FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. 2568

EXPLANATORY NOTE

Section 2 of Artide X of the Constitution states that the territorial and
political subdivisions of the State shall enjoy local autonomy.

Further, Republic Act No. 7160 otherwise known as the Local
Government Code of 1991 states that:

“Itis the declared policy of the state that
the territorial and political subdivisions of the
State shall enjoy genuine and meaningful local
autonomy to enable them to attain their fullest
development as self-reliant communities and
make them more effective partners in the
attainment of national goals. Toward this end,
the State shall provide for a more responsive
and accountable local govemment structure
instituted through a system of decentralization
whereby local government units shall be given
more powers, authority, responsibilities, and
resources. The process of decentralization
shall proceed from the national Government to
the local government units.”


Under Presidential Decree No. 1445 otherwise known as the
Government Auditing Code of the Philippines, the share of the local
government units in the internal revenue allotment has to be remitted first to the
respective treasuries before the same is released back to the coffers of the
LGUs. This is along and circuitous process.

Hence, there is a need to redefine this process by making it more LGU-
friendly by enacting a law for the automatic retention of the LGU's share by and
through the local revenue district of the Bureau of Internal Revenue in their
localities.

In view of the foregoing, the passage of this bill is earnestly sought.

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House BillNo___ 2068

AN ACT
PROVIDING AUTOMATIC RETENTION BY THE LOCAL GOVERNMENT
UNITS OF THEIR SHARE IN THE INTERNAL REVENUE ALLOTMENT

Section 1. Declaration of Policy. — \t is the declared policy of the state
that the territorial and political subdivisions of the State shall enjoy genuine and
meaningful local autonomy to enable them to attain their fullest development as
self-reliant communities and make them more effective partners in the
attainment of national goals. Toward this end, the State shall provide for a
more responsive and accountable local goverment structure instituted through
a system of decentralization whereby local government units shall be given
more powers, authority, responsibilities, and resources. The process of
decentralization shall proceed from the national Government to the local
government units.

Section 2. Automatic Retention by Local Government Units of
their Share in the Internal Revenue Allotment- The share of the local
government units in the intemal revenue allotment as provided for in Republic
Act No. 7160 otherwise known as the Local Government Code of 1991 shall be
automatically retained by them through the local revenue district of the Bureau
of Internal Revenue in their localities.

Section 3. Repealing Clause. - All laws, orders, issuances, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed or
modified accordingly.

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

Approved,