Republic of the Philippines
_____ HOUSE OF REPRESENTATIVES. ___
Quezon City

15" Congress
Third Regular Session

committee ReportNo, 2481
27 NOV 2012

Submitted by the Committee on People’s Participation on

RE : House BillNo,__ 6713

Recommending its approval in substitution of House Bill No. 4374

Sponsors— Representatives-Benjamin-D_Asilo. Feliciano Belmonte —
Jr., Freddie R. Tinga, Rufus B. Rodriguez, Hermilando |
Mandanas, Maria Isabelle G, Climaco, and Cinchona
Cruz-Gonzales

Mr. Speaker:

The Committee on People’s Participation to which was referred House
Bill No. 4374 introduced by Hon. Feliciano Belmonte, Jr., et al , entitled

“AN ACT TO STRENGTHEN NATION-BUILDING THROUGH
THE INSTITUTIONALIZATION OF A STRATEGIC
VOLUNTEERISM BASED MULTI-SECTORAL PUBLIC-
PRIVATE PARTNERSHIP FRAMEWORK, IN ALL LOCAL
GOVERNMENT UNITS AND CONGRESSIONAL DISTRICTS IN
THE COUNTRY, AND FOR OTHER PURPOSES”

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

“AN ACT TO STRENGTHEN NATION-BUILDING THROUGH
THE INSTITUTIONALIZATION OF A STRATEGIC
VOLUNTEERISM BASED MULTI-SECTORAL PUBLIC-
PRIVATE PARTNERSHIP FRAMEWORK IN ALL LOCAL
GOVERNMENT UNITS AND CONGRESSIONAL DISTRICTS IN
THE COUNTRY, AND FOR OTHER PURPOSES”

be approved in substitution of House Bill No. 4374, with Representatives
Feliciano Belmonte, Jr, Freddie R. Tinga, Rufus B. Rodriguez,
Hermilando |. Mandanas. Raul A. Daza, Jesus Crispin C. Remulla, Maria
|sabelle G. Climaco, Neptali M. Gonzales Il, Edcel C. Lagman,
—— Amado S- Bagatsing, Rodolfo G- valencia, Juan Edgardo—_v_Angara,
Lucy Marie Torres- Gomez, Winston T. Castelo, Henedina R. Abad,


Jorge John B. Banal, Jr, Bernadette R. Herrera-Dy, and Fatima Aliah
Q. Dimaporo as authors and Representatives David L. Kho, Mary Mitzi

L. Cajayon, Benjamin D. Asilo, Cinchona C. Gonzales, Edwin DL. Olivarez,
Godofredo V. Arquiza, Mark Aeron H. Sambar, Rafalel V. Mariano,
Amel U. Ty, Salvador P. Cabaluna Ill, Maria Zenaida 8. Angping
Reena Concepcion G. Obillo, Jerry P. Trefias, Ma. Rachel J. Arenas,
Giorgidi P. Aggabao, Eduardo R. Gullas, Ma. Milagros H. Magsaysay,
Danilo E. Suarez, Tobias M. Tiangco, Marc Douglas C. Cagas IV,
Magtanggol T. Gunigundo |, George P. Amaiz, Fernando V. Gonzales,
and Luis R. Villafuerte, Jocelyn S. Limkaichong, Thelma Z. Almario,
Sharon S. Garin, Deogracias B. Ramos,Jr., Mel Senen S. Sarmiento
and Linabelle Ruth R. Villarica as co-authors thereof.

BENJAMIN D. ASILO

Chairman

Committee on People's
Participation

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES.
QUEZON CITY



e7)

Nie

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

Fifteenth Congress
Third Regular Session

6713

HOUSE BILL NO.

(In substitution of HB No. 4374)

INTRODUCED BY SPEAKER FELICIANO BELMONTE, JR., AND REPRESENTATIVES FREDDIE
R. TINGA, RUFUS B. RODRIGUEZ, HERMILANDO I. MANDANAS, RAUL A. DAZA, JESUS
CRISPIN C. REIMULLA, MARIA ISABELLE G. CLIMACO, NEPTALI M. GONZALES, Il, EDCEL C.
LAGMAN, AMADO S. BAGATSING, RODOLFO, G. VALENCIA, JUAN EDGARDO M.
ANGARA, LUCY TORRES-GOMEZ, WINSTON T. CASTELO, HENEDINA R. ABAD, JORGE
JOHN B. BANAL, JR., BERNADETTE R. HERRERA-DY, FATIMA ALIAH Q. DIMAPORO,
DAVID L. KHO, MARY MITZI L. CAJAYON, BENJAMIN D. ASILO, CINCHONA CRUZ-
GONZALES, EDWIN DL. OLIVAREZ, GODOFREDO V. ARQUIZA, MARK AERON H. SAMBAR,
RAFAEL V. MARIANO, ARNEL U. TY, SALVADOR P. CABALUNA III, MARIA ZENAIDA B.
ANGPING, REENA CONCEPCION G. OBILLO, JERRY P. TRENAS, MA. RACHEL J. ARENAS,

GIORGIDI P, SAYSAY. DANILQ
E. SUAREZ, TOBIAS M. TIANGCO, MARC DOUGLAS C. CAGAS IV, MAGTANGGOL T.

GUNIGUNDO |, GEORGE P. ARNAIZ, FERNANDO V. GONZALES, LUIS R. VILLAFUERTE,
JOCELYN S. LIMKAICHONG, THELMA Z. ALMARIO, SHARON S. GARIN, DEOGRACIAS B.
RAMOS, JR., MEL SENEN S. SARMIENTO, AND LINABELLE RUTH R. VILLARICA.

AN ACT TO STRENGTHEN NATION-BUILDING THROUGH THE INSTITUTIONALIZATION OF

A STRATEGIC VOLUNTEERISM BASED MULTI-SECTORAL PUBLIC-PRIVATE PARTNERSHIP

FRAMEWORK IN ALL LOCAL GOVERNMENT UNITS AND CONGRESSIONAL DISTRICTS IN
THE COUNTRY, AND FOR OTHER PURPOSES

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



Ce a

——_1—harnessing-people-power-to-promote-and-achieve nation-building through -2-strategic —————

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Section 1. Short Title. - This Act shall be known as the “Filipino Volunteerism
in Nation- Building (VNB) or Bayanihan sa Bagumbayan (BSB) Act.”

Sec. 2. Declaration of policy. - (a) it shall be the policy of the State to promote
the participation of the various sectors of Filipino society in public and civic affairs, adopt
and strengthen the practice of volunteerism as a strategy in national and local
development, and to inculcate the “Bayanihan ” spirit as a way of life.

(b) The State recognizes and respects the vital role of civil society organizations
(CSOS), which include, among others, non-government organizations (NGOS), volunteer

service organizations (VSOS) and people’s organizations (POS), as effective conduits in

volunteerism multi-sectoral public-private partnership approach.

(c) The State shall ensure the institutionalization of a committed, participative,
and sustained partnership between the local government units (LGUS), congressional
districts and the private sector in the process of community-building through
volunteerism.

Sec. 3. Statement of Goals and Objectives. ~ Pursuant to the foregoing policy,
the government shall attain the following goals and objectives:

(2) To provide a framework for a strategic multi-sectoral public-private
partnership through volunteerism;

(b) To institutionalize volunteerism as a strategy for local development; and

(c) To establish 2 coordinating mechanism to harmonize national and local
volunteering efforts.

Sec. 4. Definition of Terms.- For purposes of this act, the following terms shall
be defined as follows:

(a) Accreditation refers to the formal recognition by LGUS of CSOs, for the
purpose of registering, certifying, and enabling them to participate in the VNB program;

(b) Civil society organizations refer to NGOs, POs, cooperatives, trade unions,
Professional associations, faith-based organizations, media groups, indigenous peoples’

Movements, foundations, and other citizen groups formed primarily for social and



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Coa an

—— 10 attivity is mutually meaningful and-beneficiat to public interest as well as to themselves

NW

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economic development, to monitor government programs and projects, engage in policy
discussions, and actively participate in collaborative activities with government;

(c) Congressional District refers to a territorial division which under the 1987
Philippine Constitution is entitled to elect one member to the Philippine House of
Representatives;

(d) Volunteer refers to an individual or group who, for reasons arising from their
socio-developmental, business and corporate orientation, commitment or conviction,
contribute time, service and resources whether on full-time or part-time basis to a just

and essential social development cause, mission or endeavor in the belief that their

(e) Volunteer service organization refers to a local or foreign group that recruits,
trains, deploys and supports volunteer workers to programs and projects implemented by
them or by other organizations or any group that provides services and resources,

n, capability building, advocacy and networking for

including but not limited to, informa!
the attainment of common good; and

(f) Volunteerism refers to an act involving a wide range of activities, including
traditional forms of mutual aid and developmental interventions that provides an enabling
and empowering environment, both on the part of the beneficiary receiving and the
volunteer rendering the act, undertaken for reasons arising from socio-developmental,

business or corporate orientation, commitment or conviction for the attainment of the

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public good and where monetary and other incentives or reward are not the primary
motivating factors,

Sec. 5. VNB Mission-Vision. National government agencies (NGAs), LGUs, and the
volunteer sector shall be committed to the VNB mission and vision, which shall harness the spirit
of volunteerism as stimulus for local development and as a way of life for each Filizino in
recognition of the time-honored tradition of “Bayanihan” that has evolved to include the
Participation of organized groups and institutions as volunteer partners of government in
local development and governance. The LGUs and congressional districts shall also

perform critical roles in mobilizing, harmonizing, and sustaining volunteering efforts.



