HOUSE OF REP

Republic of the Philippines DATE:

HOUSE OF REPRESENTATIVES

| BY:
SEVENTEENTH CONGRESS.

First Regular Session REGISTRATION UNIT

ENTATIVES

RECEIVED
03 AUG 2016

sve:_L. EM

BILLS AND INDEX SERVICE

House Bill 247 6

Introduced by Representatives Ma. Lourdes R. Aggabao and Cristina *Chiqui”Roa-Puno

EXPLANATORY NOTE

Many will agree that solicitation letters abound on practically every imaginable
occasion in the Philippines: Christmas, New Year, Valentine’s Day to name a few, But it is not
only during the happy times that public solicitation is rampant. Even the times of disaster
and calamities are not spared, Sadly, many unscrupulous people take advantage of the
‘opportunity to gain, not only at the expense of legitimate organizations who selflessly
devote their time and resources to help, but more importantly, at the expense of the victims
of these disasters and calamities who are being used as alleged beneficiaries, and the
unsuspecting public as well.

It is high time that we protect the public from these nefarious solicitation activities
by instituting mechanism and modes regulating public solicitation, strengthening the
monitoring of such and engaging the concerned government agencies and law enforcement
in the implementation of the same.

This bill is a cumulative product of the consultation conducted by the Department of
Social Welfare and Development (DSWD) with the stakeholders.

It is also well to note that this bill has been approved and passed by the House of
Representatives in the last Sixteenth Congress.

Hence, approval of this bill is earnestly sought.

ate Rep. Ma. Loyrdps R. Aggabao


Republic of the Philippines
HOUSE OF REPRESENTATIVES

SEVENTEENTH CONGRESS
First Regular Session

2476

House Bill

Introduced by Representatives Ma. Lourdes R. Aggabao and Cristina ‘Chiqui’ Roa-Puno

AN ACT REGULATING PUBLIC SOLICITATIONS AND PROVIDING
PENALTIES FOR VIOLATION THEREOF, REPEALING FOR THE
PURPOSE PRESIDENTIAL DECREE NO. 1564, OTHERWISE
KNOWN AS THE SOLICITATION PERMIT LAW

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. — This Act shall be known as the “Public Solicitation Act”.

SEC. 2. Declaration of Policy. ~ It is hereby declared a policy of the State to regulate public
solicitation undertaken by organizations, agencies, groups and individuals in order to protect the
general public from unscrupulous solicitation and to ensure that funds are properly utilized for
the intended purpose and beneficiaries. Towards this end, standards and guidelines are hereby
established to strengthen the system of granting permits or authorization primarily to solicit
funds or donations from the publi.

SEC. 3. Definitions of Terms. — As used in this Act:

(a) Administrative cost refers to the cost incurred in the management and operation of
the conduct of the solicitation activity which includes the application fee for a
solicitation permit, cost of mailing, printing of letters of appeal and other paraphernalia;

(b) Beneficiaries refer to Filipino citizens who are poor, vulnerable, marginalized and
disadvantaged sectors or entities who will benefit from the proceeds of public
solicitation conducted. These include:

(1) Children who are abandoned, neglected, orphaned, voluntarily committed, abused
and exploited, street children, children with disabilities, children in conflict with
the law, children in need of special protection, children in cultural communities, and
children victims of natural disasters;

(2) Out-of-school youth and other youth with special needs;

(3) Women in especially difficult circumstances;

(4) Persons with disabilities;

(5) Senior citizens;


(6) Individuals, families, and communities who are in crisis situation, including those
who are internally displaced due to armed conflict and other developmental
projects, and victims of natural and human-induced calamities or disasters;

(7) Indigenous persons;

(8) Rebel returnees and families who are victims of armed conflict situation; and

(9) Poor or dysfunctional families in depressed communities, among others

(c) Charitable purpose refers to the intent to provide services or conduct of activities for
the improvement of the quality of life of beneficiaries as defined in this section, or to
promote the welfare of the general public which includes the conduct of educational, arts
and cultural activities;

(d) Donor refers to an individual, organization or agency that donates something for charitable
or public welfare purposes;
{e) Organization or agency refers to all national government agencies (NGAs), government-

