NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
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SENATE
S. No. 536
3 Senate
i©ffitp of the B>ecretMp
■22 JUL 13 P4 33
Introduced by Senator Grace Poe
AN ACT
TO PROMOTE THE GROWTH AND DEVELOPMENT OF SOCIAL ENTERPRISES 
AS A MEANS TO ALLEVIATE POVERTY, ESTABLISHING FOR THE PURPOSE 
THE 'POVERTY REDUCTION THROUGH SOCIAL ENTREPRENEURSHIP 
(PRESENT) PROGRAM" PROVIDING INCENTIVES AND BENEFITS, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The phrase "social justice" tends to raise conservative eyebrows. After all, the 
concept of social justice tends to conjure images of coercive, State-sanctioned 
redistribution of wealth. This understanding of "social justice" is misguided. Social 
justice is not just about the redistribution of wealth, but also generating sufficient 
resources so that all individuals are provided with what they need.
Recognizing this principle, the framers of the 1987 Philippine Constitution did 
not only include "protectionist" and "nationalist" principles to achieve the egalitarian 
ideals of social justice. They also included provisions on the generation of economic 
growth for all. One prime example is Article XII, Section 2: "The promotion of social 
justice shall include the commitment to create economic opportunities based on 
freedom of initiative and self-re'iance."
One crucial way to promote social justice Is to promote the growth of 
businesses and enterprises whose primary goal is to generate resources to empower 
the poor. These businesses are known as "social enterprises." According to the 
Institute for Social Entrepreneurship In Asia (ISEA),1 social enterprises have three 
main characteristics:
a) Social enterprises are social mission driven organizations explicitly pursuing 
poverty reduction/alleviation as primary objective. The poor are engaged not 
only as workers, clients or suppliers of these social enterprises, but as 
partners in social enterprise or value chain management as well as in social 
enterprise governance;
1 Dacanay, M.L. "Getting a Handle on Social Entrepreneurship". Institute for Social Entrepreneurship in ASIA.
1


b) Social enterprises are wealth-creating organizations that have a double or 
triple bottom line. They create wealth to partially or fully cover their 
operations and to invest in other activities related to their social mission;
c) Social enterprises have a distributive enterprise philosophy. Social enterprises 
create social and ecoiiomic value that accrue to the poor as primary 
stakeholders.
In recognition of these ideas, the ISEA has drafted the Poverty Reduction 
through Social Entrepreneurship (PRESENT) bill. The present measure seeks to 
provide incentives and benefits to promote the growth of social enterprises, and to 
Integrate the same Into the overall poverty reduction strategy of the national 
government.
Speedy approval of this measure is eagerly sought.
GRACE PO;


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NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
S. No. oob
Senate
V 
(it, 6f *spttPlori>
■22 JUL 13 P4 :34
Introduced by Senator Grace Poe
AN ACT
TO PROMOTE THE GROWTH AND DEVELOPMENT OF SOCIAL ENTERPRISES
THE t^POVeJ^A^LmiI,^LPJ>y^RTf’ ESTABLISHING for THE PURPOSE 
rpppt:PUTfR^n^^^FFrON THROUGH SOCIAL ENTREPRENEURSHIP 
(PRESENT) PROGRAM, PROVIDING INCENTIVES AND BENEFITS 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
'
Be it enacted by the Senate and House of Representatives of the Phiiippines in 
Congress assembled:
CHAPTER I
GENERAL PROVISIONS
Section 1. Short Title. - This Act shaii be known as the "'Poverty Reduction 
Through Soda! Entrepreneurship (PRESENT) Act."
Sec. 2. Statement of Policy. - The State declares its commitment to realize 
the following goals and principles and enumerated In the Constitution:
a) The State shall prorrote a just and dynamic social order that will ensure 
the prosperity and Independence of the nation and free the people from 
poverty through policies that provide adequate social services, promote
full employment, a rising standard of living, and an improved quality of life 
for all;
b) The State shall provide social justice in all phases of national development 
and that the State values the dignity of every human person and 
guarantees full respect for human rights.
c) The State shall ensure that the national economy provides for a more 
equitable distribution of opportunities, income, and wealth; a sustained


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increase in the amount of goods and services produced by the nation for 
the benefit of the people; and an expanding productivity as the key to 
raising the quality of life for all, especially the underprivileged.
d) The State shall promote industrialization and full employment based on 
sound agricultural development and agrarian reform, through industries 
that make full and efficient use of human and natural resources, and 
which are competitive in both domestic and foreign markets. However, the 
State shall protect Filipino enterprises against unfair foreign competition 
and trade practices.
e) The State also recognizes the important role of enterprises In the economy
as the major agent of development, creating off-farm 
employment
opportunities and providing transitional means for improving the livelihood 
of the people.
In pursuit of these Constitutional objectives, it is hereby declared a policy of 
the State to pursue a poverty reduction program that promotes an 
environment
conducive to the development and growth of a vibrant social enterprise sector
engaged In poverty reduction, economic and social development. It shall empower 
the poor as primary stakeholders in social enterprises, establish 
mechanisms
essential to realizing their potential and achieving their full growth, and extend the 
assistance necessary for their advancement.
It is likewise declared a policy of the State to ensure that the provision for 
technical and financial assistance, incentives and other services are free from any 
condition that might infringe upon the autonomy or organizational integrity of the 
social enterprises to enable them to develop Into viable and vital anti-poverty 
agents, and a strong social entrepreneurship movement which will be instrumental in 
reducing poverty in the country.
Sec. 3. Definition of Terms. - For the purpose of this Act, the following terms 
shall be defined:
a) Social Enterprise or SE - a wealth-creating organization, however 
organized, whether an association, single proprietorship, partnership, 
corporation, cooperative, or any other legal form, whose primary 
stakeholders are ma ginalized sectors of society, engaged in providing


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goods and/or services that are directly related to its mission of improving 
societal well-being. It is established to achieve triple bottom lines such as 
financial, social and ecological. It generates profit or surplus with due 
regard to social and environmental costs, and makes a pro-active 
contribution to resoMng social and environmental problems.
b) Social Enterprise with the Poor as Primary Stakeholders ox SEPPs- a social
enterprise 
which explicitly 
declares and 
pursues 
poverty
reduction/alleviation or improving the quality of life of specific segments of 
the poor as principa* objective. A SEPPS engages and invests in the poor 
to become effective workers, suppliers, clients and/or owners, and/or 
ensures that a substantive part of the wealth created by the enterprise is 
distributed to, or benefits them. In addition to reinvesting Its surplus or 
profits back to the enterprise to sustain the fulfilment of its social mission, 
a SEPPS also uses its surplus or profits and mobilizes other resources to 
assist the 
poor 
to become 
partners 
in SE or value chain
management/governance and to become partners in community, sectoral 
and societal transformation.
c) Absolute poverty -xe^exs to the condition of the household below the food 
threshold level as defined by the Philippine Statistics Authority (PSA)
d) Assets - all kinds of properties, real or personal, owned by the social 
enterprise (SE) as defined in paragraph (dd) of this Section and used for 
the conduct of its business: Provided, That for the purpose of exemption 
from taxes and to benefit from other incentives under this Act, this term 
shall mean all kinds of properties, real or personal, owned and/or used by 
the SE for the conduct of its business;
e) Basic sectors - the disadvantaged sectors of Philippine society as defined 
under Republic Act No. 8425, otherwise known as the 'Social Reform and 
Poverty Alleviation Act'4,
f) Bottom line - the objectives or purposes for which a SE Is established. 
Triple bottom line s\\^W refer to social, ecological and financial objectives;