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The VNB program shall harness the support of the abovestated sectors in the
following areas of governance: (2) community building through shelter and other
infrastructure support; (b) community, child, youth, and maternal health; (c) child and
youth education; (d) community entrepreneurship; (e) food sufficiency; (f) gender equality
and women empowerment; (g) peace efforts; (h) cultural preservation and promotion;
(i) eco- tourism; (j) environmental preservation and protection and (k) micro-finance and
livelihood.

Sec. 6. VNB Key National and Cooperating Agencies. - To harmonize and facilitate

the support of various government agencies in the implementation of the VNB, the

———10following-NGas,including-their-concerred“bureaus/attached agencies, shall take tead

roles in the following key areas: the Department of Social Welfare And Development in
the review and implementation of VNB socio-welfare projects and activities; the Housing
and Urban Development Coordinating Council in the approval of the VNB local shelter
plan and coordination of all shelter agencies for the provision of support to the VNB
program; the Department of the Interior and Local Government in the coordination of
LGUs with local VNB projects; the Department of Finance in the promulgation of
guidelines for the availment of tax exemption and other related incentives and benefits
and for the oversight of their implementation and supervision; and the Department of
Budget and Management (DBM) in overseeing and monitoring the budget utilization of

concerned lead or cooperating government agencies in the implementation of the VNB

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program.

Other government agencies shall provide the necessary support for the VNB
program, namely: Office of the President (OP), National Economic and Development
Authority (NEDA), Department of Environment and Natural Resources (DENR), Land
Registration Authority (LRA), Department of Trade and industry (DTI), Technology
Resource Center (TRC), Department of Health (DOH), Department of Labor and
Employment (DOLE), Department of Education (DepEd), Technical Education and Skills
Development Authority (TESDA), Commission on Higher Education (CHED), Department of

Public Works and Highways (DPWH), Department of Agriculture (DA), Department of



1 Agrarian Reform (DAR), Department of Energy (Doe), National Electrification Authority

(NEA), and Cooperative Development Authority (CDA).
Sec. 7. VNB Coordinating Agency. - The Philippine National Volunteer Service

Coordinating Agency (PNVSCA) shall serve as the coordinating agency for the

implementation of the VNB program. More specifically, the PNVSCA shall have the

following functions:

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7 (a) Formulate and review policies and guidelines on the VNB program;

8 (b) Develop and implement a monitoring and evaluation system for the VNB
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program;
———1 —c} Bevetopand-impterrernarr-advocacy campatgr for the impterrentation-of the

11 VNB program;
12 (d) Provide 2 report to the OP and both Houses of Congress on matters related to

13. the implementation of the VNB program; and
14 {e) Administer all funds related to the VNB program.

1s The VNB Program Management Unit shall be created as an attached unit to the
fe Director of the PNVSCA to perform technical and administrative

16 Office of the Exec
17 tasks to carry out the abovementioned functions. This unit shall be headed by an officer

18 who shall supervise a team of volunteer service officers. The PNVSCA, in coordination with
19 the DBM, shall prepare the staffing pattern of the program management unit.
20 Sec. 8. Inter-Agency Coordinating Committee. - The existing Multi-Sectoral

21 Advisory Body (MSA8) of the PNVSCA shall serve as the inter-agency coordinating
22 committee which shall perform the following responsibilities:

23 (a) Provide advice in the formulation of policies and guidelines for the VNB
24 program;

25 (b) Serve as link between and among lead and cooperating national government
26 agencies in the implementation of the VNB; and

27: (c) Serve as forum for the review of the VNB implementation with VNB

28 stakeholders.



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t0—not limited to, the following fanctions:

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For this purpose, the composition of the MSAB shall be expanded to include
HUDCC, DOF, and DBM.

The MSAB may call on the other VNB cooperating agencies and concerned
institutions on matters pertaining to the implementation of the VNB program.

Sec. 9. VNB Coordinating Desk. - All \ead and other cooperating agencies shall
establish their respective VNB coordinating desk or tap existing related unit to serve as the
focal unit in coordinating the delivery of support services in the implementation of the

VNB.
At the LGU, the VNB coordinating desk shall serve as the focal unit to perform, but

(a) Undertake the identification of VNB projects and activities;

(b) Accredit volunteer partners for the implementation of VNB projects and
activities;

(c) Monitor and evaluate the progress of the VNB projects, including submission of
reports to the Local Development Council and the MSAB.

At the district level, the representative concerned shall designate a VNB liaison
officer to serve as the link with the lead and cooperating national government agencies
and concerned LGU VNB desk officers.

Sec. 10. Accreditation of VNB Partners and Stakeholders. - All VNB program

partners shall be required to be accredited by LGUs concerned, in coordination with the

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appropriate agencies, to enable them to participate in the VNB program.
A system of accreditation shall be developed for adoption and implementation by
the LGUs with proper consultation with the concerned agencies.

Sec. 11. Incentives for VNB Partners and Stakeholders. - Any VNB and BIR-
accredited donor and donee under a VNB program, project, or activity shall enjoy the
following incentives:

(a) All donations in cash and in kind, including land, all of which are actually,

directly and exclusively used by the VNB movement, in its programs, projects, and

activities that provide shelter, basic utilities of electricity and water, education,



healthcare, livelihood, environment and peace efforts, that shall inure to the benefit of

poor communities identified by the PNVSCA shall be fully tax deductible from the gross

income of the donor, under the new nomenclature of donations for “nation-building”,
upon submission to the BIR of the VNB requirements for that purpose. The
implementation of this incentive shall be patterned after the applicable provisions on
“allowable Deductions” under RA 8424, as amended.

(b) A donor's tax exemption shall be enjoyed by the VNB donor, upon submission
to the BIR of the VNB requirements for that purpose.

The DOF, in coordination with the PNVSCA, the BIR, the BOC, and the DBM shall

set-the-guidelines-for-the-screening;-evaluation,-and-approval-of-all-tax-incentives-and
benefits used for VNB purposes, as well as the Implementing Rules and Regulations (IRR)
specifically to implement the incentives provided herein, In line with proper fiscal
administration policies, the DOF in coordination with VNB, shall determine the compliance
criteria for “utilization”, “valuation”, “deductibility”, “proof of utilization” and “proof of
deductions” of all VNB donations, whether in cash or in kind, as basis to determine the
availment of, and continued applicability or withdrawal of all such tax incentives and
benefits, in accordance with RA 8424, as amended.

{c) The socialized housing tax as authorized to be imposed by LGUs, under Section
43 of RA 7279, otherwise known as “the Urban Development and Housing Act of 1992”

shall be used as additional government equity under the VNB framework, subject to an

inter-agency memorandum of agreement.
(d) Priority in the grant of acquired land. The government shall also consider VNB
partners as priorities in the grant of land for socialized housing acquired under R.A. No.
7279 which shall include community mortgage, land swapping, land assembly or
consolidation, land banking, donation to the government, joint-venture agreement,
negotiated purchase, and expropriation.
{e) All donations from foreign sources to the VNB shall be exempt from customs

duties, provided that the donees are duly accredited with the BOC.



The mechanics, criteria, qualifications, all documentary proof of donation in cash
or in kind, and proof of utilization of donation requirements, and the implementation
guidelines for all the incentives and benefits provided under this section, shall be carried
out in accordance with the 1987 Constitution, RA 8424, as amended, and other applicable
laws, rules and regulations, and shall be included and clearly specified in the IRR, to
ensure that these incentives and benefits shall properly benefit the intended recipients, to
fully and faithfully implement the true intent and spirit of the VNB Act.

The incentives provided under this Act shall be effective for a period of eight (8)

years, with one extension of another six (6) years, subject to satisfactory submission of

+0—and—compliance—with—ell -VNB—requirements,—terms—and conditions, —including—alt

documentary proof of donation in cash or in kind, and proof of utilization of donation
requirements, for purposes of the VNB Act. Thereafter, upon evaluation of and
recommendation by the PNVSCA-MSAB and the Department of Finance, further extension
to the effectivity of the said incentives, and corollarily, to the continued existence and
operation of the VNB shall be subject to congressional action.

Sec. 12. Incentives for VNB Volunteers. ~ All VNB program partners shall provide
volunteers with recognition and incentive package.

Sec. 13. Special Provision. - VNB Framework Guide Book. - A VNB Framework
Guide Book shall be prepared and disseminated to all \GUs and congressional districts to

assist them in the implementation of the VNB program.

Sec. 14. Appropriations. The amount necessary to implement the provisions of
this Act shall be included in the annual General Appropriations Act.
The LGUs shall likewise allocate the necessary funds for the implementation of the
VNB program.
Sec. 15. Implementing Rules and Regulations (IRR).- The PNVSCA, in
Consultation with the MSAB, the DSWD, the HUDCC, the DILG, the DOF, and the DBM,
shall promulgate the implementing rules and regulations (IRR) necessary to implement

this Act within sixty (60) days after its effectivity.



oos

Sow ud

Sec. 16. Separability Clause. ~ if any provision of this Act is declared invalid or
unconstitutional, other provisions hereof which are not affected thereby shall remain in
full force and effect.

Sec. 17. Repealing Clause. — Any law, Presidential Decree or issuance, Executive
Order, Letter of Instruction, Administrative Order, rule, or regulation contrary to or
inconsistent with any provision of this Act is hereby repealed, amended, or modified
accordingly

Sec. 18. Effectivity Clause. - This Act shall take effect fifteen (15) days after its

complete publication in the Official Gazette or in any newspaper of general circulation.

