Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNO.__2373

Introduced by HON. GLORIA MACAPAGAL-ARROYO

EXPLANATORY NOTE

Republic Act No. 9054 which strengthened and expanded the Organic Act for the
Autonomous Region in Muslim Mindanao (ARMM) was passed in 2001 to address
substantial gaps of Republic Act No. 6734 otherwise known as the “Organic Act for the
Autonomous Region in Muslim Mindanao.” RA 9054 was yet another step to strengthen
the ARMM as a means to bring about sustainable social and economic development in
the area within the overall context of attaining long-term peace in the, southern part of the
country.

The armed conflict in the area between government troops and the Muslim rebels
adversely affected the area and its population. Economic growth has been stunted in the
otherwise mineral-rich and agriculture-fertile region. In fact, according to the United
Nations Development Programme, seven (7) out of ten (10) provinces of ARMM ranked
worst on the country’s human development ratings.

The government has always regarded the resolution of the armed conflict in
Mindanao as a major priority. Over the decades, there had been a growing appreciation of
the complex issues and concems in the area. Every administration has endeavored to
resolve the Mindanao conflict by engaging Muslim rebels to a peace negotiation with
varying levels of success.

Admittedly, much is left to be done to bring about sustainable development in
Mindanao. While the executive branch continue to look for political solutions, it is
imperative for the legislative branch to pass responsive laws to improve the
administration and governance in the region.

This is the compelling interest that calls for the review of Republic Act 9054,
There is a need to amend its provisions to make them more responsive and relevant to
prevailing needs and conditions in the area. The passage of this legislative measure is a

critical component to usher in a new era of change and development in Muslim
Mindanao.

2" District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO- 2378

Introduced by HON. GLORIA MACAPAGAL-ARROYO-

AN ACT STRENGTHENING FURTHER THE ORGANIC ACT FOR THE
AUTONOMOUS REGION IN MUSLIM MINDANAO, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 9054, “AN ACT TO STRENGTHEN AND
EXPAND THE ORGANIC ACT FOR THE AUTONOMOUS REGION IN
MUSLIM MINDANAO, AMENDING FOR THE PURPOSE REPUBLIC ACT NO.
6734, ENTITLED ‘AN ACT PROVIDING FOR THE AUTONOMOUS REGION
IN MUSLIM MINDANAO,’ AS AMENDED” AND FOR OTHER PURPOSES

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

SECTION 1. Sections 2, 4 and 5, Article V of Republic Act No. 9504 are hereby
amended to read as follows:

“ox ax 2x

Sec.2. Cabinet Membership. — [As far as practicable,] [i]t shall be the
policy of the national government that there shall be at least one (1) member of
the cabinet with a rank of a department secretary who is an inhabitant of the
autonomous region to be recommended by the Regional Governor [in
consultation with elected officials and concerned sectors of the autonomous
region.] :

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“Sec. 4. Representation of Autonomous Region in General in the Central
Government or National Government. — Representation of the inhabitants of the
autonomous region in the central government or national government may be
done by appointment or election.

Appointment of inhabitants of the autonomous region to positions in the
central government or national government shall be subject to central government
or national government standards and guidelines. Such appointment shall be made
[only] upon recommendation by the Regional Governor [after consultation with
the Regional Assembly and the concerned sectors of the autonomous region.]

Right of representation shall not be construed in such a way that applicants
from the autonomous region, especially Muslims and cultural communities, for

lower positions in the above organs of the government cannot be appointed
anymore thereto.

Election of legislators to represent the autonomous region in the Congress

of the Republic shall be done pursuant to the rules of the Commission on
Elections.


