Pangkabuhayan Sa Pagbangon at Ginhawa Act or the Ppg Act

S2at2 Office of tie say retary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES AUG 19 A9:42 First Regular Session SENATE RECEIVED BY: S. No. 1210 Introduced by Senator MARK A. VILLAR AN ACT INSTITUTIONALIZING THE PANGKABUHAYAN SA PAGBANGON AT GINHAWA PROGRAM AND APPROPRIATING FUNDS THEREFOR EXPLANATORY NOTE The Pangkabuhayan sa Pagbangon at Ginhawa (PPG) Program of the Department of Trade and Industry (DTI) is a livelihood seeding and entrepreneurship development program for microenterprises, prioritizing areas affected by natural and man-made calamities. It serves as a post-disaster response mechanism designed to speed up the recovery of affected businesses and communities through livelihood assistance and entrepreneurship programs. In particular, the program provides kits of raw materials, tools, or equipment necessary to start and sustain business activity in affected areas. Since its inception, disaster-affected individuals such as fire victims, pandemic-struck businesses, residents affected by volcanic eruptions, and even former rebels have been beneficiaries of the PPG Program. Since the Philippines is consistently listed as one of the most disaster-prone countries in the world, there is a need to institutionalize the PPG Program to support and strengthen the potential of affected microenterprises to spur the economy. In view of the foregoing, the passage of this bill is earnestly sought. MARK A. VILLAR

Senate Office of the enectarg TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) 25 AUG 19 A9:42 First Regular Session SENATE RECEIVED BY: S. No. 1210 Introduced by Senator MARK A. VILLAR AN ACT INSTITUTIONALIZING THE PANGKABUHAYAN SA PAGBANGON AT GINHAWA PROGRAM AND APPROPRIATING FUNDS THEREFOR Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Pangkabuhuyan sa

2 Pagbangon at Ginhawa Act" or the " PPG Act".

Sec. 2. Declaration of Policy. - It is hereby declared a policy of the State to

promote, support, strengthen, and encourage the growth and development of sectors 5 affected by disasters and conflicts, especially micro, small, and medium enterprises 6 (MSMEs), that have the potential to generate employment, spur economic growth, 7 and thereby provide a self-sufficient foundation for the country. Towards this end, the 8 State shall establish a post-disaster response mechanism that sustains the economic 9 activity of disaster-affected businesses to ensure the viability of economic activities in impacted areas.

Sec. 3. Definition of Terms. - For purposes of this Act, the following terms are

hereby defined: (a) Barangay Micro Business Enterprise (BMBE) refers to any business entity or enterprise with issued Certificate of Authority engaged in the production, processing or manufacturing of products or commodities, including agro- processing, trading and services, whose total assets including those arising from loans but exclusive of the land on which the particular business entity's

office, plant and equipment are situated, shall not be more than Three million pesos (P3,000,000.00) subject to review and upward adjustment by the Micro, Small, Medium Enterprise Development Council (MSMEDC) as mandated under Republic Act No. 6977 or the "Magna Carta for Small Enterprises", as amended; Provided, That BMBE shall include any individual owning such business entity/enterprise, partnership, cooperative, corporation, association or other entity incorporated and/or organized and existing under Philippine laws and registered with the office of the treasurer of a city or municipality; Provided, further, That services of BMBE exclude those rendered by anyone who is duly licensed by the government after having passed a government licensure examination, in connection with the exercise of one's profession. (b) Affected Microenterprises refer to any duly registered BMBE whose activity/ies is/are affected by fire and disaster. (c) Assets refer to all kinds of properties, real or personal, owned/and or used by the BMBE for the conduct of its business as defined by the MSMEDC. (d) Business Kits refer to a collection of items such as raw materials, tools, and/or equipment needed to start a business, purchased directly or through the distribution of a voucher, gift card, gift check, or cash card. (e) Registration refers to the inclusion of a BMBE in the BMBE Registry of a city or municipality. (f) Certificate of Authority refers to the certificate issued granting the authority to the registered affected microenterprise to operate and be entitled to the benefits provided by Republic Act No. 9178 or the "BMBEs Act of 2002". This Certificate also serves as the potential beneficiary's proof of asset size as a microenterprise. (g) Competent Authorities refers to individuals, organizations, agencies, or entities that have the legal authority, expertise, and capability to verify and certify the facts or circumstances material to prove the eligibility of the beneficiaries such as the local government unit (LGU)/Barangay, Department of Social Welfare and Development (DSWD), National Task Force to End Local Communist Armed Conflict (NTF-ELCAC), Department of Trade and Industry (DTI), Securities and Exchange Commission, Cooperative Development

