Republic of the Philippines
HOUSE OF REPRESENTATIVHS
Quezon City
NINETEHNTH CONGRESS
First Regular Session
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HousEBILLNo.    6229
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i.`'L,    BY:__ A,31
Introduced by HON. JOHN TRACY F. CAGAS
AN ACT AUTHORIZING THE RELEASE OF THE JUST SHARE 0F LOCAL
GOVERNMENT UNITS SITUATED IN ANCHORAGH AREAS DESIGNATED AS
LAY-UP CENTHRS, FROM THE LAY-UP FEES COLLECTED BY THE
MARITIME INDUSTRY AUTHORITY (MARINA) AND APPROPRIATING FUNDS
THEREFOR
EXPLANATORY NOTE
The Philippines is an archipelago with more than 36, 289 kilometers of coastline. As such, numerous
marine vessels traverse its seas for commercial and recreational purposes. Laid-up vessels are those that are
temporarily or pemanently decommissioned or idle while waiting for better business opportunities.
In the Philippines, there are currently six (6) lay-up areas identified by the Philippine Ports Authority
(PPA) and the Maritime Industry Authority (MARINA). Pursuant to LOI No.  341, s.1975 and MARINA
Circular No. 07, Series of 2009, the MARINA is vested with the authority to fix and collect daily lay-up fees
from foreign vessels laid-up in anchorage areas in the country, namely: Malalag Bay, Bunawan Bay, Pujada
Bay, Mayo Bay and other identified areas. These fees are then remitted to the national government.
Article  11,   Sec.   25   of  the   1987   Philippine  Constitution  provides  for  the  autonomy  of  local
governments and the recent A4lcz73c7cz#czs v.  Oc¢ocz ruling of the Supreme Court provides for the importance of
decentralization through its two facets : the administrative and fiscal authonomy. Fiscal autonomy is essential
for local government units to properly allocate funding on their priority sectors and programs.
Although the vessels are anchored, the fact that they are in the area denotes the need of the LGU to
utilize resources for maintenance and security. Similarly, lay-up areas are affecting the marine ecosystem of
the LGUs where they are situated.  Additional revenues from the lay-up fees can be accurately and more
specifically  allocated by the  LGUs  in  accordance with their own priorities,  including the protection  and
protection of their environs and public order and safety. Thus, it is for this reason that the LGUs deserve
their just and equitable share in the collected fees.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
i11`
HousEBILLN6.     6229
Introduced by HON. JOHN TRACY F. CAGAS
AN ACT AUTHORIZING THH RELEASE 0F THH JUST SHARH OF LOCAL
GOVERNMENT UNITS SITUATHD IN ANCHORAGE AREAS DESIGNATED AS
LAY-UP CENTERS, FROM THH LAY-UP FEHS COLLECTHD BY THE
MARITIME INDusTRy AUTHORITy OrARINA) AND AppROpRIATING FUNDs
THEREFOR
Be it enacted by the Senate and the House Of Representatives of the Philippines in Congress
assembled:
SECTION  1.  Local  Government  Units  (LGUs)  under whose jurisdiction,  lay-up  areas  are
situated are hereby declared to be entitled to a twenty percent (20%) share in the lay-up fees
collected from all foreign vessels.
SEC. 2. The respective share of the LGUs from the remitted fees shall also be automatically
appropriated to the LGUs. In bays traversing more than one (1 ) municipality, the proportionate
share of each LGU shall be computed according to the length of the shoreline occupied by the
lay-up areas.
SEC. 3. The appropriated amount shall be included in the current and future annual General
Appropriations  Act  and  shall  be  automatically released by  the Department  of Budget  and
Management (DBM) in accordance with the existing laws and regulations.
SEC.  4.   If any  provision  of this  Act  shall  be  held  unconstitutional  or  invalid,  the  other
provisions not otherwise affected shall remain in full force and effect.
SEC. 5.  All laws, decrees, executive orders, proclamations, rules and regulations, and other
issuances, or parts thereof which are inconsistent with the provisions of this Act, are hereby
repealed or modified accordingly.
SEC.  6. This Act shall take effect fifteen (15) days following its publication in the Official
Gazette or in a newspaper of general circulation.
Approved,