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g) Capability building - the process of enhancing the viability and 
sustainability of SEs and pertain to education, training, coaching and other 
learning events like study tours; technical, consultancy and advisory 
services; assistance in organizational systems development; technology 
incubation, development and dissemination; value chain and subsector 
development; conduct of SE trade fairs and missions; networking and 
policy advocacy initiatives and other such activities that enable SEs to be 
effective and efficient vehicles for poverty reduction. The term capability 
building precludes the grant of any loan or equity funds to the SE and 
shall in no way refOi to the provision of equity investments, seed funding, 
partnership's seed funds, equity participation, start-up funds or any such 
activity that connotes the infusion of capital or funds from the government 
or from the SE Development Fund created under Section 16 of this Act;
h) Civil society organizations - private voluntary organizations of citizens that 
are established to pursue a mission, usually involving the interest of the 
public, marginalized groups or specific sectors of society. They include 
non-government organizations, socio-civic groups, foundations and 
people's organizations;
I) Council-\he SE Council;
j) Cooperative - an autonomous and duly registered association of persons, 
with a common bond of interest, who have voluntarily joined together to 
achieve their social, economic, and cultural needs and aspirations by 
making equitable contributions to the capital required, patronizing their 
products and services and accepting a fair share of the risks and benefits 
of the undertaking in accordance with universally accepted cooperative 
principles as defined in R.A. 6938, as amended by R.A. 9520, otherwise 
known as the "Philippine Cooperative Code of 2008";
k) Corporate Social Responsibility or C5R — the commitment of a private 
enterprise or business to contribute on a voluntary basis to a sustainable 
social and economic development by working with relevant stakeholders to 
Improve their lives In ways that are good for business, the social reform 
agenda, the sustainable development agenda, and society at large. CSR-


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related activities shall include, but not be limited to, the following: 1) 
Charitable programs and projects; 2) Scientific research; 3) Youth and 
sports development; 4) Cultural or educational promotion; 5) Services to 
veterans and senior citizens; 6) Social welfare; 7) Environmental 
sustainability; 8) Health development; 9) Disaster relief and assistance; 
and Employee and worker welfare related CSR activities;
I) Economic subsectors - networks of related actors and enterprises 
performing various functions in value chains. These actors and enterprises 
transform raw materials Into finished products, or develop services, and 
distribute or provide them through market channels to final consumers; 
they may be identified by key raw material source, by finished product or 
final service provided. An economic subsector may be comprised of 
several competing value chains. By understanding the dynamics of 
economic subsectors and using them as units of planning social 
entrepreneurship interventions, government agencies, support institutions 
and SEs shall more effectively reach and benefit a greater number of poor 
in poverty reduction programs;
m) Empowerment strategy - a development strategy that enables the 
marginalized sectors to own, manage, and control SEs in order for them to
reap maximum benefits from it and which acts as a channel for directly 
distributing income;
n) Fair trade - a trading partnership based on dialogue, transparency and 
respect and which seeks greater equity in international trade and the 
transformation and adaptation of trading structures and practices In favor 
of the poor and disadvantaged by offering better trading conditions to, 
and securing the rights of, marginalized producers and workers;
o) Fair trade organizations - enterprises certified by internationally and 
nationally recognized Fair Trade networks;
p) Fair trade principies - values adopted by fair trade organizations in their 
day-to-day operation. These include creating opportunities for 
economically- disadvantaged producers; transparency and accountability; 
payment of a fair price; ensuring no child labor and forced labor;


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commitment to non-discrimination, gender equity and freedom of 
association; ensuring good working conditions; providing capacity building; 
and, respect for the environment;
q) Foundation - non-profit organizations which may either provides funds 
and support to other organizations or provides the source of funding for its 
own charitable purposes. Unlike a company, foundations have no 
shareholders though they may have a board, an assembly and voting 
members. A foundation may hold assets in its own name for the purposes 
set out in its constitutive documents, and its administration and operation 
are carried out in accordance with its statutes or articles of association 
rather than fiduciary principles;
r) GPPB - the Government Procurement Policy Board established in 
accordance with Article X of R.A.No.9184, otherwise known as the 
"Government Procurement Reform Act'*
s) Intermediation strategy - a development strategy that provides financial, 
agricultural, business development and institutional development services 
to the entrepreneurial poor and employers of the poor and provides as 
well product development and marketing support using the principles of 
fair trade to marginalized producers. A SE engaged in Intermediation 
strategy need not be owned by the marginalized stakeholders but provide 
immediate access to services among a critical mass of these marginalized 
stakeholders;
t) Marginalized Sectors - groups of people who are stigmatized or
marginalized by virtue of their physical, psychological, economic, social or 
cultural circumstance;
u) Micro-enterprise - as defined in R.A. No. 6977, as amended by R.A. No. 
9501, otherwise known as the 'Magna Carta for Smaii Enterprises/'refers 
to any business activity or enterprise engaged in industn/, agribusiness 
and/or services, whether single proprietorship, cooperative, partnership or 
corporation whose total assets, inclusive of those arising from loans but 
exclusive of the land on which the particular business entity's office, plant 
and equipment are situated, must have a value of not more than Three


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Million Pesos (^3,000,000.00). This amount is subject to review and 
adjustments by the Micro, Small and Medium Enterprises Development 
(MSMED) Council, taking into account inflation and other economic 
indicators and may use other variables such as number of employees, 
equity capital and assets size;
V) Microfinance - the orovision of a broad range of financial services such as 
deposits, loans, payment services, money transfers and Insurance 
products to the poor and low-income households and their 
microenterprises and small businesses, to enable them to raise their 
income levels and Improve their living standards;
w) Minimum basic needs - the needs of a Filipino family pertaining to survival 
(food and nutrition; health; water and sanitation), security (shelter; peace 
and order; public safety. Income and livelihood); and enabling services 
(basic education and literacy, participation in community development, 
family and psycho-social care);
x) Non-Government Organization or NGO - a duly registered non-stock, non­
profit organization focusing on uplifting of the basic or disadvantaged 
sectors of society by providing advocacy, training, community organizing, 
research, access to resources, and other similar activities and, as defined 
under Section 34 (H)(2)(c) of Republic Act No. 8424, as amended, 
otherwise known as the National Internal Revenue Code of 1997, 
organized and operated exclusively for scientific, research, educational, 
character-building and youth and sports development, health, social 
welfare, cultural or charitable purposes, or a combination thereof, and no 
part of the net income of which insures to the benefit of any private 
individual;
y) Peopie's Organization or PO - self-help groups belonging to the basic 
sectors and/or disadvantaged groups composed of members having a 
common bond of interest who voluntarily join together to achieve a lawful 
common social or economic end;


