segs

REPUBLIC OF THE PHILIPPINES RECEy
HOUSE OF REPRESENTATIVES 14 Noy
Quezon City 2013
SIXTEENTH CONGRESS

First Regular Session

House Bill No.___ 38360 Se

Introduced byMAGDALO Party List Representatives
Gary C. Alejano and Francisco Ashley L. Acedillo

EXPLANATORY NOTE

The past few months saw the country reeling from the unimaginable and heartwrenching
magnitude and extent of the damage and destruction caused by a series of natural and man-made
calamities starting from the Moro National Liberation Front (MNLF) Siege of Zamboanga City
last September, the 7.2 magnitude earthquake which devastated the provinces of Bohol and parts
of Cebu and other Visayan provinces last October 15, 2013; the strongest tropical cyclone on
record to make landfall — Typhoon Yolanda (international codename: Haiyan) which hit the
Visayas, Palawan and other provinces on November 8, 2013, among others. Approximately 9.5
million people were affected by the last calamity, Super Typhoon Yolanda, and the estimated
death toll of 10,000 is feared to continue to rise as rescue workers struggle to reach isolated areas
ravaged by the deadly storm.

The government is, thus, faced with an overriding urgency to respond to the plight of our people
and communities who have been badly battered by the onslaught of these recent calamities, This
has prompted President Benigno S. Aquino III to declare the country to be under a State of
National Calamity pursuant to Proclamation No. 682 9n November 11, 2013.

While amendments to the 2014 General Appropridtions Act (GAA) are being proposed to
include significant amounts of funds which the Executive can immediately use to respond to the
crises, there is an imperative need to provide more substantial funds and resources and create a
legal framework which will support the intermediate and long-term recovery, rehabilitation and
reconstruction efforts for the communities damaged and devastated by the series of calamities.

This measure seeks to create a National Calamity Recovery, Rehabilitation and Reconstruction
Fund which shall provide substantial financial resources for the intermediate and long-term
reconstruction and rehabilitation of public infrastructure and for the rebuilding of homes and
communities in the parts of the country affected by aforementioned and similar calamities, The
appropriation for the aforesaid Fund shall be sourged from the Malampaya Fund collected
through the Department of Energy under Presidential Decree No. 108.



Albeit the Malampaya Fund, which has a current balance of P 137.3 Billion’, was created for the
Purpose of financing energy resource exploration, development and exploitation programs and
Projects of Government, empirical data show that it has not always been used for the said
Purpose. This is an opportune time to legislate a new measure to hamess and utilize these funds
for the benefit of our people, particularly for the purpose of creating a critical resource to help
our people and our country recover from the aforementioned series of calamities,

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

XS

;ARY C(ALEJANO. Fi iCISCO ASHLEY L. ACEDILLO.

* Please see “Treasury: P137.3 Billion Malampaya Fund intact’, an article published on 09 October 2013 in the

Official Gazette (http://www gov ph/2013/10/09/btr-p137-3-bmalampaya-fund-intact/}; Information retreived
‘on 13 November 2013.



10

cB

12

13

14

15

16

7

REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon

SIXTEENTH CONGRESS
First Regular Session

House Bill No.___ 8360

Introduced by MAGDALO Party List Represent:
Gary C. Alejano and Francisco Ashley L. Acedillo

AN ACT.
APPROPRIATING THE SUM OF FIFTY BILLION PESOS (P50,000,000,000.00) FOR
THE CREATION OF A NATIONAL CALAMITY RECOVERY, REHABILITATION
AND RECONSTRUCTION FUND AND FOR OTHER RELATED PURPOSES

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

SECTION 1. Short Title. - This Act shall be known as the "National Calamity

Rehabilitation Act of 2013."

Section 2. Declaration of Policy. ~ It is hereby declared the policy of the State to assist
the victims in the communities damaged or destroyed or adversely affected by the following
natural and man-made calamaties, particularly:

1. the Moro National Liberation Front (MNLF) Siege of Zamboanga City last

September 2013;
2. the 7.2 magnitude earthquake which ravaged the Bohol, parts of Cebu and other
Visayan provinces last October 15, 2013: and —

3. Supertyphoon Yolanda (international code name: Haiyan) last November 8-9, 2013;
among others, and the aftereffects of the same, by éxtending to them aid, relief, resettlement,
rehabilitation, the repair and reconstruction of public’ infrastructure, homes and communities to
the end that life may return to normalcy at the earliest possible time and the development of
affected provinces may be accelerated.

