Republic of the Philippines
HOUSE OF REPRESENATIVES
Quezon City

SEVENTEENTH CONGRESS,

First Regular Sess

Begun and held in Metro Manila, the twenty-fifth day of July, two thousand and
sixteen

House Bill No.__092

INTRODUCED BY REPRESENTATIVE BAI SANDRA SINSUAT A. SEMA

EXPLANATORY NOTE

It is a great privilege for the undersigned to re-file the proposed Bangsamoro
Basic Law. This proposed measure which was formerly principully authored by
Hon. Feliciano Belmonte, Jr had undergone meticulous scrutiny in the 16°
Congress, having to wade in numerous public hearings not only in the committee
rooms of the House of Representatives but also in different venues nationwide.

Peoples of different persuasions and considerations had freely spoken for and
against the bill, and their suggestions found their way in the substitute measure of
the Ad Hoc Committee on the Bangsamoro of the 16" Congress. The Legislature
closed its curtains without having passed the bill into law. But the aspiration to attain
genuine autonomy for the Bangsamoro Homeland has never died.


Perhaps it is fitting that the proposed measure be laid again before this 17”
Congress to once again undergo the process of perfection in the crucible of the newly
elected set of lawmakers, This Representation is confident that sooner or later the
ultimate basic law for the Bangsamoro will emerge in fulfillment of the
Constitutional mandate to create an autonomous region in Muslim Mindanao —truly
reflective of the desires of the framers of the 1987 Constitution and the sacrifices of

the Bangsamoro people.

Bat SANDRA ‘AT A. SEMA, MNSA
sentative

First District of Maguinadanao
and Cotabato City


on — . ‘
i 1

Republic of the Philippines
HOUSE OF REPRESENATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

Begun and held in Metro Manila, the twenty-fifth day of July, two thousand and
Sixteen

House Bill No,__ 092

—

INTRODUCED BY REPRESENTATIVE BAI SANDRA SINSUAT A. SEMA

ee

AN ACT PROVIDING FOR THE BASIC LAW FOR THE
BANGSAMORO AND ABOLISHING THE AUTONOMOUS
REGION IN MUSLIM MINDANAO, REPEALING FOR THE
PURPOSE REPUBLIC ACT NO. 9054, ENTITLED “AN ACT TO
STRENGTHEN AND EXPAND THE ORGANIC ACT FOR THE
AUTONOMOUS REGION IN MUSLIM MINDANAO, “AND FOR
OTHER PURPOSES

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

Preamble:

We, the Bangsamoro people and other inhabitants of the Bangsamoro, imploring
the aid of the Almighty, aspiring to establish an enduring peace on the basis of
Justice in our communities and a justly balanced society, and asserting our right
to conserve and develop our patrimony;


aoe 2

{n consonance with the Constitution and the universally accepted principles of
human rights. liberty, justice, democtucy, and the norms and standards of
international law, reflective of our system of life prescribed by our faith. and in
harmony with our customary laws, cultures and traditions.

Affirming the distinct historical identity and birthright of the Bangsamoro people
to their ancestral homeland and their right to self-deter mination — beginning with
the struggle for freedom of their forefathers in generations past and extending to
the present —to chart their political future through a democratic process that will
secure their identity and posterity, and allow for genuine amd meaningful self-
governance as stipulated under the Comprehensive Agreement on the
Bangsamoro (CAB);

With the blessings of the Almighty, do hereby ordain and promulgate this
Bangsamoro Basic Law. through the Congress of the Republic of the Philippines,
4s the basic law of the Bangsamoro that establishes the asymmetrical political
relationship with the Central Government founded on the Principles of
subsidiarity and parity of esteem,

Article |
NAME AND PURPOSE

Section 1. Short Title— This law shall be known and cited as the “Bangsamoro
Basie Law.”

Section 2. Name. — The name of the political entity under this Basic Law shall
be the Bangsamoro,


os 3

Section 3. Purpose. — The purpose of this Basic Law is to establish a political
entity, provide for its basic structure of goverment in recognition of the justness
and legitimacy of the cause of the Bangsamoro people and their aspiration to chart
their political future through & democratic process that will secure their identity
and posterity and allow for meaningful self-governance.

Article 1
BANGSAMORO IDENTITY

Section 1. Bangsamoro People. — Those who at the time of conquest and
colonization were considered natives or original inhabitants of Mindanao and the
Sulu archipelago and its adjacent islands including Palawan, and their
descendants, whether of mixed or of full blood, shall have the right to identify
themselves as Bangsamoro by ascription or self-ascription. Spouses and their
descendants are classified as Bangsamoro,

Section 2. Freedom of Choice. — The freedom of choice of other indigenous
peoples shall be respected.

Section 3. Bangsamoro Symbol. — The Bangsamoro Parliament shall adopt the
official flag. emblem and anthem of the Bangsamoro,

Article 11
TERRITORY

Section 1. Definition of Territory - Territory refers to the land mass as well as
the maritime, terrestrial, fluvial and alluvial domains, and the serial domain
above it. The Bangsamoro territory shall remain a part of the Philippines.


"s 4

Section 2, Core Territory — The core territory of the Bangsamoro shall be
composed of:

a the present geographical area of the Autonomous Region in Muslim
Mindanao,

b. the Municipalities of Baloi, Munai, Nummgan, Pantar, Tagoloen and
‘Tangkal in the province of Lanao del Norte and all other barangays in the
Municipalities of Kabocan, Carmen, Aleosan, Pigkawayan, Pikit: and
Midsayap that voted for inclusion in the ARMM during the 2001 plebiscite:

«© the cities of Cotabato and Isabela: and

Jd. ail other contiguous areas where there is resolution of the local government
unit or a petition of at least ten percent (10%) of the registered voters in the
area asking for their inclusion at least two months prior to the conduct of the
ratification of the Bangsamoro Basic Law and the process of delimitation of
the Bangsamoro.

In order to ensure the widest acceptability of the Bangsamoro Basic Law in the
Sore areas above-mentioned, a popular ratification shall be conducted among all
the Bangsamoro within the areas for their adoption.

Section 3. Contiguous Territory — The areas which are contiguous and outside
the core territory may opt at any time to be part of the territory upon petition of
at least ten percent (10%) of the registered voters and approved by a majority of
qualified votes cast in a plebiscite

Section 4, Inland Waters. — All inland waters, such as lakes, rivers, river
Systems, and streams within the Bangsamoro territory shall be part of the


.

5

Bangsamoro. The preservation and management thereof shall be under the
jurisdiction of the Bangsamoro Government.

Section 5, Bangsamoro Waters — The Bangsamoro waters shall extend up to
22.224 kilometers (12 nautical miles) from the low-water mark of the consts that
are part of the Bangsamoro territory. The Bangsamoro Waters shall be part of the
territorial jurisdiction of the Bangsamoro political entity.

Where a constituent local government unit of the Bangsamoro and an adjoining
local government unit are so situated on the opposite shores such that there is
thirty (30) kilometers of waters or less between them, a line equally distant from
the opposite shores shall be drawn to demarcate the Bangsamoro Waters and the
municipal waters of the adjoining local government unit.

Should they be so situated that there is more than thirty (30) kilometers but less
than 37.224 kilometers of waters between them, # line shall be drawn at the edge
of the 15 kilometers municipal waters of the adjoining local government unit to
demarcate it from the Bangsamoro Waters

Ten years after the passage of this Basic Law, the Central Government and the
Bangsamoro Government shall discuss the enhancement of the area of the
Bangsamoro Waters through the necessury processes and modalities.

Section 6, Constituent Units. — The provinces, cities, municipalities, barangays
and geographical areas within its territory shall be the constituent units of the
Bangsamoro.

Section 7. Collective Democratic Rights of the Bangsamoro People. - The
collective rights of the constituents of the Bangsamoro shall be recognized.


Article 1V
GENERAL PRINCIPLES AND POLICIES

Section 1. Self-Governance. In the exercise of its right to self-governance and
self-determination, the Bangsamoro js free to pursue its economic, social and
cultural development.

Section 2. Democratic Political System. The Bangsamoro Government shall be
Parkiamentary. Its political system is democratic, allowing its people to freely
participate in the political processes within its territory

Section 3. Electoral System. - The Bangsamoro Government shall adopt an
electoral system suitable to a ministerial form of government, which shall allow
democratic participation, encourage formation of genuinely principled political
parties, and ensure accountability

Section 4. Civilian Government. Governance in the Bangsamoro js the
responsibility of the duly-elected civilian government. Civilian authority is, at all
times. supreme over the military,

Section 5. Promotion of Unity, The Bangsamoro Government shall promote
unity, peace, justice, and goodwill among all peoples, as well as encourage a just
and peacetiil settlement of disputes.

The Bangsamoro abides by the principle that the country renoutices war as an
instrument of national policy, adopts the generally accepted principles of
international law as part of the law of the land and adheres to the policy of peace,
equality, justice, freedom, cooperation, and amity with all nations


ty 7

Section 6. Promotion of Right. - The Bangsamoro shull adhere to the principle
of enjoining what is right und forbidding what is wrong.

Section 7. Social Justice. - The Bangsamoro shall establish a government that
ensures that every citizen in the Bangsamoro is provided the basic necessities and
equal opportunities in life. Social Justice shall be promoted in all phases of
development and facets of life within the Bangsamoro,

Section 8, International Treaties and Agreements. - The Bangsamoro
Government shall respect and adhere to all international treaties and agreements
binding upon the Central Government.

Article V
POWERS OF GOVERNMENT

Section 1. Reserved Powers. — Reserved powers are matters over which
authority and jurisdiction are retained by the Central Government, The Central
Government shall exercise the following reserved powers:

1, Defense and external security;

2 Foreign policy;

3 Coinage and monetary policy:

4. Postal service;

5 Citizenship and naturalization;


6 Immigration;

?. Customs and tariff as qualified by Section 2(1D), Article V of this Basic
Law;

& Common market and global trade, provided that the power to enter into
economic agreements given wo the ARMM under R.A. 9054 is hereby
transferred to the Bangsamoro Government as provided in Article XII,
Section 25 of this Basic Law; and

9. Intellectual property rights.

Section 2. Concurrent Powers. - Concurrent powers shu! refer to the powers
shared between the Central Goverment and the Bangsamoro Government within
the Bangsamoro, as provided in this Basic Law.

The Central Government and the Bangsamoro Government shall exercise shared
Powers within the Bangsamoro on the following mutters:

Social security and pensions. ~ The Bangsamoro Government may organize its
own social security and pension systems alongside the existing Central
Government social security and pension systems.

The Bangsamoro Government and the Central Government through the
intergovernmental relations mechanism, and other consultative processes
shall, among others, ensure that the investment of the contributions from the

members from the Bangsamoro in the Central Government social security
and pensions is responsive to their cultural and religious sensitivities.

The future relationship of the Central Government system with the
Bangsamoro Government system with respect to new government


employees and other qualified individuals in the Bangsamoro shall be
further provided for in law duly enacted for the purpose.

1 Quarantine, — There is hereby created un office for quarantine services in
the Bangsamoro. {t shall cooperate and coordinate with its counterpart
Offices in the Central Government

2. Land Registration. — The Bangsamoro Government, in accordance with the
land registration system of the Central Government, shall administer land
registration in the Bangsamoro territory through an office it shall create for
this purpose. The Bangsamoro Government shall furnish copies of the titles,
deeds and other instruments to the relevant Central Government agencies.
‘The Bangsamoro Government can act on consultas:

The Bangsamoro Government may institute processes to promote more
efficient registration of lands within the Bangsamoro.

3 Pollution control -The Central Government and the Bangsamoro
Government agencies shall cooperate and coordinate through the
intergovernmental relations mechanism on pollution contral matters.

4 Human rights and inmanitarian protection and promotion. ~ The
Bangsamoro Government may organize its own bodies for human rights and
humanitarian protection and promotion that will work cooperatively with
relevant national institutions.

S. Penology and penitentiary. — The Central Government and the Bangsamoro
Government institutions shall cooperate and coordinate through the


10

intergovernmental relations mechanism on the matter of granting parole and
recommending to the President the grant of executive clemency. The
Bangsamoro Government shall create an office that shall administer the
parole system and recommend the grant of executive clemency to the Office
of the President.

The Bangsamoro Government may create and manage jails, penal colonies,
and other facilities. It shall ensure the compatibility of these facilities with
the national jail management and penitentiary system, through the
intergovernmental relations mechanism. ‘These facilities are understood to
be part of the country’s administration of justice.

Auditing. - The Bangsamoro auditing body shall Have auditing
responsibility over public funds utilized by the Bangsamoro, without
prejudice to the power, authority and duty of the national Commission on
Audit (COA), The Bangsamoro Goverment shall ensure transparency
mechanisms consistent with open government practices.

. Ctvil Service. —The Bangsamoro Government shall develop and administer
4 professional civil service corps, to include the powers anil privileges on
civil service matters provided in R.A. No. 9054, and without prejudice to
the power, authority, and duty of the national Civil Service Commission.

There is hereby created « Bangsamoro Civil Service office that shall develop
and administer a professional civil service corps, without prejudice to the
power, authority and duty of the national Civil Service Commission. The
Bangsamoro Government shall enact a civil service law for this purpose.
This law shall govern the conduct of civil servants, the qualification for non-
elective positions, adopt the merit and fitness system, and protect civil


service eligibles in various government positions, including government-
owned and/or controfied corporations with original charters, in the
Bangsamoro. The Bangsamoro Government shall have primary disciplinary
authority over its own officials and employees.

8 Coastguard. ~The Central Government shall have primary responsibility
over coastguard matters. The Central Government and the Bangsamoro
Government shall cooperate and coordinate through the intergzovernmental
relations mechanism.

9. Customs and Tariff. — The Bangsamoro Government and the Central
Government shall cooperate and coordinate through the intergovernmental
relations mechanism with regard to the enforcement of customs and tariff
Jaws and regulations to ensure the effective exercise of its powers on barter
trade and countertrade with ASEAN countries as well as the regulation of
the entry of haram goods in the Bangsamoro territorial jurisdiction.

10. Administration of justice. ~ Administration of justice shall be in accordance
with the relevant provisions of this Basic Law and with due regard to the
Powers of the Supreme Court and the competence of the Bangsamoro
Government over Shari'ah courts and the Shari‘ah justice system in the
Bunigsamoro. The supremacy of Shari'ah and its application shall onty be 10
Muslims.

11. Funding for the maintenance of national roads, bridges, and irrigation
sostems, — The Central Government shall be responsible for the funding,
construction and maintenance of national roads, bridges and irrigation
Systems in the Bangsamoro and shall include in the National Road Network


2

Information System all national roads and bridges in the Bangsamoro,
There shall be coordination through the intergovernmental relations
mechanism between the relevant Central Government and Bangsamoro
Government agencies on the Central Government on the matter of national
roads, bridges, and irrigation systems within the Bangsamoro

The Bangsamoro Government shall submit proposals to the appropriate
national government agency for the inclusion of the cost of such
maintenance in the latter's budget that shall be submitted to Congress for
inclusion in the General Appropriations Act. Funding for national roads,
bridges, and irrigation systems shall be regularly released to the relevant
department of the Central Government.

12. Disaster risk reduction and management. - The Bangsamoro Government

shall have primary responsibility over disaster risk reduction and
management within the Bangsamoro, There shall be cooperation and
coordination among relevant Central Government and Bangsamoro
Government agencies on disaster risk reduction and management. There is
hereby created s Bangsamoro Disaster Risk Reduction and Management
Council (BDRRMC). with powers and functions that shall be defined by the
Bangsamoro Parliament in a lnw on disaster preparedness and response. The
BDRRMC shall formulate the Bangsamoro Disaster Risk Reduction and
Management Plan, which shall complement the National Disaster Risk
Reduction and Management Framework and Plan of the Central
Government. Additionally, the BDRRMC, through its Chair, the Chief
Minister, may recommend to the President the mobilization of resources of
national defense in times of disasters in the Bangsamoro.


uu

13. Public order and safety. —The Bangsamoro Government shall have primary

responsibility over public order and safety within the Bangsamoro, {t shall
have powers over public order and safety including those related to jail
management, fire prevention, and trainings on public safety. The Central
Government and the Bangsamoro Government shall cooperate and
coordinate through the intergovernmental relations mechanism.