‘owned and -controlled corporations (GOCCs), state universities and colleges (SUCS),
local government units (LGUs) and other government agencies; _nongovernment
organizations (NGOs) including faith-based organizations, civil society organizations,
people's organizations; associations and similar organizations, chapters and affiliates of
similar international organizations operating in the Philippines desiring to solicit or
receive contributions from the public for charitable or public welfare purposes;

(f) Program cost refers to all direct and indirect expenses incurred in the provision of services
or goods to the beneficiaries of the public solicitation, including expenses of the donee
person, organization or agency in its operation and the implementation of relevant
programs and services;

(g) Public refers to the populace, society, masses or people in general within the Philippine
territory where the public solicitation is to be undertaken;

(h) Public solicitation refers to any activity or project intended to generate funds, goods,
or other assistance from the public for charitable or public welfare purposes;

(i) Public welfare purpose refers to any activity or project relative to the promotion of
health, education, peace, social welfare and protection, environmental safety, rights,
security and safety of citizens and similar circumstances or conditions including
disaster relief operations and management; and

(i) Solicitation permit refers to a certificate of authority issued by the Department of Social
Welfare and Development (DSWD), the Provincial Social Welfare and Development
Office (PSWDO), the City Social Welfare and Development Office (CSWDO), or the
Municipal Social Welfare and Development Office (MSWDO) to an individual,
organization or agency applying for an authorization to solicit donations or voluntary
contributions for charitable or public welfare purposes,

SEC. 4. Coverage. - This Act shall apply to all NGAs, GOCCs, SUCs, LGUs and other government
agencies; individuals; NGOs including faith-based organizations, civil society organizations,
people’s organizations; associations and similar organizations, chapters and affiliates of similar
nal organizations operating in the Philippines which are partly or fully financed with
ited from or contributed by the public or private sector for charitable or public welfare

purposes.


SEC. 5. Exemption from Coverage. - Organizations and agencies created by laws that specifically
confer authority on these organizations and agencies to solicit or conduct fund campaign for
charitable or public welfare purposes shall continue to be covered by their charters and shall
not be required to acquire a solicitation permit: Provided, That the DSWD, the PSWOO, the
CSWDO, and the MSWDO shall have the authority to monitor their activities and to require
these organizations and agencies to submit reports pertaining to the conduct of the public
solicitation and the utilization of funds solicited.

Caroling during religious festivals or celebrations as a form of solicitation and
solicitation for the construction of a church, mosque, or any structure for worship shall also not
require a solicitation permit.

SEC. 6. Solicitation Permit; Requirements. — No solicitation permit shall be issued to an individual,
organization or agency without first complying with the documentary requirements set by the DSWD
which shall include the following:

{a) Duly accomplished application form signed by the individual, organization or agency
head or an authorized representative;

(b) Project proposal approved by the head of the applicant organization or agency on the
intended public s tobe
undertaken;

itation activity including the work and financial plan on the activit

(c) Certified true copy of Certificate of Registration and Articles of Incorporation and
By-laws with the Securities and Exchange Commission(SEC) or other regulatory government
agency which has jurisdiction to regulate the organization or agency;

(d) Updated certification of good standing from the SEC or other regulatory
government agency which has jurisdiction to regulate the organization or agency;

(e) Notarized written agreement or any similar document signifying the concurrence of the
intended beneficiaries as recipient of the solicitation activity; and

(f) Notarized board resolution or other written authorization for the organization or
itation activity which shall ensure strict compliance with the standard ratio on

SEC. 7. Authority to Issue Permit. - The following officials are authorized to grant a solicitation
permit to an eligible individual, organization or agency that will conduct solicitation activities for
charitable and public welfare purposes:

(a) Secretary of the DSWD or a duly authorized Undersecretary of the DSWD for national
public solicitations;

(b) DSWD Regional Director or any duly authorized representative for regional public
solicitations;

(c) Provincial Governor through the PSWDO Chief or any duly authorized representative
for provincial public solicitations; and


(d) City or Municipal Mayor through the CSWDO Chief or the MSWDO Chief or any
duly authorized representative for local public solicitations.