Approved, —



COMMITTEE AFFAIRS DEPARTMENT
FACT SHEET

House Bill No. 4374
(As Approved on November 20, 2012)

FILIPINO VOLUNTEERISM IN NATION BUILDING (VNB) ACT OF 2012

Introduced by: SPEAKER FELICIANO BELMONTE, JR. ,
REPRESENTATIVES FREDDIE R. TINGA, RUFUS B. RODRIGUEZ,
HERMILANDO |. MANDANAS, RAUL A. DAZA, JESUS CRISPIN C.
REMULLA, MARIA ISABELLE G. CLIMACO, NEPTALI M. GONZALES, Il,

_____EDCEL C, LAGMAN, AMADO S. BAGATSING, RODOLFO G. VALENCIA,
JUAN EDGARDO M. ANGARA, LUCY TORRES-GOMEZ, WINSTON T.
CASTELO, HENEDINA R. ABAD, JORGE JOHN B. BANAL, JR.,
BERNADETTE R. HERRERA-DY, FATIMA ALIAH Q. DIMAPORO, DAVID
L. KHO, MARY MITZI L. CAJAYON, BENJAMIN D. ASILO, CINCHONA
CRUZ-GONZALES, EDWIN DL. OLIVAREZ, GODOFREDO V. ARQUIZA,
MARK AERON H. SAMBAR, RAFAEL V. MARIANO, ARNEL U. TY,
SALVADOR P. CABALUNA Ill, MARIA ZENAIDA B. ANGPING, REENA
CONCEPTION G. OBILLO, JERRY P. TRENAS, MA. RACHEL J. ARENAS,
GIORGIDI P. AGGABAO, EDUARDO R. GULLAS, MA. MILAGROS H.
MAGSAYSAY, DANILO E. SUAREZ, TOBIAS M. TIANGCO, MARC
DOUGLAS C. CAGAS IV, MAGTANGGOL T. GUNIGUNDO I, GEORGE P,
ARNAIZ, FERNANDO V. GONZALES, LUIS R. VILLAFUERTE, JOCELYN
$. LIMKAICHONG, THELMA Z. ALMARIO, SHARON S. GARIN,
DEOGRACIAS B. RAMOS, JR., MEL SENEN S. SARMIENTO, AND
LINABELLE RUTH R. VILLARICA

Committee Referral : COMMITTEE ON PEOPLE'S PARTICIPATION
¢ Chairperson REP. BENJAMIN D. A‘

OBJECTIVES:

* To encourage the various sectors of society to volunteer and become partners of
government in nation-building

+ To institutionalize the Volunteerism in Nation-Building (VNB) framework and sustain
the partnership among the national government agencies, the local government
units (LGUs), the congressional districts, and the civil society organizations (CSOs)
in community and nation-building

KEY PROVISIONS:
* Defines the mission and vision of the VNB Framework, which shall enjoin all sectors

to_practice *bayanihan’_and_harness_volunteerism_to-stimulate_local_and_national

development.

As of Nov 21, 2012

HOUSE OF REPRESENTATIVES _ eee


« Provides the key areas of governance where volunteerism shall be harnessed.

Enumerates and defines the roles of key VNB national and cooperating agencies ___
such as the Departments of Social Welfare and Development, of the Interior and

Local Government, of Finance, of Budget and Management and the Housing and

Urban Development Coordinating Council.

Mandates the Philippine National Volunteer Service Coordinating Agency
(PNVSCA) to serve as the VNB coordinating agency and creates a VNB Program
Management Unit for the purpose.

* Provides that the existing Multi-Sectoral Advisory Body (MSAB) act as the inter-
agency coordinating committee for VNB programs and projects.

* Mandates the creation of VNB Coordinating Desks to ensure the delivery of support
services in the implementation of VNB programs and projects.

Requires-all VNB _partners_to-undergo-accreditation-under-concerned-_GUs-

« Enumerates the incentives for VNB partners and stakeholders, which include: (a)
tax deductions, (b) donor's tax exemptions, (c) equities from the proceeds of the
Socialized Housing Tax under RA 7279, (d) priority in the grant of acquired land,
and (e) exemptions from customs duties.

* Provides that the incentives shall be effective for a period of eight (8) years, with
one extension of another six (6) years, after which these will be subject to
congressional action.

* Mandates that the amount necessary for the implementation of the Act shall be
included in the General Appropriations Act and recommends that the LGUs allocate
the necessary funds for its implementation at the local level.

¢ Includes representatives from the PNVSCA, the DSWD, the HUDCC, the DILG, the
ing of the IRR.

RELATED LAWS:
* Republic Act No. 9418, entitled, “An Act Institutionalizing a Strategy for Rural

Development, Strengthening Volunteerism and for other Purposes” enacted on April
10, 2007

* RANo. 7160 or the ‘Local Government Code of 1991”

+ RANo. 7279, or the “Urban Development and Housing Act of 1992”

« RANo. 8424, or the “Tax Reform Act of 1997”

As of Nov 21, 2012


House of Representatives
Quezon City, Motes Maniln

November 20, 2012

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

Dear Chairman Asilo:

Please be informed that the Committee on Appropriations, in its meeting held
today at Conference Rooms 3 & 4, Ramon V. Mitra Building, approved to report
out Substitute Bill to House Bill No. 4374, titled “AN ACT TO STRENGTHEN
NATION-BUILDING THROUGH THE INSTITUTIONALIZATION OF A
STRATEGIC VOLUNTEERISM BASED MULTI-SECTORAL PUBLIC-PRIVATE
PARTNERSHIP FRAMEWORK, IN ALL LOCAL GOVERNMENT UNITS AND
CONGRESSIONAL DISTRICTS IN THE COUNTRY, AND FOR OTHER
PURPOSES” with the following amendments:

1. On Sec. 7, page 6, line 4, after the preposition “by” change the article “A”
to article AN and delete the succeeding phrase "SUPERVISING
VOLUNTEER SERVICE”.

2. On Sec, 12, page 9, lines 12-13, delete the phrase starting with the word
“which” up to the word “privileges”.

3. On Sec. 14, same page, lines 17-26, delete the entire provision and in
lieu thereof substitute the following:

SECTION 14. APPROPRIATIONS. THE AMOUNT NECESSARY TO
IMPLEMENT THE PROVISIONS OF THIS ACT SHALL BE INCLUDED IN
THE ANNUAL GENERAL APPROPRIATIONS ACT.

THE LGUs SHALL LIKEWISE ALLOCATE THE NECESSARY FUNDS
FOR THE IMPLEMENTATION OF THE VNB PROGRAM.

It is also suggested that on Section 11, page 9, line 6, the acronym “VNB-JCOC”

be replaced by PNVSCA-MSAB AND THE DEPARTMENT OF FINANCE. This is

considering that the Section on the Joint Congressional Oversight Committee is

already deleted. Likewise, reference to the Office of the President should be
—__—Jeleted inasmuch-es the PNVSCA shall serve as the coordinating agency for the


implementation of the VNB Program, thereby creating e “VNB Management
Office.”

Moreover, the following members signified their intentions to be co-authors of the
‘substitute bill, namely: Reps. Sharon Garin, Deogracias B. Ramos, Jr., Linabelle
Ruth R, Villarica, Jocelyn S. Limkaichong, Thelma Z. Almario and Mel Senen S.
Sarmiento

Thank you.

Very truly yours,

Committee on Appropriations

cc: Speaker Feliciano Belmonte, Jr.

Deputy Speaker Raul A. Daza

Deputy Speaker Jesus Crispin C. Remulla
Deputy Speaker Maria Isabelle G. Climaco
Majority Leader Neptali M. Gonzales II
Hon. Freddie R. Tinga

Hon. Rufus B. Rodriguez

Hon. Hermilando |. Mandanas



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

HERMILANDO I. MANDANAS

Chairman
‘Committee on Ways and Means

November 29, 2011

_____HON, BENJAMIN D. ASILO. = - —

Chairman
Committee on People’s Participation
House of Representatives

Dear Chairman Asilo:

The Committee on Ways and Means in its meeting today, November 29,

2011 has approved the Substitute Bill to House Bill No. 4374 entitled:

AN ACT TO STRENGTHEN NATION BUILDING THROUGH THE
INSTITUTIONALIZATION OF A STRATEGIC VOLUNTEERISM BASED MULTI-
SECTORAL PUBLIC PRIVATE PARTNERSHIP FRAMEWORK IN ALL LOCAL

GOVERNMENT UNITS AND CONGRESSIONAL DISTRICTS IN THE

By: Speaker Feliciano Belmonte, Jr., Representatives Freddie R. Tinga, Rufus
B. Rodriguez, Hermilando |. Mandanas, Raul A. Daza, Jesus Crispin C. Remulla,
Maria Isabelle G. Climaco, Neptali M. Gonzales, Il, Edcel C. Lagman, Amado S
Bagatsing , Rodolfo, G. Valencia, Juan Edgardo M. Angara, Lucy Torres-Gomez,
Winston T. Castelo, Henedina R. Abad, Jorge John B. Banal, Jr., Bernadette R
Herrera-Dy, Fatima Aliah Q. Dimaporo, David L. Kho, Mary Mitzi L. Cajayon,
Benjamin D. Asilo, Cinchona Cruz-Gonzales, Edwin DL. Olivarez, Godofredo V.
Arquiza, Mark Aeron H. Sambar, Rafael V. Mariano, Amel U. Ty, Salvador P.
Cabaluria Ill, Maria Zenaida B. Angping, Reena Concepcion G. Obillo

with amendments to Section 10 and subject to style, shall now read as follows:

North Wing Rm. 519, Batasan Complex, Constitution Hills, Quezon City Telefax: 931-5582 / TL: 931-5001 loc. 741°
District Office: Batangan Plaza, Kumintang Ilaya, Batangas City Telefax: 520-6119 / (043) 722-2407
Email address : eonsbsts@vahco.com


“SEC. 10. Incentives for VNB Partners and Stakeholders. - Any VNB
and BIR- accredited Donor and Donee under a VNB program, project or
activity shall enjoy the following incentives:

a.) All donations in cash and in kind, including land, all of which are
actually, directly and exclusively used by the VNB movement, in its
programs, projects, and activities that provide shelter, basic utilities of
electricity and water, education, healthcare, livelihood, environment and
peace efforts, that shall inure to the benefit of poor communities identified
by the VNB Central Office shall be fully tax deductible from the gross
income of the donor, under the new nomenclature of donations for “nation-