Section 3. Exclusive Powers, - Exclusive powers sre matters over which
authority and jurisdiction shall pertain to the Bangsamoro Government. The
Bangsamoro Government shall exercise these powers over the following matters
within the Bangsamoro:

L

2

Agriculture. livestock and food security;

Economic and cultural exchange:

Contract loans, credits, and other forms of indebtedness with any
government or private bank and other lending institutions, except those

requiring sovereign guaranty, which require Central Government approval:

Trade, industry, mvestment, enterprises and regulation of businesses taking
into consideration relevant laws;

Labor, employment, and occupation;

Registration of business names, with the Bangsamoro Government listing
these in the Philippine Business Registry for business names;

Barter trade and countertrade with ASEAN countries;


te

& Economic zones and industrial centers;

9, Free ports. — The Bangsamoro Government may establish free ports in the

Bangsamoro, The Bangsamoro Government shall cooperate with the Central
Government through the intergovernmental relations mechanism on
shall be entitled to the fiscal incentives and other benefits provided by the
Central Government to special economic zones. Bangsamoro free ports shall
be contiguous/adjacent to seaport or airport within the Bangsamoro;

10. Tourism;
11. Creation of sources of revenue:
12 Budgeting:

13. Financial and banking system ~ This is without prejudice to the power of
Supervision of the Bangko Sentral ng Pilipinas (BSP) and provided further
that the
Bangsamoro Government, the BSP, the Department of Finance (DOF), and
the National Commission on Muslim Filipinos (NCMF) shall jointly
Promote the development of the Islamic banking system, to include among
others the establishment of a Shari ‘ah supervisory board:

14. Establishment of government-owned andlor controlled corporations
(GOCCS) and financial institutions. — The Bangsamoro Government shall
Jegislate and implement the creation of its own GOCCs in the pursuit of the
common good, and subject to economic viability. The GOCCs shall be


bs

registered with the Securities and Exchange Commission or shall be
established under legislative charter by the Bangsamoro Government;

15. The Bangsamoro Government shall have authority to regulate power
generation, transmission. and distribution operating exclusively in the
Bangsamoro and not connected to the national transmission grid, {t shall
Promote investments, domestic and international, in the power sector
industry in the Bangsamoro. Power plants and distribution networks in the
Bangsamoro shall be able to interconnect and sell power over the national
transmission grid to electric consumers. The Bangsamoro Government may
assist electric cooperatives in accessing funds and technology. to ensure
their financial and operational viability. When power generation,
transmission, and distribution facilities are connected to the national
transmission grid. the Central Government and the Bangsamoro
Government shall cooperate and coordinate through the intergovemmental
relations mechanism;

16. Public utilities operations m the Bangsamoro - In case of inter-regional
utilities, there shall be cooperation and coordination among the relevant
government agencies;

17. Receive grants and donations;

18. Education and skills training:

19. Science and technology,

20. Research councils und scholarships;


21. Culture and language;
22. Sports and recreation,

23. Regulation of games and amusement operations within the Bangsamoro;

24. Libraries, museums, historical, cultural and archaeological sites. — The
Bangsamoro Government shall have the power to establish its own libraries
and museums, and declare historical and cultural sites. The Central
Government shall transfer the management of such sites currently under the
Jurisdiction of the National Museum, National Historical Commission, and
other agencies of the Central Government, to the Bangsamoro Government
of Jocal governments therein following certain processes through the
intergovernmental relations mechanism, With regard to archaeological sites,
the Bangsamoro Government shall coordinate with relevant agencies of the
Central Government on the regulation, excavation, preservation. and
exportation of cultural properties, as well ax on the recovery of lost historical
and cultural artifacts:

25. Regulations on manufacture and distribution of foods, drinks, drugs and
tobacco for the welfare of the Bangsamoro;

26. Hajj and Umrah. — The Bangsamoro Goverment shall have primary
jurisdiction over Hajj and Umrah matters affecting pilgrims from within the
Bangsamoro. The Central Government shall have competence over Hajj and
Umrah matters affecting pilgrims coming from outside the Bangsamoro.
There is hereby created a Bangsamoro pilgrimage authority that shall act in
close coordination with Central Government on Aai/ and wnrah matters
involving offices and agencies outside the Bangsamoro;


27. Ciistomary laws;
26. Declaration of Bangsamoro holidays;
29. Ancestral domain and natural resources;

30.Protection of the rights of the indigenous people in the Bangsmoro in
‘accordance with the United Nations Declaration on the Rights of Indigenous
Peoples, and taking into account in addition to economic and geographical
criteria, their individual and communal property rights, cultural integrity,
customary beliefs, historical and commumity traditions. The Bangsamoro
Parliament shall create an appropriate office or ministry for the Indigenous
Peoples, which shall be part of the Bangsamoro Cabinet to develop and
implement the Bangsamoro programs for the indigenous peoples in
accordance with a law passed by the Parliament;

31. Land management, land distribution, and agricultural land use
reclassification, — The classification of public lands into alicnable and
disposable lands shall be imitiated and recommended by the Bangsamoro
Government to the President for the timely implementation of Bangsamoro
development plans and targets:

32 Cadastral land survey. — The Bangsamoro Government shall have the
authority to conduct cadastral surveys, lot surveys, and isolated and special
surveys in the Bangsamoro, The Bangsamoro Government shall furnish the
results of these surveys to, and coordinate with, relevant Central
Government agencies to effect inclusion into national cadastral survey;


33, Expropriation and eminent domain;

34. Environment, parks, forest management, wildlife. nature reserves and
conservation. ~ The Bangsamoro Government shall have the authority to
protect and manage the environment. It shall have the power to declare
nature reserves and aquatic parks, forests, and watershed reservations, and
other protected areas in the Bangsamoro,

35, Inland waterways for navigation;

36. Inland waters;

37. Management, regulation and conservation of all fishery, marine and aquatic
resources within the Bangsamoro (erritorial jurisdiction;

38. Bangsamoro settlements;
39. Customary justice:

40. Shari'ah courts and Shariah justice system;

41, Public administration and bureaucracy for the Bangsamoro;

42. Health, provided that the Central Government and the Bangsamoro
Government shall cooperate with and assist each other in the prevention and
control of epidemic and other communicable diseases;

43, Social services, social welfare and charities;

44, Waste Management;


45. Establishment and supervision of humanitarian services and institutions;

46. Identification, generation and mobilization of international human resources
for capacity building and other activities involving the same within the
Bangsamoro. The Central Government shall cooperate with and assist the
Bangsamoro Government towards ensuring access to such relevant human
resources through the intergovernmental relations mechanism,

47. Establishment of Awgaf (endowment) and charitable trusts:
48. Hishah office for accountability as part of the Shari ‘ah justice system;

49. Registration of births, marriages, and deaths, copies of which shall be
forwarded to the Philippine Suatisties Authority;

50. Housing and human settlements;

51 Development planning:

52. Urban and rural development:

Water supplies and services, flood control and itrigation systems in the
Bangsamoro, provided that with regard to water supplies and services, flood
control and irrigation systems that connect to or from facilities outside the
Bangsamoro, there shall be cooperation and coordination between the
Bangsamoro Government and the appropriate Central or local government
bodies;


53. Public works and highways within the Bangsamoro;

54. Establishment of appropriate mechanisms for consultations for women and
marginalized sectors;

55. Special development programs and faws for women. the youth, the elderly,
labor, the differently-abled_ and indigenous cultural communities:

56. Local administration, municipal corporations and other local authorities
including the creation of local governments, — The Bangsamoro
Government shall manage and build its own bureaucracy and administrative
organization, in accordance with the ministerial form of government:

The Bangsamoro Parliament may creme, divide, merge, abolish of
substantially alter boundaries of provinces, cities, municipalities or
barangays in accordance with a law enacted by the Bangsamoro Parliament,
and subject to the approval by « majority of the votes cast in a plebiscite in
the political units directly affected, Subject to the criteria provided in said
Jaw, the Bangsamoro Parliament may likewise create appropriate focal
government units in the areas inhabited predominantly by indigenous
peoples,

However, when such acts require the creation of @ congressional district, the
Bangsamoro Government shall cooperate and coordinate with Central
Government through the Philippine Congress — Bangsamoro Parliament
Forum to prioritize the deliberations on the creation of the congressional
district; and


oe n

57. Establishment ot creation of other institutions, policies and laws for the
general welfare of the people in the Bangsamoro.

Section 4. Other Exclusive Powers. The following powers and competencies
Previously granted to the Autonomous Region in Muslim Mindanao (ARMM)
under R.A. No, 6734, as amended by R.A. No. 9054, are hereby transferred to
the Bangsamoro Government as part of its exclusive powers:

a. To regulate and exercise authority over foreign investments within its
jurisdiction, The Central Government may intervene in such matters only
if national security is involved;

To prociaim a state of calamity over its territorial jurisdiction or parts
thereof whenever typhoons, flash floods, earthquakes, tsunamis, or other
natural calamities cause widespread damage or destruction to life or
Property in the region. The state of calamity proclaimed by the Chief
Minister shall only be for the purpose of maximizing the efforts to rescue
imperiled persons and property and the expeditious rehabilitation of the
damaged area;

© To temporarily take aver or direct operation of any privately-owned public
utility or business affected with public interest, in times of state of calamity
declared by the Chief Minister, when the public interest so requires and
under such reasonable terms and safeguards as may be prescribed by the
Parliament. The public utility or business concemed may contest the take-
over of its operations by the Bangsamoro Government by filing a proper
case or petition with the Court of Appeals;


2

a To recognize constructive or traditional possession of lands and resources
by indigenous cultural communities subject to judicial affirmation, the
petition for which shall be instituted within a period of ten (10) years from
the effectivity of this Basic Law. The procedure for judicial affirmation of
imperfect titles under existing laws shall, as far as practicable, apply to the
Judicial affirmation of titles to ancestral lands;

e. Te adopt and implement a comprehensive urban land reform and land use
Program, to ensure the just utilization of lands within its jurisdiction:

f, The Bangsamoro Parliament shall have the following powers:

1. To enact legislation on the rights of the people of the Bangsamoro to
initiate measures for the passage, amendment or repeal of regional or
local legislation; to be consulted on matters that affect their
environment; to call for a referendum on important issues affecting
their lives; and, to recall regional or local officials;

2 To conduct inquiries or public consultations in aid of legislation in
accordance with its rules. [n connection therewith, it shall have the
power to issue subpoena or subpoena duces tecum to compel the
attendunce of witnesses and the production of papers, documents, or
things by witnesses or persons under investigation by the Parliament,
itself, ar by any of its committees. It shall also have the right to cite
witnesses or persons under investigation for contempt for refusal to
testify before it or before any of its committees or to produce papers,
documents or things required by the Parliament or any of its
committees. The rights of persons appearing in or affected by such
inquiries shall be respected:


3 To enact a law that would allow the Chief Minister, Speaker of the
Parliament and the Presiding Justice of the Bangsamoro Shari’ah High
Court to augment any item in the Bangsamoro General Appropriations
Law for their respective offices from savings in other items of their
respective appropriations;

4 To enact a law that shall regulate the grant of franchises and
concessions, and empower the Chief Minister to grant leases, permits,
and licenses over agricultural lands and for forest management;

To create pioneering firms and other business entities needed 1 boost
economic development in the Bangsamoro;

‘To establish and operate pioncering public utilities in the interest of
regional welfare and security. pon payment of just compensation, it may
cause the transfer of the ownership of such utilities to cooperatives or other
collective organizations,

‘To support and encourage the building up of entrepreneurial capability in
the Bangsamoro and to recognize, promote, and protect cooperatives:

To supervise and regulate private schools in the Bangsamoro and to allow
for the participation of three (3) representatives of private schools in the
deliberations of the appropriate Bangsamoro Government's ministry or
office on matters dealing with private schools;

To be represented in the board of the state universities and colleges (SUCs)
in the Bangsamoro by the Chair of the appropriate committee of the


u

Bangsamoro Parliament, either as co-chair or co-vice chair The SUCs
within the Bangsamoro shall be considered part of the Bangsamoro
educational system. This notwithstanding. these SUCs shall enjoy
academic freedom and fiscal autonomy and shall continue to be governed
by their respective charters;

To supervise, through the appropriate ministry, the accredited madaris in
the Bangsamoro;

m. To conduct periodic competitive qualifying examinations of madaris
teachers for permanent appointments to the Bangsamoro education system;

n To adopt measures to protect and promote the rights of people's
organizations and other collective organizations;

© To adopt measures for the protection of the youth in the Bangsamoro and
the promotion of their welfare, and to create the appropriate office and
other mechanisms for the implementation of such measures,

p To enforce the policy against the appointment or designation of any
member of the Armed Farces of the Philippines in the active service to.»
civilian position in the Bangsamoro Government, including government-
owned and/or -controlled corporations, or in any of their subsidiaries or
instrumentalities within the Bangsamoro.


ee

Article VI
INTERGOVERNMENTAL RELATIONS

Section 1, Asymmetric Relationship. — The relationship between the Central
Government and the Bangsamoro Government shall be asymmetric, This is
reflective of the recognition of their Bangsamoro identity, and their aspiration for
self-governance.

This makes it distinct from other regions and other local governments

Section 2. Parity of Exteem. — The Central Government and the Bangsamoro
Government shall be guided by the principles of parity of esteem and accepted
norms of good governance. The Central Government shall respect the exercise of
competencies and exclusive powers of the Bangsamoro Government. The
Bangsamoro Government shall respect the exercise of the competencies and
reserved powers of the Central Government.

Section 3, General Supervision. Consistent with the principle of autonomy and
the asymmetric relation of the Central Government and the Bangsamoro
Government, the President shall exercise general supervision over the
Bangsamoro Government to ensure that laws are faithfully executed.

Section 4, Intergovernmental Relations Mechanism. — The Central
Government and the Bangsamoro Goverment shall establish a mechanism at the
highest levels that will coordinate and harmonize their relationships. For this
Purpose, a primary mechanism shall be a Central Government — Bangsamoro
Government Intergovernmental Relations Body to resolve issiies on
intergovernmental relations. All disputes and issues relating to these
intergovernmental relations shall be resolved through regular consultations and
continuing negotiations in a non-adversarial manner.


‘The Intergovernmental Relations Body shall exhaust all means to resolve all
issues brought before it. Unresolved issues shall be elevated to the President,
through the Chief Minister,

The Central Government shall appoint a head to represent the Central
Government. The Bangsamoro Government shall have a Minister who shall sit
in this body, representing the Bangsamoro Government. The body shall be
supported by a joint secretariat.

Section 5. Council of Leaders, — The Bangsamoro Council of Leaders shall
consist of the Chief Minister, provincial governors, mayors of chartered cities,
communities, and other sectors, The Bangsamoro Council of Leaders shall be
chaired by the Chief Minister. The Council shall advise the Chief Minister on
matters of governance in the Bangsamoro. The representation of the non-Moro
indigenous communities shall be pursuant to their customary laws and indigenous
processes,

Section 6, Devolution and Subsidiarity. —The Central Government and the
Bangsamoro Government accept the concept of devolution as inspired by the
Principles of subsidiarity, Decisions are to be made at the appropriate level to
ensure public accountability and transparency, and in consideration of good
governance and the general welfare.

Section 7. Bangsamoro Government and Its Constituent Local Government
Units. — The provinces, cities, municipalities, barangays, and geographic areas
within tts territory shall be the constituent units of the Bangsamoro. ‘The authority
to regulate on its own responsibility the affairs of the local government units is


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guaranteed within the limit of this Basic Law. The privileges already enjoyed by
the local government units under existing laws shall not be diminished unless
otherwise altered, modified or reformed for good governance in accordance with
a law to be enacted by the Bangsamoro Parliament

Section 8, Philippine Congress - Bangsamoro Parliament Forum. - There
shall be « Philippine Congress-Bangsamoro Parliament Forum for purposes of
cooperation and coordination of legistative initiatives

Section 9. Bangsamoro Participation in Central Government. — {t shall be
the policy of the Central Goverment to appoint competent and qualified
inhabitants of the Bangsamoro in the following offices in the Central
Government: at least one (1) Cabinet Secretary; at least one (1) in each of the
other departments, offices and bureaus, holding executive, primarily confidential,
highly technical, policy-determining positions; and one (1) Commissioner in each
of the constitutional bodies,

The recommendations of the Bangsamoro Government shall be channeled
through the intergovernmental relations mechanisms.

Section 10, Assistance to Other Bangsamoro Communities. — The Central
Government shall ensure the protection of the rights of the Bangsamoro people
residing outside the territory of the Bangsamoro and undertuke programs for the
rehubilitation and development of their communities. The Bangsamoro
Government may provide assistance to their communities to enhance their
economic, social and cultural development.


Article VII
THE BANGSAMORO GOVERNMENT

Section 1. Powers of Government. — The powers of government shall be vested
in the Bangsamoro Parliament, which shall exercise those powers and functions
expressly granted to it in this Basic Law, and those necessary for or incidental to
the proper governance and development of the Bangsamoro. It shall set policies,
legislate on matters within its authority, and clect a Chief Minister, who shall
exercise executive authority in its behalf.

Section 2. Legistative Authority, — The Bangsamoro Parliament shall have the
authority to enact laws on matters that are within the powers and competencies
of the Bangsamoro Government.

Section 3. Executive Authority. - The executive function and authority shall be
exercised by the Cabinet, which shall be headed by a Chief Minister. The Chief
Minister who heads the ministerial government of the Bangsamoro shall be
elected by a majority vote of the Parliament from among its members.

‘The Chief Minister shall appoint the Deputy Chief Minister from among the
Members of Parliament, and the members of the Cabinet, majority of whom shall
also come from the Parliament.

Bangsamoro Parliament

Section 4. Composition. — The Pariiament shall be composed of at least sixty
(60) members, unless otherwise provided by the Parliament, who are
representatives of political parties clected through # system of proportional
Tepresentation, those elected from single member districts and to reserved seats


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to represent key sectors in the Bangsamoro, except as otherwise provided under
this Article.

Section 5. Classification and Allocation of Seats. - The seats m the
Bangsamoro Parliament shall be classified and allocated as follows:

(1) District Seats, — Forty percent (40%) of the Members of Parliament shall
be elected from single member parliamentary districts apportioned for the
areas and in the manner provided in the Appendix of this Basic Law.

The Bangsamoro Parliament may by law undertake new redistricting m
order to ensure @ more equitable representation of the constituencies in
the Bangsamoro Parliament.

‘The district representatives shall be elected through direct, plurality vote
by the registered voters in the parliamentary districts.

(2) Party Representatives. — Fifty percent (50%) of the Members of Parliament
shail be representatives of political parties who win seats through a system
of proportional representation based on the whole Bangsamoro territory.
Parties shall submit their respective list of approved candidates prior to the
election.

(3) Reserved Seats; Sectoral Representatives. — Sectoral representatives,
constituting ten percent (10%) of the Members of Parliament. including
two (2) reserved seats cach for non-Moro indigenous communities and
settler communities.

Women shall also have # reserved seat_


‘The Bangsamoro Parliament shall determine the manner of election of sectoral
and other representation in the Parliament.

Section 6. Election for Reserved Seats for Non-Moro Indigenous Peoples. —
Notwithstanding the immediately preceding sections, reserved seats for the non-
Moro indigenous peoples, such as, Teduray, Lambangian, Dulangan Manobo,
B'laan and Higaonon, shall be pursuant to their customary laws and indigenous
processes based on the following:

a. Primacy of customary laws and practices;

b. Primacy of consensus building;

©. Acceptahility of the community;

d Inclusivity and full participation;

e. Representation of the collective interests and aspirations of non-Moro
indigenous peoples;

£ Sustainability and strengthening of Indigenous Political Structures;
@ Track record and capability, and
h Gender equity

Section 7, Regional Parties, — A free and open regional party system shall be
allowed to evolve according to the free choice of the people Towards this end,


‘ n

only regional political parties duly accredited by the Bangsamoro Electoral
Office may participate in the parliamentary elections in the Bangsamoro,

Section 8. Redistricting. — The Parliament shall have the power to reconstitute,
by law, the parliamentary districts apportioned among the provinces, cities,
municipalities, and geographic arcas of the Bangsamoro to ensure equitable
fepresentation in the Parliament. The redistricting, merging or creation, of
parliamentary districts shall be based on the number of inhabitants and additional
Provinces, cities, municipalities, and geographic areas, which shall become part
of the territories of the Bangsamoro Government,

For the purpose of redistricting, parliamentary districts shall be apportioned based
‘on population and geographical area; Provided that each district shall comprise,
28 far as practicable, contiguous, compact, and adjacent territory and should have
at least 9 population of one hundred thousand (100,000)

Section 9. Bangsamoro Electoral Code. — The Bangsamoro Transition
Authority shall enact the Bangsamoro Electoral Code, which shall be correlated
to national election laws, insofar ns these are consistent with this Basic Law. The
electoral system shall allow democratic participation, ensure accountability of
public officers primarily to their constituents and encourage formation of
genuinely principled political parties.

