 1. Short Title. - This Act shall be known as the “CSOs Participation in One
Village One Product- Based Programs Act of 2011.”

SEC. 2. Declaration of Policy. — It is hereby declared the policy of the State to recognize
the role of the people in community development. Toward this end, the State shall
institutionalize a program to strengthen their participation in local development, to encourage
Cooperation among local government units (LGUs) and their instrumentalities, and to enhance
productivity and guarantee income opportunities for all.

SEC. 3. Statement of Goals and Objectives. Pursuant to the abovementioned policy, the

government shall attain the following objectives:


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a. Toprovide an effective mechanism to strengthen the participation of civil society
organizations (CSOs) in community development through institutionalized OVOP-based
programs;

b. To institutionalize the “OVOP” approach as a means of pursuing the livelihood
development of clustered communities;

¢. To build and strengthen partnerships with concerned agencies, LGUs, and CSOs,
toward the development of globally competitive unique local products and services; and

d. To promote unity among the people of clustered communities by encouraging
‘them to work together in pursuing local development.

SEC. 4. Strengthening CSOs Participation in the Program. The government shall
coordinate, encourage, and facilitate the participation of accredited CSOs in all aspects of
development work in OVOP-based programs, namely, in planning, implementation,
monitoring, and evaluation stages, to enliven the sense of community acceptance and
ownership of products. LGUs shall promote and facilitate partnerships with CSOs and the
private sector in pursuit of local development.

The LGU shall accredit CSOs and approve the nominated CSO representatives who will in
turn become members of the technical working group (TWG) and of Cluster Advisory Board that
shall provide technical assistance and policy guidance.

SEC. 5. Accreditation of CSOs and Private Sector Organizations — CSOs and private
sector organizations shall be accredited prior to their participation in OVOP-based_ programs.
The application for accreditation shall be filed with the Local Sanggunian. Applicant-
organizations shall be required to submit the following documents to the Secretary of the
Sanggunian:

a) Articles of Incorporation and by-laws;

b) Certificate of Registration with a government accrediting agency;

¢) List of officers and members;

d) Nature of business/work of the CSOs/Private sector; and

e) Annual accomplishment report for the immediately preceding year.


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All applications for accreditation shall be acted within a period of ten (10) working days.
Upon approval, a certificate of accreditation shall be issued to the organization which shall be
valid for three (3) years. In case of disapproval, a notice shall be sent to the CSO concerned. The
Local Sanggunian shall also have the power, upon verified complaint, to cancel the certificate of
accreditation.

SEC. 6. “One Village One Product” -Based Programs. — Pursuant to the abovementioned
policy, OVOP-based programs are hereby institutionalized under the supervision of both the

Department of the Interior and Local Government (DILG) and the Department of Trade and

Industry (DTI). These programs cover all the projects and activities related to “One Cluster One
Vision” and “One Town One Product” framework of the DILG and the DTI, respectively.
OVOP-based Programs encourage the organization of contiguous LGUs within the
province, with the help of CSOs and the private sector, to form clusters which are primarily
based on the necessity to develop locally-based products and services, and to provide

livelihood for the community.
‘The DILG shall supervise the clustering of LGUs for local development while the DTI shall

Supervise the preparation of the cluster framework plan. The CSO and the private sector shall
act as advisers to the OVOP clusters in the identification of local products and services and in all
other development processes which pertain to OVOP Programs.

SEC. 7. Cluster Development Process. -LGUs shall be organized into clusters based on
the following criteria:

a. Geographically adjacent or contiguous to each other;

b.  Commonness in interests, needs, and development requirements;

¢. Agreement in the identification of products and services that shall be developed;
d. Willingness to commit and share local resources, facilities, and services for local
development.

Each cluster shall be composed of not less than three (3) nor more than seven (7) LGUs:
Provided, That each LGU, prior to its inclusion into a cluster, shall pass a Sangguniang Bayan
Resolution authorizing the local chief executive (LCE) to enter into 2 Memorandum of

Agreement with other LGUs, indicating therein the willingness to commit resources for


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purposes of local development: Provided, further, That said Sangguniang Bayan Resolution,
together with a letter of intent signed by the LCE, shall be submitted to the DILG as assent to
membership into a cluster.

Each cluster, through the Board, shall be guided by the DTI in formulating a master plan
that will serve as the framework for the development plans of the cluster, which shalll include
the identification of products and services; the actions to develop such products or services; the
role of each LGU in the product development process; the assistance needed from other
agencies and institutions; the source of fund support; and the projected income.

The Board shall present the master plan to the respective local Sanggunian, which shall
in turn pass a resolution approving the plan for implementation. Thereafter, such approved
master plan shall be implemented within sixty (60) days after its adoption.

SEC. 8, Cluster Management Board. - A Cluster Management Board, hereinafter
referred to as the Board, is hereby created for every cluster. The Board shall be the primary
body that will prepare, integrate, coordinate, supervise, and control the OVOP plans, programs,
projects, and activities of the cluster. The Board shall be composed of the LCEs of the member-
LGUs of each cluster, the planning and development officer of each member-LGU, the
respective Provincial Directors of the DILG and the DTI, and two (2) representatives from CSOs,
as members.

Accredited organizations shall nominate representatives to the Board, who will in turn
elect among themselves two (2) CSO representatives and two (2) private sector representatives
to the Board.

The members of the Board shall have one (1) vote each. The Board shall establish and
provide the necessary technical, consultative, and secretariat support to member-LGUs. The
Chairperson and members of the Board shall be entitled to allowances and honoraria in
accordance with pertinent policies, rules, and regulations.

