Draft Ofw Ordinance Final Generic

AN ORDINANCE CREATING THE _________ COUNCIL FOR THE ADVANCEMENT OF THE WELFARE OF OVERSEAS FILIPINO WORKERS/FILIPINO MIGRANTS ABROAD AND THEIR IMMEDIATE FAMILY DEPENDANTS IN THE HOMELAND EXPLANATORY NOTES Being considered the 2nd, if not now the highest migrant sending country worldwide, and the highest in Asia, with almost 10% of its 82.8 million population living and working overseas, and remitting close to 16 billion US dollars a year in 2007, the Philippines theoretically has a tremendous potential for translating the net inflows of migrant remittances to boost the Philippine economy and increase its productive capacity. According to recent statistics, families of OFWS spent their remittances primarily for (1) Basic household necessities (2) Payments of debts contracted to underwrite migration expenses (3) Education of children (4) Medical expenses or emergencies (5) Purchase of land, or home construction or improvement (6) Purchase of appliances or other durables and (7) Savings and Investments in micro-enterprises.

17.4 of Philippine households have at least 1 overseas Filipino worker and based on 2000 statistics, these OFW households spent Php460 billion on durables. 64% of these households are located in urban areas and 36% in the rural areas. Aside from remitting to their families, individual migrants as well as estimated 12,000 regional, social, civic and other migrant Filipino associations, have long been raising funds to underwrite small infrastructure projects and other humanitarian causes in the Philippines, such as building of schools, hospitals, churches, waterwells, conduct of medical missions, medicine, amelioration of victims of calamities, support of streetchildren and orphans, churches, and others. The Commission on Filipinos Overseas, a Philippine government agency attached to the Department of Foreign Affairs, has run a 10 year program called Linkapil, that has mobilized

from overseas Filipinos in North America, Australia and Europe, the amount of over a billion pesos, that have gone into various community projects in the provinces, in accordance with a needs profiling system that they had devised. This is probably only a fraction of this ongoing philanthropy by the very extensive Philippine diaspora. Certain local government units (LGUs), on their own initiatives, are initiating programs to lure their natives overseas to visit and explore trade and investment possibilities within their territory. With the help of international institutions and civil society organizations, they are promoting trade, investments and tourism to outside visitors, through the organization of trade and tourist promotions overseas, and have legislated a local investments and incentives code that is being implemented by an investments office. For instance, the province of Bohol held a trade and investments fair attended by hundreds of their overseas natives from North America who came to visit their hometowns and participate in an investment matching forum. LGUs are improving their skills on local governance and are beginning to learn how to raise revenues independent of the national government, a power granted to them by a 15 year old decentralization law. Today, about 10 LGUs have raised funds through bond issues at the local level in order to build public markets, cold storage and post harvest facilities, wharves, tourist facilities and convention centers and other rural infrastructure, and there are 40 more lgu projects in the pipeline. This was done with the help of a financial management firm that has pioneered in the use of bonds for local development. While these bond issues were normally underwritten by commercial banks, a special bond issue is being designed with overseas Filipino workers as potential investors of bonds issued by their own hometowns, whose needs they could readily identify with. Microfinance has a crucial role in the development of local economies, as stated in a recent ILO study. There are current initiatives and studies being designed not only to tap microfinance institutions as remittance centers, but also to attract migrant Filipinos to place their savings and investments in microfinance institutions, where the major players are mainly rural and thrift banks, NGOs, cooperatives and other community based financial institutions. Collectively, microfinance organizations service close to 500,000 microenterpreneurs. Even the government�s microfinance arm, the PCFC, is serving 79 provinces, 113 out of 114 cities, and 1,083 out of 1,496 towns. (11) Microfinance reaches out to more marginalized people and others in the informal sector and even returned migrants whose only coping mechanism may be engaging in microenterprise. Studies show that a large number of migrant enterprises resulted in failures because they were the result of speculative or unreliable information, and the lack

of proper business skills, commitment or values by family members who were appointed to run them. Linking migrants and their families to microfinance institutions may provide migrant families the business mentoring and access to capital which may precisely what an absentee migrant needs to make sure that money remitted is used productively and not wasted on non-essentials. Besides, studies currently being undertaken indicate that migrants or their families could save or invest in microfinance banks or institutions and still manage a rate of return that is comparable to what commercial banks offer, in addition to helping the creation of more jobs. The participation of microfinance institutions contributes to the improvement of the country’s savings rate and contributes to the expansion of a more extensive network of financial intermediaries with yet new financial products that will help leverage remittances for broader economic development. All these potentials and opportunities can address the slow and staggering growth of our local economy brought about by very limited productiongeared investments. It is high time that a special body in the form of a city council headed by the Chief Executive in collaboration with the legislative arm ,the business sector and the civil society be engaged in drafting programs , policies , laws and projects attuned to concretize in actions the abovementioned endeavors and aspirations.