There is hereby created a Bangsamoro Electoral Office which shall be a part of
the Commission on Elections, and which shall perform the functions of the
Commission on Elections in the Bangsamoro, The Bangsamoro Parliament shall
submit a list of three (3) recammendees to the President, who shall choose and
appoint ftom among them the Director General, who shall head the Office, In
addition to enforcing national election laws in the Bangsamoro, the Bangsamoro


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Electoral Office shall likewise implement the Bangsamoro Electoral Code
enncted by Parliament in the Bangsamoro, and shall perform the following
functions:

1. Register and accredit regional political parties,

2 In relation to plebiscite for joining the Bangsamoro, receive
petitions/resolutions to join from geographic areas,

3. Schedule plebiscites for expansion; and

4. Prepare rules and regulations for Bangsamoro elections and plebiscites,
for the promulgation of the Commission on Elections. All rules and
regulations governing Bangsamoro elections and plebiscites shall
emanate from the Bangsamoro Electoral Office.

Section 10, Budget for the Bangsamoro Electoral Office. — The budget for the
Bangsamoro Electoral Office shall be included in the appropriations for the
Commission on Elections.

Section 11. Term of Office. - The term of office of members of Parliament shall
be three (3) years unless otherwise provided by law passed by the Bangsamoro
Parliament. No member shall serve for more than three (3) consecutive terms.

Section 12. Qualifications. - No person shall be a Member of Parliament unless
he or she is citizen of the Philippines, at least twenty-five (25) years of age on the
day of the election, able to read and write, and a registered voter in the
Bangsamoro. For district representatives, he or she must be a registered voter of
the district in which he or she is a candidate on the day he or she files his or her
certificate of candidacy, and has resided in said district for at least three (3) years
immediately preceding the day of the election.


5 B
For the first regular elections immediately following the enactment of the

Bangsamoro Basic Law, the abovementioned residency requirement shall be
reduced to one (1) year immediately preceding the day of the election.

Section 13. Salaries of Parliament Members. — The Bangsamoro Parliament
shall determine the salaries and emoluments of its members. No increase in said
compensation shall take effect until after the expiration of the full term of all the
members of the Bangsamoro Parliament approving such increase.

For the first Bangsamoro Parliament, salaries and emoluments of its members
shall be determined by law passed by the Bangsamoro Transition Authority
(BTA).

Members of the Bangsamoro Parliament shall not receive during their tenure
other salary and emoluments from the Bangsamoro Government or ftom the
Central Government except as provided by law or regulations from the
Bangsamoro Parliament.

Section 14, Disclosure, — Members of the Bangsamoro Parliament shall, upon
their assumption to office, make full disclosure of their financial and business
interests, including those of their spouses and children. They shall notify the
Bangsamoro Parliament of any potential conflict of interest that may arise from
the filing of bills or resolutions of which they are authors.

Any member found guilty of non-disclosure as required under this Section may
be subject to disciplinary action by the Bangsamoro Parliament in accordance
with tts Rules and without prejudice to his/her other liabilities under the law.


Section 15. Prohibition against Conflict of Interest. ~ The Chief Minister,
Deputy Chief Minister and all the members of the Bangsamoro Parliament,
during their term. shall not engage, directly or indirectly, in any business or
commercial enterprise where there may be a conflict of interest in the exercise of
the functions of their respective offices.

Section 16, Forfeiture of Seat. - A Member of Parliament shall forfeit his or her
seat if-

a. He/she resigns voluntarily in the form of cither s written or oral deciaration
in the Parliament:

b. He/she is convicted of a grave offense as stipulated in the House Rules that
the Bangsamoro Parliament will promulgate pursuant to Art VII See 19 of
this Basic Law, or treason, high crimes, heinous crimes, crimes against
morality of other crimes punishable by more than six (6) years;

& He/she becomes permanently physically or mentally incapacitated and is
unable to discharge his/her duties as Member of Parliament or dies while in
office:

&. He/she, having been elected under the proportional representation system,
is replaced by the party to which he/she belongs with another member of
said party;

® He/she, having been elected under the proportional representation system,
transfers to another party during his/her incumbency as Member of
Parliament; and


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{£ Such other grounds as may be provided in the Bangsamoro Electoral Code
as mentioned in Article VII, Section 9 hereof.

Section 17. Filling of Vacancy, - In case of a vacancy of a proportional
representation seat, the party to which that seat belongs shall fill the vacancy.

In case of a vacancy of a district seat by an affiliated Member of Parliament,
histher party shall nominate # replacement within thirty (30) days from the
occurrence of such vacancy, and the said nominee shall be appointed by the Chief
Minister

In case of u vacancy in the seat occupied by an unaffiliated Member of
Parliament, a special election may be called to fill such vacancy in the manner
prescribed by law enacted by Parliament.

‘The appointee or elected Member of Parliament, as the case may be, shall serve
the unexpired term of the vacant office:

Section 18. Privileges and Immunities. - No member of the Bangsumoro
Parliament may be arrested while the Bangsamoro Parliament is in session,
except for crimes punishable by more than six (6) years of imprisonment. The
members of the Bangsamoro Parliament may not be questioned in any other place
of held liable for any speech or debate delivered im the Bangsamoro Parliament
Sessions or meetings of its committees.

Section 19. Sessions of the Bangsamoro Parliament. — The Bangsamoro
Parliament shall conduct its regular session once every year starting on the 15"
of June up to thirty (30) days before the opening of its next regular session. A
special or emergency session may be called by the Speaker, «pon the request of


the Chief Minister or by a majority of the members of the Bangsamoro
Parliament.

Section 20. Officers of the Bangsamoro Parliament. — On the first session
following their election, the members of the Bangsamoro Parliament shall. in
open session, elect by a simple majority vote from all its members the Speaker,
@ Deputy Speaker, and the other officers of the Bangsamoro Parliament as the
House Rules of the Bangsamoro Parliament may provide

In case of death, removal, resignation, or permanent disability or legal incapacity
of the Speaker, the Deputy Speaker shall act a5 Speaker until a new Speaker shall
have been elected by the Bangsamoro Parliament.

Section 21. Presiding Officer. — The Speaker, Deputy Speaker. or any other
person presiding over the Bangsamoro Parliament shall:

a Be independent,

b, Serve to secure the honor and dignity of the Bangsamoro Parliament.

©. Be responsible for ensuring — (i) the rights and privileges of all members;
and (ii) public access to the proceeding of the Bangsamoro Parliament and
its committees;

4. Have the authority and moral ascendancy to maintain order and decorum in
the Bangsamoro Parliament, in accordance with its House Rules; and

«. Act impartially, and without fear, favor and prejudice.


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Section 22. Rules of Procedure, — The Bangsamoro Parliament shall adapt its
House Rules for the conduct of its business.

Section 23, Proceedings. — A majority of all the members of the Bangsamoro
Parliament shall constitute a quorum to do business. The legislative proceedings
in the Bangsamoro Parliament shall be recorded in its original form and translated
m the Filipino, Arabic and English languages. Linless otherwise provided by law
or the House Rules of the Bangsamoro Parliament, the members of the
Bangsamoro Parliament may use any of the commonly understandable native
lunguages during legislative deliberations.

Section 24. General Welfare. — The Bangsamoro Parliament shall pass laws that
Promote the general welfare of the people in the Bangsamoro.

Section 25. Appropriations. - No public money may be spent without an
appropriations act clearly defining the purpose for which {t is intended. The
Bangsamoro Parliament shall pass an annual appropriations Law.

Section 26. Budget. — The form, content, and manner of preparation of the
Bangsamoro budget shall be prescribed by law enacted by the Bangsamoro
Parliament. Pending the enactment of such law, the budgeting process shall be
governed by existing laws, rules, and regulations on budget.

Section 27. Reenacted Budget, - If, by the end of a fiscal year, the Bangsamoro
Parliament shall have failed to pass the Bangsamoro appropriations bill for the
ensuing fiscal year. the Bangsamoro Appropriations Act for the preceding year
shall be deemed automatically reenacted and shall remain in force and effect until
anew Bangsamoro appropriations law is enacted by Parliament.


Executive Officers

Section 28. Qualifications of the Chief Minister. — No person may be clected
as the Chief Minister unless he/she is at least twenty-five (25) years of age at the
time of the election, a bona fide resident of the Bangsamoro for three (3) years
immediately preceding the day of the elections. and with proven competence and
Probity, mentally fit, and known for his/her integrity and high moral standards.

For the first election of the Chief Minister immediately following the enactment
of the Bangsamoro Basic Law, the abovementioned residency requirement shall
be reduced to one (1) year immediately preceding the day of the election.

Section 29. Election of the Chief Minister. — On the inaugural session of the
Bangsamoro Parliament following their elections, the members of the Parliament
shall, in open session, elect the Chief Minister by a majority vote of all its
members,

If no member of Bangsamoro Parliament obtains the majority Vote necessary to
be elected Chief Minister in the first round of voting, a runoff election shall be
conducted. In such case, the members of Bangsamoro Parliament shall elect the
Chief Minister from the two (2) candidates who obtained the highest number of
votes cast in the first round, There shall be no abstentions allowed in the runoff
election.

Section 30. Powers, Duties and Functions of the Chief Minister. - Unless
otherwise provided by law, the Chief Minister shall exercise the following
powers, duties and functions:

« Heads the government of the Bangsamoro,


b. Appoints heads of ministries, agencies, bureaus, offices of the Bangsamoro
Government or other officers of Bangsamoro owned and/or controlled
corporations of entities with original charters;

© Appoints other officers in the Bangsamoro Government, 2s may be provided
by the Parliament;
d. Formulates platform of government subject to approval by the Parliament:

© Issues executive orders and other policies of the Bangsamoro Government;

& Represents the government of the Bangsamoro in affairs outside the
Bangsamoro; and

# Exercises such other powers and functions inherent to the position.

Section 31. Administration of Oath of the Chief Minister. The Wail shall
administer the oath of office of all the Members of Parliament. including the
Chief Minister upon his/her election.

Section 32. Ex-Officio Membership. - The Chief Minister shall be an ex-officio
member of the National Security Council (NSC) on matters concerning the
Bangsamoro and of the National Economic and Development Authority Board
(NEDA).

Section 33. The Deputy Chief Minister. - The Deputy Chief Minister shall be
appointed by the Chief Minister from among the members of the Parliament and
may hold a cabinet position.


. 40

In case of death, removal, resignation or incapacity of the Chief Minister, the
Deputy Chief Minister shall temporarily act as the Chief Minister until the
Parliament shall have elected a new Chief Minister. Said election shall be held
within thirty (30) days from the occurrence of the vacancy.

Section 34. Call for a New Bangsamoro Parliament Election. — Within
seventy-two (72) hours upon a two-thirds (2/3) vote of no confidence of all
members of Parliament against the government of the day, the Chief Minister
shall advise the Wali to dissolve the Parliament and call for 8 new parliamentary
election. In no case shall the Wali countermand the advice of the Chief Minister.

The Jali shall call for election of a new Bangsamoro Parliament on a date not
later than one hundred twenty (120) days from the date of dissolution.

In case of dissolution, the incumbent Chief Minister and the Cabinet shall
continue to conduct the affairs of the Bangsamoro Government until a new
Parliument is convened and a Chief Minister is elected and has qualified

Article VIIT
WALI

Section t. Titular Head of the Bangsamoro. - There shal! be a HWal/ who shall
be the titular head of the Bangsamoro. As titular head, the Wal shall take on
only ceremonial functions,

The Walt, as part of the Bangsamoro Government, shall be under the general
supervision of the President


. a

Section 2. Appointment of Wall, - The Bangsamoro Parliament shall issue a
resolution reflecting its consensus on the selection of the Mali from a list of
names of eminent residents of the Bangsamoro submitted by the Council of
Leaders.

Section 3. Term of Office of Wall. - The first Wali shall be appointed by the
Bangsamoro Transition Authority (BTA) and shall hold office for three (3) years.
Each succeeding Wali shall have a term of six (6) years.

Section 4, Allowances of the Wall, - The first Wall shall receive allowances in
Such amount as may be determined by the BTA. The allowances of the Wati
subsequently chosen shall be determined by the Bangsamoro Parliament

Such allowances shall be sourced from the funds of the Bangsamoro Government
and shall be provided for in its annual appropriations Inw

Article IX
BASIC RIGHTS

Section 1, Basic Rights in the Bangsamoro. — In addition to the basic rights
already enjoyed by the citizens residing in the Bangsamoro, the Bangsamoro
Government shall guarantee the following enforceable rights:

= Right to life and to inviolability of one's person and dignity;

b. Right to freedom and expression of religion and beliefs;

¢ Right to privacy:


d. Right to freedom of speech;

. Right to express political opinion and pursue democratically political
ications:

£ Right to seek constitutional change by peaceful and legitimate means;

& Right of women to meaningful political participation and protection from
all forms of violence;

h. Right to freely choose one's place of residence and the inviolability of the
home:

Right to equal opportunity and non-discrimination in social and economic
activity and the public service, regardless of class, creed, disability, gender
and ethnicity;

}. Right to establish cultural and religious associations;

ke Right to freedom from religious, ethnic and sectarian harassment:

1 Right to redress of grievances and due process of law; and
m. Right to free public education in the elementary and high school levels:

The Bangsamoro Parliament may pass a law for the promotion and protection of
the above-cnumerated rights.


. o

Section 2. Human Rights. ~ All lows and policies, including customary laws,
shall conform to international human rights and humanitarian standards. The
rights under the International Covenant on Economic, Social and Cultural Rights
(ICESCR), the International Covenant on Civil and Political Rights (ICCPR) and
other intemational human nghts instruments shall be guaranteed by the Central
Government and the Bangsamoro Government.

Section 3. Vested Property Rights. — Vested property rights shall be recognized
and respected.

With respect to legitimate grievances of the Bangsamoro people arising from any
unjust dispossession of their territorial and proprietary rights, customary tand
tenure or their marginalization shall be acknowledged. Whenever restoration is
no longer possible, the Central Government and Bangsamoro Government shall
take effective measures for adequate reparation of the loss in such quality,
quantity and status collectively beneficial to the Bangsamoro people, and to be
determined mutually by both Governments.

Section 4. Transitional Justice, — There shall be created # transitional justice
mechanism to address the legitimate grievances of the Bangsamoro people, such
48 historical injustices, human rights violations, marginalization through unjust
dispossession of their territorial and proprietary rights and customary land tenure.

Section 5, Indigenous People's Rights. — The Bangsamoro Government
recognizes the rights of the indigenous peoples, and shall adopt measures for the
Promotion and protection of their rights, the right to their native titles and/or
Jfusaka inged, indigenous customs and traditions, justice systems and indigenous
Political structures, the right to an equitable share in revenues from the utilization
of resources in their ancestral lands, the right to free and prior informed consent,


right to political participation in the Bangsamoro Government including reserved
seats for the indigenous peoples in the Bangsamoro Parliament, the right to basic
services and the right to freedom of choice as to their identity

Section 6. Customary Rights and Traditions. — The customs, beliefs and
traditions of the people in the Bangsamoro are hereby recognized, protected and
guaranteed,

‘The Bangsamoro Parliament shall adopt measures to ensure mutual respect and
Protection of the distinct beliefs, customs and traditions of the Bangsamoro
people and the other inhabitants in the Bangsamoro.

No person in the Bangsamoro shall be subjected to any form of discrimination on
account of creed, religion, ethnic origin, parentage, or sex.

Section 7. Bangsamoro Human Rights Commission. — There is hereby created
4 Bangsamoro Human Rights Commission, which shall be independent and
impartial, to ensure the promotion and protection of human rights in the
Bangsamoro. In the performance of its mandate, the Commission may exercise,
among others, investigatory powers, prosecutorial powers and powers to compel
attendance of witnesses and the production of evidence.

‘The Commission shall submit a report on its activities and performance at least
once @ year to the Bangsamoro Parliament. Other state instrumentalities in the
Bangsamoro shall assist the Commission and ensure its independence,
impartiality, dignity and effectiveness. The Commission shall have
coordinative and complementary relationship with the national Commission on
Human Rights in carrying out its mandate.


. “as

Details pertaining to the establishment of the Commission, such as membership
of the Commission, terms of office, and competencies and responsibilities, shall
be provided by the Bangsamoro Parliament consistent with the provisions of this
Basic Law.

Social Justice

Section 8. Delivery of Basic Services. — The Bangsamoro Government shall
provide, maintain, and ensure the delivery of, among other things, basic and
responsive health programs, quality education, appropriate services, livelihood
opportunities, affordable and progressive housing projects, and water resource
development to the Bangsamoro people and other inhabitants in the Bangsamoro.
It shall maintain appropriate disaster preparedness units for immediate and
effective relief services to victims of natural and man-made calamities It shall
also ensure the rehabilitation of calamity areas and victims of calamities.

Section 9. Rights of Labor. - The Bangsamoro Government shall guarantee all
fundamental rights of all workers to sclf-organization, collective bargaining and
negotiations, and peaceful concerted activities, including the right to strike, in
accordance with law to be passed by Parliament. In this regard, the right of
workers, whether publicly or privately employed, to form unions, associations or
federations shall not be abridged

‘The workers shall participate in policy and decision-making processes affecting
their rights and benefits, as may be provided by law to be enacted by the
Bangsamoro Parliament.

The right of workers to security of tenure, humane conditions of work, and a
living wage shall be guaranteed


No trafficking in persons and engagement of minors in any hazardous or
deleterious forms of employment shall be tolerated.

These rights shall be provided for in a law to be passed by the Bangsamoro
Parliament,

Section 10, Protection of Women and Children, — The Bangsamoro
Government shall uphold and protect the flindamental rights of women and
children including the right of women to engage in lawful employment. Women
and children. especially orphans of tender age, shall be protected from
exploitation, abuse or discrimination. The Bangsamoro Parliament shall enact the
necessary laws for the implementation of this section.

Section 11, Participation of Women in the Bangsamoro Government. — Aside
from the reserved seat for women in the Parliament, there shall be at least ane (1)
qualified woman to be appointed to the Bangsamoro Cabinet. The Bangsamoro
Parliament shall enact a law that gives recognition to the importunt role of women
in nation-building and regional development and ensures representation of
women in other decision-making and policy-determining bodies of the
Bangsamoro Government.

