THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
first Regular Session 
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S E N A T E  
S. No. 
4 :15 
Introduced by Senator S. R. Osmefia 111 
EXPLANATORY NOTE 
This bill seeks to create a PI billion Mayon Reconstruction and 
Redevelopment Fund as a strategic response of the National Government to the 
permanent threat posed by Mayon Volcano to the lives and livelihood of the people 
of Albay and the rest of the Bicol Region. Aside from the destructive effects of 
Mayon's periodic eruptions, the Bicol region is also periodically visited by typhoons 
which wreak havoc on the region's agricultural crops and overall economy. 
The National Statistics Office (NSO) reports that as of'the year 2000 the 
Bicol Region had one of the highest poverty incidence of 56.2%. This means that 
56.2% of Bicol's 5.8 million population earn less than the poverty threshold income 
of less than P 11, 524 per year. Despite the steady migration of Bicolanos to other 
regions, Bicol reported an unemployment rate of 7.9%, and an underemployment 
rate of 29% as of 2003. 
Under the provisions of this bill, the Mayon Reconstrcution and 
Redevelopment Fund will finance short-term relief assistance to victims of disasters 
such as typhoons and volcanic eruptions. 
In the long term, the Fund will undertake 
rehabilitation and preemptive development projects to generate business and 
employment opportunities and uplift the lives of the local population. The bill also 
proposes the establishment of the Mayon Reconstruction and Redevelopment 
Commission which will be mandated with the management of the Fund. 
This bill is but a token gesture on the part of the national government to 
compensate for the systemic neglect that Bicol has been relegated to during the last 
several decades. 
In view of the foregoing, early passage of this bill is earnestly requested. 
SERGIO OSMENA 111 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
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, ,  
S E N A T E  
s. No. 
Introduced by Senator S. R. Osmeiia 111 
AN ACT 
CREATING THE MAYON RECONSTRUCTION AND REDEVELOPMENT FUND, 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Republic of the 
Philippines in Congress assembled: 
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SECTION 1. Shod Tifle. - This Act shall be known as the “Mayon 
Volcano Reconstruction and Redevelopment Fund.” 
SEC. 2. Declarafion ofPolicy. - It is hereby declared the policy of the 
State to assist the communities adversely affected and permanently threatened 
by the eruption of Mayon Volcano and its aftereffects by extending to them 
relief, resettlement, rehabilitation and livelihood services and by undertaking 
construction or repair and reconstruction of infrastructure to the end that 
redevelopment of the Province of Albay and the rest of the Bicol region may be 
accelerated. 
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SEC. 3. Sfafemenf of Objectives and Guidelines. - This Act aims to 
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provide dedicated funds for the immediate relief assistance to the victims; to 
establish resettlement centers; homesites and townsites for displaced families; 
to provide livelihood ad employment opportunities; to repair, reconstruct or 
replace infrastructure damaged or destroyed by said disaster and to construct 
new infrastructure facilities that would minimize damage from future eruptions of 
Mayon and their aftereffects particularly lahar flows. 
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SEC. 4, Guidelines in the AIIocafion of funds. - The following 
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guidelines shall be observed in allocating the funds made available under this 
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Act. 
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(a) In the construction or repair and reconstruction of infrastructure and 
facilities, priority shall be given to the resettlement centers, river 
control system and drainage works and such other projects as roads, 
bridges, communication and power lines, hospitals, school buildings, 
irrigation an water systems, and the like; 
(b) No money shall be released without any identified program and 
project nor shall it be used t pay obligatiow incurred before the 
approval of this Act. 
SEC. 5. Appropriations Clause. - To carry out the purposes of this Act, 
the sum of One Billion Pesos (PI ,000,000,000.00) is hereby appropriated out of 
any available funds in the National Treasury not otherwise appropriated. 
Disbursement of said one billion pesos (PI ,000,000,000.00) shall be 
programmed as follows: 
(a) From the approval of this Act to December 31, 2001, the sum of two 
hundred million pesos (P200,000,000.00), at least one hundred million 
(PI OO,OOO,OOO:OO) of which shall be for resettlement and .livelihood 
projects and one hundred million (P100,000,000.00) shall be for vital 
infrastructure; 
(b) For the year 2002, the sum of four hundred million (P400,000,000.00); 
and 
(c) For the year 2003, the sum of four hundred million pesos 
(P400,000,0 0 0.00) 
Provided, however, That undisbursed amounts at the end of any year 
shall be carried over to the succeeding year. 