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z) Persons with Disability - individuals with restriction or different abilities, as 
a result of a mental, physical or sensory impairment, to perform an activity 
in the manner or within the range considered normal for a human being; 
aa)Poor - individuals and families whose Income fall below the poverty 
threshold as defined by the Philippine Statistics Authority, and/or are 
deprived of the means to provide in a sustained manner their minimum 
basic needs of food, health, education, housing and other essential 
amenities of life, as defined under R.A. 8425; 
bb)Po]/erty reduction/alleviation - overcoming the Income, resource, and 
capability deprivation among the poor as defined in the preceding
paragraph and th^ marginalized sectors as defined in paragraph (q) 
hereof;
cc) Private Enterprise - an organization engaged in a business activity 
organized for the purpose of accumulating profit and whose primary 
stakeholders and beneficiaries are its owners; 
dd) Procuring Entity - any branch, department, office, agency, or 
instrumentality of the government, including state universities and 
colleges, government-owned and/or - controlled corporations, government 
financial Institutions, and local government units procuring Goods, 
Consufting Services and Infrastructure Projects; 
ee) Resource mobilization strategy - a development strategy intended to 
generate income from the sale of products and services of a SE In order to 
finance or subsidize the operations of its core development program or 
development Interventions among the marginalized sectors; 
ff) SEGFP - \ic\a SE Guarantee Fund Pool created under this Act; 
gg) Social development - the continuing process of addressing the needs of 
society, beginning with the people's minimum basic needs, through a 
systematic implementation of socioeconomic programs or packages; 
hh) Social Enterprise Service Institution - an organization that provides 
assistance to SEs for them to become viable and sustainable and which 
assistance pertains to supplying needs such as trainings, education and


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other capacity-building measures, research and development, and other 
similar activities;
ii) Social Enterprise Advocacy Group - an organization whose primary 
purpose is supporting the cause of SEs especially with regard to public 
policy and articulating issues or causes related to social entrepreneurship;
jj) Social entrepreneur --an innovative individual or institution that promotes 
the creation and operationalization of enterprises or livelihood endeavors
for those in need or which address social problems and improve societal 
well-being;
kk) Social entrepreneurship - a model of entrepreneurship wherein business is
done to improve societal well-being and to initiate, guide or contribute to 
change in society;
II) Social Inclusion strategy - the development strategy that assists groups of 
people who are stigmatized or marginalized by virtue of their physical, 
psychological, economic, social or cultural circumstance In order to restore 
their dignity by not only removing the barriers that limit their access to the 
delivery of basic social services and employment, but more Importantly, by 
nurturing work and other environments that create avenues for their 
participation as productive members of society;
mm) Social Investors - Individuals or institutions that choose to put In 
money to a business endeavor or activity not principally for financial profit 
but to fulfill a social mission which may include poverty reduction, concern 
for environmental protection, strong organizational governance, and a 
desire for a more economically just world;
nn) Soda! reform - the continuing process of addressing the basic inequities 
in society through a systematic, unified and coordinated delivery of 
socioeconomic programs or packages;
00) Transactional roles - enterprise-related functions performed by the poor 
that involve an exchange of goods or services for money including being 
workers, suppliers, clients or owners;
pp) Transformational roles - functions performed by the poor as conscious 
agents of change to lift their own selves from poverty and to participate in


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V! •' i
group efforts to improve the quality of life of their community, sector or 
society as a whole;
qq) Transactional services ~ enterprise or market-driven activities, such as 
providing loans, demonstrating new technologies or conducting trainings 
that are necessary for the poor in the SE system to effectively and 
efficiently perform their roles as workers, suppliers, clients and owners. 
Transactional serv'ces may be fee-based, such as the granting of loans, or 
non-fee based, such as the extension of production-related trainings; 
rr) Transformational services - refers to activities such as leadership 
formation, organizational development, financial and legal literacy 
development, asset build-up, and other educational and experiential 
learning opportunities, that empower the poor to become conscious
change agents for themselves, for their communities, sectors and society 
as a whole;
ss) Underemployment - an economic position where an employed person's 
desire to have additional hours of work in his/her present job or to have
an additional job, or to have a new job with longer working hours is not 
met;
tt) Unemployment - an economic situation where persons who are 15 years 
old and over as of their last birthday and are 1) without work or have no 
job or business, 2) available for work and willing to take up work in paid 
employment or self-employment, 3) seeking work and had taken specific 
steps to look for a job or establish a business but failed to; and 
uu)Value chain - value-adding economic activities that an enterprise is 
interlinked with in the process of producing goods and/or services to serve 
. its chosen market. A value chain typically consists of: 1) inbound 
• distribution or logistics, 2) manufacturing operations, 3) outbound 
distribution or logistics, 4) marketing and selling, and 5) after-sales 
service. These activities are supported by 6) purchasing or procurement,
7) research and development, 8) human resource development, and 9)
, organizational development. A SE that understands and manages its value 
chain improves its capability to create economic, environmental and social
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values towards improving the position and benefits of the poor in the
vaiue chain and towards ensuring the viability and sustainability of the 
enterprise.
CHAPTER II
POVERTY REDUCTION THROUGH SOCIAL ENTERPRISES 
Sec. 4. Establishment of the Poverty Reduction Through Social 
Entrepreneurship (PRESENT) Program. — To promote the development of a SE 
sector with the poor as primary stakeholders, a comprehensive and fully-integrated 
Poverty Reduction through Social Entrepreneurship (PRESENT) Program, is hereby
10 established, and shall be guided by the following principles:
a) Incorporation of the PRESENT Program in the government's poverty 
reduction drive as a major sustainable and comprehensive strategy;
b) Rationalization of poverty reduction programs by streamlining and 
coordinating the various anti-poverty programs of the government to
reduce inefficiency and duplication and to Improve the effectiveness of 
each program;
c) People's participation and empowerment by mobilizing civil society 
organizations and social movement groups working with the poor;
d) Promoting sustainable programs that reduce inequality in incomes across 
economic sectors and Increase self-reliance among the poor;
e) Enabling SEs to overcome constraints and to take advantage of 
opportunities for enhancing the position and benefits of the poor in 
economic subsectors and value chains;
f) Gender-sensitivity by ensuring women's equal rights and access to SE's 
resources; and
g) Deveiopment of sustainabie mechanisms for the provision of quality and 
accessible social services to the poor.
The planning framework of the PRESENT Program and Its planning process
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shall ensure that the poor are engaged as primary stakeholders. It shall add value
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and complement ecosystem-based, area-based, community-based and other tools
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and processes in local economic development by promoting and utilizing the
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economic subsector as a strategic unit of analysis and planning SE development 
Interventions.
The PRESENT Program shall identify and develop key SEs and resource 
institutions as partners in strategic economic subsectors that have the potential for 
growth and where large numbers of the poor are concentrated. SEs shall be 
developed as vehicles to ensure that the poor benefit the most from sustainable 
subsector development.
PRESENT medium-term and annual development plans shall be formulated in 
synchrony with the medium-term development plan of the national government.
Sec. 5. Eligibility for Benefits and Incentives. - To be eligible for the benefits 
and incentives provided for in this Act, the SE shall:
a) Provide or facilitate the provision of a combination of transactional and/or 
transformational semces to Improve the position and benefits derived by 
the poor from the SE and the value chain or economic subsector where 
the SE is located. Including becoming worker-owners, supplier-owners, 
supervisors and managers, active members and leaders in governing 
bodies of the SE or its allied organizations;
b) Invest a substantive part of its surplus, profits or mobilize other resources 
to assist the poor to become partners In SE or value chain 
management/governance and/or to become partners in community, 
sectoral and societal transformation;
c) Make a pro-active contribution to resolving social and environmental 
problems and generate profit or surplus with due regard to social and 
environmental costs;
d) Employ any of the following development strategies in the pursuit of Its 
social mission: 1) empowerment strategy; 2) social inclusion strategy; 3) 
intermediation strategy; and, resource mobilization strategy;
e) Be engaged in an economic activity within the sectors of agriculture and 
fisheries. Industry and services which, for purposes of this Act, shall refer 
to an activity in any of the economic si^bsectors;
f) Ensure that a substantive part of the wealth created by the enterprise is 
distributed to the poor in the form of services, dividends and other forms
12