Section 12. Rights of Children. — The Bangsamoro Government shall fespect,
Protect, and promote the rights of the children.

Bangsamoro policies and programs must tke into utmost consideration the best
interest of the child, non-discrimination of children, survival and development,
Protection and rights of children, youth and adolescents.


. a

The Bangsamoro Government and constituent local government units shall
provide for adequate funding and effective mechanisms for implementation of
this policy.

Right to Education

Section 13, Integrated System of Quality Education. — The Bangsamoro
Government shall establish, maintain. and support, as # top priority, a complete
and integrated system of quality education and adopt an educational framework
thut is relevant. and responsive to the needs, ideals, and aspirations of the
Bangsamoro

Section 14. Tribal University System. — The Bangsamoro Parliament shall
create a tribal university system within the Bangsamoro to address the higher
educational needs of the indigenous cultural communities in the Bangsamoro,

Right to Health

Section 15. Comprehensive and Integrated Health Service Delivery. — The
Bangsamoro shall adopt a policy on health that provides for a comprehensive and
integrated health service delivery for its constituents. The Bangsamoro shall, by
law, establish a general hospital system to serve the health requirements of its
People, to ensure that the individual basic right to life shall be attainable through
the prompt intervention of excellent and affordable medical services. The
Bangsamoro shall also uphold the people's right to have access to essential goods,
health and other social services that would promote their well-being.

Section 16. Support for Persons with Disabilities, — The Bangsamoro
Government shall establish @ special agency and Support ficilities for persons


with disabilities and other disndvantaged persons for their rehabilitation, and
livelihood or skills training to encourage their productive integration into
mainstream society

Arts and Sports

Section 17. Physical Education and Sports Development. — The Bangsamoro
educational system shall develop and maintain an integrated and comprehensive
physical education program. It shall develop healthy, disciplined innovative and
Productive individuals. and promote good sportsmanship, cooperation and
teamwork

Section 18. Sports Programs, — The Bangsamoro education system shall
encourage and support sports programs, league competitions, indigenous gumes.
martial arts, and amateur sports including training for regional, national and
international competitions

Culture

Section 19, Preservation of Bangsamoro Cultural Heritage. — To preserve the
history, culture, arts, tradition and the rich cultural heritage of the Sultanates, such
as the Sultanates of Sulu, Maguindanao, and Buayan, and the Royal Houses of
the Maranaos and the indigenous peoples of the Bangsamoro, there shall be
created « Bangsamoro commission for the preservation of cultural heritage

Section 20. Primary Responsibility of the Commission. — The Bangsamoro
commission for the preservation of cultural heritage shall have the primary
responsibility to write the history of the Bangsamoro people and to establish and
sustain the cultural institutions, programs and projects in the Bangsamoro


. 49

Component areas. The commission shall establish its own libraries and museums,
declare and restore historical shrines and cultural sites to preserve the
Bangsamoro heritage for posterity.

Section 21, Management of Bangsamoro Historical and Cultural Sites. — The
Central Government shall transfer the management of Bangsamoro historical and
cultural sites currently under the jurisdiction of the National Museum, National
Historical Commission or other agencies of the Central Government to the
Bangsamoro commission for the preservation of cultural heritage, through the
intergovernmental relations mechanism. The Bangsamoro commission for the
Preservation of cultural heritage shall coordinate with relevant agencies of the
Central Government on the regulation, excavation and preservation of cultural
artifacts and on the recovery of lost historical and cultural heritage,

Article X.
BANGSAMORO JUSTICE SYSTEM

Section 1. Justice System in the Bangsamoro. ~ The justice system in the
Bangsamoro shail consist of Shari'ah law which shall have supremacy and
application over Muslims only; the traditional or tribal justice system, for the
indigenous peoples in the Bangsamoro; the local courts; and alternative dispute
resolution systems.

For Muslims, the justice system in the Bangsamoro shall give primary
consideration to Shari'ah, and customary rights and traditions of the indigenous
peoples in the Bangsamoro,

Nothing herein shall be construed to operate to the prejudice of non-Muslims and
nonindigenous peoples.


Shari'ah Justice System

Section 2. Shari'ah Justice System. — The Shari'ah Courts in the Bangsamoro
shall have jurisdiction over Shari'ah law enacted by the Bangsamoro Parliament
pertaining to persons and family relations, and other civil law matters,

There shall be cooperation and coordination with Central Government regarding
the Shari'ah justice system, through the different mechanisms as herein provided.

Section 3. Laws on Shari’ak. — The Bangsamoro Parliament shall enact laws
pertaining to persons and family relations, and other civil law matters,
commercial law, criminal law, including the definition of crimes and prescription
of penalties thereof. These laws on Shari ‘ah shall only be applicable to Muslims.
Criminal Inws enacted by the Bangsamoro Parliament shall be effective within
the territory of the Bangsamoro and shall be in accordamce with the universally
accepted principles and standards of human rights.

Section 4, Sources of Shari'ah Law. —The following are the sources of Shari'ah
Jaw, among others:

a Al-Qur'an (The Koran);
b. Al-Sunnah (Prophetic traditions);
¢ Al-Qivas (Analogy); and

d. Al-ljima (Consensus).


° st

Section 5, Shari'ah Circuit Courts, — The Shari'ah Circuit Court in the
Bangsamoro shall exercise exclusive original jurisdiction over the following
matters

8. All cases involving offenses defined and punished under Presidential Decree
No. 1083, where the act or omission has been committed in the Bangsamoro;

b. All civil actions and proceedings between parties residing in the
Bangsamoro, and who are Muslims or have been married in accordance with
Article 13 of Presidential Decree No. 1083 involving disputes relating to:

L Marriage;

iL Divorce recognized under Presidential Decree No.
1083; iii, Betrothal or breach of contract to
marry; iy. Customary dower (mah);

y. Disposition and distribution of property upon

divorce; vi. Maintenance and support, and consolitory

gifts, (wa), vii_ Restitution of marital rights.

© All cases involving disputes relative to communal properties;

d. All cases involving offenses defined and punishable under Shari ‘ait law
enacted by the Bangsamoro Parliament with imprisonment not exceeding
six (6) years irrespective of the amount of fine, and regardless of other
imposable accessory or other penalties, including the civil lisbility arising
from such offenses or predicated thereon, irrespective of kind, nature, value,
or amount thereof,


® s2

All civil actions, under Shari'ah law enacted by the Bangsamoro
Government, involving real property in the Bangsamoro, where the assessed
value of the property does not exceed Four Hundred Thousand Pesos
(P400,000.00); and

1. All civil actions in which the parties are Muslims, or where ail litigants have
voluntarily submitted themselves to the jurisdiction of the Shari‘ah Circuit
Courts, if they have not specified in an agreement which law shall govern
their relations where the demand or claim does not exceed Two Hundred
Thousand Pesos (P200,000,00),

Section 6. Shari'ah District Courts. — The Shari'ah District Court in the
Bangsamoro shall exercise exclusive original jurisdiction over the following
matters:

a All cases involving custody, guardianship, legitimacy, paternity and
filiation arising under Presidential Decree No. 1083;

b, All cases involving disposition, distribution and settlement of the estate of
deceased Muslims that are residents of the Bangsamoro, probate of wills,
issuance of letters of administration or appointment of administrators or
executors regardless of the nature or the aggregate value of the property;

© Petitions for the declaration of absence and death for the cancellation or
correction of entries in the Muslim Registries mentioned in Title VI of Book
‘Two of Presidential Decree No. 1083;


s

All actions arising from customary and Shari'ah compliant contracts in
which the parties are Muslims, if they have not specified which law shall
govern their relations;

» All petitions for mandamus. prohibition, injunction, certiorar!, habeas
corpus, and all other auxiliary writs and processes in aid of its appelinte
jurisdiction,

Petitions by Muslims for the constitution of a family home, change of name
and commitment of an insane person to an asylum;

All other personal and real actions not fitlling under the jurisdiction of the
Shari'ah Cireuit Courts wherein the parties involved are Muslims, except
those for forcible entry and unlawful detainer, which shall fall under the
exclusive original jurisdiction of the Municipal Circuit Court;

All special civil actions for interpleader or declaratory relief wherein the
parties are Muslims residing in the Bangsamoro or the property involved
belongs exclusively to Muslims and is located in the Bangsamoro;

All cases involving offenses defined and punishable under Sharr‘ah law
enacted by the Bangsamoro Parliament not falling within the exclusive
jurisdiction of Shari'ah Circuit Courts or any other court, tribunal, or body;

} All civil actions, under Shari'ah law enacted by the Bangsamoro
Parliament, involving real property in the Bangsamoro, where the assessed
value of the property exceeds Four Hundred Thousand Pesos (P400,000,00);
and


“

ic All civil actions in which the parties are Muslims, or where all litigants have
voluntarily submitted themselves to the jurisdiction of the Shar ah Circuit
Court, if they have not specified in an agreement which law shall govern
their relations where the demand or claim exceeds Two Hundred Thousand
Pesos (P200,000,00)

The Shari'ah District Court in the Bangsamoro shall exercise appellate
jurisdiction over all cases decided upon by the Shari’ak Circuit Courts in the
Bangsamoro within its territorial jurisdiction, as provided tnder Article 144 of
Presidential Decree No. 1083.

Section 7. Bangsamoro Shari'ah High Court, — There is hereby created 2
Bangsamoro Shari'ah High Court The Bangsamoro Shari ‘ah High Court shall
exercise exclusive original jurisdiction, whether or not in aid of its appellate
Jurisdiction, over:

a All petitions for mandamus, prohibition, injunction, certiorart, habeas
corpus, and all other auxilisry writs and processes, in aid of its appellate
Jurisdiction; and

b, All actions for annulment of judgments of Shari'ah District Courts,

The Bangsamoro Shari’ah High Court shall exercise exclusive appellate
jurisdiction over cases under the jurisdiction of the Shari'ah District Coutts in
the Bangsamoro, The decisions of the Shariah High Court shall be final and
executory.

Section 8. Additional Shari'ah Courts. — Upon the recommendation of the
Bangsamoro Government, Congress may create additional Shari ‘ah Courts in the


. s

Bangsamoro and apportion the jurisdiction of each of the Shari'ah Circuit and
District Courts.

Section 9. Qualifications of Shari'ah Judges. —

a Shari’ah Circuit Court. —No person shall be appointed judge of the Shari'ah
Circuit Court unless he is 1 Muslim, citizen of the Philippines, at least
twenty-five (25) years of age, a graduate of a four-year course on Shari ‘ah
or Islamic jurisprudence, and has passed an examination in the Shari'ah to
be given by the Supreme Court for admission to special membership in the
Philippine Bar to practice in the Shart‘ah Courts. Provided that, for a period
of seven (7) years following the ratification of this Law, the requirement on
the completion of @ four-year Shart ‘ah or Islamic Jurisprudence course shall
not apply.

b. Shari'ah District Court. — No person shall be appointed judge of the
Shari'ah District Court unless he is a Muslim, citizen of the Philippines at
least thirty-five (35) years of age, a graduate of a four-year course on
Shari'ah or \slamic jurisprudence, and has passed an examination in the
Shari'ah to be given by the Supreme Court for admission to special
membership in the Philippine Bar to practice in the Shari‘ah Courts.
Furthermore, such person should have been engaged in the practice of
Shari'ah law in the Philippines for at least five (5) years prior to his
appointment; Provided that, for a period of seven (7) years following the
ratification of this Law, the requirement on the completion of a four-year
Shari'ah or \slamic Jurisprudence course shall not apply.

© Bangsamoro Shari'ah High Court. — No person shall be appointed Justice
of the Shari'ah High Court unless he is a Muslim, natural-born citizen of


. ss

the Philippines, at least forty (40) years of age, a graduate of a four-year
course on Shari'ah or Islamic jurisprudence, and has passed an examination
in the Shari ‘ah to be given by the Supreme Court for admission to special
membership in the Philippine Bar to practice in the Shari'ah Courts.
Furthermore, such person should have been engaged in the practice of
Shariah law in the Philippines for at least ten (10) years prior to his
wppointment. Provided that, for # period of seven (7) years following the
ratification of this Law, the requirement on the practice of Shar! ‘ah law in
the Philippines shall only be for six (6) years,

The Shari'ah High Court shall be composed of nine (9) justices, including
the Presiding Justice It may exercise its powers, functions, and duties
through three (3) divisions, cach composed of three (3) members. It may sit
en banc only for the purpose of exercising administrative or ceremonial
functions, The stations of the three divisions shall be Cotabato City, Marawi
City and Jolo, Sulu.

Section 10. Shari'ah Judicial and Bar Council. -The Shari ‘ah Judicial and Bar
Council shall recommend to the Judicial and Bar Council applicants for the
position of judges of Shari ‘ah District and Circuit Courts in the Bangsamoro and
the justices of the Shari'ah High Court. The Judicial and Bar Council shall give
tutmost consideration to the Shar’iah Judicial and Bar Council nominees in
recommending appointees to the President. The President shall issue the
appointments within ninety (90) days from the submission by the Judicial and
Bar Council of the list.

Section 11. Consultant to the Judicial and Bar Couneil, — The President shall
appoint a consultant to the Judicial and Bar Council, recommended by the Chief
Minister from among the members of the Shart ‘ah Judicial and Bar Council. who


7

shall advise and be consulted by the Judicial and Bar Council on appointments to
Shari'ah judicial positions in the Bangsamoro.

Section 12. Composition of the Shari'ah Judicial and Bar Council. — There is
hereby created a Shari'ah Judicial and Bar Council to be composed of five (5)
members: a senior member of the Shart ‘ah High Court, as ex-officio Chairman,
the Head of the Shari'ah Academy, and one (1) representative from the
Bangsamoro Parliament, as ex-officio members. Other regular members of the
Council shall be one (1) representative each from the accredited organization of
Shari'ah \awyers and other appropriate accredited organizations in the
Bangsamoro,

The regular members of the Council shall be appointed by the Chief Minister with
aterm of five (5) years without reappointment.

Section 13. Functions of the Shari'ah Judicial and Bar Council. The Shari'ah
Judicial and Bar Council shall have the following fimctions:

a Recommend nominees to the Shari'ah Courts in the Banesumoro which
shall be submitted to the Judicial and Bar Couneil; and

b, Conduct investigations over erring members of the Shari'ah Bar in the
Bangsamoro and over judges and personnel of the Shari ‘ah Courts in the
Bangsamoro, and submit the results of such investigation to the Supreme
Court for the latter's action.

Section 14. Shari’ah Rules of Court. The rules of court for the Shart‘ah courts
in the Bangsamoro shall be promulgated by the Supreme Court, giving utmost
consideration to the recommendations of the Bangsamoro Shari ‘ah High Court.


In the meantime, the special rules of court for Shart ‘ah courts, ws promulgated by
the Supreme Court, shall continue to be in force.

Section 15. Special Bar Examinations for Shari'ah. - The Supreme Court shull
continue to administer Shari ‘ah Bar examinations for admission of applicants to
the Philippine Bar as special members thereof, with due consideration for the
Special nature of the Shari‘ah system and utmost regard to the proposals of the
Bangsamoro Shari ‘ai High Court on this matter.

Section 16, Compensation. - Judges of the Shari'ah Circuit Court in the
Bangsamoro shall receive the same compensation and enjay the same privileges
as judges of Municipal Circuit Trial Courts,

Judges of the Shari'ah District Court in the Bangsamoro shall receive the same
compensation and enjoy the same privileges as the judges of Regional Trial
Couns.

Justices of the Bangsamoro Shari'ah High Court shall receive the same
compensation and enjoy the same privileges as the justices of the Court of
Appeals.

Section 17, Appointment and Discipline of Shari'ah Court Personnel. The
Supreme Court shall appoint the Shari'ah court personnel, and shall have the
power of discipline over them, The Sheri‘ah Judicial and Bar Council shall
conduct investigations over erring personnel in Shari'ah courts in the
Bangsamoro, and submit the results of such investigation to the Supreme Court
for the latter's action.


Section 18. Shari’ah Public Assistance Office. To provide free legnl assistance
to indigent party litigants, the Bangsamoro Parliament shall create a Shari ‘ah
Public Assistance Office for the different Shari'ah courts in the Bangsamoro.

Section 19, Shari'ah Special Prosecution Service. - There shall be created a
Shari'ah Special Prosecution Service for Shari ‘ah administration of justice in
the Bangsamoro. The Shari ‘ah Special Prosecution Service shall be attached to
the National Prosecutorial Service of the Central Government. The Bangsamoro
Government shall recommend the qualified applicants for the position of the
Shari'ah prosecutors and personnel of the Shart'ah Special Prosecution Service
to the Secretary of Justice.

Section 20. Shari'ah Academy. — There is hereby created a Sharr‘ah Academy,
the primary function of which is to conduct courses and trainings on the practice
of Shari‘ah \aw in the Bangsamoro, accredit Shari’ah courses and degrees
obtained by Bangsamoro from schools and universities abroad, and develop the
curriculum of schools and universities in the Bangsamoro. The Bangsamoro
Parliament shall define its powers and additional functions and appropriate funds
‘on Muslim Filipinos (NCMF) whenever necessary.

Section 21. Bangsamoro Jurisconsult in Islamic Law. — There is hereby
created an office of Jurisconsult of Islamic law in the Bangsamoro. The
Parliament shall define the powers and functions of this office

The Office of Jurisconsult shall be a collegial body composed of the Jurisconsult
and three (3) Deputies who shall be appointed by the Chief Minister upon
recommendation of the Parliament, taking into consideration the various ethnic
groups in the Bangsamoro


The Jurisconsult and his deputies shall be members of the Philippine Shari'ah
Bar of the Integrated Bar of the Philippines, Muslim Bangsamoro, holders of
Bachelor Degree in Islamic Law and Jurisprudence, must not be commonly
known as one who violates Islamic injunctions, with proven competence and
Probity, mentally fit, and known for integrity and high moral standards.

Section 22. Jurisconsult Under Existing Law. - Notwithstanding the preceding
section. the Office of the Jurisconsult under PD 1083 shall be strengthened by
providing for salary, rank and privileges of a Justice of the Court of Appeals.

Traditional/Tribal Justice Systems

Section 23, TraditionaV/Tribal Justice Systems. — The Bangsamoro Parliament
shall enact laws to promote and support the traditional/tribal justice systems that
are appropriate for the indigenous peoples, as defined by them. The traditional
justice systems are the mechanisms to determine, settle, and decide controversies
and enforce decisions involving disputes between members of the indigenous
peoples concemed in accordance with the tribal codes of these communities.