SEC. 6. Creation of the Mayon Reconstruction and Redevelopmenf 
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Commission. - For purposes of this Act thee is hereby created the Mayon 
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Volcano Reconstruction and Redevelopment Commission, hereinafter referred 
to as the “Mayon Commission” , under the Office of the President. 
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It shall be organized within thirty (30) days after the approval of this Act. It 
shall have a term of six (6) years from its organization: Provided, That the 
President by proclamation may, within six (6) months prior to the expiration of 
the term, extend the period of its existence once for not more than three (3) 
years. 
Such amount as may be necessary for the initial organization and/or 
operational expenses of the Commission shall be set aside from the amount 
herein appropriated. 
SEC. 7. Powers of the Commission. - The Commission shall have the 
following powers: 
(a) To formulate policies and plans for the relief, rehabilitation, 
resettlement and provisions of livelihood services as well as 
infrastructure support; 
(b) To make determination of the areas where the lahar flow may be 
diverted to spare communities and/or minimize actual and potential 
damage to live, habitation, infrastructure, agriculture and other 
resources; 
(c) To apply for, receive and accept grants and donation of funds, 
equipment, materials and services needed for the development of the 
area from sources within and outside the Philippines; 
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(d) To sue and be sued in its name, and to adopt, alter and use a seal; 
(e) To enter into, make, perform and carry out contracts of every class, 
kind and description which are necessary to the realization of its 
purposes with any person, firm, or corporation, private or public, and, 
upon consultation with the President, with foreign government entities, 
subject to the usual accounting and auditing requirements; 
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(f) To monitor the progress of the relief, rehabilitation, resettlement and 
livelihood as well as infrastructure support programs and projects; 
(9) To coordinate an consult with concerned national and local officials, 
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both elective and appointive, as well as accredited non-government 
organization (NGOs) in the prioritization and prosecution. of the 
programs and projects; 
(h) To call upon any department, office, instrumentality, agency, or any 
political subdivision of the Government for such assistance as may be 
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necessary for the attainment of the objectives of the Commission; and 
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(i) To conduct studies on strategic options for relocation of major 
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infrastructure facilities such as the airport and the seaport; 
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(j) In general, to perform such other powers as may be necessary and 
proper to carry out the purposes of this Act. 
SEC. 8. Composition of the Commission. - The Commission shall be 
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composed of seven (7) members to be appointed by the President: four (4) 
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coming from the Cabinet, and three (3) from the private sector. The members of 
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the Commission shall serve for six (6) years unless sooner removed for cause. 
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The President shall be designated the Chairman from among the members of 
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the Commission. 
SEC. 9. Executive Director; Powers and Responsibilities. - The 
President shall appoint a professional manager as the Executive Director of the 
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Commission with a compensation to be determined by the Commission, who 
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shall serve as the chief executive officer. He shall serve until such time as the 
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Commission is dissolved or unless sooner removed from office by the President. 
He shall have the following powers and functions: 
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(a) Executive and administer the policies and decisions of the 
Commission; 
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site; 
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(c) Monitor the programs and projects and evaluate the effects of 
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execution by these agencies and instrumentalities and submit to the 
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Commission periodic reports relating to the development of the areas; 
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and 
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guidelines: 
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(c) The departments and agencies of the Government involved with the 
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aid, relief, resettlement, rehabilitation and livelihood services as well 
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as infrastructure support shall continue to be the implementing 
agencies of the Commission and shall submit to the Commission 
every quarter the date and information required under Section 11 
(b) Directly coordinate the activities of all agencies and instrumentalities 
of the Government in the planning and implementation of projects on 
(d) Perform such other functions as are inherently necessary in the 
operational management of the areas developed in accordance with 
the policies and guidelines formulated by the Commission. 
