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 B.
Rodriguez, Hermilando |. Mandanas, Raul A. Daza, Jesus Crispin C. Remulla,
Maria Isabella G. Climaco, Neptali M. Gonzales, II, 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,
as he or she works individually and solidarily--hand-in-hand, with other
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.

The goal of this legislation is to encourage the private sector to be a
supporter of Government, not just its critic, to restore the faith of our citizens in
our Government institutions through collaboration and cooperation for the


the private sector, to go beyond partisan politics, religious and ideological
differences and business rivalries, and to build a just and prosperous nation—by
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/t that can be traced to our pre-colonial
forefathers. The Bayanihan spirit evokes of local heroism and patriotism, in the
midst of the Filipino 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


micro-finance; food sufficiency; gender equality and woman empowerment;
peace efforts; culture, eco- tourism and environmental preservation and
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 to 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 _ partners! 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

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innovative “Gawad Kalinga Way” of multi-sectoral resources generation and
mobilization 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
“Nation Building”, 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.

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 &

Rep. Lorenzo R. Tanada, Ill

Rep. Hermilando | .Mandanas
Rep. oe Emilio A. Abaya “
Rep. Neptali onzales, Il

Rep. Edcel.C. Lagman



LA

Rep. Raul A. Daza

Rep. Lorenzo R. Tanada, IIl_

Rep. Amulfo P. Fuentebella. “

rep. Hermilando | .Mandanas

Rep. Joseph Emilio A. Abaya /

Rep. Pedro B. Acharon, Jr. /


Rep.

Rep.

Rep.

Rep.

Rep.

Rep.

Rep.

Rep.

Rep.

Rep.

CO-AUTHORS

House Bill NO.

. Henedina R. Abad

Pedro B. Acharon, Jr.

Rodolfo B. Alabano, Jr.

Ma. Zenaida B. Angping

Rodolfo W. Antonino

Patricio T. Antonio

Jose S, Aquino, II

George P. Amaiz

Ignacio T. Arroyo, Jr.

Diosdado Macapagal Arroyo

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mI

ORG VAL.
CO-k


Rep, Jorge John B. Banal, Jr.

Rep. Alfredo Abelardo B. Benitez

Rep. Ma. Jocelyn V. Bernos

Rep. Rodolfo G. Biazon

Rep. Ferjenel G. Biron

Rep. Teddy A. Casino

Rep. Arnel M. Cerafica

Rep. Justin Marc SB. Chipeco

Rep. Vincent “.Bingbong” P. Crisologo

Rep. Ma. Georgina P. De Venecia

Rep. Arthur R. Defensor, Jr.

Rep. 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/Bernadette R. Hérrera-Dy

Rep. Nur G. Jaafar

Rep. Paolo Everardo S. Javier


aa

Republic of the Philippines
House of Representatives
Quezon Manila

Fifteenth Congress
First Regular Session

HOUSE BILLNO,___ 4374

INTRODUCED BY:
ino Belmonte, Jr. , Representaitves Freddie R. Tinga, Rufus
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 Aiiah 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

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

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

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


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.

(c) _ Itis likewise the p

licy of the State to pursue and protect, the citizens
rights, interests and maximization of benefits to the people; by leveling the
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.

(da) 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 al! 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.


All VNB programs, projécts and activities shall be in pursuance of
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
international human development and human rights treaties and
agreements.

SEC. 4.Volunteers in Nation Building (VNB) Guidebook, - A
comprehensive and concise manual which contains the masterplan of all
VNB
Districts. The manual, which shall serve as a guidebook, shall contain the

jatives shall be prepared and disseminated in all LGUs and

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
the VNB mission and vision framework towards nation building.


The VNB Guide Book shall provide the guidelines for the
organizational set-up, scope. of work, duties and functions 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
appropriate Order or Memorandum to form the Steering Committee (SC) to
be composed of eleven (11) members as follows: five (5) from the public
sector, two (2) from Congress, one (1) from the corporate sector, one (1)
from the CSOs/NGO sector, one (1) from the academe, one (1)
representative of the OP, all of whom shall_be designated and properly
compensated in accordance with existing laws, by the President, to
comprise the “ad-hocitransition team’. The SC shall participate in the
formulation of the IRR of this Act and thereafter, be responsible for setting-
up the VNB Central Office, VNB Secretariat and VNB Satellite Offices/Desks
and Staff Complement, the initial coordinative and liaison work with the
core group of agencies provided in Section 15 of this Act, and the VNB-
JCOC as provided in Section 8 of this Act, as well as the preparation of the
initial roster/list of contact persons for local and international inter-agency
and inter-sectoral linkages to establish a permanent comprehensive
directory of all public and private participants/partners under the VNB Act.

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

Memorandum, to fulfill the directive of activating the initial phases of

activating, mobilizing, organizing and establishing the VNB Act within the
stated time frame, and shall ensure that the VNB Act shall be fully

implemented and operational in accordance with its mandate.