Section 24. Office for Traditional Tribal Justice System. — There is hereby
created an Office for Tribal Justice System responsible in overseeing the study,
preservation and development of the tribal justice system within the Bangsamoro,
The powers and functions of the Office shall be defined by the Bangsamoro
Parliament.

The Office shall ensure the full participation of indigenous peoples in the
formulation, implementation and evaluation of policies related to the
strengthening of tribal justice system; ensuring further that such systems maintain


oi

their indigenous character in accordance with the respective practices of each
tribe.

Local Courts

Section 25, Local Courts. - Local courts in the Bangsamoro shall continue to
exercise their judicial functions, as provided by law. The Bangsamoro
Government may undertake measures to improve their workings, consistent with
the powers of the Supreme Court.

Alternative Dispute Resolution System

Section 26, Alternative Dispute Resolution {ADR). - The Bangsamoro
Government shall provide for the institution of alternative dispute resolution
system in the Bangsamoro. The Parliament shall enact the necessary legislation
for the operationalization of ADR

The Bangsamoro Government shall adopt the principles of conciliation and
mediation in settling disputes. The Bangsamoro Parliament may provide for prior
Fecourse to alternative dispute resolution before the filing of cases in Shari'ah
courts in the Bangsamoro or any Bangsamoro government offices.

Justices from the Bangsamoro

Section 27. Justices from Bangsamoro. It shall be the policy of the Central
Government that at least one (1) justice in the Supreme Court and two (2) justices
in the Court of Appeals at any one time who shall be qualified individuals of the
Bangsamoro territory, For this Purpose, the Chief Minister may, after
consultations with the Bangsamoro Parliament and the Shariah Judicial and Bar


ez

Council, submit the names of qualified persons to the Judicial and Bar Council
for its consideration. The appointments of those recommended by the Chief
Minister to the judicial positions mentioned above are without Prejudice to
appointments that may be extended to other qualified inhabitants of the
Bangsamoro to other positions in the Judiciary.

Section 28. Deputy Court Administrator for the Bangsamoro. The Office of
the

Deputy Court Administrator for the Bangsamoro is hereby created. The Deputy
Court Administrator for the Bangsamoro shall be appointed by the Chief Justice
of the Supreme Court from among three (3) recommendees submitted by the
Chief Minister upon previous consultation with the Bangsamoro Parliament and
with the concemed sectors of the Bangsamoro.

Article XI
PUBLIC ORDER AND SAFETY

Section 1. Public Order and Safety. - The Bangsamoro Government shall have
primary responsibility over public order and safety within the Bangsamoro. There
shall be cooperation and coordination between the Central Government and the
Bangsamoro Government through the intergovernmental relations mechanism.

Section 2. Bangsamoro Police. — There is hereby created a Bangsamoro Police
which shall be organized, maintained, supervised, and utilized for the primary
Purpose of law enforcement and maintenance of peace and order in the
Bangsamoro, It shall be part of the Philippine National Police

The Bangsamoro Police shall be professional, civilian in character, regional in
scope, effective and efficient in Jaw enforcement, fair and impartial, free from


L 63

partisan political control, and accountable under the law for its actions, {t shall be
responsible both to the Central Government and the Bangsamoro Government,
and to the communities it serves,

Section 3, Powers and Functions of the Bangsamoro Police. — The
Bangsamoro Police shall exercise within the Bangsamoro the following powers
and functions:

a. Enforce laws enacted by the Congress and by the Bangsamoro Parliament
relative to the protection of lives and properties of the people;

4. Maintain law and order and ensure public safety;

Investigate and prevent crimes, arrest criminal offenders, bring criminal
Suspects to justice, and assist in their prosecution;
4. Conduct searches and seizures in accordance with pertinent laws:

¢ Detain persons for a period not exceeding what is prescribed by law, inform
the person so detained of all his or her rights under the Constitution and the
Basic Law, and observe the human rights of all people in the Bangsamoro;

f Process and facilitate applications for the registration of firearms and the
issuance of licenses and permits for approval by the proper official of the
Philippine National Police,

& Initiate drives for the registration or surrender of unregistered firearms:
confiscate unregistered firearms after such drives are over; prosecute or
recommend to the President the grant of amnesty or pardon to possessors of
unregistered firearms who surrender them; and


bh. Perform such other duties and exercise all other functions as may be
provided by law enacted by Congress or by the Bangsamoro Parliament.

Section 4. Bangsamoro Police Organization. — The structural organization of
the Bangsamoro Police shall be as follows:

a Itshall be headed by a Bangsamoro Police Director, who shall be assisted
by at least two (2) deputies, They shall be professional police officers with
the rank of, at least, Police Chief Superintendent. For a period of ten (10)
years, immediately following the enactment of this Basic Law, the head of
the Bangsamoro Police and his deputies may be selected from a list of
Bangsamoro Police officers with a rank of Police Senior Superintendent.

. It shall have regional, provincial, and city or municipal offices;

« The provincial office shall be headed by a provincial director, who shall be
4 professional police officer with the rank of, at least. police superintendent;
and

4. The city or municipal office or station shall be headed by a Chief of Police,
who shall be a professional police officer with the rank of, at least, police
superintendent for the city and police inspector for the municipality.

Section 5. Bangsamoro Police Board. — There is hereby created a Bangsamoro
Police Board, which shall perform the functions of the National Police
Commission in the Bangsamoro. The board shall be part of the National Police
Commission (NAPOLCOM). The NAPOLCOM shall ensure that the


Bangsamoro Police Board performs its powers and functions within the bounds
of its authority. In addition, it shall perform the following functions:

a, To set the policing objectives and priorities in the Bangsamoro;

b. To monitor the performance of the Bangsamoro Police against policing
objectives and priorities;

© To monitor crime trends and patterns as well as performance in areas of
employment opportunities in the Bangsamoro;

4, To provide information and guidance to the Bangsamoro Government and
the

PNP on the annual budgetary requirement of the Bangsamoro Police;

*. To monitor police performance as against the budget allocation for the
Bangsamoro Police; and

£ To recommend the Bangsamoro Police Director and his Deputies, the
Provincial Directors, and City and Municipal chiefs of the Bangsamoro
Police.

The Bangsamoro Police Board shall have the power to investigate complaints
against the Bangsamoro Police. Appeals from its decision may be lodged with
the National Police Commission. Pending resolution of the appeal, its decisions
may be executed. The rules and regulations governing the investigation of the
members of the Philippine National Police shall be followed by the Bangsamoro


o. os

Police Board in the absence of rules and regulations enacted by the Bangsamoro
Parliament.

Section 6. Composition of the Board. - The Board shall be composed of eleven
(11) members. Six (6) members of the Board shall come from the Bangsamoro
Parliament and five (5), from various sectors. All the six (6) members from the
Parliament shall not hold any ministerial post. All the members thereof shall be
‘appointed by the Chief Minister in accordance with the rules promulgated by the
Bangsamoro Parliament for this purpose.

‘The Chairman of the Board shall be an ex-officio commissioner of the Netional
Police Commission on matters dealing with the Bangsamoro Police.

Section 7, Terms of Office. —The sectoral representatives to the board shall hold
office for a period of three (3) years: provided that of those first appointed as
sectoral representatives, two (2) will sit for three (3) years, another two (2) will
sit for two (2) years, and the last will sit for one (1) year. Appointment for any
vacancy shall only be for the unexpired term of the predecessor.

The members of Parliament who are likewise members of the Board shail hold
office for the duration of their elective terms.

Section 8. Powers of the Chief Minister Over the Bangsamoro Police. - The
Chief Minister shall have the following powers over the Bangsamoro Police:

3 Toact as deputy of the National Police Commission in the Bangsamoro and
4s ex officio chair of the Bangsamoro Police Board;

b. To select the head of the Bangsamoro Police and his deputies;


a7

ce To exercise operational control and supervision and disciplinary powers
over the

Bangsamoro Police;

4. To employ or deploy the elements of and assign or reassign the Bangsamoro
Police through the Bangsamoro Police Director. The Bangsamoro Police
Director shall not countermand the order of the Chief Minister unless it is in
violation of the law;

¢. To oversee the preparation and implementation of the Integrated
Bangsamoro Public Safety Plan;

{, To impose, after due notice and summary hearings of the of the citizen’s
complaints, administrative penalties on personnel of the Bangsamoro Police
except those appointed by the President: and

© Do everything necessary to promote widespread support for the
Bangsamoro Police by residents of the Bangsamoro.

Section 9. Manning Level. - The average manning level of the Bangsamoro
Police shall be approximately in accordance with the police-to-population ofone
(1) police officer for every five hundred (500) persons. The actual strength by
sities and municipalities shall depend on the state of peace and order, population
density and actual demands of service in the particular area; provided that the
‘minimum police to population ratio shall not be Jess than one (1) police officer
for every one thousand (1,000) persons; provided further that urban areas shall
have @ higher minimum police to population ratio as may be prescribed by
regulations.


Section 10. Appointment of Officers and Members of the Bangsamoro Police.
~The appointment of the officers and members of the Bangsamoro Police shall be
effected in the following manner:

a Police Officer ! to Senior Police Officer IV. — Appointed by the head of the
Bangsamoro Police and attested by the Civil Service Commission.

Personnel for the Bangsamoro Police shall also be appointed by its head

6. Inspector to Superintendent, — Appointed by the Chief of the Philippine
National Police, as recommended by the head of the Bangsamoro Police and
the Chief Minister, and attested by the Civil Service Commission; and

¢. Senior Superintendent and above. — Appointed by the President upon
recommendation of the chief of the Philippine National Police, with proper
endorsement by the Chief Minister and the Civil Service Commission, and
subject to confirmation by the Commission on Appointments.

Section 11. Community Police.- The Bangsamoro Police shall adopt community
policing as an essential mechanism in maintaining peace and order.

Section 12. Law Governing the Bangsamoro Police. - The Bangsamoro
Parliament ts hereby authorized to enact laws to govern the Bangsamoro Police
consistent with this Basic Law.

Section 13, Transitional Arrangements. - Upon the establishment of the
Bangsamoro Transition Authority and pending the organization of the
Bangsamoro Police, the Bangsamoro Transition Authority shall have substantial


participation in choosing the head and in the employment and the deployment of
existing Philippine National Police in the Bangsamoro. The head of the
Bangsamoro Police will be selected from a list of three (3) eligible officers
recommended by the Philippine National Police.

Section 14, National Support Services. - The relationship between the
Bangsamoro Police and the national support services of the Philippine National
Police shall be determined by the intergovernmental relations body.

Section 15, Defense and Security.- The defense and security of the Bangsamoro
shall be the responsibility of the Central Government. The Central Government
may create a Bangsamoro Command of the Armed Forces of the Philippines for
the Bangsamoro, which shall be organized, maintained, and utilized in
accordance with national laws, Qualified inhabitants of the Bangsamoro shall be
given preference for assignments in the said Bangsamoro Command.

Section 16. Calling Upon the Armed Forces. - The provisions of the preceding
sections notwithstanding, the Chief Minister may request the President to call
upon the Armed Forces of the Philippines:

a. To prevent or suppress lawless violence, invasion, or rebellion, when the
public safety so requires, in the Bangsamoro;

. To suppress the danger to or breach of peace in the Bangsamoro, when the
Bangsamoro Police is not able to do so; or

¢ To avert any imminent danger to public order and security in the area of the
Bangsamoro.


n

Section 17, Coordination, - The Central Government and the Bangsamoro
Government shall establish coordination protocols, which shall govern the
movement of Armed Forces of the Philippines in the Bangsamoro.

Section 18. Indigenous Structure. - The Bangsamoro Government shall
recognize indigenous structures or systems which promote peace, and Jaw and
order. The Bangsamoro Parliament shall provide institutional support to these
structures and systems to enhance peace and security in the Bangsamoro,

Article XIL
FISCAL AUTONOMY

Section 1. Fiscal Autonomy. — The Bangsamoro shall enjoy fiscal autonomy
with the end in view of attaining the highest form of economic self-sufficiency
and genuine development. It shall be entitled to all find sources enumerated
herein, and shall have the power to create its sources of revenues as provided in
this law. It shall prepare its budget and shall allocate funds in accordance with an
annual appropriations law passed by the Bangsamoro Parliament. The form,
content, and manner of preparation of the budget shall be prescribed by law
enacted by the Bangsamoro Parliament.

Section 2. Auditing — All public finds of the Bangsamoro are subject to
auditing. For this purpose, a Bangsamoro Commission on Audit (BCA) is hereby
created. It shall have the power, authority, and duty to examine, audit, and settle
all accounts pertaining to the revenue and receipts of, and expenditures or uses of
funds and property, owned or held in trust by, or pertaining to the public finds
utilized by the Bangsamoro. The utilization of the revenue generated by the
Bangsamoro Government and block grants of subsidies from foreign or domestic


n

donors shall be subject to the auditing rules and regulations of the Bangsamoro
Government and to auditing by the BCA auditors.

The BCA’s power, authority and duty shall be without prejudice to the power,
authority and duty of the Commission on Audit (COA) to examine, audit and
settle all accounts, pertaining to the revenues and the use of funds and property
owned and held in trust by any government instrumentality, including GOCCs,

With due regard to the BCA’s responsibility to ensure the judicious use of funds
within the Bangsamoro, disbursement vouchers of the Bangsamoro Government
shall be submitted immediately to the BCA.

Section 3. Local Government Finance. — The Bangsamoro Government shall
steate a mechanism for coordinating, assisting. and monitoring the finances of
the constituent local government units in pursuance of good governance and local
autonomy.

Section 4. Central Government Assistance. — The Central Goverment shall
extend assistance to the Bangsamoro Government in the matter of tax
administration and fiscal management. This assistance shall include capacity
building and training programs, in accordance with a needs assessment and
capacity building plan developed by the Bangsamoro Government in consultation
with the Central Government.

Section 5. Assistance to Other Regions. — The Bangsamoro Government may
also assist the development efforts of other regions once the Bangsamoro has
attained financial self-sustainability,


72

Sources of Revenue

Section 6. Revenue Sources. — The Bangsamoro Government shall have the
Power to create its own sources of revenues and to levy taxes, fees, and charges,
Subject to the provisions of this law and consistent with the principles of
devolution of powers, equalization, equity, accountability, administrative
simplicity, harmonization, and economic efficiency, and fiscal autonomy. Such
taxes, fees, and charges shall accrue exclusively to the Bangsamoro Government.

The sources of revenue of the Bangsamoro Government shall include, among
others, the following:

a Taxes;

b. Fees and charges;
s Annual block grant coming from Central Government:

4. Revenues from the exploration, development and utilization of natural
resources derived from areas/territories, land or water, covered by and
within the jurisdiction of the Bangsamoro;

e Revenues from Bangsamoro government-owned and/or —controlled
corporations (GOCCs), financial institutions and other corporations, and
shares from the revenues of national GOCCs and its subsidiaries operating
in the Bangsamoro, ns may be determined by the intergovemmental fiscal
Policy board;


ms a

£ Grants from economic agreements entered into by the Bangsamoro
Government and conventions to which the Central Government is a party;

® Grants and donations; and
h. Loans and Overseas Development Assistance (ODA),

Section 7. Taxation. — The Bangsamoro Government shall exercise the power to
levy taxes, fees or charges that were already given to the Autonomous Region in
Muslim Mindanao and/or allowed under Republic Act 6734 and Republic Act
9054, and other legislations, as well as those that are provided herein.

In enacting revenue-taising measures, the Bangsamoro shall observe the
principles of uniformity and equity in taxation. Revenues shall inure solely to the
benefit of, and be subject to the disposition by, the Bangsamoro Goverment,

Taxes, fees, or charges shall not be unjust, excessive, oppressive, confiscatory or
contrary to public policy. The collection of Bangsamoro taxes, fees, charges and
other impositions shall not be let to any private person.

The power to impose a tax under this Basic Law shall be exercised by the
Bangsamoro Parliament, through an appropriate legislation, which shall not be
enacted without any prior public hearing conducted for the purpose, The
Bangsamoro Government shall, as far as practicable, evolve a progressive system
of taxation.

Section 8. Tax Incentives. — To encourage investments und other economic
activities, the Bangsamoro Government shall have the power to grant tax
exemptions, rebates, tax holidays and other incentives including those granted to


”

the Regional Board of Investment of the ARMM. As part of incentives to
investors, the Bangsamoro may opt instead to impose a flat rate lump sum tax on
‘small and medium enterprises,

Section 9, Taxing Powers. The following taxes in the Bangsamoro shall be
levied by the Bangsamoro Government.

a. Capital Gains Tax. — Tax imposed on the gains presumed to have been
realized by the seller from the sale, exchange, or other disposition of capital
assets, including pacto de retro sales and other forms of conditional sale:

b, Documentary Stamp Tax. - Tax on documents, instruments, Joan
agreements and papers evidencing the acceptance, assignment, sale or
transfer of an obligation rights or property incident thereto;

« Donor's Tax. — Tax on a donation or gift, and is imposed on the gratuitous
transfer of property between two or more persons who are living at the time
of the transfer, It shall apply whether the transfer is in trust or otherwise,
whether the gift is direct or indirect and whether the property is real or
personal, tangible or intangible:

a Estate Tax. — Tax on the right of the deceased person to transmit his/her
estate to his/her lawful heirs and beneficiaries at the time of death und on
certain transfers, which are made by law as equivalent to testamentary

Income tux levied on banks and other financial institutions;


6

Registration fees of vessels which are registered by their owners with the
Bangsamoro Government and wharfage on wharves constructed and
maintained by the Bangsamoro Government or the local government unit
concerned:

Tolls on bridges or roads constructed and maintained by the provinces,
cities, municipalities, or barangays concerned or by the Bangsamoro
Government;

Taxes, fees, or charges on agricultural and aquatic products, except when
sold by marginal farmers or fisherfotk;

Excise taxes on articles that are not enumerated under the National Internal
Revenue Code;

Taxes, fees. or charges on countryside, barangay enterprises and
cooperatives not registered under Republic Act No. 6810, the “Magna Carta
for Countryside and Barangay Business Enterprises” and Republic Act No.
6938, the “Cooperatives Code of the Philippines,” respectively, and

Such other taxes that were allowed to be levied by the Government of the
Autonomous Region in Muslim Mindanao under RA 6734, RA 9054, and
other legislations and executive issuances.