Sec. 5. Representatives In Executive Departments and Constitutional
Bodies. — At least, one (1) qualified inhabitant of the autonomous region
recommended by the Regional Governor [in consultation with the Regional
Assembly and concerned sectors of the autonomous region] shall be
appointed, [as far as practicable] in each of the departments, offices or bureaus
and constitutional bodies of the central government or national government [that
deal with the autonomous region,] in primarily confidential, highly technical, ot
policy-determining positions. .

ax Boog 20

SEC.2. Section 2, Article VII of the same Act is hereby amended to read as
follows:

xxx aed 2x

See. 2. Regional Governor and Cabinet Members. — The Regional
Governor shall be the chief executive of the Regional Government. He shall be
assisted by a cabinet [not exceeding ten (10) members, at least six (6) of whom
shall come from indigenous cultural communities) WHOSE NUMBER
SHALL BE DETERMINED IN THE REGIONAL ADMINISTRATIVE
CODE. The representatives of the indigenous cultural communities in the cabinet
shall come from various provinces and cities within the autonomous region.

The members of the cabinet must be registered voters and residents of the region
for at least five (5) years immediately preceding their appointments.

The Regional Governor shall appoint the members of the cabinet subject to
confirmation by the Regional Assembly.

2a xxx aax”

SEC.3. Sections 2, 3, 4 and 23, Article VII of the same Act are hereby amended to
read as follows:

“ox 2x Boog

Sec. 2. Justices from Autonomous Region. It shall be the policy of the
central government or national government that [, whenever feasible,] at least
one (1) [justice] MEMBER in the Supreme Court and, two (2) [justices]
MEMBERS in the Court of Appeals shall come from [qualified jurists] of the
autonomous region.

For this purpose, the Regional Governor [may, after consultations with
the Regional Assembly and concerned sectors in the autonomous region,]
SHALL submit the names of qualified persons to the Judicial and Bar Council for
its consideration. The appointments of those recommended by the Regional
Governor to the judicial positions mentioned above are without prejudice to
appointments that may be extended to [other qualified] inhabitants of the
autonomous region to other [positions] COURTS in the Judiciary.

Sec. 3. Consultant to the Judicial and Bar Council. — The President
shall appoint a qualified person as a consultant to the Judicial and Bar Council
recommended by the Regional Govemor OF THE AUTONOMOUS REGION
[in consultation with the concerned sectors of the autonomous region. The


person recommended by the Regional Governor] shall first be confirmed by
the Regional Assembly. Once appointed by the President, the consultant]
who shall [sit with the Judicial and Bar Council only to] advise and be
consulted by the council on {matters of] appointments to judicial positions in the
autonomous region.

Sec. 4. Deputy Court Administrator FOR THE SHARTAH COURTS.
— The Office of the Deputy Court Administrator for the autonomous region is
hereby created. The Deputy Court Administrator for the autonomous region shall
be appointed by the Chief Justice of the Supreme Court from among three
recommendees submitted by the Regional Governor [upon previous
confirmation by the Regional Assembly and after consultation with the
concerned sectors of the autonomous region.] HE SHALL BE A MUSLIM
AND AT LEAST A GRADUATE OF A TWO (2) YEAR COURSE ON
ISLAMIC LAW AND JURISPRUDENCE. HE SHALL HAVE THE RANK
OF ASSOCIATE JUSTICE OF THE COURT OF APPEALS.

ax aux sox”

“Sec. 23. Bases for Interpretation of Islamic Law. — Subject to the
provisions of the Constitution, the Shari'ah courts shall interpret Islamic law
based on sources such as:

(@) Al-Qur'an (The Koran);

(b) Al-Sunnah (Prophetic traditions);

(©) [AF-Qiyas (Analogy)] AL-IJIMA (CONSENSUS); and,

(@)_ {ALIjima (Consensus)] AL-QIYAS (ANALOGY).

SECA, Sections 2, 6 and 8, Article IX of the same Act are hereby amended
to read as follows:

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Sec. 2. Fiscal Autonomy. — The Regional Government shall enjoy fiscal
autonomy in generating and budgeting its own sources of revenue, its share of the
internal revenue taxes and block grants and subsidies remitted to it by the central
government or national government or any donor.