_—____ building". upon_submission_to the BIR of the VNB requirements for that

purpose. The implementation of this incentive shall be patterned after the
applicable provisions on “Allowable Deductions” under RA 8424, as
amended.

b.) A donor's tax exemption shall be enjoyed by the VNB donor,
upon submission to the BIR of the VNB requirements for that purpose

The DOF, in coordination with the OP, DOF with the BIR and the
BoC, the DBM and the VNB Secretariat, shall set the guidelines for the
screening, evaluation, and approval of all tax incentives and benefits used
for VNB purposes, as well as the IRR specifically to implement the
incentives provided herein. In line with proper fiscal administration
policies, the DOF in coordination with VNB, shall determine the
compliance criteria for “utilization", “valuation”, “deductibility’, “proof of
utilization” and “proof of deductions” of all VNB donations, whether in cash
or in kind, as basis to determine the availment of, and continued

‘applicability or withdrawal of all such tax incentives and benefits, Ir
accordance with RA 8424, as amended.,

C) THE SOCIALIZED HOUSING TAX AS AUTHORIZED TO BE
IMPOSED BY LOCAL GOVERNMENT UNIT’S (LGUs), UNDER
SECTION 43 OF RA 7279: OTHERWISE KNOWN AS "THE URBAN
DEVELOPMENT AND HOUSING ACT OF 1992”, SHALL BE USED AS
ADDITIONAL GOVERNMENT EQUITY UNDER THE VNB
FRAMEWORK, SUBJECT TO AN INTER-AGENCY MEMORANDUM OF
AGREEMENT.

d) Priority in the grant of acquired land: The Government shall also
consider VNB partners as priorities in the grant of land for socialized
housing acquired under R.A. No. 7279 which shall include community
mortgage, land swapping, land assembly or consolidation, land banking,

2


donation to the Government, joint venture agreement, negotiated
purchase, and expropriation.

—) ALL DONATIONS FROM FOREIGN SOURCES TO THE VNB SHALL
BE EXEMPT FROM CUSTOMS DUTIES, PROVIDED THAT THE
DONEES ARE DULY ACCREDITED WITH THE BOC.

The mechanics, criteria, qualifications, all documentary proof of
donation in cash or in kind, and proof of utilization of donation
requirements, and the implementation guidelines for all the incentives and
benefits provided under this Section, shall be carried out in accordance

———with the 1987 Constitution, RA 8424. as amended, and other applicable
laws, rules and regulations, and shall be included and clearly specified in
the IRR, to ensure that these incentives and benefits shall properly benefit
the intended recipients, to fully and faithfully implement the true intent and
spirit of the VNB Act

The incentives provided under this Act shall be effective for a
period of eight (8) years, with one extension of another six (6) years,
subject to satisfactory submission of and compliance with all VNB
requirements, terms and conditions, including all documentary proof of
donation in cash or in kind, and proof of utilization of donation
requirements, for purposes of the VNB Act. THEREAFTER, UPON
EVALUATION OF AND RECOMMENDATION BY THE VNB-JCOC TO.
THE OFFICE OF THE PRESIDENT, FURTHER EXTENSION TO THE
EFFECTIVITY OF THE SAID INCENTIVES, AND COROLLARILY, TO
THE CONTINUED EXISTENCE AND OPERATION OF THE VNB SHALL
BE SUBJECT TO CONGRESSIONAL ACTION.

The following House Members also manifested co-authorship to
the substitute bill: Representatives Giorgidi P. Aggabao, Eduardo R
Gullas, Ma. Milagros H. Magsaysay, Danilo E. Suarez, Tobias M. Tiangco,
Marc Douglas C. Cagas, IV, Magtanggol T. Gunigundo, |, George P.
Amaiz and Fernando V. Gonzalez

Thank you.

Very truly yours,

y

HERMILANDO I. MANDANAS:



HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

4374

HOUSE BILL NO.

INTRODUCED BY

Speaker Feliciano Belmonte, Jr. , Representaitves Freddie R. Tinga, Rufus B.
Rodriguez, Hermilando |. Mandanas, Raul A. Daza, Jesus Crispin C. Remulla,
Maria Isabella G. Climaco, Neptali M. Gonzales, Il, Edcel C. Lagman, Amado S.
Bagatsing , Rodolfo, G. Valencia, Juan Edgardo M. Angara, Lucy Torres-Gomez,
Winston T. Castelo, Henedina R. Abad, Jorge John B. Banal, Jr., Bernadette R.

Herrera-Dy, Fatima Aliah Q. Dimaporo

EXPLANATORY NOTE
“LESS FOR SELF, MORE FOR COUNTRY, ABUNDANCE FOR ALL”

This is the motto that every Volunteer for Nation Building, strives to live by,
lidarity=trandein-hand;—with—other-

as he or she works individually _and—solit
volunteers across the country and beyond Philippine shores, as they collectively
envision our Filipino people living with dignity and in peace, in a slum-free,
squatter-free, poverty-free Philippines by the year 2024.

Building viable, sustainable and empowered communities, in the
Philippines embodies the faith that Filipinos will end poverty in the Philippines
through: (1) public-private partnerships; (2) simultaneous ground-up and top-
down development initiatives; (3) rich and poor working together, bridging the
social gap; and (4) the principle of the “best for the least” and preferential option
for the least fortunate giving those at the bottom of the social and economic

pyramid upward aspirations to build a broader middle-class with enlightened
leadership from the Government and private sectors.

legislation is to encourage the private sector to be a

our Government institutions through collaboration and cooperation for the

The_goal of thi:
supporter of Government, not just itS Critic, to-restore the faith-of_our-citizens in


oti es-and-business rivairie:

the private sector, to go beyon , religious and ideological

making every Filipino a nation builder.

The 1987 Philippine Constitution is replete with provisions that promote
social-economic and poverty alleviation programs, equitable distribution of
opportunities, income and wealth to uplift the standard of living and quality of life
of all citizens, with the help of independent non-governmental people’s
organizations to pursue and protect, citizens interest and welfare, within a
democratic framework, through community-based initiatives.

The Local Government Code of 1990 recognizes the critical role of Civil
Society Organizations (CSOs) which include Non-Government Organizations
(NGOs), Volunteer Organizations (VOs) and People’s Organizations (Pos) in
nation-building, and empowers local government units (LGUs) to enter into joint
ventures and such other cooperative arrangements to engage in the delivery of

certain basic Services, capacity-building and livelihood projects, and to develop
local enterprises designed to improve the productivity and income levels of
Filipinos.

The United Nations Universal Declaration of Human Rights also supports
the fostering of a covenant between the State and civil society towards the
protection of the rights and the enhancement of human dignity, by diffusing
wealth and political power and reducing or removing economic, social and
cultural injustices and barriers for the common good.

in the Philippines, Gawad Kalinga or GK, has trail blazed the socio-
economic-political frontiers of Philippine society by employing a unique tool for
change called: “Social Engineering”, which exemplifies the “Bayanihan” spirit of
“volunteerism” coupled with “caring” or kalinga. “Bayanihan” and “kalinga” are
indigenous Filipino practices/traits that can be traced to our pre-colonial
forefathers. The Bayanihan spirit evokes of local heroism and patriotism, in the

————— midst of the Filipine-people’s-struggle to-fight poverty and other social inequities.

GK’s trademark is its capacity to mobilize multi-sectoral initiatives from the
ground, by marshaling its “capital resources” of: TRUST equity, SWEAT equity,
plus its sterling record of RESPECT and INTEGRITY with its partners and various
stakeholders from the Government, the private sector, international agencies,
foreign governments, interfaith groups, the academe and CSOs. The GK
approach is hinged on effectively drawing out core Filipino values of faith and
patriotism, of generosity and sharing. And its “secret” formula to success is a
genuine and sincere stewardship founded on unwavering TRUSTWORTHINESS.

GK as an emerging Philippine and Asian “Model of Development”, has
been instrumental as the “converging point for multi-sectoral partnerships” and
as a “Template for Good Governance” engaged in: community building through
shelter and other infrastructure programs; community child, youth and maternal

—health;-child-and-youth-education;-community entrepreneurship, livelihood and

rand prosperous nation—by


empowerment

micro-finance; food sufficiency; gender equality and wo:

rts;—culture—eco-—tourism and environmental

protection.

All these socio-economic themed programs are in line with the eight-point
Millennium Development Goal’s (MDGs) which the Philippines, as a signatory to
the United Nations Millennium Declaration has committed to achieve by the year
2015. Recently, GK has also fostered “peace builds” for displaced Muslim
Filipinos in Mindanao, in the aftermath of strife and natural calamities.

The fifteen-year solid track-record of GK in continuously providing a
Filipino model for modern day community growth and development, through a
“trust-based” merging of multi-sectoral public-private partnership, and the
“bridging-molding-shepherding” by GK among the poor informal settlers in the
country, of the values of self-help and self-empowerment, through the delivery of
basic-needs;-land-and-shelter, food,-healthcare, livelihood, all-contributing-to the
development of 2,000 communities nationwide, to rise-out-of extreme poverty---IS
PROOF and a testament to the effectiveness of the GK framework of grassroots
community building, that indeed in inspiring the poor to help themselves become
self-reliant through “bayanihan” and “kalinga”, we Filipinos can end poverty in

the Philippines within our generation.

With an economy that is anchored on frail economic fundamentals: a
budget deficit hitting the Php 325 Billion mark by the end of year 2010, with 34 %
of the population jobless, and a high poverty rate of 26 %-—all of these will have a
negative impact on whatever poverty alleviation programs, the Philippine
Government has lined up for implementation in the current and coming years.
And hardest to be hit shall be the delivery of basic services to the marginalized

Filipinos.