SEC. 8. Validity of Permit. - All solicitation permits issued by the DSWD, the PSWDO, the
‘CSWDO, or the MSWDO shall be valid only on the approved date of coverage which in no case shall
exceed one (1) year within the specified city, municipality, region or areas in the Philippines. Its
validity shall not extend outside of the Philippines even if the target beneficiaries and donors are
Filipinos.

‘An organization or agency with a good track record in conducting public solicitation, as
determined by the DSWD, the PSWDO, the CSWDO, or the MSWDO may be granted a solicitation
permit with a longer validity period which shall not exceed two (2) years.

SEC. 9. Types of Public Solicitation. ~ Public solicitation shall be categorized as follows:

(a) Local public solicitation refers to a solicitation activity conducted within a city or
municipality;

(b) Provincial public solicitation refers to a solicitation activity conducted within two (2)
‘or more cities or municipalities in the same province;

{c) Regional public solicitation refers to a sol
more provinces in a region; and

ion activity conducted within two (2) or

(d) National public solicitation refers to a solicitation activity conducted in two (2) or
more regions.

SEC. 10. Solicitation During Calamities or Disasters. — In times of natural or human-induced
calamities or disasters, and the intended beneficiaries of the public solicitation are disaster-
stricken areas or communities where a state of calamity has been declared by the President
of the Philippines or by the local Sanggunian, a temporary solicitation permit may be issued to the
applicant individual, organization or agency upon submission of a duly accomplished application
form, as provided for in Section 6(a) of this Act, signed by the applicant individual, or head of the
organization or agency or an authorized representative.

The validity of the temporary solicitation permit shall be determined by the concerned DSWD
office, PSWDO, CSWDO, or MSWDO depending on their assessment of the impact of the calamity
or disaster to the affected areas. The applicant individual, organization or agency shall comply
with the requirements provided under Section 6 of this Act within the period set forth by the
concerned DSWD office, PSWDO, CSWDO, or MSWDO.

SEC. 11. Fees and Charges. ~ For national and regional public solicitations, the DSWD may charge
reasonable fees corresponding to the cost only of preparing the solicitation permit. The fees shall
be remitted to the National Treasury, recorded as a Special Account in the General Fund and
shall be available to the DSWD through a Special Budget pursuant to Section 35 of Executive Order
No. 292, otherwise known as the “Administrative Code of 1987”. For provincial and local public
solicitations, the governor, city or municipal mayor may impose reasonable fees corresponding


the cost only of preparing the solicitation permit, subject to the provisions of Republic Act No. 7160,
otherwise known as the “Local Government Code of 1991” and other existing laws.

SEC. 12. Methods of Public Solicitation. — Public solicitation may be done through any of the
following:

{a) Written request such as letters of appeal, envelopes, cards and other similar forms;

{b) Mass media campaign through television, cinema, radio, magazines, newspapers,
billboards, social media and other similar forms;

(c) Distribution, circulation, publication or posting of written advertisement or other si
forms;

ilar

(d) Rummage sales and sale of goods including souvenir items;

(e) Benefit shows including concerts, fashion shows and other forms of entertainment;
(f) Fun runs, marathon, cycling, and other forms of sports activities;

(g) Popularity contests;

(h) Donation boxes, coin banks and other similar forms; and.

(i) Other methodologies that may be allowed by the DSWD, the PSWDO, the CSWDO, or the
Mswoo.

SEC. 13. Allocation of Proceeds. - Not more than twenty percent (20%) of the total proceeds
from the fund raising activity of any individual, organization or agency shall be expended for
administrative cost. The remaining eighty percent (80%) shall be utilized entirely for projects
or programs for the targeted beneficiaries. Unless compliance with this section is satisfactorily
established on the basis of the report required in Section 14 of this Act, no individual,
organization or agency shall be issued any subsequent solicitation permit. Funds collected during
public solicitations shall be deposited in a banking institution regulated by the Bangko Sentral ng
Pilipinas (BSP) in the name of the individual, organization or agency to which the permit was
issued. A book of accounts shall also be required in the monitoring and validation of the report.