Authority, Local Disaster Risk Reduction Management Office, Bureau of Fire Protection, etc. (h) Disasters refer to serious disruption of the functioning of a community or society involving widespread human, material, economic or environmental losses and impacts, which exceed the ability of the affected community or society to cope using its own resources. (i) Hazard refers to a dangerous phenomenon, substance, human activity or condition that may cause loss of life, injury or other health impacts, property damage, loss of livelihood and services, social and economic disruption, or environmental damage. (j) Identified Priority Beneficiaries (IPB) refer to individuals identified by the national government, including, but not limited to, those Killed In Action- Wounded In Action (KIA-WIA), identified by the NTF-ELCAC, availees of Balik Probinsya Program, Persons of Concern (refugees or stateless persons) under the Philippine commitment to the United Nations High Commissioner for Refugees (UNHCR), and such other persons affected by disasters. (k) Negosyo Centers refer those established under Republic Act No. 10644 or the "Go Negosyo Act". (1) Validation refers to the act of determining compliance of beneficiaries with the criteria for eligibility to avail of the assistance under the Program, including, but not limited to, the examination of completeness of supporting documents/certifications as well as the verification with the issuing authorities of their authenticity and the veracity of their contents. In the case of affected microenterprises, confirmation must be made whether they are duly registered or have applied for business permit/renewal with the city or municipal Business Permits and Licensing Office (BPLO), or treasurer at the time of the identified disaster. Proof of application for local business permit clearance may be in the form of Business Tax Bill or Official Receipt issued by the local treasurer.

Sec. 4. Institutionalization of the Pangkabuhayan sa Pagbangon at Ginhawa

(PPG) Program. - The PPG Program of the DTI is hereby institutionalized to pursue the following objectives:

a) To Start - Facilitate sustainable self-employment opportunities for IPBs and eligible beneficiaries; b) To Recover - Assist microenterprises that have experienced interruptions due to disasters in restoring and resuming their business operations, fostering resilience against future external shocks; and c) To Restart - Support eligible beneficiaries in rebuilding their economic ventures by offering them a package of PPG assistance.

Sec. 4. Eligible Beneficiaries. - The PPG Program may be availed of by the

following: (a) BMBE or Microenterprises affected by fire incidents and disasters, which include, but are not limited to: (i) Natural disasters or catastrophic events resulting from natural hazards such as floods, hurricanes, earthquakes, tsunamis, wildfires, volcanic eruptions, and droughts; and (ii) Human-made disasters or events caused by human activity including terrorist attacks and conflicts, such as acts of violence and aggression perpetrated by individuals, groups, or organizations with political, ideological, or religious motivations. (b) IPBs as defined in Section 3(j) of this Act. A potential eligible beneficiary can only be approved after the requirements are submitted and requirements in accordance with the DTI's rules and regulations. Eligible microenterprises affected by multiple disasters may be assisted more than once; Provided, That they will receive only one (1) Business Kit per disaster.

Sec. 5. Assistance Packages. - The PPG Program shall provide for the following

forms of assistance: (1) Business Kits of raw materials, goods, tools, or equipment with the following classifications: (a) Business Kit Package Tier 1 - An amount not exceeding Fifteen thousand pesos (Php15,000.00) for Business-to-Consumer (B2C) enterprises such as, but not limited to, selling food items, simple media businesses, seller/maker of non-food items, cottage industries, and freelance general services.

