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

Fifteenth Congress
First Regular Session

07
HOUSE BILL NO. 3073

Introduced by Honorable Jose Carlos L. Cari

EXPLANATORY NOTE

This bill seeks to provide an additional classification in the allocation of the Internal
Revenue Allotment (IRA) for cities and municipalities to include coastal areas with the aim of
developing and preserving the country’s fisheries and aquatic resources. Under Section 285 of
Republic Act No. 7160, otherwise known as the Local Government Code, the distribution of the
IRA for municipalities is as follows:

Population + Fifty Percent (50%)
Land Area - Twenty-Five Percent (25%)
Equal Sharing i Twenty-Five Percent (25)

While our country boasts of enjoying a rich and diverse marine ecosystem, it has been
observed that the coastal areas of municipalities do not enjoy sufficient funding from the IRA
received resulting in the wanton destruction of marine life and resources. To address this matter,
it is necessary to revise the formula for allocation of the IRA, as follows:

Population ~ Fifty Percent (50%)
Land Area = Twenty-Three Percent (23%)
Coastal Area = Two Percent (2%)

Equal Sharing = Twenty-Five Percent (25)

With the allotment of at least two percent (2%) for coastal areas, programs for the
country’s fisheries and aquatic resources will be initiated and appropriately funded thus ensuring
the development and preservation of marine life in the country.

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

JOSH CARLOS L. CART



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

Fifteenth Congress
First Regular Session

HOUSE BILL No._3073

By Honorable Jose Carlos L. Cari

AN ACT
PROVIDING FOR A CHANGE IN THE ALLOCATION OF THE INTERNAL
REVENUE ALLOTMENT RECEIVED BY CITIES AND MUNICIPALITIES TO
INCLUDE COASTAL AREAS WITH THE AIM OF DEVELOPING AND PRESERVING
THE COUNTRY’S FISHERIES AND AQUATIC RESOURCES

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

SECTION 1. Section 138 of Republic Act No. 7160, otherwise known as the Local
Government Code is hereby amended to read as follows:

“SECTION 285. Allocation to Local Government Units. - The share of
local government units in the internal revenue allotment shall be allocated in the
following manner:

(a) Provinces - Twenty-three percent (23%);

(b) Cities - Twenty-three percent (23%):

(©) Municipalities - Thirty-four percent (34%); and

(d) Barangays - Twenty percent (20%)

Provided, however, That the share of each province, city, and municipality
shall be determined on the basis of the following:

(a) Population - Fifty percent (50%);

(b) Land Area - Twenty-three percent (23%):

(c) Coastal Area ~ Two percent (2%); and

(©) Equal sharing - Twenty-five percent (25%) ***”

SECTION 2.a. Development Projects. The city or municipality receiving a share of the
two percent (2%) allotment for coastal areas shall appropriate the whole amount for programs
geared towards accomplishing the objectives of this Act. For this reason, the Sanggunian
concerned shall formulate programs and policies for the development and preservation of local
fisheries and marine life. Funds for projects and programs referred to under this Act shall not be
limited to the two percent (2%) allotment.


SECTION 2.b. Reportorial Requirements. The city or municipality referred to in the
preceding section shall furnish the Department of Interior and Local Government, the Bureau of
Fisheries and Aquatic Resources, and other like agencies, of its development plans and programs
for each year.

SECTION 3. Repealing Clause. All laws, executive orders, rules and regulations or
parts thereof which may be inconsistent with the provisions of this Act are hereby repealed or
amended accordingly.

SECTION 4. Effectivity Clause. This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,