The Board shall also perform planning, monitoring, and coordinative functions, and in
the process exercise supervisory authority over the implementation of OVOP objectives,

programs, projects, rules, and regulations.


The Board shall be organized thirty (30) days after the DILG has identified a cluster and
shall convene not more than fifteen (15) days following its organization.

There shall be established a Cluster Management Office (CMO) in each cluster, the
location of which shall be determined by the Board fifteen (15) days after the Board shall have
been organized.

SEC. 9. Powers and Functions of the Board. — The Cluster Management Board shall
have the following powers and functions:

a. Provide policy guidance in the formulation of cluster plans and programs;

b. Promulgate rules and regulations on the management, operation, and conduct
of the affairs and businesses of the cluster;

c Enter into, make and execute contracts with government entities, private
organizations, CSOs, international organizations (IOs), and other parties, domestic or foreign, as
may be necessary for the implementation of the cluster plan or project;

d. Review and approve project proposals of the cluster including the budget;

fe. Submit to the respective local Sanggunian any proposed plan, program, or
project for adoption and approval;

f. Recruit and designate personnel as may be deemed necessary to handle the

projects and activities of the cluster;
8 Provide leadership in the coordination and over-all management of the affairs of

the cluster;

h. Conduct continuing research and development of innovative and indigenous
technologies that will enhance the productivity of each cluster;

i, Raise or borrow adequate and necessary funds from local or foreign sources to
finance its projects and programs, within the limitation provided by law;
Assess, levy, and collect fees and charges for products and services rendered;

and
k. Perform such other functions as may be required by law.


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SEC. 10. Chairperson of the Board. - The Board shall be headed by 2 Chairperson, who
shall be elected annually by a majority of the Board Members. The Chairperson of the Board
shall exercise the following powers and functions:

a. Call and preside over the meetings of the Board;

b. Engage the services of experts or consultants either on full-time or part-time
basis, as may be required in the performance of the functions and duties of the Chairperson;

Execute and administer the policies and decisions approved by the Board and be
responsible for the effective day-to-day management of the operations of the Board;

d. Prepare, in coordination with the TWG, the annual budget for the operations,
plans, programs, and projects of the cluster for submission and approval of the Board;

fe. Present to the local Sanggunian for approval the proposed policies and
programs, revenue-raising measures, operations plan, draft rules and regulations, and such
other plans and projects necessary to carry out its purpose;

f. Submit for consideration of the Board such other policies and measures
necessary to carry out the provisions of this Act;

8 Prepare and submit to the Board and to the Secretary of the Interior and Local
Government and the Secretary of Trade and Industry annual reports and evaluation of
programs and projects;

h. Recommend to the national policy-making bodies the implementation of plans
and programs of the cluster that conform to the regional development plan; and

i, Perform such other functions as may be required by law or the Board.

SEC. 11. Cluster Advisory Board. — A Cluster Advisory Board, hereinafter referred to as
the CAB, is hereby created for every cluster. The CAB shall be the primary body that will provide
technical and policy guidance to the Board, particularly in the formulation of cluster plans and
programs and in enterprise and livelihood development. The CAB shall be composed of
concerned national government agencies, financing institutions, as well as the CSOs, the
academe, and the private sector within the cluster, as members.

SEC. 12. Financial Support and the Cluster Common Fund. The Secretary of the Interior

and Local Government and the Secretary of Trade and Industry shall include in the respective


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jal funding of which shall be

Department's programs the implementation of this Act, the i
charged against the current year’s appropriations of the DILG and the DTI. Thereafter, the
amount necessary for its continued implementation shall be included in the annual General
Appropriations Act.

There is hereby established a Cluster Common Fund which shall comprise of THE
AMOUNT OF CONTRIBUTION BEING AGREED BY THE MEMBERS OF THE CLUSTER THRU A
CLUSTER RESOLUTION, and any local or foreign donation obtained by the Board to finance
OVOP-based programs and projects.

The proceeds from the revenue-raising powers under Section 9 hereof shall accrue to
the Board, for use exclusively in the implementation of OVOP’s programs and projects.

The Board shall be authorized to directly utilize a portion of the income generated from
fees and other collections in the performance of its functions to defray operating expenses.

The Board may submit proposals to the Representative of the legislative district who has
jurisdiction over the member-LGU for inclusion in the district's priority projects and in the
Priority Development Assistance Fund.

SEC. 13. Institutional Linkages. - The Board shall, in carrying out its functions, consult,
coordinate, and work closely with the LGUs, the DILG, the DTI, the National Economic and
Development Authority, and other national government agencies, accredited CSOs, and the
private sector operating within the cluster.

SEC. 14, Monitoring and Evaluation. - The respective Offices of the Secretary of the
DILG and the Secretary of the DTI, thru the Regional Offices and with the help of the accredited
CSOs, shall monitor and evaluate the implementation of the plan and project and recommend
necessary measures to support cluster-related activities.

SEC. 15. Implementing Rules and Regulations. - The Secretary of the Interior and Local
Government, in coordination with the Secretary of Trade and Industry, shall issue the rules and
regulations necessary for the effective implementation of this Act.

SEC. 16. Repealing Clause. - All laws, executive orders, presidential decrees, rules and
regulations or parts thereof contrary to or inconsistent with any provisions of this Act is hereby

repealed, amended or modified accordingly.



SEC.17. Separability Clause. - If for any reason, any part or provision of this Act is
declared invalid or unconstitutional, the remaining parts or provisions not affected thereby
shall remain in full force and effect.

SEC. 18. Effectivity. — 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,