It is hereby further declared the policy of the $tate to restore the living conditions of the

families and other members of the affected communities in the area to their productive pre-



10

1

12

13

14

15

16

7

18

19

20

21

22

23

24

25

26

27

28

29

calamity conditions, with the resettlement sites being chosen according to their suitability as
permanent, safe and peaceful abodes thereby ensuring the development and improvement of
these communities.

The State acknowledges with sincere gratitude the invaluable contribution of foreign
governments, as well as countless individuals, organizations and financial institutions here and
abroad who have spontaneously and unselfishly contfibuted their time, effort and resources to the

relief and rehabilitation efforts for the affected communities.

Section 3. National Calamity Recovery, Rehabilitation and Reconstruction Fund. —
There is hereby created a National Calamity Recovery, Rehabilitation and Reconstruction Fund
(hereinafter referred to as the ‘National Rehabilitation Fund’ or the ‘Fund’ to provide financial
resources for the reconstruction and rehabilitation of public infrastructure and for the repair and
rebuilding of homes and communities in the parts of the country affected by above-mentioned
calamities, among other calamities, particularly but not limited to the following provinces/cities:
‘Zamboanga City, Northern Samar, Eastern Samar, Samar, Leyte, Southern Leyte, Biliran Island,
Province of Bohol, Cebu Province, Cebu City, Bantayan, Camotes Islands, Northem Negros

Occidental, Capiz, Aklan, Antique, Iloilo, Guimaras.

SEC. 4. Appropriations. — The sum of Fifty Billion Pesos (P50,000,000,000.00) is
hereby appropriated for the Fund to be charged against the net government share in the proceeds
of Service Contract No. 38 authorized under Section 8 of Presidential Decree (P.D.) No. 910,
otherwise known as the Malampaya Fund; provided, that Congress may appropriate additional
funds to augment this initial appropriation as it may find appropriate and proper under the

circumstances in the course of the implementation of the plans and programs of the Commission,

Section 5. Statement of Objectives and Guidelines. — The Fund is intended to help the
victims of the above-identified calamities and their aftereffects. It aims to provide substantial
funds and resources for the intermediate and long-term relief of the victims: to establish

resettlement centers, homesites and townsites for displaced families: to provide livelihood and


10

oe

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

employment opportunities: to repair, reconstruct or replace government infrastructure as well as
homes and communities damaged or destroyed by said disaster whenever economically, socially
and technically advisable; and to construct new infrastructure facilities for the affected

communities.
The term "victims" when used for purposes of this Act refers to the following:
(a) Individuals who have died or disappeared as a result of the aforementioned calamities;

(b) Individuals who were displaced and/or who sustained injury or suffered death in the
family as a result of the aforementioned calamities who need and deserve assistance;

and —

(c) Individuals whose homes have been or are threatened to be destroyed or rendered

uninhabitable and those who have lost permanently their livelihood as a direct result

of the aforementioned calamities who similarly need and deserve assistance.

Section 6. Guidelines in the Allocation of Funds. —The government funds and resources
herein appropriated and donations and contributions collected shall be spent judiciously and
effectively in consonance with the development plan crafted and approved by the National
Rehabilitation Commission, and the principle of providing the greatest good for the greatest
number. Accordingly, the following guidelines shall be observed in allocating the funds made
available under this Act, thus:

(a) In the construction or repair and reconstruction of government infrastructure and
facilities, priority shall be given to rebuilding of homes and resettlement centers, homesites and
townsites, and such other related support projects a$ river system and drainage works, roads,
bridges, communication and power lines, hospitals, school buildings, irrigation and water

systems, and the like:

(b) Aid, relief, resettlement, rehabilitation and livelihood services shall be equitably
extended to all victims, irrespective of political or party affiliation, sex. creed, religious belief, or

ethnic origin, or location, giving emphasis to livelihood and employment opportunities;


at

10

12

13

14

15

17

18

19

20

2a

22

23

24

25

26

27

28

(©) Funds shall be allocated in the first year for the acquisition by appropriate government
agencies of special equipment, such as amphibians and other equipment designed for use in the

affected areas in an amount not to exceed Five Hundred million pesos (P500,000,000.00); and —

(4) No money shall be released except to the appropriate line agencies of the government
and/or the affacted local government units which shall act as the implementing agencies and
without any identified program and project nor shall the funds be used to pay obligations

incurred before the approval of this Act;

SEC, 7. National Crisis Recovery, Rehabilitation and Reconstruction Commission, ~
The National Calamity Recovery, Rehabilitation and Reconstruction Commission (hereinafter
referred to as the ‘National Rehabilitation Commission’ or the ‘Commission’) is hereby
constituted to oversee the prioritization of programs and projects to be funded by the Fund and to
oversee by proper and optimal utilization of the aforesaid Fund.

