HOUSE °F REPRESENT

RECEIVED
Republic of the Philippines Date: 3 0JUN 2018
epublic :
HOUSE OF REPRESENTATIVES me tf
Quezon City, Metro Manila By:
‘SEVENTEENTH CONGRESS =
REQISTR {7I0N UNIT
First Regular Session 8 BILLS AND INJE X SERVICE
House Bill No.

Introduced by Honorable Danilo E. Suarez

EXPLANATORY NOTE

The barangay officials are at the front line of public service. Punong barangays
maintain public order in the barangay, preside over sessions of the Sangguniang
Barangay, and administer the operations of the Katarungang Pambarangay. Members of
the Lupon Tagapamayapa hear and mediate disputes at the barangay level, thereby
maintaining peace and order. Barangay tanods enforce all barangay ordinances and
also take part in the maintenance of peace and order within the barangay. Given these
functions, barangay officials are responsible for the peaceful and productive community
we live in.

However, under the present Local Government Code, barangay officials,
including barangay tanods and members of the Lupong Tagapamayapa, are only
entitled to honoraria, allowances and other emoluments authorized by law or ordinance.
These officials have no fixed monthly salaries. Moreover, they are not entitled to any
benefits under the Government Service Insurance System (GSIS) aside from burial
benefits. Thus, some barangay officials serve their entire lives, giving so much to the
community, but receiving very little in return. It is but just and equitable that we
recognize the contributions of these public servants by amending the internal revenue
allotment (IRA) by increasing it to 41%, 1% of which shall be solely dedicated to the
Barangay Retirement Funds for the retirement of barangay officials, whether elected or
appointed, including the barangay tanods, health workers, day care workers and
members of the lupon. Section 393 of the Local Government Code is also amended to
provide a retirement pay for these barangay workers equivalent to one year honorarium
upon retirement.

This bill, as re-filed, is a consolidation of the bills of Representatives Benitez,
Bagatsing, Yap (S), Acharon, Colmenares, Zarate, Yap (A), Macapagal- Arroyo, Arroyo,
Suarez, Biazon, Belmonte (JC), Abayon, Briones, Geron, Acedillo, Alejano, Fortuno, Sy-
Alvarado, Escudero, Gullas, Jr., Teodoro, Rodriguez (R), Rodriguez (M), Villarice,
Deloso-Montalla, Mendoza, (ML), Haresco Jr., Collantes, Oaminal, Bello (S), Pagdilao,
Loyola, Castello, Umali (R), Primicias, Agabas, Alvarez (M), Suansing, Guiao,
Mangudadatu, Villar, Leonardia, Gerona-Robredo, Bag-ao, Banal, Acosta-Alba,
Gatchalian, Andaya Jr., Uy (3), Abu, Aliping, Dalog, Lagdameo, Mendoza (J), Nuno,
Paez, Paquiz, Pichay, Salimbangon, Teves, Paduano, Tejada, Romulo, Leonen-Pizaro,
Seneres, Cortuna and Almonte which was deliberated upon the House of
Representatives’ Committee on Local Government and Appropriations during the 16"
Congress.



With the foregoing premises considered, the approval of this bill is earnestly
sought.

DANILO E, SUAREZ
Representative
3" District, Province of Quezon


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

First Regular Sessi
House Bill No. 098

Introduced by Honorable Danilo E. Suarez

AN ACT AMENDING SECTIONS 284 AND 393 OF REPUBLIC ACT NO.
7160, OTHERWISE KNOWN AS “THE LOCAL GOVERNMENT CODE OF

1991”

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

Yess assem

SECTION 1. Section 284 of Republic Act No. 7160, otherwise known as the
Local Government Code of 1991, is hereby amended to read as follows:

['Section 284. Allotment of Internal Revenue Taxes. — Local Government units
shall have a share in the national internal revenue taxes based on the collection
of the third fiscal year preceding the current fiscal year as follows:

(a) On the first year of the effectivity of this Code, thirty percent (30%);
(b) On the second year, thirty-five percent (35%); and
(c) On the third year and thereafter, forty percent (40%).]

“Section 284. Allotment of Internal Revenue Taxes. - LOCAL GOVERNMENT
UNITS SHALL HAVE A FORTY-ONE PERCENT (41%) SHARE IN THE
NATIONAL INTERNAL REVENUE TAXES BASED ON THE COLLECTION OF
THE THIRD FISCAL YEAR PRECEDING THE CURRENT FISCAL YEAR,
PROVIDED THAT ONE PERCENT (1%) FROM THE ABOVEMENTIONED
FORTY-ONE PERCENT (41%) SHALL ACCRUE TO A SPECIAL ACCOUNT
SOLELY DEDICATED TO THE BARANGAY RETIREMENT FUND FOR THE
RETIREMENT PAY OF BARANGAY OFFICIALS, WHETHER ELECTED OR
APPOINTED, INCLUDING BARANGAY TANODS, HEALTH WORKERS, DAY
CARE WORKERS AND MEMBERS OF THE LUPON TAGAPAMAYAPA.”

Provided, That in the event that the national government incurs an unmanageable
public sector deficit, the President of the Philippines is hereby authorized, upon the
recommendation of Secretary of Finance, Secretary of Interior and Local Government
and Secretary of Budget and Management, and subject to consultation with the
presiding officers of both House of Congress and the presidents of the “liga”, to make
the necessary adjustments in the internal revenue allotment of local government units
but in no case shall the allotment be less than thirty percent (30%) of the collection of
national internal revenue taxes of the third fiscal year preceding the current fiscal year:
Provided, further, That in the first year of the effectivity of this Code, the local
government units shall, in addition to the thirty percent (30%) internal revenue


allotment which shall include the cost of devolved functions for essential public services,
be entitled to receive the amount equivalent to the cost of devolved personal services.

SECTION 2. Section 393 of the Local Government Code is hereby amended to read as
follows:

“Section 393. Benefits of Barangay Officials. — (a) x x x

(b) xxx

(Cc) xxx

(d) xxx

(e) ALL BARANGAY OFFICIALS, WHETHER ELECTED OR
APPOINTED INCLUDING TANODS, HEALTH WORKERS, DAY CARE WORKERS,
AND MEMBERS OF THE LUPON SHALL BE ENTITLED TO A LUMP SUM
RETIREMENT PAY EQUIVALENT TO ONE YEAR HONORARIUM, BUT NOT
EXCEEDING ONE HUNDRED THOUSAND PESOS (PhP 100,000) WHICH SHALL
BE TAKEN FROM THE BARANGAY RETIREMENT FUND UNDER SECTION 284,
PROVIDED THE RETIREE IS AT LEAST SIXTY (60) YEARS OF AGE WITH A
MINIMUM OF NINE (9) YEARS IN SERVICE AT THE TIME OF RETIREMENT.”

SECTION 3. Separability Clause. — If any provisions of this Act is declared
unconstitutional or invalid, the other parts or provisions hereof which are not affected
shall continue to be in full force and effect.

SECTION 4. Repealing Clause. — All laws, orders, issuances, circulars, rules and
regulations or parts thereof which inconsistent with the provision of this Act are hereby
repealed or modified accordingly.

SECTION 5. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,