(b) Business Kit Package Tier 2 - An amount not exceeding Thirty thousand pesos (Php30,000.00) for B2C and/or Business-to-Business (B2B) enterprises such as, but not limited to, small-capacity food processing business, large format or special printing business with or without digital services, manufacturing, and general services shops. (c) Business Kit Package Tier 3 - An amount not exceeding Fifty thousand pesos (Php50,000.00) for B2C and/or B2B enterprises such as, but not limited to, medium-large capacity food processing and retailing/wholesaling, print and digital media production, technology- based manufacturing or repair services, and technology-based general services. The contents of the Business Kits may vary based on the needs and circumstances of the microenterprises in the locality. The DTI shall regularly review and update the values and recommended businesses of the Business Kits to ensure their viability. The DTI shall evaluate the tier classification of approved beneficiaries based on the type of business to be pursued and/or resources needed for the business based on a simplified action plan in the form prescribed by the DTI; Provided, That the amount shall not exceed the total cost of materials as indicated in the simplified action plan; Provided, further, That cost of materials shall be based on prevailing market prices. (2) Other types of assistance: (a) Provision of information materials on entrepreneurship, business continuity, and disaster resilience - Distribution and dissemination of resources that provide relevant information, guidance, and support to the beneficiaries for their successful and sustainable establishment and management of a business and disaster resilience; (b) Conduct of enterprise development training - Organizing and delivering entrepreneurship training that focuses on developing and enhancing the skills, knowledge, and strategies necessary for starting and sustaining a business in response to disaster.

(c) Business Counseling and Mentoring - Provision of personalized guidance, advice, and support to beneficiaries that aims to nurture the professional and personal growth of beneficiaries by leveraging the expertise and experience of accredited mentors and/or counselors. Only eligible beneficiaries duly approved by the DTI, after meeting all requirements, may receive the Business Kits. Non-eligible microenterprises and individuals may receive other types of assistance, subject to rules and regulations to be promulgated by the DTI.

Sec. 6. Procedure for Providing Assistance. - The DTI shall promulgate the

necessary rules and regulations for the provision of assistance packages under Section 5 of this Act. Said rules and regulations shall include, but not be limited to: (a) Identification of affected microenterprises or coordination with other organizations and/or competent authorities for the identification possible eligible beneficiaries. (b) Organization of business enterprise development training and/or business continuity or disaster resilience training for the disaster-affected area or identified possible eligible beneficiaries. Possible eligible beneficiaries already registered as a business with a local government may be referred for mentoring session instead of an organized class training. (c) Simplified profiling of and application by potential eligible beneficiaries; Provided, That profiling and training or mentoring shall be conducted separately to ensure accuracy, objectivity, efficiency, and effective quality control in the assistance process. (d) Evaluation and validation of documentary requirements presented to determine the eligibility of microenterprises and/or individuals trained or mentored, who were identified from the disaster area, by referral, or by direct application; and the type of Business Kit and other PPG assistance to be provided; Provided, That potential eligible beneficiaries must have completed prescribed entrepreneurial, business continuity and/or disaster resilience trainings or mentoring, and submitted necessary forms, documents, and requirements prior to declaration as an eligible beneficiary.

(e) Eligible beneficiaries shall declare under oath or attestation that he/she/they shall use the approved Business Kit granted according to its intended purpose and shall not transfer the Business Kit to any other person or entity. In case of violation or non-compliance with this oath or attestation, beneficiaries availing themselves of other similar assistance provided by the DTI will undergo further evaluation or assessment. (f) Subject to applicable procurement, auditing, and accounting rules and regulations, Business Kits may be distributed to approved beneficiaries or their authorized representatives as actual goods or through a voucher, gift card, gift check, or cash card. Provided, That in the distribution of goods, vouchers, gift cards, gift checks, or cash cards, the DTI shall ensure: (1) Proper documentation and proof of delivery and receipt for all Business Kit deliveries; (2) That purchased items conform to the agreement for which the Business Kits were provided; and (3) That purchased items conform to the agreement for which the Business Kits were provided in cases where Business Kits are to be provided in the form of vouchers, gift cards, gift checks, or cash cards.