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of benefits, and payments and incentives for products or services rendered
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consistent with the principles of fair trade;
3 
g) Be duly registered with the appropriate agencies as provided under the
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Corporation Code or the Cooperative Code of the Philippines, Magna Carta
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for Micro, Small and Medium Enterprises, Barangay Micro Business
6 
Enterprises Act and other laws.
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Financial sustainability shall not be a prerequisite for the availment of
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incentives and benefits under this Act: Provided, that social enterprises that have not
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achieved financial sustainability may be eligible to avail of the services, assistance
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and incentives set forth In this Act by presenting a workable strategy to achieve
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financial sustainability over a reasonable period of time.
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Sec. 6. Other Eligibility Provisions. - In the case of social enterprises
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organized as stock corporations, partnerships or sole proprietorships, the following
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additional requirements shall apply:
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a) A social enterprise organized as a stock corporation must not be a branch,
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subsidiary or division of a private business enterprise, regardless of the
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size of such private business enterprise, nor may Its policies be determined
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by a private business enterprise. Provided, that this shall not preclude an
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SE from accepting subcontracts from large private business enterprises or
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firms or from joining in cooperative or joint-venture activities with other
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SEs or foundations practicing CSR;
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b) A social enterprise organized as stock corporations, partnerships or sole
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" proprietorships, must invest at least 60% of its gross revenues to sustain
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the fulfilment of Its social mission or to provide transformational services
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for the poor.
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Sec. 7. Social Enterprise Development Council, — To carry out the policy
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declared under this Act, a Social Enterprise Development Council (SEDC), hereinafter
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referred to as the Council, Is hereby created as an agency attached to the
29 
Department of Trade and Industry (DTI). It shall be the primary agency tasked to
30 
carry out the promotion, growth and development of social enterprises in the
31 
country. The Council shall be composed of the following:
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a) Secretary of Trade and Industry, as chairperson;
13


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b) Secretary of Agriculture, as co-vice chairperson;
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c) Lead Convenor of the National Anti-Poverty Council (NAPC), as co-vice
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chairperson;
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d) SE sector head representative, as co-vice chairperson;
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e) Secretary of Social Welfare and Development;
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f) Director-General of the National Econcmlc Developmeiit Authority (NEDA);
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g) Secretary of Finance;
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h) Secretary of the Interior and Local Government;
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i) Secretary of Labor and Employment;
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j) Secretary of Science and Technology;
11 
k) Secretary of Education;
12 
I) Secretary of Agrarian Reform;
13 
m) Secretary of Health;
14 
n) Secretary of Environment and Natural Resources;
15 
o) Chairperson of the Cooperative Development Authority (CDA);
16 
p) Secretary of Securities and Exchange Commission (SEC);
17 
q) Nine (9) representatives from SEs, three (3) representatives each from the
18 
main island groupings of Luzon, Visayas, and Mindanao;
19 
r) Three (3) representatives from SE service institutions; and
20 
s) Three (3) representatives from SE advocacy groups, as members.
21 
Sec. 8. Powers and Functions. - The Council shall have the following powers
22 
and functions:
23 
a) Formulate policies, plans, programs and projects to develop and promote
24 
SEs as a tool for poverty reduction consistent with national development
25 
objectives;
26 
b) Oversee the successful implementation of the PRESENT Program and other
27 
SE programs;
28 
c) Identify and access sources of financing to expand the SE sector;
29 
d) Monitor and evaluate the performance of programs and projects for
30 
appropriate incentives;
31 
e) Call upon any government agency to carry out and implement programs and
32 
projects identified by the Council and to assist in clarifying issues and finding
14


1 
resolution to problems that concern their respective offices with respect to
2 
the implementation cf the PRESENT Program enunciated under this Act or
3 
any development program for SEs.
4 
f)Call upon people's organizations, non-government organizations, the academe
5 
and other sectors to provide advice on matters pertaining to SEs and
6 
conduct of transactional and transformational services to farmers,
7 
producers, workers, consumers and other stakeholders;
8 
g) Submit annual and other periodic reports to the President and the Congress
9 
of the Philippines through the Congressional Oversight Committee;
10 
h) Promulgate such rules and regulations and exercise such other powers and
11 
functions as may be necessary to carry out the purposes of this Act; and
12 
i) Perform such other functions as may be necessary for its effective operations
13 
and the continued enhancement, growth and development of the SE sector.
14 
Sec. 9. Designation of Permanent Representatives to the Council. - Within 30
15 
days from the effectivity of this Act, Cabinet-ranked ex-officio members of the
16 
Council shall designate a permanent representative to the council, to attend the
17 
meetings of the council In cases that the Cabinet-ranked ex officio members cannot
18 
personally attend such meetings. The designated permanent representative of any
19 
of the Cabinet-ranked members of the Council must hold a position not lower than a
20 
bureau director.
21 
Sec. 10. Term and Appointment of SE Sector Representatives. — Within 90
22 
days from the effectivity of this Act, the President shall select and appoint the
23 
representatives of the SEs from the main island groupings of Luzon, Visayas and
24 
Mindanao, the SE Service Institutions, and the SE Advocacy Groups from among the
25 
nominees submitted by their respective organizations. Nominations for
26 
representatives shall be submitted within 60 days from the effectivity of this Act.
27 
These representatives must be conversant in the theory and practice of SE and
28 
committed to the policies and programs provided under this Act.
29 
Of those first appointed after the effectivity of this act, five (5)
30 
representatives, consisting of a representative each for Luzon SEs, Visayas SEs,
31 
Mindanao SEs, SE Service Institutions, and SE Advocacy Groups, shall serve for a
32 
term of three (3) years. A second group of five (5) representatives, with the same
15


