Republic of the Whilippines
House of Representatives
Quezon City, Metro Manila
Seventeenth Congress
First Regular Session

35383
HOUSE BILL NO.

RELIST Tp
BILLS and aves y

Introduced by Honorable Jocelyn S. Limkaichong

EXPLANATORY NOTE,

This bill seeks to transfer the power to issue permits to extract sand, gravel
and other quarry resources from the provincial governors to the mayors of
municipalities and cities, amending for the purpose Republic Act (RA) No. 7160,
otherwise known as the “Local Government Code of 1991.”

Presently, the law grants only to the provincial governors, mayors of
independent component cities and mayors of highly urbanized cities the power to
issue permits to extract sand, gravel and other quarry resources in their respective
jurisdictions. The mayors of other component cities and mayors of municipalities
are excluded from the decision-making process, although these local government
units (LGUs) have fewer sources of revenue and bear much of the burden of the
detrimental environmental impact of quarrying activities. Moreover, the
sangguniang bayan and sangguniang panlungsod can perform a better function of
screening and regulating quarrying activities because they oversee fewer applicants
or licensees and they are closer to the quarrying sites. Indeed, such an unfair balance
of benefits and risks among the LGUs as well as the need for better oversight on
quarrying activitics call for a remedy that is consistent with the ideals of
decentralization and local autonomy.

This bill promotes a more rational distribution of the proceeds from and
authority over the exploitation and utilization of natural resources, particularly,
quarry resources, and also enhances the empowerment of local governments at the
level of cities and municipalities, It transfers the power to issue quarrying permits
from the provincial governors to the mayors of cities and municipalities, who will
act pursuant to the ordinance adopted by their respective sanggunians. It also



increases the share in the proceeds of the tax on sand, gravel and quarry resources
of the cities and municipalities from the current thirty percent (30%) to sixty percent
(60%). ‘This measure aims to increase the capabilities and resources of these LGUs
while upholding the principles of checks and balances and transparency in local
government transactions.

To achieve the above objectives, this bill proposes to delete Section 138 of
RA 7160, which grants the provinces the power to issue permits to extract and to tax
sand, gravel and other quarry resources, and to add a new section to be denominated
as Section 146-A, which will transfer the power to tax sand, gravel and other quarry
resources to municipalities. The same power is likewise transferred to cities by
adding another section to be denominated as Section 151-A.

aed
In view of the foregoing, the approval of this bill is highly recommended



Republic of the Philippines
House of Representatives
Quezon City, Metro Manila
Seventeenth Congress
First Regular Session

5Q2
HOUSE BILL No, 2222

Introduced by Honorable Jocelyn S. Limkaichong

AN ACT
TRANSFERRING THE AUTHORITY TO TAX AND TO ISSUE PERMITS
TO EXTRACT SAND, GRAVEL AND OTHER QUARRY RESOURCES
FROM THE PROVINCIAL GOVERNOR TO THE MUNICIPAL OR CITY
MAYOR, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7160,
OTHERWISE KNOWN AS THE “LOCAL GOVERNMENT CODE OF 1991,”
AS AMENDED

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

entatives of the Philippines in

SECTION |. Section 138 of Republic Act No. 7160, which specifies the
power of taxation of provinces on sand, gravel and other quarry resources, is hereby
deleted.

SEC. 2. A new section to be denominated as Section 146-A is hereby

added, after Section 146, granting to the municipalities the power of taxation on

sand, gravel, and other quarry resources, to read as follows:


“SEC, 146-A, TAX ON SAND, GRAVEL AND OTHER

QUARRY RESOURCE HE MUNICIPALITY MAY LEVY AND.

COLLECT NOT MORE THAN TEN PERCENT (10%) OF FAIR
MARKET VALUE IN THE LOCALITY PER CUBIC METER OF

ORDINARY STONES.

