FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
SENATE 
S. B. No. 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
Republic Act No. 7160, otherwise known as the Local Government Code of 1991, 
provides for the following: 1) In case of doubt, any question shall be resolved in favor of 
devolution of powers and of the local government unit (Section 5 [a]); 2) The general welfare 
provisions shall be liberally interpreted to give more powers to local government units in 
accelerating economic development and upgrading the quality of life for the people in the 
community (Section 5[c]); and 3) The policy of the State to require all national agencies and 
offices 
to conduct periodic consultations with appropriate local government units, 
nongovernmental and people’s organizations, and other concerned sectors of the community 
before any project or program is implemented in their respective jurisdiction (Section 2 [c]). 
In consonance with the said provisions of the Local Government Code, this bill seeks to 
amend the Local Government Code by giving local governments the power to decide whether 
gambling shall be allowed in their respective localities. 
This bill strengthens the national policies that local government units “shall enjoy 
genuine and meaningful local autonomy” (Sec. 2, R.A. 7160) and that the national government 
shall only exercise “general supervision” and not control over local government units (Sec. 25 
bl).* 
This bill was originally filed during the Thirteenth Congress, First Regular Session. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
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Introduced by Senator Miriam Defensor Santiago 
AN ACT 
PROVIDING FOR LOCAL AUTONOMY IN THE DETERMINATION OF STATE POLICY 
ON GAMBLING, AMENDING FOR THIS PURPOSE THE LOCAL GOVERNMENT CODE, 
REPUBLIC ACT NO. 7160, SECTIONS 2,27 AND 133 (0) 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Republic Act No. 7160, otherwise known as the Local Government Code, 
Section 2 is hereby amended to read as follows: 
“Section 2. Declaration of Policy. - (a) It is hereby declared the policy of the State 
that the territorial and political subdivisions of the State shall enjoy genuine and 
meaningful local autonomy to enable them to attain their fullest development as 
self-reliant communities and make them more effective partners in the attainment 
of national goals. Toward this end, the State shall provide for a more responsive 
and accountable local government structure instituted through a system of 
decentralization whereby local government units shall be given more powers, 
authority, responsibilities and resources. The process of decentralization shall 
proceed from the national government to the local government units. 
(b) It is also the policy of the State to ensnre the accountability of local 
government units through the institution of effective mechanisms of recall, 
initiative and referendum. 
(c) It is likewise the policy of the State to require all national agencies and 
offices to conduct periodic consultations with appropriate local government units, 
non-governmental and people’s organizations, and other concerned sectors of the 
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community before any project or program is implemented in their respective 
jurisdictions. 
(D) IT IS FURTHER THE POLICY OF THE STATE TO OBSERVE 
LOCAL AUTONOMY IN THE DETERMINATION OF STATE POLICY ON 
GAMBLING. CONFORMABLY WITH THIS POLICY, NO GAMBLlNG 
ENTERPRISE OPERATED BY TNDIVIDUALS OR CORPORATIONS, OR 
CONTRACTED OUT BY THE NATIONAL GOVERNMENT TO FOREIGN 
OR DOMESTIC INDIVIDUALS, CORPORATIONS OR ENTITIES, OR 
OPERATED BY ANY OF ITS INSTRUMENTALITIES OR AGENTS, SHALL 
BE OPERATED, IMPLEMENTED, OR OTHERWISE UNDERTAKEN 
UNLESS THE CONSULTATIONS MENTIONED IN SECTION 2 (C) & 26 
HEREOF HAVE BEEN CONDUCTED AND WITH A MAYOR’S PERMIT, AS 
APPROVED BY THE SANGGUNIANG BAYAN OR SANGGUNIANG 
PANLUNSOD CONCERNED, IS OBTAINED.” 
Section 2. Section 133 of the same law is hereby amended to read as follows: 
“Section 133. Common Limitations on the Taxing Powers of Local Government 
Units. - Unless otherwise provided herein, the exercise of the taxing powers of 
provinces, cities, municipalities, and barangays shall not extend to the levy of the 
following: 
x x x  
(0) Taxes, fees or charges of any kind on the National 
Governments, its agencies and instrumentalities, and local government units. 
PROVIDED, HOWEVER, THAT THIS LIMITATION SHALL NOT APPLY 
TO GAMBLING ENTERPRISES OPERATED BY THE NATIONAL 
GOVERNMENT OR ITS AGENTS OR INSTRUMENTALITIES, OR 
CONTRACTED OUT BY ITS FOREIGN OR DOMESTIC CORPORATIONS, 
INDIVIDUALS OR ENTITIES, WHICH HAVE BEEN GIVEN PERMITS BY 
THE LOCAL GOVERNMENT UNITS.” 
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SECTION 3. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent 
with, the provisions of this Act is hereby repealed, modified or amended accordingly. 
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SECTION 4. Eflectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
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Approved, 
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