migrants in their host countries shall be learned and acquired by the local man power . E) Provide the venue where specific tax incentives , assistance , privileges and specific services for OFW/Migrant Filipinos and their families shall be discussed and carefully evaluated from time to time for the purpose of acknowledging their valuable contribution to nation building. F) To facilitate the declaration of a city wide OFW/Migrant Filipino Celebration Week; cultural activities, bazaars, programs, symposiums, contests, awarding ceremonies and OFW/ Filipino Balikbayan homecoming shall be observed. G) To create a condition wherein Organizations of OFWs/Filipino Migrants and their families shall be organized,recognized , provided assistance and maximized as potent component and reliable partner of the LGU in pursuit of a more responsive and progress oriented governance H) To be able to adopt specific safety nets, tactical and strategic programs for OFWs/Migrant Filipinos and their family dependents in the local level in fulfillment to the vision and mission of the national government SECTION 3. COMPOSITION – The following shall comprise the council membership:

SECTION 1. Title This ___ Ordinance shall be Known as AN ORDINANCE CREATING THE __________ CITY COUNCIL FOR THE ADVANCEMENT OF THE WELFARE OF OVERSEAS FILIPINO WORKERS/FILIPINO MIGRANTS ABROAD AND THEIR IMMEDIATE FAMILY DEPENDANTS SECTION 2. Purpose and Objectives

A)

To create a venue where local investment initiatives geared in utilizing the potentials of OFWs / Filipino Migrants remittances and philanthropic support for the growth and development of the local economy will be discussed. B) To facilitate the creation of timely ordinances geared in regulating the legal operations and activities of Overseas Job Recruitment and Placement Agencies operating within the territorial jurisdiction of ___________. C) To provide a venue wherein common problems ,sentiments and aspirations of OFWS / Migrant Filipinos and their families shall be aired and appreciated for appropriate actions . D) To be able to formulate mechanisms for technology transfer wherein the skills and technologies acquired by OFWs/ Filipino

Elected or Appointed Members of the Council

1.

The City Chief Executive acting as the Council Chairman 2. The Chairman of the Committee on OFW Welfare of The Sangguniang Panlungsod acting as the Council Vice Chairman Regular Members of the Council 3. The City Planning Department Head 4. The DUSIRS/Agri/Industrial relations / Department Head 5. The City Legal Department Head 6. The Chairman of the Committee on Ways and Means of the Sangguniang Panlungsod 7. Representative from the Business Sector ( _______ Chamber of Commerce ) 8. Department of Trade and Industry local rep 9. The Liga ng mga Barangay President 10. OWWA local rep 11. Department of Foreign Affairs rep 12. Head of the Cultural Affairs or tourism Office 13. representative coming from accredited OFW and Balikbayan Organizations and Institutions 14. representative coming from the Religious Sector ( Diocese of _______ )

15. representative coming from the local Banking Sector 16. DECS District Superintendent 17. Sanggunian Kabataan Chair 18. Health Officer

19. Religious sector rep 20. Banking sector rep 21. Police SECTION 4. Powers And Functions of the Council ChairmanThe Council Chairman shall have the ff duties and Functions a. To preside over the regular and special meetings of the Council which will be determined by the Council b. To render annual reports to the ________ Development Council and such special reports as may be requested; c. To synergize resources at the disposal of the institutions represented in the council d. To recommend to the Council such policies and measures he may deem necessary to carry out the objectives of the Ordinance ; e. To approve applications for the grant of fiscal incentives to members of the Council in accordance with policies set by the Council; and f. Generally, to exercise such other powers and perform such other duties as may be authorized by the board, from time to time. SECTION 5. Powers and Functions Of The Council Vice Chairman – The Council Vice-Chairman shall have the following powers and duties: a. To preside over the regular and special meetings of the Board in the absence of the Chairman; and b. To perform other duties of the Chairman in the absence of the latter, and such other duties as may be assigned to him by the Council. SECTION 6. Implementing Rules And Regulations – The City Mayor in his capacity as the Chairman of the Council and upon the recommendation of the Council, shall formulate Implementing Rules and Regulations necessary for the efficient and effective implementation of any and all provisions of this Ordinance SECTION 7. Separability Clause – The provisions of these Rules are hereby declared to be separable, and in the event that one or more of the provisions hereof are held illegal or unconstitutional, the validity of the other provisions shall not be affected thereby. SECTION 8. Repealing Clause- Ordinances, Executive Orders and other local legislation

inconsistent with this Ordinance are hereby modified or repealed accordingly. SECTION 9. Effectivity- This Ordinance shall take effect immediately upon approval.