During this free-market, capitalist and fiscally challenging times, when the
world is still reeling from the inundation of the global economic crisis and

financial recession, there Is an urgent need fo seek out doable alternative
methods of solving poverty and homelessness, through a strategic “mini-max”
sourcing and utilization of limited but available public resources, and the
provision of incentives and a “social transformation fund” as Government's
counterpart---these in tandem with the material and incorporeal equity that
Gawad Kalinga can harness, within a structure of collaborative tripartite public-
private partnership among stakeholders: the National Government,
Congressional Districts and LGU’s and local CSOs + the constituents of the
locality + private corporate and mult-sectoral partners, to implement a holistic
community building and township development program.

It is about time that the Volunteerism In Nation Building, framework be
institutionalized as a means to directly link the various sectors of society: the
public sector, the private sector and the CSOs, through a Government initiated
national development plan on alternative poverty eradication, patterned after the



jovative “Gawad Kalinga Way” of multi-sectoral resources generation and

—mebilization-for- sustainable human-development.

We have seen how GK, which started as a diminutive”outreach group”---
evolve into a distinctive Filipino model for community development, has made it
possible to turn the tide of social transgressions in our country, by addressing
poverty, homelessness, and class struggles, while transcending traditional
politics, commercial rivalries and ethnocentric interests. In all these, we find
inspiration that we can BUILD a NATION that every PINOY can be proud of.

With hope, optimism, concrete action and a united stand by the entire
country, the community development approach of GK, which in a nutshell,
advocates “THE POLITICS OF CARING, THE ECONOMICS OF SHARING AND THE
CULTURE OF HEROISM”, and embracing these as the new culture and norm of
our times, making it a “Bayaning Pilipino-Bayanihan ng Sambayanan” movement
together with other volunteerism groups, under the inclusive framework of

“Nati uilding”, shall be the catalyst to “bring the Philippines out of the Third
World; and make it a First World nation”.

In view of the foregoing, our united support, to approve this piece of
legislation is humbly sought.

Speaker Feliciano Belmonte; Jr.

Rep. Amado S. Bagatsing

Rep. Mar-len Abigail S. Binay

"Mr. Tony Meloto of Gawad Kalinga, Philippine Daily Inquirer, 2008.
4


Rep. Raul A.Daza OV

Vv

Rep. Lorenzo R. Tanada, Ill
Rep. Hermilando |.Mandanas v

Rep. Joseph Emilio A. Abaya

“Rep. Neptali

Rep. Edcel C, Lagman



pk

Rep. Raul A. Daza
Rep. Lorenzo R. Tanada, III
Rep. Arnulfo P. Fuentebella “

yo

: Crispin C. Remulla

Rep.

. _Hermilando | .Mandanas

. Joseph Emilio A. Abaya /

Rep. Pedro B. Acharon, Jr. /



ORAG VAL.
CO-B

House Bill NO.

Rep. Henedina R. Abad

Rep. Pedro B. Acharon, Jr.

CO-AUTHORS
4374

Rep. Rodolfo B. Alabano, Jr.
Rep. Ma. Zenaida B. Angping
Rep. Rodolfo W. Antonino

Rep. Patricio T. Antonio

Rep. Jose S. Aquino, Il

Rep. George P. Arnaiz

Rep. Ignacio T. Arroyo, Jr.

Rep. Diosdado Macapagal Arroyo



ho

Vee John B. Banal, Jr.

Rep. Alfredo Abelardo B. Benitez

Rep.

Rep.

. Ma. Jocelyn V. Bernos

. Rodolfo G. Biazon

Rep.

Rep.

Re

Pp.

Rep.

. Ferjenel G. Biron

. Teddy A. Casino

. Arnel M. Cerafica

. Justin Marc SB. Chipeco

Rep.

Rep

Rep.

Rep

. Vincent “.Bingbong” P. Crisologo

. Ma. Georgina P. De Venecia

. Arthur R. Defensor, Jr.

. Rachel Marguerite B. Del Mar



Rep. Imelda Q.Dimaporo

Rep. Napoleon S. Dy

Rep. Ben P. Evardone

Rep. Daisy A. Fuentes

Rep. Janette L. Garin

Rep. Anthony Rolando T. Golez, Jr.

Rep. Roilo S. Golez

Rep. Aurelio D. Gonzales, Jr.

Rep. Magtanggol T. Gunigundo

Rep, férrera-Dy
Rep. NurG. Jaafar

Rep. Paolo Everardo S. Javier



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

Fifteenth Congress
First Regular Session

HOUSE BILL NO. 4374

INTRODUCED BY:
Speaker Feliciano Belmonte, Jr. , Representaitves Freddie R. Tinga, Rufus
8. Rodriguez, Hermilando |. Mandanas, Raul A. Daza, Jesus Crispin C.
Remulla, Maria Isabella G. Climaco, Neptali M. Gonzales, Il, Edcel C.
Lagman, Amado S. Bagatsing , Rodolfo, G. Valencia, Juan Edgardo M.
Angara, Lucy Torres-Gomez, Winston T. Castelo, Henedina R. Abad, Jorge
John B. Banal, Jr., Bernadette R. Herrera-Dy, Fatima Aliah Q. Dimaporo

AN ACT TO STRENGTHEN NATION BUILDING THROUGH THE
INSTITUTIONALIZATION OF A STRATEGIC VOLUNTEERISM BASED MULTI-
SECTORAL PUBLIC-PRIVATE PARTNERSHIP FRAMEWORK, IN ALL
LOCAL GOVERNMENT UNITS AND CONGRESSIONAL DISTRICTS IN THE
COUNTRY, AND FOR OTHER PURPOSES

—————8e_it-_enacted-by_the-Senate-and_the-House-of Representatives_of_the —_

Philippines in Congress assembled:

1 SECTION 1.Short Title, - This Act shall be known as the “Filipino
2 Volunteerism In Nation Building (VNB) Act of 2010”.

Kl)

4 SEC. 2,Declaration of Policy. - (a) The State recognizes and respects
5 the vital role of Civil Society Organizations (CSOs) which include Non-
Government Organizations (NGOs), Volunteer Organizations (VOs) and
7 People’s Organizations (Pos), as effective conduits in harnessing people

1


power, to promote and achieve nation-building through community-based

Socio-economic and poverty alleviation programs, projects and activities,

in pursuance of national sustainable human development.

(b) It is also the declared policy of the State to ensure equitable
distribution of opportunities, income, and wealth to uplift the standard of
living and quality of life of all citizens, with the active involvement of
independent bona fide CSOs that shall adopt global good governance

practices, as it operates at the grassroots level.

It is likewise the policy of the State to pursue and protect, the citizens

(c)
ization of benefits to the people; by leveling the

rights, interests and ma:
playing field on access to work opportunities as well as providing
mechanisms to expand job productivity within a democratic framework,
through community-based initiatives that shall promote the general welfare

and development of the people and the nation.

(a) Furthermore, it is also the policy of the State to guarantee the
institutionalization of a committed, participative and sustained engagement
by the Local Government Units (LGUs) and Congressional Districts
(Districts)-local and national CSOs-the private sector-and the constituents,
in’ the long-term process of community building and poverty alleviation,

through joint ventures and such other cooperative arrangements, within the

over-all framework of nation building.

SEC. 3. Volunteers In Nation Building (VNB) Mission-Vision Framework. -
The role of the LGUs and Districts shall be, to provide assistance through
the sharing of all available resources, of the LGUs and Districts: and to
provide access points for VNB to be able to tap, coordinate or forge
linkages with vital local offices, institutions, groups or individuals, to widen

the reach and sphere of implementation of the VNB Act.

y


rojécts and activities Shall be in pursuance of

iB progran
the following: community building through shelter and other infrastructure
programs; community child, youth and maternal health; child and youth
education; community entrepreneurship; food sufficiency; gender equality

and woman empowerment; peace efforts; culture, eco- tourism and

environmental preservation and protection.

In addition, micro-finance and livelihood programs, projects and
activities as well as strategies, approaches and other initiatives that will
promote and engender amity and harmony in areas or localities that have

peace-conflicts, shall be deemed an integral part of the VNB paradigm.

The aforestated programs, projects and activities shall incorporate

the eight-point agenda of the Millennium Development Goals, in keeping
with VNB’s commitment to foster nation building towards the eradication of
poverty in the country and in fulfillment of the country’s adherence to

treaties and

international human development and human rights

agreements.

SEC. 4.Volunteers In Nation Building (VNB) Guidebook. - A

comprehensive and concise manual which contains the masterplan of all

VNB initiatives shall be prepared and disseminated in all LGUs and
Districts. The manual, which shall serve as a guidebook, shall contain the
mission-vision, objectives and goals, methods, systems, directory of VNB
plans, programs, projects and activities, and over-all timeline as well as
multi-sectoral capacity and sustainability building strategies, the VNB
member credo, all of which are aligned with the postulates and principles
adhered to by VNB, and geared towards efficiently and effectively achieving
n framework towards nation building.

the VNB mission and vi:



1 The VNB Guide Book shall provide the guidelines for the
——?—aorganizationa-set-apseepe-owork—duties—and-tunctions-of the VNB”
Central Office and Secretariat, Provided, That, within the 30 day period
following the effectivity of the VNB Act, the President shall issue the

3

appropriate Order or Memorandum to form the Steering Committee (SC) to
be composed of eleven (11) members as follows: five (5) from the public

from the CSOs/NGO sector, one (1) from the academe, one (1)
representative of the OP, all of whom shall be designated and properly

4
5
6
7 sector, two (2) from Congress, one (1) from the corporate sector, one (1)
8
9
0 compensated in accordance with existing laws, by the President, to

aT
11 comprise the “ad-hocitransition team”. The SC shall participate in the
= ~~ 12-formulation of the IRR of this Act and thereafter, be responsible for setting-
13. up the VNB Central Office, VNB Secretariat and VNB Satellite Offices/Desks
and Staff Complement, the initial coordinative and liaison work with the

14
15 core group of agencies provided in Section 15 of this Act, and the VNB-
16 JCOC as provided in Section 8 of this Act, as well as the preparation of the
17 _ initial roster/list of contact persons for local and international inter-agency
18 and inter-sectoral linkages to establish a permanent comprehensive

19 directory of all public and private paiticipants/partners under the VNB Act.