SAND, GRAVEL, EARTH, AND OTHER
QUARRY RESOURCES, AS DEFINED UNDER THE NATIONAL.
INTERNAL REVENUE CODE, AS AMENDED, EXTRACTED
FROM PUBLIC LANDS OR FROM THE BEDS OF SEAS, LAKES,
RIVERS, STREAMS, CREEKS, AND OTHER PUBLIC WATERS.
WITHIN ITS TERRITORIAL JURISDICTION.

THE PERMIT TO EXTRACT SAND, GRAVEL AND OTHER
QUARRY RESOURCES SHALL BE ISSUED EXCLUSIVELY BY
THE MUNICIPAL MAYOR, PURSUANT TO AN ORDINANCE
ISSUED BY THE SANGGUNIANG BAYAN,

THE PROCEEDS OF THE TAX ON SAND, GRAVEL AND
OTHER QUARRY RESOURCES SHALL BE DISTRIBUTED AS

FOLLOWS:


8

15

16

v7

18

19

(1) MUNICIPALITY WHERE THE SAND, GRAVEL, AND
OTHER QUARRY RESOURCES ARE EXTRACTED —
SIXTY PERCENT (60%); AND
(2) BARANGAY WHERE THE SAND, GRAVEL, AND
OTHER QUARRY RESOURCES ARE EXTRACTED ~
FORTY PERCENT (40%).”

SEC.3. A new section to be denominated as Section 151-A is hereby
added, after Section 151, granting to the cities the power of taxation on sand, gravel,
and other quarry resources, to read as follows:

“SEC. 151-A, TAX ON SAND, GRAVEL AND OTHER

QUARRY RESOURCES. ~ THE CITY MAY LEVY AND COLLECT

NOT MORE THAN TEN PERCENT (10%) OF FAIR MARKET

VALUE IN THE LOCALITY PER CUBIC METER OF ORDINARY

STONES, SAND, GRAVEL, EARTH, AND OTHER QUARRY

RESOURCES, AS DEFINED UNDER THE NATIONAL INTERNAL,

REVENUE CODE, AS AMENDED, EXTRACTED FROM PUBLIC

LANDS OR FROM THE BEDS OF SEAS, LAKES, RIVERS,

STREAMS, CREEKS, AND OTHER PUBLIC WATERS WITHIN

ITS TERRITORIAL JURISDICTION.


18

19

THE PERMIT TO EXTRACT SAND, GRAVEL AND OTHER,
QUARRY RESOURCES SHALL BE ISSUED EXCLUSIVELY BY
THE CITY MAYOR, PURSUANT TO AN ORDINANCE ISSUED
BY THE SANGGUNIANG PANLUNGSOD.

THE PROCEEDS OF THE TAX ON SAND, GRAVEL AND
OTHER QUARRY RESOURCES SHALL BE DISTRIBUTED AS.
FOLLOWS:

(1) CITY WHERE THE SAND, GRAVEL, AND OTHER
QUARRY RESOURCES ARE EXTRACTED — SIXTY
PERCENT (60%); AND

(2) BARANGAY WHERE THE SAND, GRAVEL, AND.

OTHER QUARRY RESOURCES ARE EXTRACTED —

FORTY PERCENT (40%).”

SEC. 4. Sections 43, 45, 46, 48, 49 and 50 of Republic Act No, 7942,

otherwise known as the “Philippine Mining Act of 1995,” and Section 7 of Republic
Act No, 8975, entitled “An Act to Ensure the Expeditious Implementation and
Completion of Government Infrastructure Projects by Prohibiting Lower Courts
from Issuing Temporary Restraining Orders, Preliminary Injunctions or

Preliminary Mandatory Injunctions, Providing Penalties for Violations Thereof, and


for Other Purposes,” are hereby modified accordingly. All other existing laws,
orders, decrees, rules and regulations or parts thereof inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SEC. 5. This Act shall take effect after fifteen (15) days from its
publication in the Official Gazette or in a national newspaper of general circulation.

Approved,