The Commission shall be Chaired by the Executive Secretary and shall be composed of
the following members:

(a) the Secretary of the Department of Social Welfare and Development (DSWD);

(b) the Secretary of the Department of National Defense (DND);

(©) the Secretary of the Department of Health (DOH):

(d) the Secretary of the Department of the Interior and Local Government (DILG);

(©) the Director-General of the National Economic and Development Authority (NEDA);

(f) the Secretary of the Department of Public Works and Highways (DPWH);

(g) the Secretary of the Department of Education (DepED);

(h) the Secretary of the Department of Budget and Management (DBM);

(i) the Secretary of the Department of Finance (DOF);

@ the Executive Director of the National Disaster Risk Reduction and Management

Council (NDRMMC);
(k) the President of the Union of Local Authorities of the Philippines:

(D) the President of the League of Provinces of the Philippines:


10

a

13

14

15

16

7

18

19

20

24

22

23

24

25

26

27

(m) the President of the League of Cities of the Philippines;

(n) the President of the League of Municipalities of the Philippines;

(0) the President of the Liga ng mga Barangay:

(p) four (4) members representing the private sector to be appointed by the President
from the affected communities; and ~

(@) the Executive Director of the Commission;

The Commission shall be organized within thirty (30) days after the approval of this Act,
The Commission shall have a term of five (5) yeats from its organization; provided, that the
President by proclamation may, within six (6) months prior to the expiration of the term, extend
the period of its existence once for not more than| three (3) years. Such amount as may be
necessary for the initial organization and/or operational expenses of the Commission shall be set

aside from the amount herein appropriated.

For administrative purposes, the Commission shall be attached to the Office of the

President.

Section 8. Powers of the Commission. ~ To carry out its objectives under this Act, the
‘Commission shall have the following powers:

(a) To formulate policies and plans for the relief, rehabilitation, resettlement and
livelihood services as well as infrastructure support in harmony with the other plans and
policies of the National Government and other relevant agencies;

(b) To prioritize and coordinate the implementation of the various programs and projects
of the Commission;

(c) To enter into, make, perform and carry out agreements and contracts of every class,
kind and description which are necessary to the realization of its purposes with any
person, firm or corporation, private or public, and, upon consultation with the President,
with foreign government entities, subject to the usual accounting and auditing

requirements:


10

ve

12

13

14

15

16

17

18

19

20

2

22

23

24

25

26

27

28

29

(@) To apply for, receive and accept grants and donation of funds, equipment, materials
and services for the rehabilitation and development of the affected communities, within
and outside the Philippines;

(e) To monitor the progress of the relief, rehabilitation, resettlement and livelihood as
well as infrastructure support and rehabiljation and related support programs and
projects;

(f) To coordinate and consult with concerned national and local officials, both elective
and appointive, in the prioritization and prosecution of the programs and projects;

(g) To call upon any department, office, instrumentality, agency, or any political
subdivision of the Government for such assistance as may be necessary for the attainment
of the objectives of the Commission;

(h) To identify subsequent national crisises and/or calamities with such magnitude,
impact and/or effects similar to those identified in Section 2 hereof, the victims of which
may be included under the coverage of this Act; and —

(@ In general, to perform such other powers as may be necessary and proper to carry out

the purposes of this Act.

Section 9. Executive Director; Powers and Responsibilities. - The President shall
appoint a person of proven competence, integrity and experience as the Executive Director of the
Commission, who shall serve as the chief executive officer thereof. He shall have the rank,
compensation and renumeration of an Undersecretary and shall serve until such time as the
Commission is dissolved, unless sooner removed from office by the President. He shall have the
following powers and functions:

(a) Execute and administer the policies and decisions of the Commission;

(b) Directly coordinate the activities of all agencies and instrumentalities of the

Government in the planning and implementation of Commission's programs and projects;

(©) Monitor the programs and projects and evaluate the effects of execution by these

agencies and instrumentalities and submit to the Commission periodic reports relating to

the development of the areas: and


10

aoe

12

13

14

15

16

a7

18

19

20

2a

22

23

24

25

26

27

28

(@) Perform such other functions as are inherently necessary in the operational
management of the areas to be rehabilitated and developed in accordance with the

policies and guidelines formulated by the Commission.

