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HOUSE BILL 5595 EXECUTIVE SUMMARY
ARTICLE I – THE AUTONOMOUS REGION, TERRITORY AND PEOPLE
- The Cordillera Autonomous Region shall consist of the cities and provinces that shall vote favourably in the plebiscite called for the ratification of this Organic Act pursuant to Section 18, Article X of the Constitution.
- The term “Cordilleran” shall apply to all citizens of the Philippines who are and who were domiciled within the territory of the Cordillera Autonomous Region.
ARTICLE II – DECLARATION OF PRINCIPLES AND POLICIES
- The Cordillera Autonomous Region is an integral and inseparable territorial and political subdivision of the Philippines. Thus Cordillerans, as citizens of the Philippines shall uphold the Constitution as the fundamental law of the land and unequivocally owe allegiance and fidelity to the Republic. Further, they will adhere and respect pertinent national laws imposed by the national government.
- The Cordillera Autonomous Region in its adherence to national laws recognizes the existence of the Indigenous Peoples Right Act (IPRA) law as basis for the protection of indigenous peoples’ rights.
- It recognizes that the home is the cradle of the holistic development of and primary agent of education for the Cordillera youth and shall establish, within the framework of the national system of education, accessible and affordable educational system, both formal and non-formal.
- Cordillerans, having a unique culture may avail of local indigenous customary laws, traditions, practices and institutions provided that these are not contrary to law, morals, public order and public policies.
- The management, development and utilization of natural resources of the region shall be the primary concern of the regional government and shall pursue a policy of coordination and cooperation not only within the region but also its neighbouring Northern Luzon Regions.
- The Regional Government shall ensure equal opportunities and equal sharing of wealth to all Cordillerans and shall recognize the right of Cordillerans to participate in matters that affect their welfare.
- LGUs shall be governed by applicable provisions of the Local Government Code.
- The Regional Government shall respect the independence of LGUs and encourage joint initiatives between and among LGUs.
ARTICLE III – THE CORDILLERA AUTONOMOUS REGION
- The territorial and political subdivision of the Cordillera Autonomous Region are the provinces, cities, municipalities and barangays.
- There shall be NO DIMINUTION of powers, functions, and benefits already enjoyed by local government units, regional line agencies, and offices.
- The President of the Philippines shall exercise general supervision over the regional autonomous government and its local government units through the Regional Governor to ensure that laws are faithfully executed within the scope of their prescribed powers and functions.
Matters devolved to the Autonomous Region where they can exercise jurisdiction pursuant to Section 20 , Article IX of the 1987 Philippine Constitution;
a. Administrative organization.
b. Creation of sources of revenue.
c. Ancestral domain, natural resources and environment.
d. Personal, family and property relations.
e. Regional urban and rural planning development.
f. Economic, social and tourism development.
g. Educational policies.
h. Preservation, safeguarding and development of cultural heritage.
i. Patents, trademark, trade names, and copyrights.
j. Such other matters as may be authorized by law for the promotion of the general welfare of the people of the region, except:
1. Foreign affairs
2. National defense and security
3. Postal service
4. Coinage and fiscal and monetary policies
5. Administration of justice
7. Customs and tariff
9. Naturalization, immigration and deportation
10. General auditing, civil service and elections
11. Foreign trade
12. Statistical and civil registration services
ARTICLE III – A. THE RELATIONSHIP OF THE REGIONAL AUTONOMOUS GOVERNMENT WITH THE REGIONAL LINE AGENCIES
- Regional line agencies and offices in the Cordillera Autonomous Region shall continue to exist, retain their mandated authorities without diminution. Their assets and properties shall remain under their custody and accountability.
- Their officials and employees shall continue to be nationally paid and no diminution of their compensation and other benefits.
- Civil service officials and employees shall be hired in accordance with appropriate Civil Service rules and regulations and shall not be laid off, dismissed or removed as a result of any reorganization attendant to the establishment of the Cordillera Autonomous Region, except for just cause and due process.
- GOCCs shall continue to be governed by their respective charters and other pertinent laws and GSIS, SSS, PAGIBIG and other funds of similar trust or fiduciary nature shall be exempted from the coverage of this Organic Act.
ARTICLE III – B. THE RELATIONSHIP OF THE REGIONAL AUTONOMOUS GOVERNMENT WITH THE LOCAL GOVERNMENT UNITS
- The Local Government Code shall apply to all provinces, cities, municipalities and barangays in the autonomous region. Thus the local government units shall have the same set of local officials and employees, shall enjoy autonomy and continue to exercise the powers and functions as well as benefits and privileges granted them under the Local Government Code and other existing laws.
- The local government units’ generated revenues, taxes, fees and charges from their respective local tax ordinances shall exclusively accrue to them, they shall have a just share in the national taxes which shall be automatically released and shall be entitled to an equitable share in the proceeds of the utilization and development of the national wealth within their respective areas, in manner provided by law and this Organic Act. Regional Government shall have a share of forty percent (40%) taken from the percentage share of the National Government from the development and utilization of national wealth within the autonomous region.