20

21 The SC which shall be constituted under the OP, shall have three

(3) months from the date of issuance of the said Presidential Order or

2
ii 23 Memorandum, to fulfill the directive of activating the inifial phases of

24 activating, mobilizing, organizing and establishing the VNB Act within the

25 stated time frame, and shall ensure that the VNB Act shall be fully

26 implemented and operational in accordance with its mandate.

27

28 SEC. 5. Volunteers In Nation Building Key Implementors, Partners,

29° Stakeholders. - The following shall be the multi-sectoral public and private

30 sector partners of VNB: Office of the President (OP), Department of Local

Government and Interior (DILG), Department of Budget and Management



1 (DBM), Department of Finance (DOF),, Bureau of Internal Revenue (BIR),
2 Bureau-ob Customs 4BeC}=8i ‘Of Treasury-(BoT), National Economie
3 and Development Authority (NEDA), Department of Social Welfare and

4 Development (DSWD), Department of Environment and Natural Resources
(DENR), National Housing Authority (NHA), Land Registration Authority

6 (LRA), Home Mutual Development Fund (HMDF), Housing and Land Use
7 Regulatory Board (HLURB), Social Housing Finance Corporation (SHFC),
8 PAG-IBIG Fund, Department of Trade and Industry (DTI) Technology and
9. Livelihood Research Commission (TLRC), Department of Health (DOH),
10 Department of Labor and Employment (DOLE), Department of

Education(DEP-ED), Technological Education and Skills Development
epartment

Gace 12—Authority (TESDA), Commission on Higher Education (CHED), 1
3. of Public Works and Highways (DPWH), Department of Agriculture
14 (DA),Department of Agrarian Reform (DAR), Department of Energy (DOE),
National Electrification Authority (NEA) Cooperative Development Authority
(CDA), the Philippine National Volunteer Service Coordinating Agency

16
(PNVSCA), all LGUs, all Congressional Districts, VNB Secretariat and VNB

18 — Satellite Office/Desk Staff Complement.

19
20 All bona fide CSOs that are into socio-welfare and economic
21 upliftment programs, projects and activities and have consistently
22 established a track record of having built at least 1,000 poor communities
'3_across the country, a5 validated by the OP, and the private sector partners
24 who shall include but shall not be limited to: corporate entities, interest

jous or spiritual groups, socio-cultural groups,

25 groups, interfaith, reli
international organizations and donor institutions and affiliates, foreign

27 governments, the academe, and any such other aggrupations,

instrumentalities and/or individuals outside of the sphere of the public

29 sector, upon accreditation, shall be deemed as VNB partners and

30 stakeholders. .



1

5

6
7 governments, the academe,

8

Sec. 6. Accreditation of VNB Partners and Stakeholders. - All VNB

reners-and-st EGU sand Districts, local-and———
national CSOs/NGOs, team leaders at the barangay level of the community,
corporate entities, interest

all VNB partners from the private sector,
groups, interfaith, religious or spiritual groups, socio-cultural groups,
international organizations and donor institutions and affiliates, foreign
and any such other aggrupations,
instrumentalities and/or individuals, involved in any VNB spearheaded

program, project or activity, shall be required to accredit/enlist with the

9
10 VNB Central Office through its district VNB Satellite Office/Desk at the local
11 level or the VNB Central Office itself at the national level, for purposes of

~—12-having-a-central-and-local’system-and-procedure-in- monitoring, records
13. filing and updating and records management, of all individuals or entities
14 that engage in community building partnerships with VNB.
15
16 Sec. 7. VNB Satellite Office/Desk. - A VNB satellite office/desk shall be
17 established in each LGU or District, wherever it is more geographically

18 feasible, upon determination by the VNB Central Office in consultation with *
19 the appropriate LGU head and District representative , to ensure that the
20 VNB Central Office through the satellite office/desk, is accessible to the
21 grassroots and to all partners and stakeholders, whereas the satellite
22 office/desk shall primarily serve as the official venue in which to
33 coordinate, conduct and consolidate all VNB concerns and activities within————
24 the locality.

25

26 For a clear coordinative collaboration among all agencies involved
27 in the implementation of the VNB mandate, some critical Government
28 agencies, in close coordination with the VNB Secretariat and VNB Satellite
29  Offices/Desks, shall have specific lead roles: the DSWD, for review and
30 implementation of VNB socio-welfare projects, programs and activities; the

NHA for the application/requirements compliance, submission and



1 approval of the VNB shelter plan; the DILG- for overall VNB inter-agency
ant 6 Us-conrtiination-at-the-lotaHlovel;-the-Volunteerstn-Nation- Bailainig=————

Joint Congressional Oversight Committee, to oversee the VNB work with

4 local & national offices, the local and national CSOs, LGU and District
5 coordination and the private sector, in the implementation of all VNB
6 initiatives, programs, projects and activities; the OP for direct supervision
7 and monitoring over all VNB programs, projects and activities involving
8» local and international entities and agencies and the VNB public-private
9 sector partnerships.

10
11 Sec. 8. Volunteers In Nation Building-Joint Congressional Oversight

12 — Committee (VNB-JCOC).= The VNB-JCOC shail oversee the VNB work with
local & national offices, the local and national CSOs, LGU and District

13
14 coordination and the private sector, in the implementation of all VNB
initiatives, programs, projects and activities. It shall be convened by the
Senate President and the Speaker of the House of Representatives as

15

16
17 attached units to the Office of the Senate President and Office of the
18 Speaker of the House of Representatives, respectively. The committee shall
19 be co-chaired by the Senate President and the Speaker of the House of
20 Representatives, and shall have five (5) Members who are the Chairmen of
21. the following Senate and House of Representatives Committees: Social
22 Welfare, Housing, and Local Government, Appropriations and Ways and

23 Means, The VNB-JCOC Secretariat-shall-be—constituted-by—the~Senate

President and the Speaker of the House, to be composed of not more than

24,
25 _ five (5) staff for the Senate and the House of Representatives, respectively,
26 and utilizing organic personnel of each House, as designated by the

27 respective agency heads. The details for the implementation and

operationalization of the VNB-JCOC, shall be specified and included in the

29 IRR of this Act.



Sec. 9. Reportorial Requirement. - \t shall be the duty of the VNB-JCOC in

2 — coordination withthe VNB Secretariat, to submit an Annual Progress and

10

Audit Report, in accordance with currently accepted accounting and
auditing practices, to the Office of the President and to Congress, on the
monitoring of the implementation of the VNB Act. Such report shall include
an evaluation and recommendations, as necessary, and with the approval

of the OP, to ensure the continued and sustained effectiveness of the VNB

framework in achieving its Mission-Vision mandate.

SEC. 10.: Incentives For VNB Partners and Stakeholders. - Any VNB

and Bureau of Internal Revenue (BIR) accredited Donor and Donee under a

VNB listed program, project or activity shall enjoy the following incentives:

1.) All Donations in cash and in kind, including land, all of which are
actually, directly and exclusively used by the VNB movement, in its
programs, projects and activities that provide shelter, basic utilities of
electricity and_water, education, healthcare, livelihood, environment and

peace efforts, that shall inure to the benefit of poor communities identified
by the VNB Central Office, Provided that such donations to the VNB
Secretariat shall be fully tax deductible from the gross income of the donor,
under the new nomenclature of donations for “nation building”, upon
submission to the BIR of the VNB requirements for that purpose. The

implementation of this incentive shall be patterned after the applicable
provisions on “Allowable Deductions” under RA 8424, as amended.

2.) A donor’s tax exemption shall be enjoyed by the VNB donor, upon
submission to the BIR of the VNB requirements for that purpose.

The DOF in coordination with the OP, DOF with the BIR and BoC,

DBM and the VNB Secretariat, shall set the guidelines for the screening,
evaluation, and approval of all tax incentives and benefits used for VNB



Purposes, as well as the IRR specifically to implement the incentives

provided-herein- in line with proper fiscal administration policies, the DOF
in coordination with VNB, shall determine the compliance criteria for
"utilization", “valuation”, “deductibility”, “proof of utilization” and “proof of
deductions” of all VNB donations whether in cash or in kind, as basis to
determine the availment of, and continued applicability or withdrawal of all
such tax incentives and benefits, in accordance with RA 8428, as amended,

3.) A tax amnesty incentive, applicable to all national internal revenue
taxes for the taxable year 2007 to 2010, in accordance with RA 9480, shall
likewise be extended to VNB donors who submit to the BIR

appropriate/required documents and comply with procedural requisites for
the availment of tax amnesty, Provided, however, That, the VNB donor is
not among the list of disqualified taxpayers, and that such VNB donor was
merely late or was not able to avail of the tax amnesty program (TAP) under
RA 9480, and is otherwise qualified to apply for tax amnesty. The
application for amnesty shall commence thirty days after the effectivity of
the IRR of this, Provided, that, the applicant has also complied with all
documentary proof of donation requirements stated in this Act. Availment
of and payment of the applicable amnesty tax shal! be within six months
from the effectivity of the IRR specifically for the incentives provided

herein.