Sec. 7. Program Management. - The Special Concerns Office of the DTI shall

be responsible for the overall supervision and management of the PPG Program. The Head of the Special Concerns Office, as Supervising Head, in consultation with the Office of the Secretary of Trade and Industry, shall provide direction, documentation, and metrics related to needs assessment, target-setting, implementation, monitoring, and evaluating system, capacitating counselors, and identifying and strategizing ways to improve and/or expand service offerings. The PPG Program Management Office (PMO) under the Special Concerns Office, as provided for in DTI Department Order 24-58, Series of 2024, shall provide support in the supervision, monitoring and evaluation, and budget management of the PPG Program. The DTI Regional Offices (RO) and Provincial Offices (PO) shall be responsible for the efficient and effective operations of the PPG Program, with support from the Negosyo Centers.

The DTI ROs and POs shall be responsible for regular coordination with PPG 2 PMO, including budget requests and reporting. Said budget requests shall be in a form prescribed by the DTI under rules and regulations promulgated for the implementation of this Act. The Negosyo Centers, with support from the Negosyo Center Program 6 Management Office, shall facilitate targeting of barangays and beneficiaries and 7 support in capacity development of potential beneficiaries.

Sec. 8. Initiatives on Program Visibility. - The DTI, through its appropriate

offices, shall prepare information materials for target participants. The use of 10 collaterals such as logos, tarpaulins, and others shall follow set standards and comply with the branding guidelines of the DTI. Negosyo Centers shall disseminate approved information materials to target 13 barangays and potential eligible beneficiaries and shall assist in identifying and documenting best practices of Negosyo Center Business Counselors/Coordinators (NCBCs) deployed at target barangays. The PPG PMO shall provide guidance on communication channels including platforms for sharing and dissemination of best practices under the PPG Program. NCBCs shall document and share their best practices or observations regarding the PPG Program with the PPG PMO.

Sec. 9. Results Monitoring, Evaluation, and Reporting. - The DTI shall regularly

obtain and evaluate all relevant data or information to effectively monitor the implementation of this Act, including, but not limited to, number of disasters covered, number of eligible and non-eligible beneficiaries assisted, number of training programs conducted, number of Business Kits provided, number of business mentoring sessions facilitated, and fund utilization. The DTI shall maintain a database to facilitate reporting, including data collected on performance indicators and recommendations from concerned LGUs. The DTI shall also prepare an evaluation report of all approved eligible beneficiaries one (1) year after the provision of Business Kits.

Sec. 10. Coordination Among Government Agencies. - To promote

comprehensive government assistance, the DTI shall coordinate with other National Government Agencies and LGUs with similar support programs for data and

1 information sharing on the profiles of eligible beneficiaries with the goal of 2 complementing similar available assistance from these other agencies, such as but not 3 limited to, the Department of Labor and Employment, the Department of the Social 4 Welfare and Development, the Department of Environment and Natural Resources, 5 and the Department of Health.

Sec. 11. Appropriations. - An initial amount of Seventy-five million pesos

7 (Php75,000,000.00) shall be appropriated for the implementation of this Act. 8 Thereafter, such amount as is necessary shall be included in the General 9 Appropriations Act.

Sec. 12. Separability Clause. - If any provision of this Act is declared

unconstitutional or invalid, such parts not affected thereby shall remain in full force and effect.

Sec. 13. Repealing Clause. - All laws, decrees, executive orders, rules and

regulations and other issuances or parts thereof which are inconsistent with this Act are hereby repealed, amended, or modified accordingly.

Sec. 14. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in any newspaper of general circulation. Approved,