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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. ease

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

EXPLANATORY NOTE

There are approximately 10 million Overseas Filipino Workers
(OFW). This huge number translates to substantial remittances in
the country which in turn translate the Philippines’ economic growth.
Considering that the OFWs contribute largely for the benefit of our
country, this Bill is intended to encourage the OFWs to contribute in
a sovereign fund which will be beneficial both for the OFWs and the
government.

The OFW Sovereign Fund is intended to provide for a safe
alternative for OFWs and their immediate family members in
investing their hard-earned income to be used for significantly urgent
national government and private projects with strong emphasis on
productive and job-generating industrial or agricultural projects.
Through the OFW Sovereign Fund, the government is able to provide
an avenue for the OFWs to better utilize their monies while
simultaneously contributing to the creation of programs and plans
that are of national importance. In view of the foregoing, the passage
of this Bill is earnestly sought.

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ERIC OLIVAREZ

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

46
House Bill Woe

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Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

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AN ACT CREATING THE OVERSEAS FILIPINO WORKERS (OFW)
SOVEREIGN FUND

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

SECTION 1. Title. - This Act shall be known as the “OFW
Sovereign Act of 2020”.

SECTION 2. Declaration of Policy. - It is hereby declared the
policy of the State to create a system that will help generate revenue
in order to improve and create programs which shall be beneficial to
its contributors and as well as the government.

SECTION 3. Investment Program. - The Bureau of Treasury
shall create a program specifically designed to encourage all OFWs,
their immediate family members and other Filipino citizens
overseas, to invest their monies or remittances with the
government, defining guidelines therefor, including the minimum
amount acceptable for investment, terms of the investment and
interest rates.


SECTION 4. Overseas Filipino Workers as Investors. - This
Act shall cover all Overseas Filipino Workers (OF W) and former OFWs
and their immediate family members. If unmarried, this Act shall also
cover their siblings. Other Filipinos overseas are also covered by this
Act as long as they are citizens of the Philippines.

SECTION 5. Proof of Identity and Prohibitions Thereon.-
Those under the coverage of this Act as defined in Section 4 hereof
shall be required to show proof of their identity as such through
their Overseas Employment Certificates (OECs), birth certificates,
marriage contracts, proof of Filipino citizenship and other verifiable
authentic documents. The use of dummies by persons, corporations
or other entities not under the coverage of this Act and/or the
submission of fake or forged documents to facilitate the
participation in the program and to benefit from it shall be punished
according to existing laws.

SECTION 6. Creation of OFW Sovereign Fund. - For the
purpose of proper monitoring of the investments made by OFWs
and its use, the Bureau of Treasury shall create a separate special
fund to be referred to as OFW Sovereign Fund, where all
investments made by all OFWs, their immediate family members
and other Filipino citizens overseas, under the program herein
created shall be initially lodged, until it is utilized by the government
for its select key project.

The proceeds of all the investments lodged in the OFW
Sovereign Fund shall be used solely by the national government to
finance significantly urgent national government and private
projects with strong emphasis on productive and job-generating
industrial or agricultural projects, as may be directed by the
President. The significantly urgent national government projects
referred to here shall include the purchase or establishment by the


government of strong cash-generating private corporation or
government-owned and controlled corporations, respectively, in
enterprises related to the downstream petroleum industry, electric
power generation, transmission and _ distribution industry,
information and communications technology industry, and other
enterprises that shall wean away the government from heavy
reliance on taxes and fees as its main source of revenues.

The infrastructure and government offices to be built through
the income generated for such funds can be supplemented by other
funds of the government.

No amount from the OFW Sovereign Fund shall be released for
current needs of government like personal services, maintenance
and other operating expenses nor for any capital outlay inconsistent
with the aforementioned projects.

The Bureau of Treasury, shall, in coordination with the
Department of Budget and Management and the Commission on
Audit, make an accounting of all the receipts and disbursements
from the OFW Sovereign Fund. It shall prepare an annual report to
be submitted to the Senate and the House of Representatives not
later the 30* of April of the succeeding year.

SECTION 7. Tax Exemption of Interest Income and other
Earnings from Investments in the OFW Sovereign Fund. - The
earnings of OFWs and former OFWs, their immediate family
members and their siblings, if unmarried, and other Filipino
citizens overseas, from their investments in the bonds or other debt
or investment instruments that the government shall issue in the
implementation of this Act, shall be exempted from any and all
kinds of taxes.


SECTION 5. Strong Information Drive. - To ensure the
success of this Act, the Bureau of Treasury is directed to regularly
adopt a strong information drive, with assistance from relevant
agencies of government it may deem appropriate, that shall help
notify and educate all OFWs about the program, the creation and
purpose of the OFW Sovereign Fund and how investment in the
fund will be mutually-beneficial to the OFW and the government.

SECTION 8. Implementing Rules and Regulations. - The
Treasurer of the Philippines, in consultation with other concerned
government agencies, including the House Committee on Overseas
Workers Affairs and the Senate Committee on Labor, Employment
and Human Resources Development shall, within ninety (90) days
from the effectivity of this Act, promulgate such rules and regulations
necessary to implement this Act.

SECTION. 9. Separability Clause. - If any provision of this
Act is declared unconstitutional or otherwise invalid, the validity of
the other provisions shall not be affected thereby.

SECTION. 10. Repealing Clause. - All laws, decrees, orders,
rules and regulations or parts thereof inconsistent with this Act are
hereby repealed or modified accordingly.

SECTION. 11. Effectivity. - This Act shall take effect fifteen
(15) days after its publication in the Official Gazette or in a

newspaper of general circulation.

Approved,