1 
composition above, shall serve for a term of two (2) years, while a third group shall
2 
serve for a term of one (1) year.
3 
All SE representatives shall thereafter be appointed to serve for a term of
4 
three (3) years. No person shall be appointed to serve as an SE representative in the
5 
SEDC for more than a period of two (2) terms.
6 
Any vacancy in the SEDC arising from the death, incapacity, resignation, or
7 
termination of the term of an appointed SE representative shall be filled up within 90
8 
days from the occurrence of the said vacancy. All nominations to the vacancy shall
9 
be submitted within 60 days from the occurrence of such. In the case of a vacancy
10 
arising from death, incapacity or resignation, the representative appointed to the
11 
vacancy shall serve only for the remaining period of the term for the vacated office.
12 
Sec. 11. SEDC Executive Committee. —The Council shall create an Executive
13 
Committee to be headed by the SEDC Chairman or his designated permanent
14 
representative, with six (6) other members elected by its members from among
15 
themselves or their designated permanent representatives, with at least three (3)
16 
members representing the SEs, and with the authority to act for the Council, and
17 
within the specific authority granted by the Council.
18 
Sec. 12. Secretariat - There is hereby created a Secretariat headed by an
19 
Executive Director and two (2) Deputy Directors, and supported by staff, whose
20 
composition shall be determined by the SEDC, to serve as the national, technical and
21 
administrative secretariat of the Council with the member agencies providing
22 
additional support staff when the need arises. The Secretariat shall perform the
23 
following functions:
24 
a) Provide administrative support to the Council, with the assistance of the
25 
National Economic and Developm.ent Authority secretariat in the
26 
formulation of the PRESENT development programs and plans,
27 
b) Assist the Council in the implementation of the PRESENT development
28 
program and the annual and medium-term development plan;
29 
c) Assist the Council in the accreditation of SEs;
30 
d) Assist the Council in monitoring the PRESENT development programs and
31 
the activities of the various concerned government agencies with respect
32 
to SEs;
16


1 
e) Prepare, collate and integrate all necessary inputs to the Council's yearly
2 
report on the status of SEs in the country;
3 
f) Submit periodic reports to the Council on the progress and
4 
accomplishment of its work programs; and
5 
g) Perform other functions that may be assigned and authorized by the
6 
Council.
7 
Sec. 13. Office. - The Council shall have its principal place of business in
8 
Metro Manila and may establish such branches within the Philippines as may be
9 
deemed necessary by the President of the Philippines to carry out the powers and
10 
functions of the Council.
11 
Sec. 14. National Center for Social Enterprise Development - There shall be
12 
established a National Center for Social Enterprise Development (NCSED) under the
13 
Council which shall perform the following functions:
14 
a) Provide SEs with capability-training and education through the Social
15 
Enterprise Capability Building and Sustainability Program created under
16 
Section 16 of this Act;
17 
b) Develop and enhance a research and development system which shall equip
18 
every SE with innovative and sustainable approaches that ensures
19 
Improvement in the access to basic social services by the poor pursuant to
20 
Section 18 of this Act; and
21 
c) Manage a Social Enterprise Marketing Assistance Program (SMAP) that will
22 
ensure the generation of the highest possible income for the SEs pursuant to
23 
Section 19 of this Act.
24 
The NCSED shall be headed by the Executive Director of the Council Secretariat.
25 
It shall maintain a multi-sectoral, multi-disciplinary pool of experts including those
26 
from the academe, practicing professionals, business and industry, youth, women
27 
and other concerned sectors, who shall be screened according to the qualifications
28 
set by the Council.
29 
The NCSED shall coordinate with the University of the Philippines Institute for
30 
Small Scale Industries (UP ISSI), the Technical Education and Skills Development
31 
Authority (TESDA), the Technology and Livelihood Resource Center (TLRC), the
32 
Department of Transportation and Communications (DOTC), civil society
17


1 
organizations and other relevant agencies, state universities and colleges in
2 
implementing its programs.
3 
Sec. 15. Personnel. - Subject to the civil service laws, rules and regulations,
4 
the Council is authorized to select, appoint, employ and fix the compensation of the
5 
officers and employees of the Secretariat and the NCSED as shall be necessary to
6 
carry out its functions.
7 
Sec. 16. Role of LGUs in SE Development - Only LGUs with viable SE
8 
development plans as incorporated in their respective local development plans are
9 
entitled to avail of the SE Development Fund created under the immediately
10 
succeeding section for the purpose of initiating and facilitating the development and
11 
sustainability, or otherwise assisting such SEs in their jurisdiction: Provided,. That no
12 
LGU shall establish and operah- its own SE. Provided further, that this provision shall
13 
In no case be construed to prohibit LGUs from assisting in the establishment and
14 
operation of SEs.
15 
CHAPTER III
16 
DEVELOPMENT OF SOCIAL ENTERPRISES
17 
Sec. 17. SE Capability Building and Sustainability Program; Creation of SE
18 
Development Fund — There is hereby established a SE Capability Building and
19 
Sustainability Program whose primary objective Is to guarantee the viability and
20 
sustainability of SEs through activities that advance, in general, both
21 
transformational services and transactional sevices. This program shall include
22 
training in social entrepreneurship development, institutional strengthening, human
23 
resource competency and skills training, business planning and advisory services,
24 
upgrading of accounting and auditing systems, technical assistance for the
25 
installation or improvement of management information systems, technology
26 
intervention, technology incubation/commercialization, market studies, and product
27 
development competitiveness, business matching activities, trade fairs and missions,
28 
policy advocacy, disaster-resiliency and other related activities.
29 
The SE Capability Building and Sustainability Program shall likewise include
30 
the establishment of an insunnce system for SEs affected by natural calamities in
31 
line with the National Framework Strategy on Climate Change 2010-2022 as
32 
provided for under Republic Act No. 9729 or the 'Climate Change Act of2009"
18


1 
Republic Act No. 10121 or the Philippine Disaster Risk Reduction and Management
2 
Act of 2010"
3 
For this purpose^ there ;s hereby created and established an SE Development
4 
Fund (SEDF) in the amount of One Billion Pesos (Rl,000,000,000.00) to be
5 
administered by the Council with an endowment from the earnings of the Philippine
6 
Amusement and Gaming Corporation (PAGCOR), in addition to appropriations by
7 
Congress, voluntary contributions, grants, gifts from both local and foreign sources
8 
as may be accepted by the Council. Capability building projects approved by the
9 
Council shall be Implemented by the NCSED, by itself or through reputable Social
10 
Enterprise Service Institutions contracted for the purpose, and acting under the
11 
supervision of the NCSED.
12 
Only the fruits of the SEDF shall be used for the purposes provided herein.
13 
Any undisbursed fruits for the preceding year shall form part of the disbursable
14 
portion of the SEDF in the following year.
15 
Sec. 18. Social Enterprise Research and Development System. - The Council,
16 
in coordination with the NEDA, DOST, and DTI, and other appropriate agencies and
17 
research institutions, shall develop and enhance a research and development system
18 
that:
19 
a) Provides studies on opportunities for poverty reduction and SE
20 
development in key economic subsectors and other inputs for the Council
21 
to undertake strategic planning for its PRESENT Program;
22 
b) Equip SEs and support institutions with technologies that are appropriate
23 
for enhancing the participation and benefits of the poor in various
24 
economic subsectors; and
25 
■ c) Equip SEs and support Institutions with innovative and sustainable
26 
approaches to improve access of the poor to quality basic social services.
27 
Sec. 19. Social Enterprise Marketing Infrastructure Development- The Council
28 
shall promote the development and expansion of local and foreign markets for the
29 
products and services of SEs, guided by the principles of fair trade. Consistent with
30 
this, the Council shall:
31 
,. a) Establish a SE Marketing Assistance Program (SMAP) that will assist SEs
32 
match supply with demand in both domestic and foreign markets, as well
, i .
I 
19