The date, duration and place where the consolidation and accounting of proceeds shall be
undertaken and the date of the awarding or turnover of the proceeds to the beneficiaries shall
be witnessed by the authorized representatives from the DSWD, the PSWDO, the CSWDO, or the
MSWDO for national and regional, provincial, city, or municipal public solicitation, respectively.

SEC. 14. Monitoring of Public Solicitation. - The individual, organization or agency to which the
solicitation permit was issued shall submit to the concerned DSWD office, the PSWDO, the
CSWDO, or the MSWDO not later than sixty (60) days after the expiration of the solicitation



permit, a report signed and sworn to by the individual or by at least two (2) authorized officers of
the organization or agency, indicating whether the solicitation permit was used or not.

(a) If the solicitation permit was used, the following additional documents shall be
submitted:

(1) Notarized fund utilization report of its income and expenditures sworn to by the
individual, or in the case of an organization or agency, the president and treasurer of the
organization or agency;

(2) List of donors with their corresponding addresses and contact numbers, and the
amount of donations;

(3) List of beneficiaries, their corresponding addresses and contact numbers and amount
or types of assistance extended;

(4) List of projects completed, location and cost; and

(5) Expired original solicitation permit.

(b) If the issued solicitation permit is not used, the individual, organization or agency
shall submit to the appropriate DSWD office, PSWDO, CSWDO, or MSWDO the following:

(1) Justification for not conducting or continuing the solicitation activity within the validity
period; and

(2) Expired solicitation permit.

SEC. 15. Reportorial Requirements for Exempt Organizations. ~ An organization or agency which
conducts a public solicitation but is not required to acquire a solicitation permit as provided for
in Section 5 of this Act shall submit to the concerned DSWD office, PSWDO, CSWDO, or MSWDO
at the end of the fiscal year during which it conducted the public solicitation the following
documents:

(a) Notarized fund utilization report of its collections, income and expenditures sworn to
by the president and treasurer of the organization or agency;

(b) List of donors and their corresponding addresses and contact numbers;

(c) List of beneficiaries with their corresponding signatures, addresses and contact numbers and

amount or types of assistance extended;

(d) List of projects completed, location and cost with complete documentation on the
project including pictures, videos and testimonies of beneficiaries; and

{e) Other documents which the concerned offices may require in order to make an
assessment of the performance of the organization or agency in conducting public
solicitation and utilization of the proceeds of the public solicitation.

SEC. 16. Regulatory Powers.—The DSWD, the PSWDO, the CSWDO, or the MSWDO may, in the
exercise of their regulatory powers, verify the authenticity of the report submitted by conducting
spot investigations or reviewing the book of accounts of the concerned individual, organization or
agency. Further, the individual, organization or agency shall, for each solicitation activity,



maintain and preserve an accurate and detailed book of accounts for not less than three (3)
years after the completion of such public solicitation activity, which shall be available for
inspection, at all times, upon demand by the DSWD, the PSWDO, the CSWDO, or the MSWDO.
Likewise, the DSWD, the PSWDO, the CSWDO, or the MSWDO shall keep a record of the reports and
supporting documents submitted by individuals, organizations or agencies previously granted a
solicitation permit.

SEC. 17. Filing of Complaints. ~The DSWD, the PSWDO, the CSWDO, or the MSWDO shall, on
its own initiative or upon a verified complaint of any person, refer to the appropriate law
enforcement agency or the prosecutor's office for investigation and the filing of complaint in
the appropriate court any violation of the provisions of this Act.

Any individual or law enforcement agency may file a complaint before the appropriate court
against any individual, organization or agency which shall commit or is engaged in any of the acts
punishable under Section 19 of this Act.

SEC. 18. Role of Law Enforcement Agencies. ~ All law enforcement agencies shall assist the DSWD,
the PSWDO, the CSWDO, or the MSWDO in the efficient and effective enforcement of this Act.

