Section 162. Unless otherwise provided by law, the date of election of the first set of officials of the Regional Government shall be in the next local election following the ratification of this Organic Act in the plebiscite. Subsequent elections shall coincide with the nationwide local elections.

Section 163. Coverage of the Plebiscite

  1. The coverage of the plebiscite shall be the provinces of Abra, Apayao, Benguet, Ifugao, Kalinga, Mountain Province, the chartered City of Baguio and the component City of Tabuk, Kalinga.

  2. The provinces or city which vote unfavorably in the plebiscite shall revert to their mother region prior to the establishment of the Cordillera Administrative Region.

Section 164. Except for the regional line agencies, the Cordillera Executive Board, the Cordillera Regional Assembly, and the Cordillera Bodong Administration as a commission, created under Executive Order No. 220, and the Cordillera Regional Development Council created by Executive Order 30 after the de-activation of the above-mentioned Cordillera bodies, shall cease to exist immediately upon the assumption of office of the Regional Governor.

For this purpose, all their funds, properties and assets shall automatically be transferred to the Regional Government. Their employees shall be given priority in the filling up of available vacant positions in the Regional Government, subject to civil service laws, rules and regulations.

Section 165. The seat of the Regional Government of CAR shall be determined by the majority of all members of the Regional Assembly: Provided, however, that the interim seat of the Regional Government shall be in the City of Baguio.

Section 166. Within one (1) month from the organization of the Regional Government, an Oversight Committee composed of the executive secretary as Chairperson, the secretary of the Department of Budget and Management, the Cordillera Regional Governor, the presiding officer of the Cordillera Legislative Assembly, two (2) senators to be designated by the Senate President, two (2) representatives to be designated by the Speaker of the House of Representatives, the incumbent Chairperson and Co-Chairperson of the Regional Development Council, the Secretary of the Department of Interior and Local Government, the Chairperson of NCIP as members, shall be organized for the purpose of supervising the transfer to the autonomous region of such powers and functions vested in it by this Organic Act and the appropriations of the offices or agencies including the transfer of properties, assets and liabilities, and such personnel as may be necessary. and of identifying the other line agencies and government-owned or –controlled corporations that may be absorbed by the Regional Government and, with respect to the latter, also the terms and conditions of their turnover.

Within six (6) months after its organization, the oversight committee shall submit its report and recommendation to the President of the Philippines who shall act on the report and recommendations within ninety (90) days after receipt thereof: Provided, however, that if the President fails to act within said period, the recommendations of the Oversight Committee shall be deemed approved.

Section 167. Over and above that regularly given to Local Government Units 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 (P10,000,000,000.00) for the first five (5) years and Five billion pesos (P5,000,000,000.00) for the next five (5) years to be allocated in the following manner:

  1. Twenty percent (20%) for the Regional Government for regional infrastructure, livelihood and revenue generating projects.

  2. Ten percent (10%) for each province and highly urbanized city for infrastructure, livelihood and revenue generating projects.

  3. Four percent (4%) for a component city.

  4. Six percent (6) shall remain with the Regional Government as Trust Fund.

Provided, That annually, each barangay shall receive not less than One Percent (1%) and each municipality shall receive not less than Ten Percent (10%) to be taken from the share of the province where they are located.

In the case of a chartered city, barangays shall take their shares from the city government. Provided, that the projects shall be in accordance with the Regional and Local Development Plans and Budgets as approved by their respective legislative bodies.

Section 168. Disclosure and transparency. Funds shall be available exclusively for the specific purpose for which they have been appropriated. Any officer of the Cordillera Autonomous Government whose duty permits or requires the possession, custody and disbursement of the funds shall be accountable and responsible thereof. Financial records shall be kept, audited and made public annually or as often as maybe necessary.

Section 169. The share of each local government unit shall be released without need of any further action, directly to the provincial, city, municipal or barangay treasurer, as the case may be on a quarterly basis within five (5) days after the end of each quarter, and which shall not be subject to any lien or hold back that may be imposed by the Regional Government for whatever purpose.

Section 170. The creation of the Cordillera Autonomous Region shall take effect when approved by a majority of the votes cast by the constituent units provided in Section 2, Article I of this Act, in a plebiscite which shall be held not earlier than two (2) months but not later than nine (10) months after this Act takes effect: provided, that only the provinces and cities voting favorably in such plebiscite shall be included in the CAR.

The sum of One Hundred Twenty Five million pesos (PhP125,000,000.00) is hereby appropriated for the following purposes:

  1. Ten million pesos (PhP10,000,000.00) to be allotted to the Regional Development Council for the conduct of a well-coordinated Inter-Sectoral and Inter-agency Regional, Provincial, Municipal and Barangay information campaign on this Act.

  2. Fifty million pesos (PhP50,000.00) shall be equitably divided among the local government units.

  3. Twenty Five million pesos (PhP25,000,000.00) to be allotted to the Commission on Elections.

  4. Forty million pesos (PhP40,000,000.00) to be allotted to the Regional Government for its initial organizational requirements.

The Regional Development Council with the assistance of the Philippine Information Agency, and in consultation with the provincial/city governments, the Cordillera Association of Regional Executives, and other key stakeholders, shall determine the manner of campaigning and the deputization of government agencies, non-government organizations and other stakeholders for purposes of conducting a well-coordinated information campaign.

The amount of One Hundred Twenty Five million pesos (PhP125,000,000.00) as herein appropriated shall be charged against the contingent fund. Any deficiency thereof shall be taken from any available funds of the national government.

Section 171. Any provision or part of this Organic Act found to be invalid or unconstitutional shall not invalidate the provisions or parts thereof not affected thereby.

Section 172. All laws inconsistent with this Organic Act are hereby repealed or modified accordingly.