Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 4348

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

EXPLANATORY NOTE

After its Family Income and Expenditure Survey (FIES), the
Philippine Statistics Authority (PSA) reported that poverty incidence among
Filipinos in 2015 was estimated at 21.6 percent. On the other hand,
subsistence incidence among Filipinos, or the proportion of Filipinos whose
incomes fall below the food threshold,was estimated at 8.1 percent in the
same year.

While the annual poverty incidence has been on the decline, it remains
very, very high. Based on the above statistics, | out of 5 Filipinos are poor
with almost | in 10, extremely poor. There is therefore a drastic need to
improve on the anti poverty services of the government.

Under Republic Act 8425, also known as the Social Reform and
PovertyAlleviation Act of 1997, the National Anti-Poverty Commission
(NAPC) was established. The NAPC was to serve as the coordinating and
advisory body for the implementation of the social reform and poverty
alleviation agenda, The more significant function of NAPC, however, is the
monitoring of the People's Development Trust Fund (PDTF), established
under Article 10 of RA 8425.

The PDTF, which was in the amount of four billion and five hundred
million pesos (P4,500,000,000,00), was funded primarily from the earnings
of the PAGCOR. The fund was basically for the purpose of developing
microfinance institutions as part of the poverty alleviationmandate of NAPC.

Over the years, however, the capacity of NAPC to undertake this very
important function has been put into question. As a mere coordinating body,
the NAPC became just another dispensable layer of the government
bureaucracy. Moreover, the PDTF has been limited by its purpose and not to
address the holistic issue of poverty alleviation.

Under this draft measure, the Anti Poverty Fund is created. The
Department of Social Welfare and Development (DSWD), the government
agency in the forefront of the fight against poverty, is designated to manage
the fund,


The PDTF shall become from part of the core of the Anti Poverty
Fund, The long standing anti poverty program of the DSWD, the Kalahi-
CIDSS, otherwise known as the Kapit-Bisig Laban saKahirapan-
Comprehensive and Integrated Delivery of Social Services, started in 2003
during the term of then President Gloria Macapagal Arroyo, shall be the
principal poverty alleviation program of the Fund. In its dispensation, the
KALAHI-CIDSS’ community-driven development (CDD) approach, a
globally recognized strategy for achieving service delivery, poverty
reduction, and good governance outcomes, shall be institutionalized.

In this respect that the immediate passage of the measure is earnestly

sought.
aa

ARTHYR C. YAP
Représentative



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No4348

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

AN ACT

CREATING AN ANTI-POVERTY FUND, ABOLISHING
THE PEOPLE'S DEVELOPMENT TRUST FUND (PDTF),
ESTABLISHED UNDER REPUBLIC ACT NO. 8425,
OTHERWISE KNOWN AS THE “SOCIAL REFORM
AND POVERTY ALLEVIATION ACT OF 1997",
APPOINTING THE DEPARTMENT OF SOCIAL
WELFARE AND DEVELOPMENT (DSWD) AS ITS
MANAGER, APPROPRIATING ADDITIONAL FUNDS
THEREFOR, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines
inCongress assembled.


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SECTION 1. Short Title. — This Act shall be known as the “Anti
Poverty FundAct of 2016”.

SECTION 2. Declaration of Policy.— \t is hereby declared the policy
of the State to create a fund that would eliminate the incidence of or alleviate
poverty. The State shall likewise institutionalize strategies, plans and
programsin order to achieve the purpose of the fund with swiftly and with
cost efficiency.

SECTION 3. Creation of the Anti Poverty Fund.— There is hereby
created an Anti Poverty Fund, hereinafter the “Fund”, for the poverty
alleviation programof the Department of Social Welfare and Development
(DSWD).

For this purpose, the Kapit-Bisig Laban saKahirapan-Comprehensive
and Integrated Delivery of Social Services of the DSWD shall be integrated
into the poverty alleviation programs of the Fund.