SEC. 19. Prohibited Acts. The following acts are punishable under this Act:

(a) Soliciting without securing a solicitation permit from the DSWD, the PSWDO, the
CSWDO, or the MSWDO;

(b) Soliciting beyond the allowed area of coverage or violating the mode of solicitation as
indicated in the approved solicitation permit;

(c)_ Using a falsified or tampered solicitation permit;

(d) Soliciting with an expired solicitation permit;

(e) Using the solicited funds for purposes other than those indicated in the application form;

(f) Including the beneficiaries as part of the strategy or mechanism in conducting the
solicitation activity which tends to exploit the beneficiaries;

(g) Use of lottery and other games of chance; and

(h) Using solicitation paraphernalia which portray a dehumanizing picture, information or
situation of the intended beneficiaries,

SEC. 20. Other Offense. — Failure to comply with the reportorial requirements as required under
Sections 14 and 15 of this Act shall be punished with a fine of not less than one hundred
thousand pesos (P100,000.00) but not more than five hundred thousand pesos (P500,000.00).

Additionally, for the first offense, the solicitation permit of the individual, organization or
agency shall be revoked and no permit shall be issued to the offending party for a period of
‘one (1) year from the date of violation.

For the second offense, the solicitation permit of the individual, organization or agency shall
be revoked and no permit shall be issued to the offending party for a period of two (2) years
from the date of violation.

For the third offense, the individual, organization or agency shall be permanently banned from
conducting any solicitation activity.


SEC. 21. Forfeiture of Proceeds. ~All solicited funds from an unauthorized public solicitation shall
be forfeited in favor of the government.

SEC. 22. Penalties. — Any individual, organization or agency who violates the provisions of
Section 19 of this Act shall be punished with imprisonment of not less than one (1) year but not
more than three (3) years or a fine of not less than One hundred thousand pesos (P100,000.00) but
not more than five hundred thousand pesos (PS00,000.00), or both, at the discretion of the court.

Additionally, for the first offense, the solicitation permit of the individual, organization or
agency shall be revoked and no permit shall be issued to them for a period of two (2) years from
the date of violation. For the second offense, the individual, organization or agency shall be
permanently banned from conducting any solicitation activity.

A final and executory judgment finding an organization or agency liable for violating any of the
prohibited acts under Section 19 of this Act for a second time shall be a ground for the
cancellation and revocation of the organization or agency's registration or license to operate
and shall be endorsed to the concerned government regulatory agency for its appropriate
action.

If the offender is an organization or agency, the incumbent officers of the organization or
agency at the time of the commission of the offense who have knowingly participated or who
shall have knowingly permitted or failed to prevent its commission shall be held liable.

If the offender is a foreigner, the offender shall be immediately deported and barred permanently
from entering the country after having served the sentence.

SEC. 23. Information Dissemination. ~The DSWD, the PSWDO, the CSWDO, or the MSWDO shall
periodically publish a list of all individuals, organizations or agencies with public solicitation
permits. The list shall include the permit number, duration period, methodology to be used and
the areas covered. They shall also publish a list of individuals, organizations or agencies whose
solicitation permits have been cancelled or revoked.

SEC. 24. Implementing Rules and Regulations. - Within ninety (90) days from the approval of this
Act, the Secretary of the DSWD, in consultation with the Secretary of the Department of the interior
and Local Government, the Secretary of the Department of Transportation and Communications,
Director General of the Philippine National Police (PNP), the Commissioner of the SEC, the
Association of PSWDO, the Association of CSWDO, the Association of MSWDO, and three (3)
representatives selected by the DSWD from among the academe, NGOs and media
organizations, shall promulgate the necessary rules and regulations for the effective
implementation of this Act.

SEC. 25. Repealing Clause. ~ Presidential Decree No. 1564, otherwise known as the Solicitation
Permit Law, is hereby repealed. Section 444(b)(3)(v) and Section 455(b)(3)(v) of the Local
Government Code of 1991 and all other laws, decrees, executive orders and proclamations,
rules and regulations or parts thereof inconsistent with this Act are hereby repealed, amended
xd accordingly.

or modi


SEC. 26. Separability Clause. — If any provision or part of this Act is held invalid or unconstitutional,
the remaining parts or provisions not affected shall remain in full force and effect.

SEC. 27. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.

Approved,