Where all taxable elements are within the Bangsamoro territory, taxes under
letters (a) to (d) above shall no longer be imposed by the Bureau of Intemal
Revenue (BIR) of the Central Government. The Intergovernmental Fiscal Policy
Board shall promulgate niles on the determination of taxable elements in relation
to taxes (a) to (d) above and on the sharing of revenues from the collection of


7%

Such taxes where the taxable elements are found within and outside of the
Bangsamoro territory. Any dispute between the Bangsamoro Government and
the Central Government arising from the imposition of taxes under (a) to (d)
above shall be addressed by the Intergovernmental Fiscal Policy Board.

Section 10. Share in Taxes of the Central Government. — Central Government
taxes, fees, and charges collected in the Bangsamoro, other than tariff and
customs duties, shall be shared as follows:

a. Twenty-five percent (25%) to the Central Government; and

b. Seventy-five percent (75%) to the Bangsamoro, including the shares of the
local government units.

The aforementioned twenty-five percent (25%) share of the Central Government
shall, for a period of ten (10) years, be retained by the Bangsamoro Government.
The period for retention may be extended upon mutual agreement of the Central
Government and the Bangsamoro Government.

Section 11. Assessment and Collection of Taxes. — The Bangsamoro Parliament
shall, by law, establish the Bangsamoro Tax Office within the Bangsamoro for
the purpose of assessing and collecting Bangsamoro taxes, The Bangsamoro
Government and the Central Government may come to an agreement as to
modalities for the collection and remittance of national taxes, including costs, in
the Bangsamoro.

Until such time that the Bangsamoro Tax Office is established, the collection
shall be done by the Bureau of Intemal Revenue (BIR). The share of the
Bangsamoro Government shall be directly remitted to it


Corporations, partnerships, or firms directly engaged in business in the
Bangsamoro shall pay their corresponding taxes, fees, and charges in the province
or city, where the corporation, partnership, or firm is doing business.

Corporations, partnerships, or firms whose central, main, or head offices are
located outside the Bangsamoro but which are doing business within its territorial
jurisdiction by farming, developing, or utilizing the land, aquatic, or natural
resources therein, shall pay the income taxes corresponding to the income
realized from their business operations in the Bangsamoro to the city, or
municipality where their branch offices or business operations or activities are
located. The BIR and the Bangsamoro Tax Office shall agree on modalities for

the filing of income tax retums through the Intergovernmental Fiscal Policy
Board.

Section 12. Share of the Constituent Local Government Units in Taxes within
the Bangsamoro. — The Bangsamoro Parliament shall enact a law detailing the
shares of constituent local government units in the 75% share of the Bangsamoro
Government in the taxes, fees and charges collected in their jurisdiction by the
Central Government in the Bangsamoro

Section 13. Bangsamoro Taxes and Revenue Code. — The Bangsamoro
Parliament shall enact a Bangsamoro Tax Code, which shall cover the taxing
powers of the Bangsamoro Government.

Section 14. Fees and Charges. — The Bangsamoro shall exercise the power to
levy fees and charges pursuant to the powers and functions that it shall exercise
in accordance with this Basic Law, including the powers already granted under


7

Republic Act. No. 6734. RA 9054 and other executive issuances, and memoranda
of agreement.

Block Grant

Section 15, Annual Block Grant. — The Central Government shall provide an
annual block grant which shall be the share of the Bangsamoro in the national
intemal revenue of the Government. The amount shall be sufficient for the
exercise of the powers and functions of the Bangsamoro Government under this
Basic Law in no case to be less than the last budget received by the ARMM
immediately before the establishment of the Bangsamoro Transition Authority,

Section 16. Formula of the Block Grant, — For the budget year immediately
following the year this Act takes effect, the amount of the block grant shall be
equivalent to four per cent (4%) of the net national intemal revenue collection of
the Bureau of Intemal Revenue less the internal revenue allotment of local
government units. For purposes of this section, the net national internal revenue
collection of the Bureau of intemal Revenue is understood to be the sum of all
internal revenue tax collections during the base year less the amount released
during the same year for tax refunds, payments for informer’s reward, and any
Portion of intemal revenue tax collections which are presently set aside, or
hereafier earmarked under special laws for payment to third persons.

Provided, that the computation shall be based on collections from the third fiscal
year preceding the current fiscal year,

Provided, further, that the above formula shall be adjusted if, after the effectivity
of this Act, there occurs a change in the total land area of the Bangsamoro;


)

Provided, finally, that in the event that the Central Government incurs an
unmanageable public sector deficit, the President of the Philippines shall call for
the activation of the intergovernmental relations body where both the President
and the Prime Minister of the Bangsamoro will participate in order to look at the
Possibility of adjusting the annual block grant of the Bangsamoro; Provided
furthermore, that this adjustment shall be during the duration of the
unmanageable public sector deficit only.

Section 17. Automatic Appropriation. — The annual block grant shall be
automatically appropriated to the Bangsamoro Government and reflected in the
General Appropriations Act. The Bangsamoro Parliament shall pass an annual
appropnations law that allocates the block grant to various agencies and
Programs, according to the powers and functions of the Bangsamoro
Government. The Bangsamoro annual appropriations law may also include
performance standards and targets for each sector. Any unspent amount in the
current year’s block grant shal! revert to the Bangsamoro general fund for re-
Sppropriation.

Section 18. Regular Release. — The block grant shall be released, without need
of any further action, directly and comprehensively to the Bangsamoro
Government, and which shall not be subject to any lien or holdback that may be
imposed by the Central Government for whatever purpose.

Section 19. Deductions from the Block Grant; Exceptions. — Four years from
the operationalization of the regular Bangsamoro Government the following shall
be deducted from the block grants:

a Revenues from the additional taxes beyond those already devolved to the
ARMM collected three (3) years before; and


4 Share of the Bangsamoro in the government income derived from the
exploration, development and utilization of natural resources, as provided
in Section 32 below, collected three (3) years before.

Provided, that the amount allocated for the operation of the Bangsamoro
Sustainable Development Board, as provided in Article XIII, Section 4,shall not
be included in the amount herein to be deducted from the block grant; Provided,
further, that the abovementioned deduction shall not include the shares of
constituent local government units and of indigenous communities in government
income derived from the exploration, development and utilization of natural
resources, under Sections 33 and 34, respectively.

Section 20. Review of the Block Grant Formula. — The formula for the Block
Grant, as provided above, shall be reviewed by the Intergovernmental Fiscal
Policy Board ten (10) years after its effectivity. The review that shall be
undertaken shall consider, among others, the fiscal needs of the Bangsamoro and
the actual revenues it is able to generate. Thereafter, the review shall be
undertaken every five (5) years as agreed upon in the Intergovernmental Fiscal
Policy Board. Should the Central Government no longer have any representative
in the said Board, the review shall be undertaken by the Intergovernmental
Relations Body, for enactment into law.

Section 21. Development programs and projects. - Immediately after the
fatificution of this Basic Law, and for another five (5) years thereafter, the Central
Government shall provide for additional funds that would subsidize expenditure
for development projects and infrastructure in the Bangsamoro, including
Provincial and municipal roads, in accordance with a development plan
formulated by the Bangsamoro Government. The Central Government and the


81

Bangsamoro Government shall agree on the amount through the
intergovernmental relations body, as well as the manner of release of said amount
to the Bangsamoro Government.

Loans

Section 22. Foreign and Domestic Loans; Bills, Bonds, Notes and
Obligations. — (a) Loans, Credits, and Other Forms of Indebtedness. — The
contracting of owns, credits, and other forms of indebtedness by the Bangsamoro
Government shall be for the development and welfire of the people of the
Bangsamoro.

Subject to acceptable credit worthiness, such loans may be secured from domestic
and foreign lending institutions, except foreign and domestic loans requiring
Sovereign guaranty, whether explicit or implicit, which would require the
approval of the Central Government. The Bangsamoro Parliament may authorize
the Chief Minister to contract such domestic or foreign loans. The loans so
contracted may take effect upon approval by a majority of all the members of the
Bangsamoro Parliament.

The Central Government shall assist the Bangsamoro Government in complying
with the requirements for speedy issuance of the sovereign guaranty, to finance
local infrastructure and other socio-economic development projects in
accordance with the Bangsamoro Development Plan.

Within 30 days from the submission of the Bangsamoro Government of its
application for sovereign guaranty, the Bangsamoro Government shall be
informed by the Central Government on the actions taken on the application. The
application shall be resolved with dispatch,


6) Bills, Bonds, Notes, Debentures and Obligations. - The Bangsamoro
Govemment is also authorized to issue treasury bills, bonds, debentures,
securities, collaterals, notes, obligations, and other debt papers or documents, as
well as redeem or retire the same, pursuant to law enacted by the Bangsamoro
Parliament. Said authority may be exercised in order to finance self-liquidating,
income producing development or livelihood projects pursuant to the priorities
established in the aforementioned development plan.

(¢) Payment of Loans and Indebtedness. — The Bangsamoro Government shall
appropriate in its annual budget such amounts as are sufficient to pay their loans

Section 23, Overseas Development Assistance. — In its efforts to achieve
inclusive growth and poverty reduction, through the implementation of priority
development projects, the Bangsamoro Government may avail directly of
Overseas Development Assistance (ODA). The Bangsamoro Parliament may
enact legislation governing ODA.

Grants and Donations

Section 24. Grants and Donations. — Grants and donations from foreign and
domestic donors received by the Bangsamoro Government for the development
and welfare of the people in the Bangsamoro shall be used solely for the purpose
for which they were received.

Donations and grants that are used exclusively to finance projects for education,
health, youth and culture, and economic development, may be deducted in full
from the taxable income of the donor or grantor.


>:

33

Economic Agreements and Conventions

Section 25. Economic Agreements. — The Bangsamoro government may enter
into economic agreements and receive benefits and grants derived therefrom
subject to the reserved powers of the Central Government over foreign affairs.

Section 26. Cultural Exchange, Economic and Technical Cooperation. —
Consistent with the reserved powers of the Central Government, the Bangsamoro
Government may establish linkages for cultural exchange, economic and
technical cooperation with countries with diplomatic relations with the
Philippines, with assistance of Philippine embassies or consulates, or through
some other arrangements with Central Government supporting such
undertakings.

Section 27. Benefits from Conventions. — The Bangsamoro shall be entitled to
benefits resulting from conventions to which the Central Government is a party.
Such benefits shall be equitable and shall consider the available human and
material resources and comparative advantage of the Bangsamoro, as well as its
socio-economic conditions and needs,

Government Owned and/or Controlled Corporations (GOCCs) and
Financial Institutions

Section 28. GOCCs and Financial Institutions. — The Bangsamoro shall have
the power to create GOCCs and financial institutions through the necessary
modalities, and in accordance with a law on GOCCs to be passed by the
Parliament. These Bangsamoro Government-created GOCCs shall be duly
registered with the Securities and Exchange Commission or established under


legislative charter by the Bangsamoro Parliament, and shall be recognized even
outside the Bangsamoro, Revenues derived from their operations shall pertain to
the Bangsamoro,

Section 29. Existing GOCCs Operating Exclusively in the Bangsamoro. —
The Bangsamoro Government shall have the authority and control over existing
GOCCs and financial institutions operating exclusively in the Bangsamoro, after
determination by the intergovernmental fiscal policy board of its feasibility, Such
transfer shall be effected through the necessary changes on the GOCCs’
governing boards.

Section 30. Southern Philippine Development Authority and Al-Amanab
Islamic Investment Bank. — Within six (6) months from the establishment of
the BTA, the Intergovernmental Fiscal Policy Board shall determine the
Participation of the Bangsamoro in the ownership and management of Al-
Amanah Islamic Investment Bank of the Philippines and the Southern Philippines
Development Authority as provided in P.D, 690 as amended by P.D. 1703 and
the mode of transfer of ownership to the Bangsamoro Government

Section 31. Existing GOCCs in the Bangsamoro. —The Bangsamoro
Government shall be represented in the board of directors or in the policy-making
bodies of GOCCs that operate a substantial portion of their businesses directly or
through their subsidiaries in the Bangsamoro or where the Bangsamoro has
substantial interest. The Intergovernmental Fiscal Policy Board (IGFPB) shall
determine the extent of participation. In no case shall the Bangsamoro have less
than one seat in the governing board of such entities.

The share of the Bangsamoro Government from the results of operations of
GOCCs and subsidiaries operating in the Bangsamoro shall be based on a formula


determined by the Intergovernmental Fiscal Policy Board under Section 36 of
this Basic Law.

Sharing in the Exploration, Development and Utilization of Natural
Resources

Section 32. Sharing in Exploration, Development and Utilization of Natural
Resource. — Central Government income from taxes derived from the
exploration, development and utilization of all natural resources within the
Bangsamoro shall be allocated as follows:

a For non-metallic minerals (sand. gravel, and quarry resources), such
revenues shall pertain fully to the Bangsamoro and its local government
units:

b. For metallic minerals, seventy-five percent (75%) shall pertain to the
Bangsamoro;

For fossil fuels (petroleum, natural gas, and coal) and uranium, the same
shall be shared equally between the Central and Bangsamoro Governments.

Such sharing scheme shall be applicable to the natural resources found in the land
mass that comprise the Bangsamoro territory as well as the waters that are within
the territorial jurisdiction of the Bangsamoro,

Section 33. Share of the Constituent Local Government Units. — The share of
the Bangsamoro Government in the revenues referred to in the immediately
preceding section shall include those for its constituent local government units.


The Bangsamoro Parliament shall enact a law detailing the shares of such local
government units.

Section 34. Share of Indigenous Communities, — Indigenous peoples shall have
an equitable share from the revenues generated from the exploration,
development and utilization of natural resources that are found within the
territories covered by a native title in their favor. The share shall be provided for
in a law to be passed by the Bangsamoro Parliament.

The Bangsamoro Parliament shall enact a law that shall provide in detail said
Sharing system, including the percentage of the shares of the indigenous peoples
and communities, and the mechanisms therefor,

Intergovernmental Fiscal Policy Board

Section 35. Intergovernmental Fiscal Policy Board. — There is hereby created
an Intergovernmental Fiscal Policy Board (IGFPB) that shall address revenue
imbalances and fluctuations in regional financial needs and revenue-raising
capacity of the Bangsamoro,

Section 36. Functions. ~The |GFPB shall undertake the following functions:

fa) Recommend the necessary fiscal policy adjustments by undertaking a
Periodic review of the taxing powers, tax base and rates of the Bangsamoro
Government, wealth sharing arrangements, sources of revenues vis-a-vis the
development needs of the Bangsamoro,


a7

(b) Address disputes between the Central Goverment and the Bangsamoro
Government involving the collection of capital gains tax, documentary stamp tax,
donor's tax and estate tax in the Bangsamoro;

{¢) Determine the extent of participation of the Bangsamoro Government in
the board of directors or the policy-making bodies of GOCCs that operate »
substantial portion of their businesses directly or through their subsidiaries in the
Bangsamoro or where the Bangsamoro has substantial interest;

(4) Determine the participation of the Bangsamoro Government in the results
of operations of government-owned and/or controlled corporations and its
Subsidiaries operating in the Bangsamoro. The Board shall also determine a
formula for the share of the Bangsamoro Government from the results of said
operations;

(e) Determine the participation of the Bangsamoro in the ownership and
management of Al-Amanah Islamic Investment Bank of the Philippines and the
Southern Philippines Development Authority (SPDA) to the Bangsamoro, and

{9 Recommend the exercise by the Bangsamoro Government of additional
fiscal powers in order to attain the highest form of fiscal autonomy.

Section 37. Composition. — The Board shall be composed of the heads and/or
representatives of the appropriate ministries and offices in the Bangsamoro
Government. The Central Government shall likewise be represented in the Board
by the Secretary of Finance and such other officials as may be necessary


Once full fiscal autonomy has been achieved by the Bangsamoro, it may no
longer be necessary to have a representative from the Central Government to sit
in the Board.

Section 38. Meetings and Annual Report. The Board shall meet at least once
in six (6) months and shall adopt its own niles of procedure for the conduct of its
meetings.

An annual report shall be submitted by the Board to the Central Government and
the Bangsamoro Government.

Section 39. Full Disclosure Policy. — The Bangsamoro Government hereby
adopts a policy of full disclosure of its budget and finances, and bids and public
offerings and shall provide protocols for the guidance of local authorities in the
implementation of said policy, which shall include, among others the posting of
the Summary of Income and Expenditures. The same policy shall apply to its
constituent local government units, as may be provided in a law to be enacted by
the Bangsamoro Parliament.

Section 40, Additional Fiscal Powers. — The IGFPB may recommend the
exercise by the Bangsamoro of additional fiscal powers in order to reach full
fiscal autonomy. Such recommendations shall be proposed to Congress or the
appropriate agency of the Central Government that has the power to effect such
recommendations.


Article XH
ECONOMY AND PATRIMONY

Section 1. Bangsamoro Economy and Social Justice - The Bangsamoro
Government's economic policies and programs shall be based on the principle of
social justice. Pursuant to this principle, the Bangsamoro Parliament shall
legislate laws pertaining to the Bangsamoro economy and patrimony that are
Tesponsive to the needs of its people.

Sustainable Development

Section 2. Equitable and Sustainable Development. — In order to protect and
improve the quality of life of the inhabitants of the Bangsamoro, development in
the Bangsamoro shall be carefully planned, taking into consideration the natural
resources that are available for its use and for the use of future generations.

The Bangsamoro Govemment shall promote the effective use of economic
resources and endeavor to attain economic development that shall facilitate
growth and full employment, human developmem, and social justice.

The Bangsamoro Government shall also provide equitable opportunities for the
development of constituent local government units and shall strengthen
governance systems to ensure people's participation.

Section 3. Comprehensive Framework for Sustainable Development. — The
Bangsamoro Government shall develop a comprehensive framework for
sustainable development through the proper conservation, utilization and
development of natural resources. Such framework shall guide the Bangsamoro
Government in adopting programs and policies and establishing mechanisms that


focus on the environment dimensions of social and economic interventions, It
shall include measures for the reduction of vulnerability of women and
marginalized groups to climate change and variability.

Section 4. Bangsamoro Sustainable Development Board. — The Bangsamoro
Parfiament shall create a Bangsamoro Sustainable Development Board (BSDB),
an intergovernmental body composed of representatives from the
Bangsamoro Government and the Central Government, The Board shall ensure
the harmonization of environmental and developmental plans, as well as
formulate common environmental objectives.

Funding support for the Board shall be included in the annual budget of the
Bangsamoro Government. However, if there are revenues collected from the
exploration, development and utilization of all natural resources within the
Bangsamoro, a certain percentage of such revenues shall be allocated for the
operation of the Board, as may be provided in a law to be passed by the
Bangsamoro Parliament.