1 
as promote SE products and services through tri-media, trade fairs and
2 
trade missions; and
3 
b) Develop, install and sustain a SE market information system with the
4 
assistance of the DTI and DOTC which shall be called the SE Marketing
5 
Information Network (SMIN).
6 
The SMIN shall be set up from the level of the municipal and provincial LGUs,
7 
the regional and up to the Council level within one (1) year from the approval of this
8 
Act, taking into account existing information networks such as the internet and using
9 
a dedicated website for the purpose, to ensure linkage of the SEs with the
10 
government and its various departments, agencies, bureaus and Instrumentalities,
11 
the local and domestic markets, as well as research institutions. The Council shall
12 
provide technical assistance in setting up the SMIN at the local and regional levels.
13 
All government departments, agencies, bureaus, research institutions, as well
14 
as the LGUs shall consolidate and continuously update all relevant information and
15 
data that would be of use to SEs on a periodic basis and make such data available in
16 
a dedicated website on the internet.
17 
The SMIN shall provide information and marketing services related to
18 
products of SEs which shall include the following:
19 
a) Supply data;
20 
b) Demand data;
21 
c) Price and Price trends;
22 
d) Product standards;
23 
e) A directory which shall include, but not limited to SEs, traders, key market
24 
centers, processors and business institutions both at the national and local
25 
levels;
26 
f) Information and technology generated from research institutions;
27 
g) International, regional and local market forecasts; and
28 
h) Resource accounting data.
29 
CHAPTER IV
30 
INCENTIVES AND BENEFITS
31 
Sec. 20. Special Credit Windows with non-coHateraiizedloans. -In addition to
32 
the special credit windows provided for the promotion of microfinance as provided
20


1 
under Section 16 of RA 8425, the Land Bank of the Philippines, Development Bank of
2 
the Philippines, Philippine Postal Bank, and A1 Amanah Bank, are hereby mandated
3 
to set aside at least eight percent (8%) of their total loan portfolio based on their
4 
balance sheet in the end of the preceding quarter, and open a special credit window
5 
for SEs.
6 
For a period of ten (10) years from the date of the effectivity of this Act, all
7 
other lending institutions as defined under the Central Bank Act or the General
8 
Banking Act, as amended, whether public or pri'/ate, shall likewise set aside at least
9 
eight percent (8%) of their total loan portfolio that will not require a collateral based
10 
on their balance sheet as of the end of the previous quarter and make the same
11 
available for SEs through a special credit window. The BSP, in consultation with the
12 
Council, shall formulate the rules for the effective implementation of this provision:
13 
Provided, That the purchase of government notes, securities and other negotiable
14 
instruments shall not be deemed compliance with the foregoing provision.
15 
The BSP shall establish an incentive program to encourage lending to SEs
16 
beyond the mandatory credit allocation such as possible reduction in bank's reserve
17 
requirement.
18 
The Council shall establish a system to monitor all loan applications of SEs in
19 
order to account for the absorptive capacity of the SE sector. The BSP shall require
20 
lending institutions covered by this Act to furnish the Council on a quarterly basis a
21 
regular report on their respective compliance with the above provisions on the
22 
mandatory credit allocations for SEs and shall act immediately on the Louncils
23 
reports of non-compliance therewith.
24 
The special credit window for SEs shall bear interest lower than the market
25 
rate and shall have longer terms of payment and waiver of applicable fees.
26 
Sec. 21. Special Credit Window Purposes. - The special credit window
27 
provided under Section 19 of this Act shall be intended for the following purposes.
28 
a) Organizational developmental loan or capacity-building loan for the
29 
conduct of social preparation activities or the conduct of capability-building
30 
and training or professional development of the board, management and
3! 
staff of the SE for social entrepreneurship, such as business planning and
21


1 
advisory services, technology intervention, incubation, market studies, and
2 
product development;
3 
b) Credit line for business development loan or working capital loan to cover
4 
the operational and management expenses of a start-up or existing
5 
business or income generating project, including receivable financing or
6 
purchase of additional inventory, soft or intangible investments such as
7 
trade fair participation or acquisition of software or franchise development
8 
packaaes;
9 
c) Fixed assets financing to cover acquisition of fixed assets like machineries
!0 
and equipment, motor vehicle, or acquisition of lot for project site or
11 
construction of a plant and building and the improvement thereof;
12 
d) Value chain financing to cover any of the value chain activities such as
13 
production, processing and marketing,
14 
e) Domestic letter of credit or trust receipt to provide a stand-by credit
15 
facility for the SE borrower for the purchase of product inputs, equipment,
16 
machinery, implements, and spare parts, whereby payment of which is
17 
guaranteed and tc be made to the seller by the lending institution,
18 
provided all documents conform with the terms and conditions of the
19 
credit; and
20 
f) Revolving Credit Line for re-lending to finance the livelihood project
21 
requirements of end-borrowers.
22 
Sec. 22. Eligibility for Agriculture and Fisheries Credit - In addition to the
23 
special credit window provided above, at least ten percent (10%) of the funds
24 
created under Section 6 of RA 10000, otherwise known as "The Agri-Agra Reform
25 
Credit Act of 2009/'to be set aside by all banking institutions, whether
26 
government or private, for agriculture and fisheries credit, shall be made available
27 
for SEs engaged in agriculture and fisheries activities.
28 
Sec. 23. Social Enterprise Guarantee Fund Pool. — There is hereby created a
29 
Social Enterprise Guarantee Fund Pool (SEGFP) which shall be comprised of the five
30 
percent (5%) of the preceding year budget surplus of the government-owned and
31 
controlled corporations and government financial institutions including the PAGCOR,
32 
the Philippine Charity Sweepstakes Office (PCSO), the Social Security System (SSS),
22


1 
the Government Service Insurance System (GSIS), the National Power Corporation
2 
and the Philippine National Oil Company (PNOC), as contribution to the SGFP in
3 
accordance with relevant laws, charters and by-laws, in addition to voluntary
4 
contributions, grants and gifts from both local and foreign sources as may be
5 
accepted by the Council.
6 
The SEGFP shall be administered by the Council and shall be used to mitigate
7 
the risks involved in SE sector lending, facilitating the provision of credit therefor.
8 
The fund shall be placed in trust with the Land Bank of the Philippines for the
9 
purpose of providing guarantee cover to participating financial institutions and other
10 
parties in extending financing to SEs; Provided, That the fund may also be used to
11 
cover the performance bond of SEs in government procurement.
12 
The Council, in coordination with the Land Bank of the Philippines, shall draw
13 
up the mechanics and administrative arrangements and issue the implementing
14 
guidelines for the fund pool.
15 
Sec. 24. Utilization of People's Development Trust Fund. - The earnings of
16 
the People's Development Trust Fund (PDTF) declared under Section 11 of RA 8425
17 
may be utilized and accessed by the NSCED or accredited SE for the following
18 
purposes:
19 
a) Consultancy and training services for SEs and their beneficiaries on the
20 
establishment of the necessary support services such as financial
21 
preparation, fund sourcing, operation of credit and savings entities,
22 
monitoring and evaluation including training on marketing, financial,
23 
human resource, operational and strategic management;
24 
b) Scholarships or training grants for SE staff and officers, and selected
25 
beneficiaries;
26 
c) Community organizing for SEs;
27 
d) SE development and capability building programs, feasibility studies and
28 
researches;
29 
e) Legal and other management support services for SEs such as registration
30 
or accreditation, documentation, contract review and enforcement, audit
31 
and operational assessment;
32 
f) Information dissemination of SE technology and management; and
23


