# Republic Act No. 8438/Article XV

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Source: Official Gazette. Vol. 94, No. 20. Manila. National Printing Office. 1998. pp. 3548–3550.
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Article—XV
Transitory Provisions
Section 1. Unless otherwise provided by law, the date of the election of the first set of officials of the regional government shall be on the second Monday of May 1998.
Sec. 2. 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, shall cease to exist immediately upon the assumption to 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.
Sec. 3. The seat of the regional government of CAR shall be determined by the regional assembly: Provided, however, that the interim seat of the regional government shall be in the City of Baguio.
Sec. 4. Civil service employees 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 cause. All personnel of the national government and of government-owned or -controlled corporations who are absorbed by the regional government shall receive equal salaries and benefits with their national counterparts.
Sec. 5. Within one (1) month from the organization of the regional government, an Oversight Committee composed of the executive secretary as Chairman, 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 executive director of the Cordillera Executive Board, the chairman of the Cordillera Regional Assembly, chief-executive of the Cordillera Bodong Administration, executive director of the Office for Northern Cultural Communities 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.
Sec. 6. Upon the organization of the autonomous region, the line agencies and offices of the national government devolved to the regional government including their personnel, equipment, properties and budgets, shall be immediately placed under the control and supervision of the regional government.
Sec. 7. Notwithstanding the provisions of the preceding sections, the Government Service Insurance System (GSIS), the Social Security System (SSS), the Pagtutulungan-Ikaw, Bangko, Industriya't Gobyerno (PAG-IBIG), and other funds of similar trust or fiduciary nature shall be exempted from the coverage of this Organic Act.
Sec. 8. The national government shall continue its annual allotment to the regional government and devolved regional line agencies, and in addition, provide the autonomous government annual assistance of Four billion pesos (₱4,000,000,000.00) for the first five (5) years and Three billion pesos (₱3,000,000,000.00) for the last five (5) years to be allocated in the following manner:
(a) Fifty percent (50%) for regional government for regional infrastructure, livelihood and revenue generating projects; and
(b) Fifty percent (50%) for provincial and city infrastructure:
Provided, That annually, each barangay shall receive not less than Five hundred thousand pesos (₱500,000.00), and each municipality shall receive not less than Five million pesos (₱5,000,000.00) to be taken from the share of the province where they are located. In the case of Baguio, barangays shall take their shares from the city government: Provided, further, That the duly elected congressional representatives shall be consulted in the identification of the projects to be funded by the said sums: Provided, finally, That the proposed projects, together with the regional infrastructure projects, shall be embodied in a regional Public Works Act to be passed by the Regional Assembly.
Sec. 9. (a) 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 holdback that may be imposed by the regional government for whatever purpose.
(b) Nothing in this Organic Act shall be understood to diminish the share of local government units under existing law.
Sec. 10. To carry out the powers and functions of the regional government the assembly may create such other offices and positions as may be necessary subject to availability of funds.
Sec. 11. The creation of the CAR 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 forty-five (45) days nor later than one hundred twenty (120) days after the approval of this Act: Provided, That only the provinces and city voting favorably in such plebiscite shall be included in the CAR.
The sum of Eighty million pesos (₱80,000,000.00) is hereby appropriated for the following purposes:
(a) Thirty million pesos (₱30,000,000.00) to be allotted to the local government units for the conduct of a well-coordinated information campaign on this Act;
(b) Twenty million pesos (₱20,000,000.00) to be allotted to the Commission on Elections (COMELEC) for the holding of a plebiscite as provided herein; and
(c) Thirty million pesos (₱30,000,000.00) to be allotted to the regional government for its initial organizational requirements.
The amount of Eighty million pesos (₱80,000,000.00) as herein appropriated shall be charged against the contingent fund. Any deficiency thereof shall be taken from any available funds of the national government.
Sec. 12. 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.
Sec. 13. All laws inconsistent with this Organic Act are hereby repealed or modified accordingly.
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