- The President through the Regional Governor shall exercise direct supervision over local government units in the autonomous region to ensure that their acts are within the scope of their prescribed function.
- Any chartered city within the autonomous region shall be governed primarily by its charter.
ARTICLE IV – ELECTIVE OFFICIALS OF THE AUTONOMOUS REGIONAL GOVERNMENT- THEIR QUALIFICATIONS, TERM OFOFFICE, VACANCIES AND SUCCESSION
Regional Governor and Vice Governor
Qualifications – Candidates must be a citizen of the Philippines and a Cordilleran, at least Twenty-five (25) years of age on election day, a registered voter in the region and a domiciled thereof for a period of five (5) years immediately preceding the day of election, able to read and write Filipino or any other local language or dialect in the region.
Disqualifications – In addition to the disqualification provided under the Local Government Code candidates must not be related to the incumbent Regional Governor within the 4th degree of consanguinity or affinity. (Anti-dynasty)
Manner of Election – Elected at large by direct vote of the registered voters of the Cordillera Autonomous Region.
Members of the Regional Assembly
Qualifications – Same qualifications with the Regional Governor and Vice-Governor except the domiciliary requirement which is two (2) years immediately preceding the day of election.
Manner of Election – Each Province and City shall elect their own representatives to the Regional Assembly. Any chartered city in the autonomous region is entitled to two (2) representatives. Any component city shall be entitled to one (1) representative. Each province shall be entitled to a maximum of two (2) representatives, one (1) per district.
Prohibition, Vacancies and Succession, Temporary Vacancies of Elective Officials of the Autonomous Regional Government shall be governed by the Local Government Code.
ARTICLE V – REGIONAL EXECUTIVE DEPARTMENT
The Regional Governor is the chief executive of the Regional Government; he shall exercise control and supervision over all programs, projects, services and activities of the regional government, the regional line agencies and offices, and the local government units within the autonomous region.
Mandatory Offices under the Regional Autonomous Government:
– Office of the Regional Executive Secretary, Office of the Regional Accountant, Office of the Regional Administrator, Office of the Regional Legal Officer, Office of the Secretary to the Regional Assembly, Office of the Regional Service Officer, Office of the Regional Engineer, Office of the Regional Information Officer, Office of the Regional Treasurer.
The heads of various regional agencies shall be appointed by the Regional Governor with the concurrence of the majority of the members of the assembly and compliance to civil service law, rules and regulations and this organic act, except the Regional Executive Secretary.
Co-terminus Officials – coordinate and harmonize the functions of the various regional line agencies,
– Executive Assistants – no more than two (2) regional executive assistants shall come from one province/cit
Regional Development Board
– This is the main planning and advisory body of the Regional Autonomous Government which sets the direction of socio-economic development of the region.
ARTICLE VI – REGIONAL VICE-GOVERNOR
- The Regional Vice- Governor shall be the Presiding Officer of the Regional Assembly.
ARTICLE VII – REGIONAL LEGISLATIVE ASSEMBLY
- Legislative Power shall be vested in the Regional Legislative Assembly, except the extent reserved by the Constitution and this Organic Act on initiative and referendum.
ARTICLE VIII – PATRIMONY, ECONOMY ANDDEVELOPMENT
- The Regional Government shall initiate, stimulate, facilitate, support and coordinate development in the region towards attaining equitable distribution of opportunities, income and wealth, expand productivity and incomes as key to raising quality of life for all.
- It shall take affirmative action to encourage the LGUs, NGOs, Corporations, Cooperatives, POs and similar collective associations, to actively participate and support the economic and social development and shall seek accelerated economic and social growth considering unique and peculiar social, cultural, economic and geo-physical situation of the autonomous region.
- The exploration, development, utilization, management and utilization of the region’s natural resources shall be under the control and supervision of the Regional Government.
ARTICLE IX – SOURCES OF REVENUES AND OTHERFISCAL MATTERS
To conserve, protect and develop the national patrimony and heritage located in the Cordillera Autonomous Region and to fund its operation, it shall, in addition to the existing shares of LGUs, RLAs and other Government Institutions, have a share of the national taxes which include but not limited to the following:
1) 1% of the national Internal Revenue Taxes
– To be directly released to the Regional Treasurer and shall not be subject to any lien or holdback. 80% of this shall be appropriated for regional development projects.
2) 40% share of National Wealth Tax
– Share of Regional Government from mining taxes, royalties, environment services, forestry and fishery charges, energy production charges, and such other fees and charges, including related surcharges, interest and fines derived from the utilization and development of the national wealth.
– Additional share of 10% of gross collections from the utilization of national wealth source or emanating from the region by persons, individual or judicial entities operating outside the region and such share shall be used for the preservation and further development of the environment.
– LGUs shall have a share of 1 ½ of the gross receipts or 50% of gross collections whichever is higher from renewable energy taxes, mining, royalties, forestry charges, etc. arising from the utilization and development of national wealth in the region.
3) 2% share out of the Economic Zones Tax
– Regional Government shall have a separate share of 2% out of the 5% final tax on gross income.
– Also LGUs shall have a separate share of 2% out of the 5% final tax on gross income.