1 
g) Other activities to support SEs as approved by the designated agency
2 
administering the PDTF.
3 
Sec. 25. Tax Exemptions. - Without prejudice to existing tax exemption
4 
provisions already applicable to different SEs under other laws, A qualified SE shall
5 
have the following tax exemptions:
6 
a) SEs with a net annual income of not more than Fifteen million pesos
7 
(P15/000,000.00) shall be exempt from all national, city, provincial,
8 
municipal or barangay taxes of whatever name and nature: Provided,. That
9 
such net income shall be allocated for transformational services and other
10 
activities of the SE as provided under Section 5.g of this Act;
11 
b) VAT and other percentage taxes;
12 
c) Documentary stamp tax;
13 
d) Capital gains tax on sales or exchanges of real property classified as
14 
capital assets or shares of stock; and
15 
e) For five (5) years after the effectivity of this Act, all SEs duly certified by
16 
the Council, in consultation with the Department of Finance (DOF) and the
17 
Board of Investment (BOI) of the DTI, shall be exempted from the
18 
payment of VAT, tariff and duties for the importation of all types of
19 
product inputs, equipment, machinery, implements, and spare parts:
20 
Provided, That these inputs, equipment, machinery, implements, and
21 
spare parts shall be for the exclusive use of the importing SEs and can be
22 
shown to be directly related to further improve the value chain operations
23 
of the SEs.
24 
The Council shall, in consultation with the DOF and the BOI, within ninety
25 
(90) days from the effectivity of this Act, formulate the Implementing rules and
26 
regulations governing the importation of the inputs, equipment, machinery, and
27 
implements for use by the SEs.
28 
For income tax purposes, a reinvestment made by a SE for the expansion of
29 
its socioeconomic projects within the area of its operation shall be tax deductible
30 
from the gross income.
31 
Sec. 26. Preferentiai Rights. - Without prejudice to preferential rights already
32 
available to specific enterprises or organizations under other laws, qualified SEs shall
24


1 
be accorded a preferential right in the procurement process and in the
2 
implementation of procurement contracts by the government in all its branches,
3 
departments, agencies, subdivisions, and instrumentalities, including in the
4 
government-owned and controlled corporations and local government units.
5 
SEs shal! be given priority and preference ;n the following procurement
6 
processes:
7 
a) Direct contracting as provided under Section 50 of RA 9184, otherwise
8 
known as the "Government Procurement Reform Act" may be resorted to
9 
if the contracting party selling the goods and services required by the
10 
procuring entity is a social enterprise as certified by the Council;
11 
b) Shopping as provided under Section 52, paragraph (a) of RA 9184 may be
12 
resorted to when there is an unforeseen contingency requiring immediate
13 
purchase: Provided, That the procurement of the goods and services shall
14 
be first obtained from the social entei prise within the area of operation of
15 
the procuring entity which is duly certified by the Council as having the
16 
capacity to supply the required goods and services: Provided, further. That
17 
the amount shall not exceed One hundred thousand pesos (P100,000.00);
18 
and
19 
c) Negotiated procurement as provided under Section 53 of RA 9184 may be
20 
allowed when the goods or services subject of the procurement may 
be
21 
obtained from a SE within the 
area of operation of the procuring entity
22 
which is duly certified by the Council as having the capacity to supply the
23 
required goods and services.
24 
A procuring entity, when applicable, shall have at least one member
25 
representing SEs.
26 
Registered small enterprises under RA 6977 that qualify as SE under this Act
27 
shall, consistent with Section 4 of RA 9501, be entitled to a share of at least ten
28 
percent (10%) of total procurement value of goods and services supplied to the
29 
government, its bureaus, offices and agencies annually.
30 
The Council shall, in coordination with the Department of Budget and
31 
Management (DBM) and the Department of the Interior and Local Government
32 
(DILG), issue the rules and regulations that shall implement the preferential right
25


1 
accorded to SEs under this section including the limitations and restrictions in its
2 
application.
3 
Sec. 27. Incentives for Social Investors. - Social investors and other
4 
institutions that contribute money or other forms of contribution in the promotion
5 
and development of SEs shal! be entitled to the following tax incentives:
6 
• Equity investments and donations to an accredited SE shall be fully deductible
7 
from the gross income of the investor or donor;
8 
• Dividends or other forms of profit shares received from an accredited SE shall
9 
be exempt from income tax; and
10 
• Donations, grants and contributions to an accredited SE shall be exempt from
11 
donor's tax.
12 
For the purpose of availing of the tax incentives under this Section, the
13 
accreditation of the recipient SE by the Council shall be sufficient evidence for
14 
qualification as a social investor under this Act.
15 
CHAPTER VI
16 
FINAL PROVISIONS
17 
Sec. 28. Appropriations. - To carry out the provisions of this Act, the
18 
following amounts are appropriated as follows:
19 
a) The sum of Fifty million pesos (P50,000,000.00) is hereby appropriated as
20 
the initial operating fund which sum shall be sourced from the President's
21 
Contingent Fund and voluntary contributions, grants and gifts from both
22 
local and foreign sources as may be accepted by the Council. In the
23 
subsequent years, the Council shall have a separate annual appropriation
24 
under the DTI which shall be included in the annual Genera! Appropriations
25 
Act starting in the fiscal year immediately following the approval of this Act.
26 
b) The aggregate sum of One billion pesos (P1,000,000,000.00) for ten (10)
27 
years is hereby appropriated for the establishment of the SEDF from the
28 
share of the national government in the earnings of the PAGCOR and from
29 
voluntary contributions, grants and gifts from both local and foreign sources
30 
as may be accepted by the Council.
31 
Sec. 29. Penalty Clause. - The penalty of imprisonment for not less than six
32 
(6) months but not more than two (2) years or a fine of not less than Twenty-five
26