Section 10. Implementation. — The survey, construction or repair and reconstruction of
damaged, destroyed, required or alternate government infrastructure and facilities shall be
undertaken by the implementing government agencies concerned by public bidding,
administration or through negotiated contracts whenever warranted by the emergency nature of
the programs or projects, as determined by the Commission, subject to the usual accounting and
auditing rules and regulations. Whenever suitable, labor-based technology shall be used in the
implementation of the programs and projects.

With respect to aid, relief, resettlement, rehabilitation and livelihood services to
individual beneficiaries, the Commission may seek the assistance and use the services of the
Philippine National Red Cross and all other relief agencies and volunteer organizations with
proven record in providing relief work.

The departments and agencies of the Government involved with the aid, relief,
resettlement, rehabilitation and livelihood services as well as infrastructure development and
support shall continue to be the implementing agencies of the Commission and shall submit to

the Commission every quarter the data and information required under Section 12 hereof.

Section 11. Preference for Local Residents. ~ Residents in the affected areas, especially
the victims, shall be given preference in hiring or employment in the construction or repair and
reconstruction of damaged or destroyed government infrastructure and facilities and other labor

requirements in all other projects.

Section 12. Report to Congress. ~The Commission shall submit to the President and to
Congress a detailed quarterly report on the funds allocated indicating the amount released,

obligated and disbursed for:


10

1

12

13

15

16

a7

18

19

20

24

22

23

24

25

26

27

28

29

(a) Aid, relief, resettlement, rehabilitation and livelihood services, including the list of
names of approved individual beneficiaries and contractors and the evaluation of the

effectiveness of the delivery systems of such services; and

(b) Construction or repair and reconstruction of infrastructure projects, including the list

of contractors and projects being financed, and the accomplishments for the expended

appropriations, including the percentage of completion.

The Commission shall cause to be disseminated in the community the list of beneficiaries
and contractors mentioned above.

The Commission shall also submit as part of the quarterly report a list of local and

foreign donors and the nature of their donations.

Section 13. Joint Congressional Oversight Committee. ~ There is hereby created the
Joint Congressional Oversight Committee to monitor the implementation of this Act. The
Committee shall be composed of five (5) senators and five (5) representatives to be so designated

by the Senate and the the House of Representatives, respectively. The Over

ight Committee shall

be co-chaired by a senator and a representative designated by the Senate President and the

Speaker of the House of Representatives, respectively,
The mandate given to the Joint Congressional Oversight Committee under this Act shall
be without prejudice to the performance of the duti¢s and functions by the respective existing

oversight committees of the Senate and the House of Representatives.

Section 14, Prohibition Against Running for Public Office. ~ An officer or employee of
the Commission shall not be qualified to be a candidate for public office for the election
following his resignation or separation. This prohibition does not apply to the Chairman and ex

oficio members of the Commission.

Section 15. Punishable Acts. - Any person who takes advantage of the calamity by
buying and selling relief goods which he knows or should be known to him as intended for
donation, or misrepresenting the source of relief goods, or submitting or approving a false or

8


10

nn

2

13

14

15

16

7

19

20

24

22

23

inflated claim shall be prosecuted and, upon conviction, suffer a fine of not less than Fifty
thousand pesos (P50,000) nor more than One million pesos (P1,000,000) or imprisonment for not
less than six (6) years nor more than fifteen (15) years, or both, at the discretion of the court,
including perpetual disqualification from public office if he is a public officer, and confiscation
or forfeiture in favor of the Government of any prohibited interest.

If the offender is a corporation, partnership or association, or other juridical entity, the
penalty shall be imposed upon the officer or officers of the corporation, partnership, association,
or entity responsible for the violation and, if such is an alien, he shall, in addition to the penalties

prescribed, be deported without further proceedings after service of sentence.

Section 16. Implementing Rules and Regulations. ~The Commission shall, within thirty
(30) days from and after its organization, issue the necessary rules and regulations for the
effective implementation of this Act.

Section 17. Separability Clause. — If any provision of this Act shall be held

unconstitutional or invalid, the other provisions not otherwise affected shall remain in full force

and effect.

Section 18. Repealing Clause. — Any law, decree, or rules and regulations which are

inconsistent with or contrary to the provisions of this Act are hereby amended or repealed.

Section 19. Effectivity Clause. — This Act shall take effect upon its publication in at least

two (2) national newspapers of general circulation.

Approved.