Section 5. Bangsamoro Development Plan. — The Bangsamoro Government
shall formulate its development plans taking into consideration the Bangsamoro
people's unique needs and aspirations and consistent with national development
goals. The plan shall also consider the revenue generation efforts needed for the
post-conflict rehabilitation, reconstruction and development of its territory.

The plan shall include the promotion of growth and full employment, human
development, and address social and economic inequities that have resulted from
decades of neglect, historical injustice, poverty and inequality.


ct

For this purpose, the Bangsamoro Parliament shall create an economic planning
office.

Section 6, Gender and Development. - The Bangsamoro Government
recognizes the role of women in governance and shall ensure the fundamental
equality before the law of women and men. It shall guarantee full and direct
participation of women in governance and in the development process and shall,
further, ensure that women benefit equally in the implementation of development
Programs and projects.

In the utilization of public fimds, the Bangsamoro Government shall ensure that
the needs of women and men are adequately addressed. For this purpose, at least
five percent (5%) of the total budget appropriation of each ministry, office, and
constituent local government unit of the Bangsamoro shall be set aside for
gender-tesponsive programs, in accordance with a gender and development
(GAD) plan. In the same manner, at least five percent (5%) up to thirty percent
(30%) of the official development funds received by the Bangsamoro shall be set
aside to complement said GAD budget allocation.

The Bangsamoro Government shall establish a mechanism for consultation with
women and local communities to further ensure the allocation and proper
utilization of said funds. It shall identify and implement special development
programs and laws for women.

Section 7. Participation of the Bangsamoro in National Development
Planning. — The preceding section notwithstanding, and in order to ensure that
the Bangsamoro development plans are reflected in the national development
plans, the Bangsamoro shall participate in national development planning. The


Chief Minister shall be # fullfledged member of the Board of the National
Economic and Development Authority (NEDA).

Natural Resources

Section 8. Natural Resources, Nature Reserves and Protected Areas. — The
Bangsamoro Government shall have the authority, power, and right to explore,
develop and utilize the natural resources, including surface and sub-surface
rights, inland waters, coastal waters, and renewable and non-renewable resources
in the Bangsamoro.

The protection, conservation, rehabilitation, and development of forests, coastal,
and marine resources, including the adoption of programs and projects to ensure
the maintenance of ecological balance, shall be given priority.

The Bangsamoro Government shall also have the power to declare nature
Teserves and aquatic parks, forests, watershed reservations and other protected
areas in the Bangsamoro, amending for this purpose the following laws, among
others:

a Republic Act No, 7586, otherwise known as the National Integrated
Protected

Areas System (NIPAS) Act of 1992, as amended by Republic Act No.
10629:

b. Presidential Decree (PD) No. 705, Revising PD 389 or the Forestry Code of
the Philippines;


93

¢ PD No, ISIS Vesting Jurisdiction and Control over Watershed Reservations
in the Ministry of Energy and for other Purposes;

« PD 87, Amending PD No. 8, An Act to Promote the Discovery and
Production of Indigenous Petroleum and Approprinte Funds therefor; and

e. Republic Act No, 7942, Philippine Mining Act of 1995.

‘The Bangsamoro Parliament shall pass a law on protected areas, regarding the
Procedure for the declaration, and the management of those that are so declared,
and the role of the Bangsamoro Government and other stakeholders in the
process.

Section 9. Transfer of Existing Nature Reserves and Protected Areas. — The
management and protection of nature reserves and aquatic parks, forests,
watershed reservations, and other protected areas in the Bangsamoro territory that
have already been defined by and under the authority of the Central Government
Shall be transferred to the Bangsamoro Government.

Within three months from the establishment of the Bangsamoro Transition
Authority, the Bangsamoro Government and Department of Environment and
Natural Resources (DENR) as well as other relevant government agencies shall
Start the process of transferring these areas including the conduct of surveys of
all affected areas and the planning and transition for each and every protected
area. Such process shall be completed within a period not execeding two years.

Section 10. Exploration, Development, and Utilization of Fossil Fuels and
Uranium, ~ The Bangsamoro Government and the Central Government shall
Jointly exercise the power to grant rights, privileges and concessions over the


«

exploration, development and utilization of fossil fuels (petroleum, natural gas,
and coal) and uranium in the Bangsamoro,

The Central Government, through the Department of Energy (DOE), and the
Bangsamoro Government shall adopt « competitive and transparent process for
the grant of rights, privileges and concessions in the exploration, development
and utilization of fossil fuels and uranium.

The DOE and the Bangsamoro Government will identify and select prospective
contract areas to be offered for exploration and development. A qualified
Filipino citizen who is a bona fide resident of the Bangsamoro will receive a
rating higher than other proponents during the evaluation process. The award
of the service contract shall be made jointly by the DOE and the Bangsamoro
Government.

Section 11. Preferential Rights of Bona Fide Inhabitants of the Bangsamoro,
— Qualified citizens who are bona fide inhabitants of the Bangsamoro shall have
preferential rights over the exploration, development, and utilization of natural
resources, including fossil fuels (petroleum, natural gas, and coal) and uranium,
within the Bangsamoro territory. Existing rights over the exploration,
development and utilization of natural resources shall be respected until the
expiration of the corresponding leases, permits, franchises or concessions, unless
legally terminated.

Section 12. Rights of Indigenous Peoples Over Natural Resources, — The
Bangsamoro Parliament shall enact a Jaw recognizing the rights of indigenous
peoples in the Bangsamoro in relation to natural resources within the territories
covered by a native title, including their share in revenues, as provided in this


Basic Law, and preferential rights in the exploration, development and utilization
of such natural resources within their area.

‘The right of indigenous peoples to free and prior informed consent in relation to
development initiatives shall be respected.

Section 13. Mines and Mineral Resources. — The Bangsamoro Government
shall have authority and jurisdiction over the exploration, development, and
utilization of mines and minerals in its territory. Permits and licenses and the
granting of contracts for this purpose shall be within the powers of the
Bangsamoro Government.

Section 14. Financial and Technical Assistance Agreements, — The
applications for financial and technical assistance agreements (FTAAs) covering
mineral resources within the Bangsamoro shall be commenced at and
recommended by the Bangsamoro Government to the President

The manner by which the Bangsamoro Government shall make the
recommendation shall be in accordance with the mining policy that shall be
adopted by the Bangsamoro Parliament

Section 15. Regulation of Small-Scale Mining, — Small-scale mining shall be
regulated by the Bangsamoro Government to the end that the ecological balance,
safety and health, and the interests of the affected communities, the miners, the
indigenous peoples, and the local government units of the place where such
operations are conducted are duly protected and safeguarded,

Section 16. Legislating Benefits, Compensation for Victims and
Communities Adversely Affected by Mining and Other Activities that


Harness Natural Resources, - The Bangsamoro Parliament shall enact laws for
the benefit and welfare of the inhabitants injured, harmed or adversely affected
by the hamessing of natural and mineral resources in the Bangsamoro. Such laws
may include payment of just compensation to and relocation of the people and
rehabilitation of the areas adversely affected by the harnessing of natural and
mineral resources mentioned above

The Bangsamoro Parliament may, by law, require the persons, natural or
juridical, responsible for causing the harm or injury mentioned above to bear the
costs of compensation, relocation and rehabilitation mentioned above wholly or
Partially

Section 17. Bangsamoro Mining Policy. - Policies on mining and other
extractive industries shall be drawn up by the Bangsamoro Parliament in
accordance with its Comprehensive Sustainable Development Plan, as well as its
‘over-all medium-term and long-term Bangsamoro Development Plan.

Section 18. Zones of Joint Cooperation. — Zones of Joint Cooperation in the
‘Sulu Sea and the Moro Gulf are hereby created, the coordinates of which shall be
defined by an ad hoc joint body composed of representatives from the
Department of Environment and Natural Resources (DENR) and the National
Mapping and Resource Information Authority (NAMRIA) and on equal number
of representatives from appropriute agencies of the Bangsamoro Government.

The Joint Body shall be convened within thirty (30) days after the ratification of
this Basic Law and shall cease to exist after it has established the coordinates of
the Bangsamoro territory, including the Bangsamoro Waters and the Zones of
Joint Cooperation. However, the said joint body shall be reconvened within thirty


”

(30) days after the conduct of a plebiscite for the inclusion of other territories as
provided in the Basic Law.

Section 19. Joint Body for the Zones of Joint Cooperation. — There shall be
created a Joint Body for the Zones of Joint Cooperation composed of a
Bangsamoro Minister as Chair, at least one (1) representative of a constituent
local government unit of the Bangsamoro adjacent to the Sulti Sea, at least one
(1) tepresentative of a constituent local government unit of the Bangsamoro
adjacent to the Moro Gulf, the Secretary of Environment and Natural Resources,
the Secretary of Agriculture, and the Secretary of Transportation and
Communication of the Central Government, or their authonzed representatives,
and their counterpart officials from the appropriate Bangsamoro offices and/or
agencies. There shall be at least one (1) representative from an adjoining local
government unit that is not part of the Bangsamoro, and adjacent to the Sulu Sea,
and at least one (1) representative from an adjoining local government unit that
is not part of the Bangsamoro, and adjacent to the Moro Gulf. The Joint Body
shall be responsible for drawing up of policies mentioned in the preceding
‘Section, us well as those necessarily related thereto,

The joint body may invite private sector representatives from the fishing and
transportation industries whenever necessary,

‘The Central and the Bangsamoro Governments shall work together to regulate
the waters that comprise the Zones of Joint Cooperation in the Sulu Sea and the
Moro Gulf. Policies shall be jointly drawn up for the following purposes

& protection of the traditional fishing grounds;

b. benefitting from the resources therein:


© ensuring the interconnectivity of the islands and mainland parts of the
Bangsamoro so that they are parts of a cohesive Bangsamoro political entity;
and

d. ensuring the exercise of the preferential rights of the Bangsamoro people,
other indigenous peoples in the adjoining provinces, and the resident fishers
in the Bangsamoro over fishery, aquamarine, and other living resources in
the Zones of Joint Cooperation. The Joint Body shall promulgate rules and
regulations as to the exercise of these preferential rights, The preferential
rights granted to the Bangsamoro people under this section shall extend only
to those who can establish that they are Bangsamoro as defined in this Basic
Law or descendants of a Bangsamoro as of February 2. 1987

The Bangsamoro Government and the Central Governments shall ensure that
there shall be free movement of vessels, goods, and people in these Zones of Joint
Cooperation.

Section 20. Exploration, Development and Utilization of Non-living
Resources in the Zones of Joint Cooperation. The Joint Body for the Zones of
Joint Cooperation shall ensure the cooperation and coordination between the
Central Government and the Bangsamoro Government on the exploration,
development and utilization of nonliving resources in the Zones of Joint
Cooperation and determine the sharing of income and revenues derived
therefrom.

Section 21. Transportation in the Zones of Joint Cooperation. ‘Transportation
plying direct routes connecting the islands in Sulu, Basilan, Tawi-Tawi and/or
the mainland parts of the Bangsamoro and passing through the Zones of Joint
Cooperation shall be considered intra-regional routes.


Section 22, Inland Waters. — The Bangsamoro Government shall have exclusive
Powers over inland waters, including, but not limited to lakes, marshes, rivers
and tributaries. The Bangsamoro Parliament shall enact laws on the regulation,
minagement and protection of these resources. It may create a Bangsamoro office
and authorities for specific inland bodies of water that shall exercise management
powers over these bodies of water.

The Bangsamoro Government shall ensure that the utilization of these waters
shall primarily be for the benefit of the people in the Bangsamoro and shall ensure
that communities in the Bangsamoro in whose territory these waters are found
are given an equitable share from the revenues generated from such utilization,

Section 23. Agriculture, Fisheries, and Aquatic Resources. — The Bangsamoro
Government's policies and laws on agriculture, fisheries, and aquatic resources
shall advance agriculture as a key development strategy. promote productivity
‘Measures, and provide support for farmers and fishers especially small
landholders and marginal fishers.

Trade and Industry

Section 24. Trade and Industry in the Bangsamoro. —The Bangsamoro
Government recognizes the private sector as a mover of trade, commerce, and
industry. It shall encourage and support the building up of entrepreneurial
capability in the Bangsamoro and shall recognize, promote. and protect
cooperatives.

The Bangsamoro Goverment shall promote trade and industry in the
Bangsamoro by providing avenues through which other countries can lear about
its unique industries, economic opportunities and culture through participation in


trade missions, trade fairs, and other promotional activities, {1 can also organize
trade missions to other countries observing the necessary coordination with the
relevant government agencies,

The Bangsamoro Government shall also promote domestic trade preference for
goods produced and materials sourced from within the Bangsamoro and adopt
measures to increase their competitiveness. The Bangsamoro Government shall
also ensure that Bangsamoro products and services gain considerable access to
the markets of its trading partners, and particular sttention should also be given
to the markets of its trading partners who have historic and cultural ties to the
Bangsamoro.

The Bangsamoro Government shall provide technical and skills training
Programs, create livelihood and job opportunities, and allocate equitable
preferential rights to its inhabitants. In this regard, the Bangsamoro Parliament
may adopt laws that will safeguard the rights of workers.

Section 25, Barter Trade and Countertrade with ASEAN Countries. — The
Bangsamoro Government shall regulate traditional barter trade and counter-trade
with ASEAN countries, The goods or items that are traded with the said countries
shall not be sold elsewhere in the country without payment of appropriate
customs or import duties.

‘Traditional barter trade and counter-trade refer to all cross-border trade of all
goods not otherwise considered illicit since time immemorial between the
Bangsamoro areas with ASEAN countries. ‘The Bangsamoro Government shall
ensure compliance with national standards and safety product standards
requirements, Any dispute in relation to compliance or non-compliance shall be
brought to the intergovernmental relations mechanism.


201

Section 26, Economic Zones, Industrial Estates and Free Ports, — The
Bungsamoro Government may establish economic zones, industrial estates and
free ports in the Bangsamoro. Through the intergovernmental relations
mechanism, the Bangsamoro Government and the Central Government shall
cooperate on customs, immigration, quarantine service including the attendant
international commitments thereto, to implement and make fully operational such
economic zones, industrial estates, and free ports within one (1) year from their
establishment. Business and other enterprises operating within the Bangsamoro
economic zones, industrial estates and free ports shall be entitled to the fiscal
incentives and other benefits provided by the Central Government to special
economic zones, The Bangsamoro Government shall implement the fiscal
incentives and other benefits to investors in economic zones, industrial estates
and free ports. Bangsamoro free ports shall be contiguous/adjacent to # seaport
or airport. The area of coverage of a free port may be so much as may be
necessary of that portion of the constituent local government unit/s of the
Bangsamoro, subject to such criteria as the Bangsamoro Parliament may provide
in law for that purpose. Existing free ports in the ARMM are hereby transferred
to the Bangsamoro Government.

Section 27. Prohibition Against Toxic or Hazardous Substances. — The
Bangsamoro Government shall regulate, restrict or prohibit the use, importation,
transit, transport, deposit, disposal, and dumping of toxic or hazardous substances
within the Bangsamoro. It shall, in the same manner, regulate activities that may
adversely impact the environment and may be harmful to health, safety and
welfare of the Bangsamoro. Section 28, Halal-Certifying Bodies; Halal
Campaign Program. — The Bangsamoro Government shall have the power to
accredit halal-certifying bodies in the Bangsamoro. It shall promote awareness
through the development and implementation of a halal campaign program.


Banking and Finance

Section 29. Banks and Financial Institutions. — The Bangsamoro Government
shall encourage the establishment of:
a. banks and financial institutions and their branches; and

off-shore banking units of foreign banks within the Bangsamoro, and principles
of the Islamic banking system.

Section 30, Islamic Banking and Finance. — The Bangsamoro Government, the
Bangko Sentral ng Pilipinas (BSP), the Department of Finance (DOF), and the
National Commission on Muslim Filipinos (NCMF) shall jointly promote the
development of an Islamic banking and finance system, to include among others
the establishment of a Shari ‘ah Supervisory Board.

To facilitate the establishment of an Islamic banking and finance system, the
Central and the Bangsamoro Governments shall review existing market
environment and policies and adopt measures to enhance the competitiveness of
Islamic finance products and that Islamic financial players are not inhibited from
introducing Islamic finance products. It shall further promote investor awareness
and acceptance in order to build a broader customer and asset base.

‘Transportation and Communications
Section 31. Transportation and Communications. — The Bangsamoro

Government shall exercise such powers, functions and responsibilities that have
been devolved or decentralized to the ARMM.


103

The intergovernmental relations body shall convene the Department of
‘Transportation and Communication, Civil Aviation Authority of the Philippines,
Civil Aeronautics Board, Maritime Industry Authority, Philippine Ports
Authority, Land Transportation Franchising Regulatory Board, Land
‘Transportation Office, the National Telecommunications Commission, and other
soncemed agencies of the Central Government and the Bangsamoro
Government. The body shall perform the following functions:

(a) Determine the exercise of additional powers, functions and responsibilities
relating to transportation and communications in the Bangsamoro based on
the principles of subsidiarity, technical and financial viability,
harmonization (uniform system concept), compliance with international
standards, treaties, and conventions, and mutual respect and recognition,
and in recognition of the Bangsamoro’s aspiration to assume further
Powers as may be practically operationalized as it capacity develops;

(b) Issue rules and regulation to implement the additional powers, functions
and responsibilities over transportation and communication in the
Bangsamoro;

(c) Harmonize policies, programs, regulations and standards; and

(d) Resolve problems of implementation between the Central Government and
the Bangsamoro Government.

All revenues derived by the Bangsamoro Government from the exercise of its
Powers, functions and responsibilities shall pertain to the Bangsamoro
Government.


Article XTV REHABILITATION AND DEVELOPMENT

Section 1. Rehabilitation and Development. — The Bangsamoro Government,
with funding support from the Central Government, shall intensify development
efforts for the rehabilitation, reconstruction and development of the Bangsamoro
as part of the normalization process. It shall formulate and implement a program
for rehabilitation and development that will address the needs of MILF
combatants/BIAF members and decommissioned women auxiliary forces,
internally displaced persons, and povertystricken communities,

Section 2, Special Development Fund, — The Central Government shall
provide for a Special Development Fund to the Bangsamoro for rehabilitation
and development purposes upon the ratification of the Bangsamoro Basic Law,
The amount equivalent to

Seven Billion Pesos (PhP 7.000,000,000,00) shall be allocated for the first year
following the ratification of this Basic Law. Beginning the second year, the
Special Development Fund shall be in the amount of Ten Billion Pesos (PhP
10,000,000,000.00) which shall be paid out to the Bangsamoro Government over
five (5) years, at the rate of Two Billion Pesos (PhP 2,000,000,000.00) per year.
Such amount shall be regularly released at the beginning of each fiscal year to
the Bangsamoro Government.