1 
thousand pesos (P25/000.00^ but not more than Fifty thousand pesos (PSC.OOO.OO),
2 
or both imprisonment and fine, at the discretion of the court, shall be imposed upon
3 
any person, corporation, government entity or agency who, intentionally or by gross
4 
negligence, fails to provide the benefits, rights and incentives granted to SEs in
5 
violation of this Act, or perform any act in violation of its provisions.
6 
a) If the violation is committed by the SE or a government agency, the
7 
members, officers, directors or trustees thereof who are directly involved
8 
shall be held liable therefor;
9 
b) If the violation is committed by the employees and agents who acted in
10 
gross violation of the provisions of this Act, the officers, directors or
11 
trustees, or Incorporators of the SE shall be jointly and severally liable with
12 
the offending employees, agents, and the enterprise;
13 
c) If the offender is a public official or employee, the offender shall, upon
14 
conviction, suffer the accessory penalty of absolute disqualification.
15 
Sec. 30. Non-Compliance with the Mandatory Allocation of Credit Resources. -
16 
Administrative sanctions including a fine of not less than Five hundred thousand
17 
pesos (P500,000.00) shall be imposed by the Banko Sentral ng Pilipinas upon any
18 
banking or lending institution who falls to provide the credit allocations granted to SE
19 
In violation of Section 19 of this Act.
20 
Sec. 31. Non-Impairment Clause. - Nothing in this Act shall be construed to
21 
diminish, impair, or repeal the rights granted to the marginalized sectors or to micro,
22 
small and medium enterprises under the Constitution, and existing laws, presidential
23 
decrees, and rules and regulations.
24 
Sec. 32. Information Dissemination. —The Philippine Information Agency
25 
(PIA) shall, in coordination with the Council, the DTI, DA, and the DILG, ensure the
26 
proper and adequate information dissemination of the contents and benefits of this
27 
Act to the general public especially to its Intended beneficiaries.
28 
Within sixty days (60) after its effectivit/, the Council shall distribute copies of
29 
this Act to every department, agency, subdivision, and instrumentality of the
30 
government, including government-owned and controlled corporations, regional and
31 
provincial offices, and local governments.
27


1 
All duly accredited SEs shall be given one (1) copy of this Act at cost.
2 
Thereafter, every newly accredited SE shall be issued a copy of this Act together with
3 
the rules and regulations promulgated pursuant to this Act.
4 
Sec. 33. PRESENT Program in Government - All agencies of the government
5 
implementing a poverty alleviation program shall. In coordination with the Council
6 
and within a period of five (5) years but in no case longer than ten (10) years from
7 
the approval of this Act, incorporate the PRESENT Program in their respective
8 
poverty alleviation programs as a tool for poverty reduction.
9 
The Council shall, in coordination with the various government agencies with
10 
poverty alleviation programs, prepare the appropriate beneficic ries thereof and
11 
organize them into full-fledged SEs under the contemplation of this Act.
12 
Within a period of five (5) years, the Council shall facilitate the development
13 
and dissemination of tools, and invest in the development of the capability of SEs to
14 
plan, monitor and evaluate their social and financial performance and outcomes. The
15 
Council shall evolve socially acceptable benchmarks for evaluating the peiformance
16 
of SEs and incorporate them to effectively develop and regulate the sector
17 
Sec. 34. Social Entrepreneurship Education in Schools. - Toward strategically
18 
developing the nation's human resource capability in social entrepreneurship, the
19 
DepEd and the CHED shall cause the integration of SE content and inclusion of SE
20 
courses in the curricula at all levels, especially in the secondary and tertiary levels.
21 
This shall be part of the SE Capability Building and Sustainability Program stated in
22 
this Act.
23 
A continuing social entrepreneurship education program for out-of-school
24 
youth and adults shall likewise be developed and undertaken. The social
25 
entrepreneurship education program for primary and secondary education shall
26 
include information regarding:
27 
a) Social issues and civic ways of addressing them;
28 
b) The producer as a steward of natural resources;
29 
c) The consumer as a responsible member of society and his responsibility to
30 
develop critical awareness which is the responsibility to be alert and
31 
questioning about the environmental and social Impacts of the goods and
32 
services he/she uses;
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1 
d) Social concern which is the responsibility to be awa^e of the impact of his
2 
consumption to society, especially the disadvantaged; and
3 
e) Environmental awareness which Is the responsibility to understand the
4 
environmental consequences of his use of natural resources, consumption,
5 
recognizing his individual and social responsibility to conserve natural
6 
resources for future generations;
7 
All higher learning Institutions and vocational schools are mandated to include
8 
a subject on social entrepreneurship in their social studies program or in their
9 
business, commerce, or economics courses.
10 
Sec. 35. Applicability of Other Laws. — The Labor Code and all other labor
11 
laws, the Social Security Act, the Medical Care Act, other social legislations, and all
12 
other laws and executive orders that govern the relationship between the employer
13 
and the employee shall apply to SE and its employees and that all employees
14 
covered under this Act shall be entitled to the same benefits given to any regular
15 
employee oud i as social seci’rity and healthcare benefits.
16 
Sec. 36. Interpretation and Construction. - In case of doubt in the meaning of
17 
any provision of this Act or in the rules and regulations promulgated pursuant to this
18 
Act, it shall be resolved in favor of SEs and their stakeholders.
19 
Sec. 37. Congressional Oversight Committee. - There is hereby created a
20 
Congressional Oversight Committee on Social Enterprises composed of the Chairman
21 
of the Senate Committee on Economic Affairs, Trade and Commerce and the
22 
Chairman of the House Committee on Trade and Industry, four (4) members of the
23 
Senate and four (4) members of the House of Representatives. The members from
24 
the Senate shall be appointed by the Senate President from among the members of
25 
the Senate Committee on Economic Affairs, Trade and Commerce based on the
26 
proportional representation of the parties or coalition therein. The members from the
27 
House of Representatives shall be appointed by the Speaker from among the
28 
members of the House Committee on Trade and Industry based on the proportional
29 
representation of the parties or coalitions therein. The Council shall submit to the
30 
Committee on Economic Affairs, Trade and Commerce of the Senate and the
31 
Committee on Trade and Industry of the House of Representatives an annual report
32 
on the implementation of this Act. The appropriation for the oversight committee
29


1 
shall be charged to the budget of both Houses of Congress in the annual General
2 
Appropriations Act.
3 
Sec. 38. Social Enterprise Week. - In order to institute continuing awareness
4 
on the importance of SEs as a viable government strategy in pursuing poverty
5 
alleviation, the week of the month when this Act shall have been signed into law
6 
shall be declared as the "Social Enterprise Week" ^x\(^ shall be celebrated annually.
7 
The Council shall, through the NCSED, be responsible in organizing activities for the
8 
event.
9 
Sec. 39. Implementing Rules and Regulations. - VVithin ninety (90) days from
10 
the effectivity of this Act, the Secretary of Trade and Industry shall. In consultation
11 
and coordination with the concerned government agencies and sector, promulgate
12 
the necessary rules and regulations for the effective implementation of this Act.
13 
Sec. 40. Separability Clause. - If any provision or part of this Act Is declared
14 
invalid or unconstitutional, the remaining parts or provisions not affected shall
15 
remain in full force and effect.
16 
Sec. 41. Repealing Clause. - For purposes of this Act, Section 11 of RA 8425
17 
and Sections 50, 52 and 53 of RA 9184 which are inconsistent with this Act are
18 
hereby deemed amended. All other laws, executive orders, presidential decrees,
19 
rules and regulation or parts thereof inconsistent with any provisions of this Act are
20 
hereby repealed, amended or modified accordingly.
21 
Sec. 42. Effectivity Clause. - This Act shall take effect thirty (30) days after Its
22 
publication in the Official Gazette. 
;
Approved, 
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