SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
flirst Regula I' Session 
) 
SENATE 
S.No. 989 
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Introduced by Senator Antonio "Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
Official statistics showed that over the past six years, economic growth hardly made a dent in 
poverty incidence in the Philippines, as the percentage of Filipinos living below the poverty line 
remained practically the same between 2006 and 20 12J. National Statistical Coordination Board 
(NSCB) reported that poverty incidence stood at 27.9% in the first semester of2012·- practically 
unchanged from the same period in.2009 and 2006, which is 28.6% and 28.8% respectively2 
RepOlis have shown that over half a million school-aged children nationwide have been suffering 
from severe malnutrition. According (0 the Department of Education, 562,262 pupils in 
kinder§arten and elementary levels currently enrolled in public schools are considered severely 
wasted. With Filipino children literally dying from extreme poverty, hunger and malnutrition, 
the future of the Philippines is clearly in grave peril. 
The passage of Republic Act 842534 otherwise known as the "Social Reform and Poverty 
Alleviation Act" is a step towards the right direction. However, considering the fact that the said 
law is actually focused on social reform and long term development, the National Anti-Poverty 
Commission (NAPC), which was created as a coordinating body under the law, is apparently not 
equipped (0 immediately address the problem. 
Indeed, it is not enough that we adopt a long-term strategy to combat child malnutrition and 
extreme poverty. In the long-run, many of these children will be dead! Hence, there is an 
imperative necessity for the Government to immediately act on this problem. 
This bill aims to provide significant and continuing intervention by Government into this grave 
problem by providing literally billions of pesos annually to fund school and community-based 
supplemental feeding programs and related poverty alleviation efforts using the minimwn basic 
needs (MBN) approach among the poorest of the poor communities in the country. It is expected 
that through this measure, billions of pesos will be generated to help ameliorate, if not totally put 
a stop, to the prevalence of child malnutrition in the country. 
The immediate passage of this bill is, therefore, earnestly sough. 
SONNY" I. T 
LLANES IV 
Senator 
I Information retrieved from http'/!newsinfo,inquirer,net/396237/ph-poverty-unchanged on 20 June 2013. 
2 Ibid 
'Information retrieved from http://www.gmanetwork comlnews/story!296884!news/specialreports/more-than-half-
million-pinoy-kids-suffer-fi'om-severe-malnutrition on 20 June 2013 
.4 Effective 30 June 1998. 
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SIXTEENTH CONGRESS OF THE 
) 
R~;PUBLIC OF THE PHILIPPINES ) 
I<'irst Regular Session 
) 
SENATE 
989 
s. No. --.:::c..;:;...: 
________ 
In::.:t''-rodu~ed by Senator Antonio "Sonny" 1<'. Trillanes IV 
AN ACT 
CREATING A SPECIAL POVERTY ALLEVIATION FllND TO BE USED TO 
FINANCE SCHOOL AND COMMUNITY-BASED SUPPLEMENTAL FEEDING 
PROGRAMS AND RELATED POVERTY ALJ"EVIATION EI<'FORTS USING THE 
MINIMUM BASIC NEEDS (MBN) APPROACH IN THE POOREST OF THE POOR 
COMMlJNITIES IN THE COUNTRY AND FOR OTHER RELATED PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philzppines Tn Congress 
assembled: 
SECTION 1. Short Title. - This law shall be known as the "Poverty Alleviation Fund of 
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2013". 
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SEC. 2. Declaration of Policy. - It is the policy of the State to promote a just and 
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dynamic social order that will ensure the prosperity and independence of the nation and free the 
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people from poverty through policies that provide adequate social services, promote full 
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employment, a rising standard ofiiving, and an improved quality ofiife for all [Section 9, Article 
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11, 1987 Philippine Constitution J. 
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Towards this end and to help combat the growing problem of malnutrition, hunger and abject 
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poverty particularly among children, the Government shall institute a systematic and well-
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studied direct intervention program by conducting sustained supplemental feeding targeting 
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school children, out-of-school youth and children of pre-schooling age as well as related poverty-
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alleviation efforts using the basic human needs approach, particularly among those belonging to 
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the poorest of the poor or the lowest twenty percent (20%) of Philippine social strata in terms of 
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income and resources. 


SEC. 3. Creation of A Special Poverty Alleviation Fund. - There is hereby created a 
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Special Poverty Alleviation Fund ("Fund'') to be funded from the sources provided herein below 
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and to be managed and administered by the National Anti-Poverty Commission (NAPC) under a 
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Program to be implemented by the Department of Social Welfare and Development (DSWD). 
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SEC. 4. Sources of the Fund. - The Fund shall be constituted from the following 
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sources: 
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(a) Ten percent (10%) share from the net income of the Philippine Games and Amusement 
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Corporation (PAGCOR), to be given and delivered by PAGCOR to the NAPC on a quarterly 
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basis, no later than ninety (90) days after the end of each quarter, subject to final accounting 
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andl.or adjustments at. the end of each calendar year; 
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(b) Ten percent (10%) share from the net income of the Philippine Charity Sweepstakes Office 
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(PCSO), to be given and delivered by P AGCOR to the NAPC on a quarterly basis, no later than 
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ninety (90) days after the end of each quarter, subject to final accounting and/or adjusments at 
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the end of each calendar year; 
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(c) Ten percent (10%) share from the net profits of all Duty Free Shops (DFS) or, in case of the 
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privatization of the DFS, twenty percent (25%) ofthe proceeds of privatization ofDPS plus fifty 
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percent (50%) of the franchise tax collected thereon. 
