The House of Representatives has passed on third and final reading a bill that regulates public solicitation and promoting transparency and accountability in using solicited funds.
House Bill 5342, authored by Occidental Mindoro Rep. Josephine Ramirez Sato, repeals Act 4075, as amended by Presidential Decree 1564, otherwise known as the Solicitation Permit Law, was unanimously passed on third and final reading last May 22 by a 221 vote.
The bill covers individuals and organizations operating in the Philippines which are partly or fully financed with funds solicited from public and private sectors.
Exempted from the proposed measure are organizations and agencies created by laws that specifically confer authority on these organizations and agencies to solicit or conduct fund campaign for charitable or public welfare purposes which shall continue to be covered by their charters; caroling during holidays; solicitations for religious purposes inside religious sanctuaries or buildings where religious activities are regularly held.
Under the proposed measure, the DSWD secretary or duly authorized representative for regional, provincial, city or municipal public solicitations are authorized to issue necessary permits for public solicitations.
The bill also defines the parameters of solicitation during disasters and calamities, enumerates the methods of public solicitation, provides for the mechanism in the monitoring of public solicitation activities, and grants DSWD regulatory powers to verify the authenticity of reports and visitorial power to ensure that funds are properly utilized.
It also identifies prohibited acts in the conduct of solicitation as well as the penalties prescribed in violating the provisions of the measure and mandates DSWD in consultation with the Department of the Interior and Local Government, Department of Transportation, Department of Information, Communication, and Technology Philippine National Police, Securities and Exchange Commission, Association of Provincial, City and Municipal Social Welfare and three representatives selected by DSWD from NGOs and media organizations to promulgate the IRR.
Once enacted, Sato said the measure shall put in place mechanisms for public solicitations, particularly during state of calamities or disasters.
Sato said the bill aims to increase the proceeds allocated for charity projects, protect the beneficiaries and impose penalties for violators, strengthen monitoring mechanism of organizations who are exempted from getting permits, and institutionalize check and balance on where the funds go.
The bill provides that the issuance of permit includes requirements such as identifying the programs, projects or beneficiaries on which the solicitation proceeds will be spent.
It also seeks to ensure protection of beneficiaries as well as the general public from whom the donations are going to be solicited from, Sato said.
Sato urged the Senate to sponsor a counterpart measure following its approval at the Lower House.
“The measure promotes transparency and public accountability of solicited funds. It will empower the DSWD to regulate public solicitations and prevent unscrupulous individuals or groups from taking advantage of the generosity of institutions and individuals, particularly during disasters,” Sato said.
During disasters, she said many individuals and institutions start soliciting funds purportedly to help people affected by natural calamities.
“It is about time that the government, through the DSWD, checks on the propriety of these public solicitations,” Sato added.
Once enacted, the bill shall empower the Department of Social Welfare and Development as regulatory and monitoring body for public solicitations.
Sato welcomed the Lower House's approval of the bill even as she expressed her appreciation to Rep. Sandra Ereguel of La Union, House committee on social services chairperson, for supporting the bill being the head of the panel that deliberated on it prior to its passage in plenary.