SEC. 5. Volunteers In Nation Building Key Implementors, Partners,
Stakeholders. - The following shall be the multi-sectoral public and private
sector partners of VNB: Office of the President (OP), Department of Local
Government and Interior (DILG), Department of Budget and Management


(DBM), Department of Finance (DOF),, Bureau of Internal Revenue (BIR),
Bureau of Customs (BoC), Bureau of Treasury (BoT), National Economic
and Development Authority (NEDA), Department of Social Welfare and
Development (DSWD), Department of Environment and Natural Resources
(DENR), National Housing Authority (NHA), Land Registration Authority
(LRA), Home Mutual Development Fund (HMDF), Housing and Land Use
Regulatory Board (HLURB), Social Housing Finance Corporation (SHFC),
PAG-IBIG Fund, Department of Trade and Industry (DTI) Technology and
Livelinood Research Commission (TLRC), Department of Health (DOH),
Department of Labor and Employment (DOLE), Department of
Education(DEP-ED), Technological Education and Skills Development
Authority (TESDA), Commission on Higher Education (CHED), Department
of Public Works and Highways (DPWH), Department of Agriculture
(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
(PNVSCA), all LGUs, all Congressional Districts, VNB Secretariat and VNB
Satellite Office/Desk Staff Complement.

All bona fide CSOs that are into socio-welfare and economic

upliftment programs, projects and activities and have consistently
established a track record of having built at least 1,000 poor communities
across the country, as validated by the OP, and the private sector partners
who shall include but shall not be limited to: corporate entities, interest
groups, interfaith, religious or spiritual groups, socio-cultural groups,
international organizations and donor institutions and affiliates, foreign
governments, the academe, and any such other aggrupations,
instrumentalities and/or individuals outside of the sphere of the public
sector, upon accreditation, shall be deemed as VNB partners and

stakeholders.


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Sec. 6. Accreditation of VNB Partners and Stakeholders.- All. ~~ VNB
partners and stakeholders consisting of : LGU’s and Districts, local and
national CSOs/NGOs, team leaders at the barangay level of the community,
all VNB partners from the private sector, corporate entities, interest
groups, interfaith, religious or spiritual groups, socio-cultural groups,
international organizations and donor institutions and affiliates, foreign
governments, the academe, 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
VNB Central Office through its district VNB Satellite Office/Desk at the local
level or the VNB Central Office itself at the national level, for purposes of

having a central and local system and procedure in monitoring, records

filing and updating and records management, of all individuals or entities

that engage in community building partnerships with VNB.

Sec. 7. VNB Satellite Office/Desk. - A VNB satellite office/desk shall be
established in each LGU or District, wherever it is more geographically
feasible, upon determination by the VNB Central Office in consultation with
the appropriate LGU head and District representative , to ensure that the
VNB Central Office through the satellite office/desk, is accessible to the
grassroots and to all partners and stakeholders, whereas the satellite
office/desk shall primarily serve as the official venue in which to
coordinate, conduct and consolidate all VNB concerns and activities within
the locality.

For a clear coordinative collaboration among all agencies involved
in the implementation of the VNB mandate, some critical Government
agencies, in close coordination with the VNB Secretariat and VNB Satellite
Offices/Desks, shall have specific lead roles: the DSWD, for review and
jes; the

implementation of VNB socio-welfare projects, programs and acti
NHA for the application/requirements compliance, submission and


aura

approval of the VNB shelter plan; the DILG- for overall VNB inter-agency
and LGUs coordination at the‘loval level; the Volunteers In Nation Building -
Joint Congressional Oversight Committee, to oversee the VNB work with
local & national offices, the local and national CSOs, LGU and District
coordination and the private sector, in the implementation of all VNB

initiatives, programs, projects and acti

ities; the OP for direct supervision
and monitoring over all VNB programs, projects and activities involving
local and international entities and agencies and the VNB public-private
sector partnerships.

Sec. 8. Volunteers In Nation Building-Joint Congressional Oversight
Committee (VNB-JCOC). - The VNB-JCOC shall oversee the VNB work with
local & national offices, the local and national CSOs, LGU and District
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
attached units to the Office of the Senate President and Office of the
Speaker of the House of Representatives, respectively. The committee shall
be co-chaired by the Senate President and the Speaker of the House of
Representatives, and shall have five (5) Members who are the Chairmen of
the following Senate and House of Representatives Committees: Social
Welfare, Housing, and Local Government, Appropriations and Ways and
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
five (5) staff for the Senate and the House of Representatives, respectively,
and utilizing organic personnel of each House, as designated by the
respective agency heads. The details for the implementation and
operationalization of the VNB-JCOC, shall be specified and included in the
IRR of this Act.


ea ans

Sec. 9. Reportorial Requirement. - It shall be the duty of the VNB-JCOC in
coordination with the VNB Secretariat, to submit an Annual Progress and
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


1

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.

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 after 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 1991 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

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.


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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.

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
Value-Added Tax (VAT).

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
thereby shall remain in full force and effect.

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,


ws

DBM, DILG, DPWH, DSWD, DENR, BIR Head, BoC Head, BoT Head, NEDA
Director General, NHA General Manager, LRA Head, HLURB Head, HMDF
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
proper, effective and efficient enforcement of the provisions of the VNB
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,