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The Department of Finance, through its appropriate agencies, is hereby mandated to ensure the 
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proper collection of the shares and/or charges intended for the Fund from the sources provided 
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herein and to tum-over the same quarterly to the NAPC through the DSWD. 
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SEC. 5. Authorized Use of the Fund; The Program The Fund shall principally be used 
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to fmance the National Supplemental Feeding and Poverty Alleviation Program ("Program"). 
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The Program shall provide for the generation of an annual listing of priority or target schools, 
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communities, barangays and/or other localities where the Goverrnnent shall undertake direct 
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feeding and/or supplemental feeding activities on a sustained basis targeting school children, out-
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of-school youth and children of pre-school ages who belong to the poorest of the poor or the 
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lowest twenty percent (20%) oithe Philippine social strata in terms of income or financial 
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resources. The Program shall also incorporate other poverty-alleviation efforts using the 
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minimum basic needs (MBN) approach targeted at poor communities. 
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The Program shall be prepared by the DSWD for the approval of the NAPC. The Program shall 
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likewise be implemented by the DSWD. 
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In connection with the foregoing, subject to the approval ofNAPC, the DSWD shall: 
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(a) Devise and formulate plans, strategies and programs to carry out effectively and efficiently 
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the disposition of the Fund in accordance with declared purpose thereof; 
IS 
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(b) Direct the management, operations and administration of the Fund; 
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(c) Authorize expenditures of the Fund as are in accordance with the purpose for which it was set 
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up; and 
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(d) Exercise such other powers as may be necessary to accomplish the purpose for which the 
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Fund was created. 
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SEC. 6. Limitations. The Fund shall not be used for any purpose other than to finance the 
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feeding and/or supplemental feeding program of the Goverrnnent, as prepared by the DSWD and 
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approved by the NAPC. Moreover, no more than three percent (3%) of the proceeds of the Fund 
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may be used for administrative purposes. 
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SEC. 7. Administration and Control of the Fund The Fund shall be under the control of 
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the DSWD, which shall administer the same in accordance with the above staled powers, 
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functions and limitations. 
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SEC. 8. Im'estment of the Fund Any portion of the Fund not otherwise disposed of as 
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provided for in this Act shall be invested in government securities and such other high-yielding 
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securities as determined by the DSWD, upon approval of the NAPC. The earnings therefrom 
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shall accrue to the Fund. 
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SEC. 9. Audit. The Chairman of the Commission on Audit (COA) shall act as the ex-
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officio auditor of the Fund. 
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SEC. 10. Annual Report The Secretary of the DSWD shall submit, withln fifteen (15) 
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working days from the opening of the regular session of Congress, to the President of the 
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Philippines as NAPC Chair and to the Presiding Officers of both Houses of Congress, an annual 
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report which shall include an account of the program, projects and detailed expenses undertaken 
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pursuant to this Act. 
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SEC. 11. Penal Clause. Any person who fails or refuses to tum over collections of the 
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charges or shares mentioned in this Act within the period prescribed herein, or who delays, 
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obstructs or prevents the same; or who fails or refuses to effect release from the Fund, or who 
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obstructs, or prevents the same: or who orders, causes, or effects the transfer or diversion of the 
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collections of this Fund shall be punished with a fine not exceeding one hundred thousand pesos 
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(P 1 00,000.00) or imprisonment not exceeding six (6) years, or both at the discretion of the Court. 
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If the offender is a government official or employee, he shall, in addition, be dismissed from the 
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service with prejudice to reinstatement and with disqualification for election or appointment to 
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any public office. If the offender is a corporation or any other juridical entity, the penalty 
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provided herein shall be imposed on its directors or officers who may be responsible for the 
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violation. 
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SEC. 12. Rules and Regulation. The Secretary of the DSWD in consultation with the 
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N APC shall promulgate the rules and regulation relating to the collection and remittance of the 
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revenue sources accruing to the Fund as may be necessary for the effective implementation of 
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this Act. 
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SEC. 13. Separability Clause. - The provisions of this Act are hereby declared to be 
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separable, and in the event that any part, section or provision of this Act is held invalid or 
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unconstitutional, no other part or section or provision thereof shall be affected thereby. 
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SEC. 14. Repealing Clause. The pertinent provisions of the National Internal Revenue 
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Code, as amended, the charters of the P AGCOR and PCSO, as amended, and any other 
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provisions of law, decree, executive order, letter of instructions, rule or regulation or parts 
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thereof that are in conflict with any provisions of this Act are hereby repealed, amended or 
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modified accordingly. 
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SEC. 15. Effectivity. This Act shall take effect fifteen (15) days following the completion 
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of its publication in the Official Gazette and in two newspapers of general circulation in the 
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Philippines. 
Approved, 
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