REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session
8478

House Bill No.

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

Republic Act No. 10121 or the “Philippine Disaster Risk Reduction and Management Act”
was enacted in 2010 in order to uphold our constitutional right to life and property by
addressing the root causes of vulnerabilities to disasters, strengthening the country's
institutional capacity for disaster risk reduction and management and building the resilience
of local communities to disasters including climate change impacts. Among the changes
instituted by RA No. 10121 is the establishment of the Local Disaster Risk Reduction and
Management Fund (LDRRMF),

‘The LDRRMF shall be used to support disaster risk management activities such as, but not
limited to, pre-disaster preparedness programs including training, purchasing life-saving
rescue equipment, supplies and medicines, for post-disaster activities, and for the payment of
premiums on calamity insurance. Thirty percent (30%) of the LDRRMF shall be allocated as
Quick Response Fund (QRF) or stand-by fund for relief and recovery programs in order that
situation and living conditions of people In communities or areas stricken by disasters,
calamities, epidemics, or complex emergencies, may be normalized as quickly as possible.

Due to our location, the Philippine archipelago is one of the most disaster-prone areas of the
world, and is prone to an increasing risk from the impacts of more frequent and extreme
climate-related events, such as severe storms, flooding or drought. Hence, the Quick
Response Fund is quickly depleted and oftentimes, insufficient.

This proposed measure seeks to establish a Solidarity Fund in order to increase local capacity
to build disaster resilience of communities and strengthen institutional mechanisms for the
reduction of disaster risks and enhancement of preparedness and response capabilities at all
levels.

In view of the foregoing, the immediate enactment of this measure is earnestly sought.

Magdalo Para sa Pilipino Party-List



eVansune

1
2
B
14
15
16
7

19
20
2
2
23
24
25
26
7
28
29

REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No. 8478

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
ESTABLISHING THE SOLIDARITY FUND OF THE LOCAL GOVERNME!
UNITS FOR DISASTER RESPONSE AND RECOVERY

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

SEC.1. Short Title.- This Act shall be known as the Local Government Units (LGU)
Solidarity Fund for Disaster Response and Recovery Act.

SEC.2. Declaration of Policy.- It is the declared policy of the state to increase local
capacity to build disaster resilience of communities and to strengthen institutional mechanism
for the reduction of disaster risks and enhancement of preparedness and response capabilities
atall level.

SEC3 Solidarity Fund.- A solidarity Fund will be held as a trust account in a
government bank. Disbursement from said fund will be subject to the issuance of a release
order of the supervisory board.

‘The supervisory board shall be composed of the following: Secretary of the
Department of Interior and Local Government, and representatives from the following: Union
of Local Authorities of the Philippines, League of Provinces of the Philippines, League of
Cities of the Philippines, League of Municipalities of the Philippines, and Liga ng mga
Barangay. They shall serve in an ex-officio capacity

SEC.4. Source of the Solidarity Fund- All Local Government Units are hereby
mandated to contribute point five percent (0.5%) of their total revenues taken form the Local
Disaster Risk Reduction and Management Fund (LDRRMF) other than the amount set aside
for the quick response fund

Provided that an LGU who availed of the Solidarity Fund shall contribute one percent
(1%) of their LDRRMF for the next year.

Provided further, that the LGU shall revert to the point five percent (0.5%)
contribution if it did not avail of the solidarity fund for the previous year.


SECS. Availment of the Solidarity Fund.- In the event of a disaster, any affected
LGU can avail of the solidarity fund upon submission of both a local resolution declaring a
state of calamity and a certificate of exhaustion of the quick response fund.

The maximum payout arising out of any single disaster is 100 times of the LGU
contribution to be released in two equal tranches. The second tranche shall be released only
upon full liquidation of the first tranche released.

The maximum release shall not exceed 75% of the total solidarity fund. If the total
claims arising out of a single disaster should exceed 75% of the total solidarity fund, the pay-
out shall be pro-rated amongst the claimants.

SEC.6. Insurance Premiums.- The solidarity fund may be used to pay premiums for
securing catastrophic insurance for public infrastructures of LGUs.

‘SEC.7. Use of the Fund.- The Solidarity Fund shall be used exclusively for disaster
response and recoveries for LGUs and the payment of catastrophic insurance premiums.

SEC.8. Separability Clause.- If, for any reason, any section or provision of this Act is
held unconstitutional or invalid, such declaration shall not invalidate the other provisions.

SEC. Repealing Clause.- All laws, orders, issuances rules and regulations or parts
thereof inconsistent with any provisions of this Act are hereby repealed, modified or amended
accordingly.

SEC. 10. Effeetivity.- This Act shall take effect after fifteen (15) days following the
completion of its publication either in the Official Gazette or in newspaper of general
circulation in the Philippines.

Approved,