The People's Development Trust Fund (PDTF) established under
Section 10 of Republic Act 8425, otherwise known as the “Social Reform
and Poverty Alleviation Act of 1997”, shall be abolished. The remaining
PDTF, with the principal amount of Four Billion and Five Hundred Million
Pesos (Php4,500,000,000.00), including all of its interest earnings,
additional appropriations from Congress and other government agencies,
additional voluntary contributions, grants, gifts from all sources shall be
transferred to the Fund.

An additional Five Billion Pesos (Php 5,000,000,000.00) shall be
added to the Fund from the earnings of the Philippine Amusement and

Gaming Corporation, within a three (3) year period.


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SECTION 4. Purposes of the Fund.— Other than the microfinance
and other purposes of the PDTF under Section 10 and 11 of Republic Act
No. 8425, the Anti Poverty Fund, shall be utilized to fundpoverty alleviation
projects, plans and programs of the DSWD;Provided that, the Conditional
Cash Transfer (CCT) Program or any of its related or incarnate program
shall be excluded.

In identifying and implementing projects to be financed by the fund,
the following shall be the guiding principles:

1. Localized decision-making. Communities decide on which projects
will be implemented.

2. Empowering. People are capacitated so they will become better
prepared in managing community issues and problems, as well as in the
planning, mobilization, implementation, and resource management of their
projects.

3. Transparent. A multi-level monitoring system is followed, wherein
NGOs, media, and other groups are encouraged to do independent
monitoring of DSWD.

4. Community prioritization. The participating barangays are tasked with
submitting a proposal about their chosen projects. The community will then
evaluate these proposals and identify which of these will be prioritized for
funding.

5. Inclusive and multi-stakeholder. Everyone in the barangay is involved
in every step of the process of project implementation, from the creation of

the proposal to the implementation and management of the project.


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6. Demand-driven. Communities are encouraged to prioritize their own
needs, participate in the design of their own projects, and make decisions on
how resources are used.

7. Simple. All procedures and components of the project are kept simple
to enable all stakeholders to easily and understand and become fully
involved in the Project.

8. Sustainable. All barangay projects will have viable long-term plans
for operations and maintenance and sustainability.

SECTION 5. Management of the Fund.— The management of the
fund shall be vested with the Department of Social Welfare and
Development. For this purpose, the power to monitor by the National Anti-
Poverty Commission (NAPC) under Section 10 of Republic Act No. 8425
shall be removed.

The Secretary of Social Welfare and Development shall be directly
responsible for the efficient and effective administration of the Fund. He/
she shall:

a. Promulgate, implement and enforce the rules and regulations
governing the use, operation, and investment of the Fund;

b. Establish the requirements for project initiation and funding;

e. Design ways and means for its replenishment;

d. Designate or appoint officers and staff of standing committees
for the Fund from among the regular personnel of the agency, and prescribe

their duties, and responsibilities;


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e. Create and constitute regional offices if and when the size and
spread of operations so warrant and delegate such functions as may be
necessary;

if) Determine sanctions/liabilities of officers managing the Fund
and of violators of the rules and regulations of the Fund; and

g. Perform such other functions as may be necessary to carry out
the objectives and purposes of this Act.

SECTION 6.Accounting and Auditing Requirements. — The Fund
and its operations shall be subject to existing accounting and auditing rules
and regulations.

SECTION 7.Reportorial Requirement. — The Secretary shall submit
to Congress an annual report on the operation of the Fund and its financial
condition at the end of each year, copy furnished the Office of the President
and the Department of Budget and Management.

SECTION 8.Jmplementing Rules and Regulations. — The DSWD
shall issue the necessary implementing rules and regulations within sixty
(60) days from the issuance of this Act.

SECTION 9. Separability Clause. - If any provision of this Act, or
any partsthereof, is declared unconstitutional, the same shall not affect the
validity andeffectivity of the other portions.

SECTION 10. Repealing Clause.- All laws, executive orders,
presidentialdecrees, proclamations, rules, regulations, issuances and
enactments of partsthereof inconsistent with this Act are hereby repealed or

modified accordingly.


SECTION 11.Effectivity.- This Act shall take effect fifteen (15)
daysfrom its complete publication in the Official Gazette of in a newspaper

of generalcirculation in the Philippines, whichever comes earlier.

APPROVED.