– Funds shall be used for Trade and Industry Programs.
4) 20% share of excess in Value Added Tax
– RG shall have a 20% share.
– LGUs shall have a 20% share.
– Funds shall support Cottage Industry.
5) 15% share of Total Excise Tax
– RG shall have a 15% share of total excise tax on locally manufactured virgina cigarettes made in the region.
– LGUs same share as RG.
– Funds shall be used for Agricultural Programs.
6) 15% share of Incremental Excise Tax on Burley and Native Tobacco Products
– RG shall have a 15% share
– LGUs shall have a 15% share
– Funds shall be used for Agricultural Programs.
7) 40% share of Mini-Hydro Electric Power Tax
– RG shall have a 40% share of the special privilege tax on mini-hydro developers.
– LGUs- based on the computation provided by Local Government Code.
– Funds shall be used for maintenance of Watershed.
8) 1% of net income of PAGCOR and PCSO for construction and maintenance of school building, hospitals and rented facilities.
The Regional Government shall have the power to create its own sources of revenues and to levy fees and charges except the power to impose taxes, subject to such guidelines and limitations as the constitution and this act may provide.
All corporations, partnership, and other entities, including Government Agencies, GOCCs directly engaged in business shall pay their taxes, fees and charges to the LGU where they are conducting their business irrespective of the location of their main or principal office.
Appropriations from the National Government
– Regional Line Agencies: National Government shall continue to provide for the regular operations and programs of line agencies in the region. Each national government agency shall appropriate not less than 5% of its national lump sums to fund priority programs in the region.
– The National Government shall provide appropriations for the mandatory organizational structure and positions of the Regional Government.
80% share of national fees and charges collected within the region shall be remitted to the regional treasury and 50% of this share shall be automatically retained by the collecting agencies to augment their regular operating expenses.
ARTICLE X – AGRICULTURE, AGRARIAN REFORM, TRADEAND INDUSTRY, TOURISM AND COOPERATIVES
- The Regional Government shall promote agrarian reform and sustainable agricultural development for social equity and poverty alleviation, food security and food sufficiency, global competitiveness, fair trade, rational use of resources and sustainability.
- Basic agri-support services and facilities
- Production for self sufficiency in food commodities
- Improved quality and value of raw processed agri-based products
- Farmers protection unfavourable practices and unfair competition
- Equitable and rational distribution of public resources and investments
- Recognition of carrying capacity of region’s natural and agri-resources
- Top priority to be given to conservation and development of water resources for agriculture, fishery, domestic water supply and power generation.
- Protect and promote rights of fisher folks and their association.
ARTICLE XI – EDUCATION, SCIENCEAND TECHNOLOGY, LANGUAGE, ARTS, CULTURE ANDSPORTS
- The Regional Government shall exercise Legislative powers over regional educational policies and preservation of cultural heritage in the region.
- It shall ensure the prioritization of budget allocation of 5% from the annual income of the region to constitute the base of the budget for education.
- It shall protect and support private educational institutions, colleges and universities.
- It shall assist the national government to provide free basic education and also for tertiary through scholarship programs, subsidies, research grants and other incentives to poor but gifted and deserving students.
- State Colleges and Universities shall continue to enjoy fiscal and institutional autonomy, continue to be governed by their respective charters and enjoy support of the regional government.
ARTICLE XII – SOCIAL, JUSTICE AND WELFARE
- The Regional Government commits itself to social protection.
- It shall promote the hiring of qualified Cordillerans in government projects and private businesses.
- Ensure health as basic human right.
ARTICLE XIII – PEACE AND ORDER
- The Regional Government shall promote and maintain peace and order and public safety in the region. It shall strengthen and enhance indigenous systems as maybe applicable and found to be applicable and effective in the promotion of social, political, economic and peace and order in the region. It shall provide for a system of incorporating indigenous practices in conflict resolutions.
- Defense and security of the region are the main responsibility of the national government and the PRO-COR shall remain as the primary peacekeeping force in the region.
- No private armed groups.
ARTICLE XIV – GENERAL PROVISIONS
- Elected or appointed official shall be domiciled for at least two (2) years immediately preceding the election or appointment.
ARTICLE XV – AMENDMENTS OR REVISION
- Any amendment to, or revision of this act may be made by Congress upon recommendation of majority of all members of the Regional Assembly.
ARTICLE XVI – TRANSITORY PROVISIONS
Over and above that regularly given to LGUs and Regional Line Agencies, the national government shall continue its annual allotment to the regional government. In addition, the national government shall provide the Cordillera Autonomous Region an annual assistance of ten billion pesos for the first five years and five billion pesos for the next five years to be allocated in the following:
20% for the regional government for regional infrastructure, livelihood and revenue generating projects.
10% for each province and highly urbanized city.
4% for a component city.
6% remain with RG as Trust Fund.
Annually each barangay shall receive not less than 1% and each municipality shall receive not less than 10% to be taken from the share of the province where they are located.
ARTICLE XVII – EFFECTIVITY
- Fifteen (15) days following its publication in at least two (2) national newspapers and all local newspapers of general circulation in the autonomous region.