Republic of the Philippines 98 JUL 2013
HOUSE OF REPRESENTATIVES \ Gow P -
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

House Bill No.__1209

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO.

EXPLANATORY NOTE

Section 324, Chapter 3, Title Il of Republic Act No. 7160, otherwise known
as the Local Government Code of 1991, provides for the establishment of the
local calamity fund from the five percent (5%) estimated revenue from regular
sources of a local government unit. According to the said law, the proceeds
accruing to the local calamity fund shall be allocated solely for the unforeseen
expenditures arising from the occurrence of calamities.

Unfortunately, the abovementioned purpose and application of the fund is
quite restrictive and has failed to respond suitably and completely to disasters
and other calamities. Admittedly, the prevailing framework for disaster
management in the Philippines, whether national or local, is the traditional or
dominant approach. Under the same, government's response to disaster is
focused on emergency relief measures, while rehabilitation, mitigation and
prevention are rarely carried out.

The recent onslaught of typhoon Ondoy that killed hundreds of people and
displaced thousands of families in Metro Manila and other adjacent areas may
not be prevented altogether as most of us considered it an “act of God” but the
ensuing destruction and loss that followed may very well be mitigated if
appropriate disaster management structure is in place.

Hence, it is a must to amend the provision of the Local Government Code
‘on the matter so that efforts pertaining to calamities and other disasters will now
be anticipatory and proactive instead of being reactionary. This measure seeks to
expand the presently accepted use of the calamity fund to include allocation for
preparedness and mitigation programs, as well as, for rehabilitation and
reconstruction works of all local government units.

In view of the foregoing, approval of this bill is earnestly sought.

MARCELINO R. TEODORO

Representative, 1° District
City of Marikina


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

‘SIXTEENTH CONGRESS
First Regular Session

1209

House Bill No.

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO

AN ACT
AMENDING SECTION 324 OF REPUBLIC ACT NO. 7160, OTHERWISE
KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 AND FOR OTHER
PURPOSES

Be it enacted by the Senate and the House of Representatives in Congress
assembled:

SECTION 1. Section 324 of Republic Act No. 7160 is hereby amended to
read as follows:

“SEC, 324. Budgetary Requirements. - The budgets of local government units for
any fiscal year shall comply with the following requirements: (a) The aggregate
amount appropriated shall not exceed the estimates of income;

(b) Full provision shall be made for all statutory and contractual obligations of the
local government unit concerned: Provided, however, That the amount of
appropriations for debt servicing shall not exceed twenty percent (20%) of the
regular income of the local government unit concerned;

(c) In the case of provinces, cities, and municipalities, aid to component
barangays shall be provided in amounts of not less than One Thousand Pesos
(P1,000.00) per barangay; and

(d) Five percent (5%) of the estimated revenue from regular sources shall be set
aside as an annual lump sum appropriation for unforeseen expenditures arising
from the occurrence of calamities, INCLUDING EXPENSES AND
ALLOCATIONS FOR PREPAREDNESS AND MITIGATION PROGRAMS, AS
WELL AS, REHABILITATION AND RECONSTRUCTION WORKS OF THE
LOCAL GOVERNMENT UNIT CONCERNED [: Provided, however, That such
appropriation shall be used only in the area, or a portion thereof, of the local
government unit or other areas declared by the President in a state of calamity.”]

SECTION 2. Repealing Clause — All laws, decrees, executive orders or
parts thereof inconsistent with the provisions of this Act are hereby repealed,
amended or modified accordingly. Steek-filing

SECTION 3. Effectivity — This Act shall take effect fifteen (15) days after
its complete publication in at least two (2) newspapers of general circulation.

Approved,