29
30

31

4.) A Special Housing Fund ‘SHF) to be sourced from the proceeds of real
property tax pegged at one per centum (1%) of the assessed value of real
property, in addition to the prevailing real property tax levied thereon
pursuant to existing laws. This shall be deemed as the public sector i.e.,
Government's “equity” under the VNB framework, which shall be used
principally for the VNB shelter programs, projects or activities, in
pursuance of the shelter/housing development plan to be prepared with the
assistance of the Local Development Council (LDC) of the barangay,



municipality, city, and province. Such funds shall be automatically

—appropriated—and—thereafter—be—disbursed—arfer—a complete and

implementable shelter program has been approved by the VNB Central
Office, as coursed through the VNB Satellite Offices/Desk Officer, and
returned back to the barangay, municipality, city, province that submitted
the same for approval, within one month from its Submission to the VNB
Satellite Offices/Desk Officer. Provided, That, the implementation of this
provision shall be in accordance with the percentage allocation, to be
patterned after the provisions of the Local Government Code of 1994 on
allocation of special funds earmarked from local real property tax. A
reasonable percentage out of the one percent (1%) SHF shall also be

allocated to fund administrative and operations expenditures of the VNB
Central Office and VNB Satellite Offices/Desks, VNB. Secretariat and Staff
Complement at the local and national levels. Provided, further, That this
special fund shall be rationalized and prudently used to attain the Mission-
Vision of the VNB Act, with the details of these percentage allocations and
requirements for actual disbursement thereof among the barangay,
municipality, city and province and the over-all manner of implementation

of this incentive, to be clearly specified in the Implementing Rules and

Regulations (IRR) of this Act.

The mechanics, criteria, qualifications, all documentary proof of

Ppp

donation in cash or in kind,
requirements, and the implementation guidelines for all the incentives and

benefits provided under this Section, shall be carried out in accordance
with the 1987 Constitution, RA 8424, as amended, and other applicable
laws, rules and regulations, and shall be included and clearly specified in
the IRR, to ensure that these incentives and benefits shall properly benefit
the intended recipients, to fully and faithfully implement the true intent and

spirit of the VNB Act.

and proof of—utilization—of —donation———————


i

>of eight-{8}-vears-with-ene-extensian-of_anather six (8) years, subject to—

4

12 Value-Added Tax (VAT):

13
14
15
16
17
18
19
20
21

2

iS

23 thereby strat rerrairrirrfull force-and-effect—

24

, The incentives provided under this Act shall be effective for a period

satisfactory submission of and compliance with all VNB requirements,
terms and conditions, including all documentary proof of donation in cash
or in kind, and proof of utilization of donation requirements, for purposes of

the VNB Act.

Sec. 11. Fund Source. - In line with the Fiscal Responsibility Policy.of

Government, the DBM in coordination with the DOF, BIR, BoC and the BoT,
shall ensure the allocation of funds for the sustained and continued
operations of all the components of the VNB Act, to be earmarked from the

Sec. 12. Appropriations. The amount necessary to carry out the provisions
of the VNB Act upon its effectivity and initial operations shall be charged
out of the funds of the Office of the President. Thereafter, any such sum as
shall be necessary for the regular implementation of this Act shall be

included in the subsequent General Appropriations Act (GAA) following the .

VNB Act’s enactment into law.

Sec. 13. Separability Clause. — If any provision of this Act is declared
invalid or unconstitutional, other provisions hereof which are not affected

SEC. 14. Repealing Clause. — Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or

regulation contrary to or inconsistent with any provision of this Act is

hereby repealed, amended, or modified accordingly.

SEC. 15. Implementing Rules and Regulations (IRR).- The Office of the
President in consultation and coordination with the Secretary of: DOF,



1

DBM, DILG, DPWH, DSWD, DENR, BIR Head, BoC Head, BoT Head, NEDA

5 birector General NHA-General- Manager LRA Head, HEURB Head, HMDF

aw

Head, Pag-lbig Fund President, SHFC Head, a representative from the
Office of the Senate President, a representative from the office of the
Speaker of the House and the VNB Head or authorized representative, as
the core group, together with the Steering Committee as provided in
Section 4 of this Act, with the assistance of all other Secretaries and Heads
of the participating Executive Agencies or their respective authorized
representative, and representatives from the private sector as instructed by
the OP, shall promulgate and publish the rules and regulations necessary

to implement this Act, within sixty (60) days after its effectivity, to ensure
ns of the VNB”

proper, effective and efficient enforcement of thi

Act.

SEC. 16. Effectivity Clause. - This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in at least two national

newspapers of general circulation, whichever date comes earlier.

Approved,



Republic of the Philippines
House of Representatives
Quezon City

MINUTES OF THE MEETING OF THE COMMITTEE ON PEOPLE'S PARTICIPATION HELD
ON MAY 18, 2011, 1:30 P.M. AT THE MINORITY CONFERENCE ROOM, NORTH WING.

BASEMENT, HOUSE OF REPRESENTATIVES

PART I: MEETING OF THE MOTHER COMMITTEE ON HB 4374

L CALLTO ORDER AND ROLL CALL

The Chairperson of the Commitiee on People's Participation, Rep.

——————$ Benjamin-D—Asiio=presided-overthe-meetiing-=which-=commenced-of=158-PM-——
Upon the motion of Deputy Speaker Ma. Isabelle G. Climaco, the Chair
determined the presence of a quorum and dispensed with the calling of the roll

M ACKNOWLEDGEMENT OF MEMBERS AND GUESTS

The Chair introduced the members of the committee who were present
during the meeting, namely Vice-Chairpersons Cinchona Cruz-Gonzales (PL-
Cibac) and Edwin L. Olivarez (1* Dist, Parafaque City); Reps. Mark Aeron
Sambar (PL-PBA), Winnie T. Castelo (2°¢ Dist., Quezon City}, and Ma. Zenaida B.

Angping (3 Dist., Manila).
The Chair also introduced Deputy Speaker Climaco (1s! Dist., Zamboanga

City) and Rep: Hermilando |. Mandanas (2°¢ Dist., Batangas City], two of the
authors of HB 4374; as well as Rep. Raymond Palatino (PL-KABATAAN), author of

HR 975.

Upon the instruction of the Chair, the Committee Secretary, Dr. Rolando
C. Cronico acknowledged the following resource persons from national
government agencies (NGAs}: Atty. Milaluna D. Ignacio of the Commission on
Appointments (CA); Dit. Ronald Fontamillas of the Housing and Urban
Development Coordinating Council (HUDCC); and Mr. Nicolas Castillano of the
Department of Budget and Management (DBM)

The Committee Secretary also acknowledged the presence of the
following guests from civil society organizations (CSOs): Atty. Monina Camacho
of the Union of Leagues of Authorities of the Philippines (LAP): Chairman Sixto
Donato Macasaet of Code-NGO Phils; Mr. Eimer Argano of Yes Pinoy



eloto, Executive Director Jose Luis Oquifiena,

Foundation; Chairman Antonio Mi
and Dr. Anton Lim of Gawad Kalinga (GK) Foundation.

CONTINUATION OF THE CONSIDERATION OF HOUSE BILL _NO. 4374
(FILIPINO VOLUNTEERISM IN NATION-BUILDING ACT)

MM

A. Sponsorship Remarks of the Author

Deputy Speaker Climaco asked for the approval of HB 4374 reasoning out
that it aims to promote the spirit of volunteerism in the private sector and to
hamess the capabilities of the government in its partnership with other sectors.
Reacting fo the issue on possible duplication of tasks which was raised in the
previous meeting, she asked that the committee harmonize the functions of the

proposed Volunteers in Nation Building {VNB} offices wiih the Tunctons of oiher
government agencies.

B. Comments of the Resource Persons from NGAs

Dir. Fontamilias of HUDCC noted that most of their comments are
reflected in the minutes of the previous meetings and registered no objection to
HB 4374. Nonetheless, he stressed that there is a need fo clarify the function of
the VNB offices vis a vis the Regional Development Council (RDC) and the
Provincial Development Council (PDC). For the part of the HUDCC, he discussed
that their role is to provide technical support to the formulation of the local
shelter plan of local government unilfs (LGUs).

Mr. Castillano of the DBM delivered the message that the DBM cannot
send any representative fo the meeting because all the technical staff

members of the agency are involved in the preparation of the national budget;
however, the DBM will send a position paper on the measure after it has been

thoroughly studied.
C. Comments of Representatives from CSOs
Mr. Argano of Yes Pinoy Movement registered their movement's support

for the measure because they believe that “the difficult task of nation ‘buliding
lies not only in the hands of government but also of its people, powered by their

Selfless spirit of volunteer initiatives.”

Mr. Macasaet of Code-NGO Phils. expressed that they cannot support the
bill as presently drafted, even though they approve of the intent of the bill to



insiitutionalize volunteerism. Accordingly, their main contention against the
measure revolves around the provision creating VNB offices which may: (a)
become an unnecessary layer of bureaucracy; (b) entail additional expense,
and (c¢) stifle the initiative of CSOs. He cited the Philippine National Volunteer
Service Coordination Agency [PNVSCA] and several other NGAs with desks or
offices for CSOs which are already performing the work of Ihe proposed VNB

Offices. In addition, he stressed the need to study the proposed tax incentives
Ine size ail” VNB framework and manual,

under the measure, as well as the
which may not be appropriate, given the diverse strategies used in the country.

However, he supported the idea of a special housing fund (SHF). given the lack
of resources for housing programs. Dep. Speaker Climace asked Mr. Macasaet
to help the Committee revise the bill, to which Mr. Macasaet agreed.

Atty. Camacho of ULAP emphasized the need ior stronger people's
participation to heighten social responsibility. To become a deterrent to
corruption, Atty. Camacho suggested that only people of known probity be
involved in CSOs. However, when asked about the proposed SHF, she doubted
whether local chief executives {LCEs) would approve its creation, since it will

come from an additional 1% of the assessed Real Property Tax (RPT}.