Article XV PLEBISCITE

Section 1. Establishment of the Bangsamoro. — (1) The establishment of the
Bangsamoro and the determination of the Bangsamoro territory shall take effect
upon ratification of this Basic Law by majority of the votes cast in the following
Provinces, cities, and geographical areas in a plebiscite conducted for the
purpose:


a The present geographical area of the Autonomous Region in Muslim
Mindanao (ARMM);

b. The Municipalities of Balot, Munai, Nunungan, Pantar, Tagoloan and
Tangkal in the province of Lanao del Norte;

© The following thirty nine (39) Barangays in the Municipalities of Kabacan,
Carmen, Aleosan, Pigkawayan, Pikit, and Midsayap in North Cotabato that
voted for inclusion in the ARMM during the 2001 plebiscite under
Republic Act No.
9054;

1. Dunguan, Lower Mingading, and Tapodoe in the municipality of Aleosan
(3); di, Manarapan and Nasapian in the municipality of
Carmen (2), iti, Nanga-an, Simbuhay and Sanggadong in
the municipality of Kabacan (3), iv, Damatulan,
Kadigasan, Kadingilan, Kapinpilan, Kudarangan, Central
Labas, Malingao, Mudseng, Nabalawag, Olandang,
Sambulawan, and Tugal in the municipality of Midsayap
(12) v. Lower Baguer, Balacayon. Buricain,
DatuBinasing, Kadingilan, Matilac, Patot, and Lower
Pangangkalan in the municipality of Pigkawayan (8); vi
Bagoinged, Balatican, S. Balong, S. Balongis, Batulawan,
Buliok, Gokoton, Kabasalan, Lagunde, Macabial,
Macasendeng, in the municipality of Pigkawayan (11)

«The Cities of Cotabato and Isabela; and


106

e. Those qualified for inclusion in the plebiscite, by way of resolution or
nis

Section 2. Territorial Jurisdiction. - The plebiscite for purposes of determining
the actual territorial jurisdiction of the Bangsamoro shall be conducted, as far as
practicable, within onc hundred twenty (120) days ftom the effectivity of this
Basic Law.

For this purpose, the COMELEC shall undertake the necessary steps to enable
the holding of the plebiscite within the said period.

Section 3, Results of the Plebiscite. — (a) For the present geographic area of the
ARMM: if the majority of the registered voters in each province and city vote in
favor of the Bangsamoro Basic Law (BBL), the respective provinces and cities
shall be included in the Bangsamoro.

(b) For the municipalities of Baloi, Mumai, Nunungan, Panter, Tagaloan and
Tangkal in the Province of Lanao del Norte: If the majority of the registered
Voters in each of these municipalities vote in favor of the Bangsamoro Basic Law
(BBL), the respective municipalities shall be included in the Bangsamoro.

For other barangays in the municipalities of Kabacan, Carmen, Alcosan,
Pigcawayan, Pikit, and Midsayap that voted for inclusion in the ARMM during
the 2001 plebiscite: If the majority of the registered voters in each of these
barangays vote in favor of the Bangsamoro Basic Law (BBL), the respective
barangays shall be included in the Bangsamoro.


107

(c)_ For the cities of Cotabato and Isabela: If the majority of the registered
voters in cach of these cities vote in favor of the Bangsamoro Basic Law (BBL),
the respective cities shall be included in the Bangsamoro,

(4) For all other contiguous areas where there is a resolution of the local
government unit ora petition of at least ten percent (10%) of the registered voters
in the geographic area asking for their inclusion at least two months prior to the
conduct of the ratification of the Bangsamoro Basic Law (BBL). If the majority
of the registered voters in cach of these local government units vote in favor of
the Bangsamoro Basic Law (BBL), the respective local government units shall
be included in the Bangsamoro.

Section 4. Plebiscite for Joining the Bangsamoro. — Any local government unit
Or geographic area outside the territorial jurisdiction of the Bangsamoro, but
which are contiguous to any of the component units of the Bangsamoro. upon a
verified petition for the conduct of a plebiscite of at least ten percent (10%) of the
registered voters. submitted to the Bangsamoro Electoral Office.

Provided that, the inclusion of said local government unit or geographic area in
the Bangsamoro shall be effective when approved by a majority of the registered
voters within that local government unit in the plebiscite called for the purpose.

Provided further that the schedule of the plebiscite shall be determined by the
COMELEC through the Bangsamoro Electoral Office.

Section 5. Reconstitution of Local Government Units. — The Bangsamoro
Parliament, may, by regional law, provide for the constitution of geographic areas
in the Bangsamoro into appropriate territorial or political subdivisions depending
on the results of any of the plebiseites herein,


Nothing herein shall be construed to allow the Bangsamoro Parliament to create
congressional districts,

Section 6. Plebiscite Question. The question to be asked of the voters in the
plebiscite shall be as follows: “Do you approve of the Bangsamoro Basic Law?”

Section 7. Plebiscite Monitoring, — The COMELEC shall also provide for the
accreditation of plebiscite monitors, including the international-domestic
monitoring body created by the GPH and the MILF negotiating panels, in
accordance with established international standards on election monitoring. The
monitoring body will have access to all operations related to the conduct of the
plebiscite and be able to conduct regular and random checks. The reports of the
monitoring body shall be made available to the Panels for their disposition.

Section 8. Registered Voters, — All registered voters in the provinces, cities and
geographical areas mentioned in Section | shall be qualified to participate in the
plebiscite on the establishment of the Bangsamoro. Notwithstanding existing
Jaws, rules, and regulations on overseas and local absentee voters, the
COMELEC shall ensure that qualified voters for the plebiscite who are located
outside the Bangsamoro on the date of the plebiscite shall be given the
opportunity to vote. and that voters who are currently registered outside the areas
specified but are otherwise qualified to be registered voters of the areas,
complying with residency requirements under law, shall be given the opportunity
to transfer their registration accordingly, in time for the conduct of the plebiscite.

The COMELEC shall conduct a special registration before the date of the
plebiscite on the Bangsamoro Basic Law.


109

The COMELEC shall promulgate rules necessary for the conduct of plebiscite,
including those for the accreditation of plebiscite monitors, voluntary inclusion
in the plebiscite and the special registration of voters as provided herein, within
thirty (30) days from the effectivity of this Basic Law, with the primary objective
of optimizing the opportunity for participation in the plebiscite of qualified voters
in the areas specified for the creation of the Bangsamoro.

Section 9, Information Campaigns. — The Commission on Elections shall
supervise the conduct of information campaigns on the plebiscite, including
sectoral campaigns for indigenous communities, women, youth, religious,
professionals and public and private sector employees, in every municipality,
city, and province where the plebiscite is held.

Public conferences, assemblies, or meetings on dates before the plebiscite day
itself shall be held to inform the residents thereof regarding the significance and
meaning of the plebiscite and to help them to cast their votes intelligently. Free,
full, and constructive discussion and exchange of views on the issues shall be
encouraged.

For this purpose, the assistance of persons of known probity and knowledge may
be enlisted by the Commission on Elections, the local government units or
interested parties to act as speakers or resource persons.

Such campaign will be without prejudice to other information dissemination and
public advocacy initiatives by the other government or non-govermment groups
or individuals.


110

For information campaigns and other public advocacy initiatives with indigenous
communities, local leaders shall be engaged to lead discussions in their respective

Public advocacy initiatives shall be conducted within the framework of solidarity.
cooperation, and unity among Moro, indigenous, and settler communities.
Consultations shall give due respect to the roles of indigenous and Moro women,
and encourage their active participation.

Section 10. Appropriation. — A sufficient amount is hereby appropriated for the
requirements of the conduct of the plebiscite, including the monitoring,
information campaign and the registration of voters; Provided, that the
Commission on Elections shall determine the manner of campaigning and the
deputization of government agencies for the purpose.

Article XVI
BANGSAMORO TRANSITION AUTHORITY

Section 1. Transition Period. — The transition or interim period for the

establishment of the Bangsamoro shall commence upon ratification of this Basic
Law,

The law shall be deemed ratified upon proclamation of the Commission on
Elections, or its duly authorized officers, that a majority of the votes cast in the
plebiscite in the constituent units are in favor of the creation of the Bangsamoro,
The fact of ratification shall be confirmed by the GPH and MILF negotiating
panels,


1a

‘Transition period shall end upon the dissolution of the Bangsamoro Transition
Authority, as provided in this Basic Law,

‘The period of transition herein defined shall be without prejudice to the initiation
or continuation of other measures that may be required by post-conflict transition
and normalization even beyond the term of the BTA.

Section 2. Bangsamoro Transition Authority. — There is hereby created a
Bangsamoro Transition Authority (BTA) which shall be the interim government
or the governing body in the Bangsamoro during the transition period. The Moro
islamic Liberation Front (MILF), being the principal party to the Comprehensive
Agreement on the Bangsamoro, shall lead the BTA, in its leadership and
membership.

The BTA shall be composed of fifty (50) members, all of whom shall be
appointed by the President; Provided that, non-Moro indigenous communities,
women, settler communities and other sectors shall have representatives in the
BTA. Nominations may be submitted to the office of the President for this
purpose.

The Council of Leaders as provided in Section 5, Article VI shall also be
Organized during the transition period.

Section 3. Powers and Authorities. — Legislative and executive powers in the
Bangsamoro during transition shall be vested in the BTA. During the transition
Period, executive authority shall he exercised by the interim Chief Minister, who
shall be appointed by the President as such, while legislative authority shall be
exercised by the BTA.


112

All devolved authorities shall be vested in the BTA during the transition period.
For purposes of mechanisms for intergovernmental relations with the Central
Government and local governments units in the Bangsamoro, the BTA shall be
deemed as the Bangsamoro Government for the duration of the transition period.

Section 4. Functions and Priorities. — The BTA shall ensure the
accomplishment of the following priorities during the transition period:

a Enactment of priority legislations such as the Bangsamoro Administrative
Code, the Bangsamoro Revenue Code and the Bangsamoro Electoral Code,
consistent with powers and prerogatives vested in the Bangsamoro
Government by this Basic Law: Provided that, until the abovementioned
laws are enacted for the Bangsamoro, Muslim Mindanao Autonomy Act No
25 or the ARMM Local Government Code, and subsisting laws on elections
and other electoral matters shall apply in the Bangsamoro,

The BTA may also enact @ Bangsamoro Civil Service Code, as provided in

this Basic Law, In the absence of the latter, national civil service laws and

regulations are primarily applicable in the Bangsamoro;
Organization of the bureaucracy of the Bangsamoro Government during
transition, including the approval and implementation of a transition plan, and
the institution of a placement process for hiring of personnel during transition.
This shall also include the setting up of offices and other institutions necessary
for the continued functioning of government and delivery of social services in
the region, as well as those necessary for the smooth operations of the first elected
Bangsamoro Government in 2016;


3

b, Transfer of powers and properties of the ARMM Regional Government to
the Bangsamoro Government, and the disposition of personnel, as provided
in this Basic Law; and

© Other matters that may be necessary for the transition from the ARMM
Regional Government to the Bangsamoro Government, as provided in this
Basic Law,

Section 5, Transition Plan. — Within the first sixty (60) days of the transition
Period, the interim Chief Minister shall submit to the BTA a transition plan that
shall contain the proposed organizational plan, as well as the schedule therefor
‘The BTA shall approve or otherwise act on the proposed transition plan within
ten (10) days upon submission by the interim Chief Minister. It shall be
implemented within fifteen (15) days from its approval.

Section 6, Interim Officers. — The interim Chief Minister shall organize the
interim Cabinet and shall appoint an interim Deputy Chief Minister, who shall
also be a member of the BTA. The interim Chief Minister shall also appoint such
other ministers as may be necessary to perform the functions of government
during transition, a majority of whom shall be from among members of the BTA.

Members of the BTA who are appointed to cabinet positions shall serve their
offices concurrently: Provided that, no member of the BTA may be appointed,
elected or otherwise hold more than two (2) positions at the same time.

Section 7. Interim Cabinet. — The Interim Cabinet shall be composed of ten (10)
primary offices with sub-offices for matters covered and priority ministries,
namely:


“4

Governance, in charge of budget and finance, accountability, and such
similar or related matters;

» Social Services. in charge of social welfare, and such similar or related

matters;
Development, in charge of transportation and communications, regional

investments, trade and industry, agriculture, forestry and environment,
urban and rural development, and such similar or related matters;

Education;

. Public Order and Safety;

Indigenous Peoples Affairs,

Health;

Public Works;

Local Government; and

Finance.

‘The BTA may empower the interim Chief Minister to create other ministries and
Primary offices, upon a determination of the majority of its members that the
same is necessary for achieving the twin goals of continuity of social services and
transitioning to the regular Bangsamoro Government.


Me

us

Section 8. Organization of the Bureaucracy. — The authority of the BTA 10
create offices and organize the bureaucracy during transition is without prejudice
to the authority of the Bangsamoro Government to reorganize the bureaucracy
upon its constitution, or any time thereafter. In the exercise of this authority, the
BTA shall ensure the least possible disruption to the functioning of government
and the delivery of services in the region.

All offices and institutions created by laws enacted by the ARMM Regional
Legislative Assembly shall be deemed part of the ARMM Government and shall
be subject to the phase out plan that will be adopted by the BTA.

Section 9. Transfer of Powers and Properties and Disposition of Personnel.
~ All powers, functions, assets, capital, receivables, equipment and facilities of
the ARMM Regional Government at the time of the ratification of this Basic Law
shall be transferred to the Bangsamoro Government.

‘The BTA shall schedule the gradual phasing out of offices of the ARMM. which
are deemed abolished upon the ratification of the Bangsamoro Basic Law. In
consideration of public interest and the delivery of services, officials holding
appointive positions shall continue to perform their functions in accordance with
the schedule.

The Central Government shall provide the necessary funds for the benefits and
entitlements of affected employees in the ARMM.

The BTA shall institute an independent, Strictly merit-based and credible
placement and hiring process for all offices, agencies and institutions in the
Bangsamoro, and shall consider gender and ethnic balance.


6

An inventory will be conducted to ensure that the liabilities of the ARMM under
law, contracts or others will be settled prior to the turnover to the BTA.

For this purpose, the Office of the Regional Governor of the ARMM shall
turnover to the BTA upon the latter's constitution 1 summary report on the status
of the Regional Government as of the date of the ratification of this Basic Law,
including information on the status of devolution, personnel, properties and assets
of the Regional Government.

Section 10. Disposition of Personnel and Assets of Central Government
Offfices/Agencies, — The Central Government shall provide for the disposition of
personnel of Central Government or National GOCCs whose mandate and
functions are transferred to or now vested in the Bangsamoro Government by
virtue of this Basic Law. Properties and assets shall be transferred to the
Bangsamoro Government within six (6) weeks from the organization of the BTA.
‘The transfer of properties and assets is without prejudice to the power of the BTA
{o organize the bureaucracy during transition,

Section 11. Dissolution of the BTA. — Immediately upon the qualification of the
clected Chief Minister under the first Bangsamoro Parliament, the Bangsamoro
‘Transition Authority shall be deemed dissolved.

‘The BTA shall submit its final report and recommendations to the Bangsamoro
Parliament, as well as to the House of Representatives and the Senate, on the
status of government during the transition period within sixty (60) days from the
assumption into office of all members of the first Parliament.

Section 12, Regular Elections. — The first regular elections for the Bangsamoro
Government under this Basic Law shall be held on the first Monday of May 2016.


17

It shall be governed by the Bangsamoro Electoral Code. The National Omnibus
Election Code shall apply suppletorily, whenever appropriate. The Commission
‘on Elections (COMELEC), through the Bangsamoro Electoral Office, shall
promulgate rules and regulations as may be necessary for the conduct of said
elections, and enforce and administer the same, consistent with this Basic Law
and the Bangsamoro Electoral Code, as correlated with relevant national laws.

Section 13. Initial Funding for Transition. — To carry out the requirements of
transition, including the organizational activities of the BTA, organization of the
bureaucracy, hiring of personnel, and the exercise of functions and powers of the
BTA, as provided in this Basic Law. the amount of One Billion Pesos
(1,000,000,000.00) is hereby appropriated for the BTA, charged against the
General Funds of the Central Government. [n addition, the current year's
‘appropriations for the ARMM shall also be transferred to the BTA for this
purpose.

This shall be without prejudice to any supplemental budget that may be
appropriated by Congress to support the transition,

Government functions falling within the reserved powers of the Central
Government in the Bangsamoro shall continue to be financed by the Central
Government funds.

Article XVII
AMENDMENTS AND REVISIONS

Section 1. Amendments and Revisions. — All proposals to amend or revise the
Provisions of this Basic Law shall be first discussed and endorsed by the
Philippine Congress-Bangsamoro Parliament Forum to Congress.


us

Such amendment or revision, as enacted by Congress, shall become effective
upon approval by a majority vote of qualified voters in the Bangsamoro cast in a
plebiscite called for the purpose.

The plebiscite shall be held not earlier than sixty (60) days or later than ninety
days after the approval of such amendment or revision.

Article XVIIL
FINAL PROVISIONS

Section 1. Separability Clause. ~ The provisions of this Basic Law are deemed
separate. If, for any reason, any section or provision of this Basic Law is declared
unconstitutional, other sections or provisions, which are not affected by such
declaration shall continue to be in full force and effect.

Section 2. Repealing Clause. — All laws, decrees, orders, rules and regulations,
and other issuances or parts thereof, which are inconsistent with this Basic Law,
are hereby repealed or modified accordingly,

Section 3. Subsisting Regional Laws. — All subsisting laws enacted by the
Regional Legislative Assembly of the Autonomous Region Muslim Mindanao by
virtue of authorities provided under Republic Act No. 6734, as amended by
Republic Act No. 9054, shall be deemed in effect, unless inconsistent with the
Basic Law or repealed by laws passed by the Bangsamoro Transition Authority
or the Bangsamoro Parliament.

Section 4. Effectivity Clause. — This Basic Law shall take effect fifteen (15) days
following its complete publication in at least two (2) national newspapers of


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general circulation and one (1) local newspaper of general circulation in the
autonomous region.

Section 5. Abolition of the ARMM. — Upon the ratification of this Basic Law,
the Bangsamoro shall be deemed established, and the ARMM shall be deemed
abolished.