SEC. I O .  lmplementing Guidelines. - This Act shall have the following 
(a) All projects shall be undertaken by the implementing government 
agencies concerned either by public bidding administration or through 
negotiated contracts, subject to the usual accounting and auditing 
rules and regulations. In the case of negotiated contracts, only duly 
pre-qualified and duly licensed contractor as of the approval of this 
Act can be awarded such contracts. 
(b) With respect to aid, relief, resettlement, rehabilitation and livelihood 
services to individual beneficiaries, the Commission may seek the 
assistance and use the services of the Philippine National Red Cross 
and all other relief agencies and volunteer organizations with proven 
record in providing relief work. 
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he reof. 
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(d) Residents in the affected areas, especially the victims, shall be given 
preference in hiring or employment in the construction or repair and 
reconstruction of damaged or destroyed government infrastructure 
and facilities and other labor requirements in all other projects. 
SEC. 11. Quarterly Report. - The Commission shall submit to the 
President and to Congress a detailed quarterly report on the funds allocated 
indicating the amount released, obligated and disbursed for: 
(a) Aid, relief, resettlement, rehabilitation and livelihood services, 
including the list of names of approved individual beneficiaries and 
contractors and the evaluation of the effectiveness of the delivery 
systems of such services; and 
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(b) Construction or repair and reconstruction of infrastructure projects, 
including the list of contractors and projects being financed, and the 
accomplishments for the expanded appropriations, including the 
percentage of completion. 
The Commission shall cause to be disseminated in the community the list 
of beneficiaries and contractors mentioned above. The Commission shall also 
submit as part of the quarterly report a list of local and foreign donors and the 
nature of their donations. 
SEC. 12. Joint Congress 
created the Joint Congressic 
implementation of this Act. Thi 
senators and five (5) representa 
and the Speaker of the House c 
Committee shall be co-chaired b\ 
by the Senate President and 
respectively. 
The mandate given to ti 
under this Act shall be without F 
mal Oversight Committee. - There is hereby 
la1 Oversight Committee to monitor the 
Committee shall be composed of five (5) 
ues to be appointed by the Senate President 
Representatives, respectively. The Oversight 
the senator and the representative designated 
Speaker of the House of Representative, 
3 Joint Congressional Oversight Committee 
ejudice to the performance of the duties and 
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functions by the respective existing Oversight Committee of the Senate and the 
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House of Representatives. 
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SEC. 13. Prohibition Against Running for Public Office. - Officers or 
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employees of the Commission shall not be qualified to be candidate for public 
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office for the election next following his resignation or separation. This 
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prohibition does not apply to the chairman and members of the Commission. 
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SEC. 14. Punishable Acts. -Any persons who takes advantages of the 
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calamity by buying and selling relief goods which he receives or should be 
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known to him as intended for donation, or representing the source or relief 
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goods, or submitting or approving false or inflated claim shall be prosecuted 
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and, upon conviction, shall suffer a fine of not less than Fifty thousand pesos 
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(P50,OOO.OO) but not more than One million pesos (Pl,OOO,OOO.OO> or 
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imprisonment for not less than six (6) years nor more than fifteen (15) years, or 
both, by the discretion of the court, including perpetual disqualification from 
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public office if he is a public officer, and confiscation or forfeited in favor of the 
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Government of any prohibited interest. If the offender is a corporation, 
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partnership, association, or entity responsible for such violation and, if such 
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officer is an alien, he shall, in addition to penalties prescribed, be deported 
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without further proceedings to the service of sentence. 
SEC. 15. Rules and Regulations. - The President shall, after ten (IO) 
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days after the organization of the Commission, issue necessary rules and 
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regulations for the effective implementation of this Act. 
SEC. 16. Separability Clause. If any provision of this Act shall be held 
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unconstitutional or invalid, the other provisions not otherwise affected shall 
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SEC. 3. Repealing Clause. - All laws, decrees, rules and regulations 
remain in full force and effect 
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which are inconsistent with the contrary to the provisions of this Act are hereby 
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repealed accordingly. 
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Approved, 
SEC. 4. Effecfivify. This Act shall take effect fifteen (15) days after its 
publication in two (2) national newspapers of general circulation 
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