Chairman Antonio Meloto of the Gawad Kalinga {Gk) Foundation
expounded on their experiences in building communities under the GK.
Accordingly. they saw the power of public-private partnership (PPP) in their
engagement with more than 400 mayors: with Rep. Rufus Rodriguez in Cagayan
De Oro; with the Specker and former Mayor Feliciano Belmonte in Quezon City:
and with Rep. Aaliyah Dimaporo who was positive that all Muslim

————-Representatives wauld_sunnorGkWWe-explained that H34374-ar—inHialive——

started by a lot of legislators which provides the platform. the spirit, and the
vision to implement a nationwide community building program for the poor,
multiplying efforts similar to the GK.

Mr. Macasaet of CODE-NGO responded that they agree with Mr. Meloto,
however, he opined that simiar programs are already implemented even
without a bureaucracy. Vice-Chair Olivares argued that there is still no policy
relating to this which can be followed by LGUs.

Dr. Anton Lim of GK-Mindanao agreed with Vice-Chair Olivares and
stressed that with a policy such as HB 4374, local governments will pay more
attention. He cited their present circumstances wherein they are required to



approach several agencies when they plan to build GK communities, thus
hampering their operations.
D. Comments of the Chair and Commitiee Members
Dep. Speaker Climaco cited that there are functions that are mandated
but are not implemented by government agencies, and these become more

problematic in times of crisis. Given this, she forwarded that there is a need to
centralize functions to ensure efficiency of implementation, thus the need for

Offices such as those of the VNB.

Atty. Camacho countered that there are about 400 unfunded mandates,
and warned that once passed, HB 4374 might just be another one of them,

“considering that LGUs bear ihe brunt of implementing these laws. She argued
that volunteerism should not be dictated because it stems from passion and
that it should not be regulated because it entails an expense.

Dep. Speaker Climaco expressed hope that, once passed, LGUs will help
implement the measure, since it will only entail 1% of the income of LGUs. Chair
Asilo informed the body that in Manila, this would translate to more than P1B.

Mr. Meloto contended that certain Representatives and local officials
have signified support for the measure. He also imparted that GK has attracted

about P4 Bn in funds, and that more funds are coming, given the pledges of
some Filipinos residing abroad to help their towns financially. He asked the Body

not to be afraid of the legal infirmities.
At this juncture, Chair. Asilo asked the GK to detail the cost of building one

Rousing unif. Exéculive Director Oquiriena replied that i would cost about P250
to P300 thousand, elaborating that the social preparation and engineering
requirement are usually “pro bono." He further assured the Body that giving 1%
of the income of LGUs will not erode local funds since the money will be spent in
the same locality.

Dir. Fontamillas of HUDCC suggested that the Committee explore the
existing social housing programs for altemative sources of financing,
exemplifying the community mortgage program which provides group loans to
@ group of settlers.

Atty. Camacho reiterated that imposing an additional 1% on the RPT
might be seen as an imposition to LGUs, and thus, an intrusion fo local



autonomy. Mr. Meloto insisted that building viable communities is a priority of
LCEs because they want fo help their constituents who are informal settlers or
who are residing in disaster prone areas.

At this juncture, Rep. Olivares proposed that the grant of the additional 1%
in the RPT for SHF be specified so that investors will not be burdened, given that
the industrial and commercial assessment of RPT is already pegged at more
than 50%. Dep. Speaker Climaco agreed to such amendments.

Dep. Speaker Climaco continued by narrating her experience, wherein
her P1 M GK donation sourced from her Countrywide Development Fund was
disapproved by the DBM. She advanced that the passage of HB 4374 will

_____provide the legal basis for such donations.

Dir. Fontamillas of HUDCC discussed other ways to finance housing
programs, explaining that these investment requirements will be identified in the
formulation of the local shelter plan. He singled out the case of Quezon City,
where the main source of funds is the idle land tax. However, upon clarification,
Dir. Fontamillas explained that HUDCC can only offer technical support in
helping the local governments address housing requirements, and affirmed the
need for the SHF as a solid source of financing.

Rep. Olivares stressed the import of a government counterpart fund. On
the other hand, Rep. Castelo opined that GK may not be paralyzed if the SHF
Provision is deleted from the measure. Mr. Meloto disagreed, and insisted that
the huge shelter requirement of the country can be better addressed with such

government support.

Chair Asilo verified the amount of the proceeds from the proposed SHF
and inquired whether this will be enough to build communities. Rep. Olivares
offered that the SHF will amount fo about P500 M a year in Parahaque; Rep.
Castelo shared that it will be about P 1 B in Quezon City: and Chair Asilo
estimated that this will amount fo P1.2 Bn in Manila.

Dir. Fontamillas reiterated the other sources of funds for the local shelter
plan, namely; (a) full implementation of Section 18 of the Urban Housing
Development Act; (b) the Community Mortgage Program; [c) Presidential
Proclamation of Government's idle lands; and (d) the PAG-IBIG window.

On another issue, Rep. Palatino noted that the accreditation requirement
{page 5 lines 20 to 23) of building 1.000 poor communities is quite stringent. Upon



verification, Dir. Fontamillas of HUDCC responded that he can only name three
qualifiers, namely, GK, Habifat. and ABS-CBN. Rep. Casielo held that track
record is important, and wamed that relaxing the requirement might open the.
program to a lot of CSOs and might lead to more problems.

—. Committee Action on HB No. 4374

Upon the proposal of Dep. Speaker Climaco and the motion of Vice-Chair
Cruz-Gonzales, the Committee created a technical working group (TWG) to
polish the bill.

Vice-Chair Olivares also moved to include all Committee members
present during the meeting fo be co-authors of HB 4374. Rep. Benedicto-

An ed with the motion and asked that the movement of the bill be

hastened.

Rep. Mandanas suggested that the Department of Finance, the DBM,
and the GK be nominated as TWG members, even though the bill still needs to
pass through the Committee on Ways and Means and Appropriations.

Upon further discussion, the Committee approved HB No. 4374 in principle,
subject to style.

IV, ADJOURNMENT

There being no other matters to discuss, the Chair turned over the
Chairmanship of the meeting to Vice-Chairperson Cruz-Gonzales at 3:35 PM.

PART lI: EXECUTIVE MEETING OF THE SUBCOMMITTEE ON POLITICS AND
GOVERNANCE ON HR 975

1. CALL TO ORDER

The Chairperson of the Subcommittee on Politics and Governance of the
Committee on People's Participation, Rep. Cinchona Cruz-Gonzales, presided
over the meeting which she called to order at 3:45 PM.

Il. SPONSOSHIP REMARKS OF THE AUTHOR

Upon recognition, Rep. Palatino narrated that he was inspired to author
HR No. 975, which seeks fo inquire on the status of implementation of RA 1827
(Act Regulating Lobbying in Congress and the Commission on Appointments},



when he leamed in a meeting of the Committee on HB 1199 that there are
problems in its enforcement. He propounded several questions on the following:
[a the existing policies on lobbyists: (b) the kinds of identified lobbyists and their
positions; (c) the sufficiency of HB 1199 as an amendaiory bill fo RA 1827; and

{d) the need to register lobbyists.

Ill. DISCUSSION OF HR 975

Subcommittee Chairperson Cruz-Gonzales expressed that she has the
same inquiries. She also reported that the Senate has communicated thai they
have not received any application from a lobby group, and that they cannot
attend the deliberation because this might pre-empt the consideration of similar
bills fled by Senators Miriam Defensor-Santiago and Antonio Trillanes. The Chair

‘argued against the latier voicing out that their aifendance fo the hearing willin
fact enhance the relationship of the two Houses of Congress. Finally. the Chair
informed the Body that the House of Representatives has sent Memorandum
Order No. 03-87 s. 1987 or the Guidelines and Procedure in the Processing of
Application fo Lobby Pursuant to RA 1827.

Atty. Milaluna Ignacio of the Commission on Appoinimenis (CA) reported
that RA 1827 is not fully implemented in the CA because they have noi received
any application since the CA was re-established in 1987. However, she
expiained that CA allows the participation of the public in the screening of
appoiniees and accepts the endorsements as well as oppositions of concemed
individuals and groups. Upon clarification, she discussed the basic rules in
hearing the objections in the deliberation of appoiniees. The Chair asked that a
copy of these rules be fumished the committee.

The Chair also verified whether the CA has specific guidelines on lobbying
similar io the aforementioned Memorandum Order of the House of
Representatives. Atty. Ignacio answered in the negative and explained that the
acceptance of the CA of endorsements and oppositions is only guided by
practice and tradition.

On the inquiry of Rep. Palatino on whether RA 1827 should be

implemented or amendex ity. Ignacio opined thai since the law is outdated
if must be amended to cont es and traditions of the CA

form to the practi



The Chair proposed thai ihe CA help the Committee in crafting a betier
ested that this prospective bill must integrate
porate the practices of the CA, the House of

bill. Rep. Palatino agreed and su:
the provisions of HB 1199 and inc
Representatives, and the Senate

Upon further discussion, the Chair set another executive meeting on HR
975 to hear the commenis and updates of the House of Representatives and
the Senate. The meeting was set on May 25, 2011.

Me ADJOURNMENT

Trers-bsing-no-oihecmatier-to-discuss-the-Choiradjourred-the-mesting————_—

at 4: 25 PM.

Prepared by: Reviewed by:

oe ROLANDO C. CRONICO, PhD.

LORENA A. FERNANDEZ

Commitee Secretary

SLSO II
Noted by:
Whoph
/ _HON. BENJAMIN DR. ASILO HON. CINCHONA CRUZ-GONZALES
Shairpersor Saiminise-Chelpeson—_————