The utilization of its share of the internal revenue taxes and block grants or
subsidies from the central government or national government shall be subject to
[a] semi-annual and annual audits by the Commission on Audit and to the rules
and regulations of the Department of Budget and Management. All accountable
officials of the Regional Government shall, upon demand, furnish the
Commission on Audit all documents, papers, and effects necessary for the
completion of the audit. Failure to do so shall empower the President or the
Secretary of Finance to reduce, suspend, or cancel the release of funds intended
for the autonomous region to the extent of the amounts that cannot be audited for
reasons attributable to the officials of the autonomous region or are unaccounted
for after audit.

If more than half of the funds released to the autonomous region by the
central government or national government remain unaccounted for six (6)
months after the audit mentioned above, the Secretary of Finance may also
suspend or cancel the release of any or all funds allocated by the central
government or national government for the autonomous region. Officials of the
Regional Government who fail to submit the documents, papers and effects
demanded by the Commission on Audit within the period specified herein may be


suspended or removed from office by the President upon recommendation of the
Secretary of Finance.

‘The utilization of the revenue generated by the Regional Government and
block grants or subsidies remitted to it by foreign or domestic donors shall be
subject to the rules and regulations of the Regional Government Department of
the Budget and Management if any, and to audit by regional government auditors.
In the absence of such rules and regulations, the audit of the said funds, block
grants or subsidies shall be done by the Commission on Audit and the use thereof
shall be in accordance with the rules and regulations of the Department of the
Budget and Management of the central government or national government.

[The results of the audit mentioned in this Sec. shall be published in
national newspapers of general circulation and in newspapers of regional
circulation. The results shall also be announced over government-owned
radio and television stations.)

ax Bond Bong

“Sec. 6. Payment of Taxes. — Corporations, partnerships, or firms
directly engaged in business in the autonomous region 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 autonomous region but which are doing business within its
territorial jurisdiction, [by] SUCH AS, BUT NOT LIMITED TO 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 autonomous region to the city, or municipality where their
branch offices or business operations or activities are located.

2x Boog ox”

“Sec. 8. Sources Of Regional Government Revenue. — The sources of
revenues of the Regional Government shall include, but are not limited to, the
following:

(a) ax
xxx aor xax
(Q) Block grants derived from economic agreements or conventions
entered into or authorized by the Regional Assembly donations, endowments,
foreign assistance, and other forms of aid [ subject to the pertinent provisions of
the Constitution].

SEC.S. Section 7, Article XII of the same Act is hereby amended to read as
follows: ‘

“yoo axx Bond

Sec. 7. Preferential Rights of Citizen-Inhabitants of Autonomous Region.
im [Subject to the exceptions provided in this Organic Act,] [c]Citizens who
are inhabitants of the autonomous region shall have preferential rights over the
exploration, utilization, and development of natural resources of the autonomous
region. Existing rights over the exploration, utilization, ‘and development of

natural resources shall be respected subject to the exceptions specified in this
Organic Act.”


SEC. 6. Section 10-A Creating the Regional Economic Development
Authority (REDA).

“Sec. 10. Regional Economic and Development Planning Board;
Composition and Functions.

aa 2x aax”

Sec. 10-A. CREATING THE REGIONAL ECONOMIC
DEVELOPMENT AUTHORITY. - A REGIONAL ECONOMIC
DEVELOPMENT AUTHORITY (REDA) IS HEREBY CREATED TO,
AMONG OTHERS, ASSIST THE REDPB AND PERFORM SUCH
FUNCTION SIMILAR TO THE NATIONAL ECONOMIC
DEVELOPMENT AUTHORITY (NEDA). PROVIDED HOWEVER,
THAT THE PERSONNEL OF THE EXISTING REGIONAL PLANNING
AND ECONOMIC DEVELOPMENT OFFICE (RPDO) AS PROVIDED IN
REGIONAL ACT NO. 4 WILL BE ABSORBED BY THE REDA
WITHOUT DIMINUTION OF THEIR RANKS, SALARIES, AND
BENEFITS.

SEC.7. Sections 29 and 30, Article XII of the same Act are hereby amended to
read as follows:

“Sec! 29. Islamic Banks. — {The Bangko Sentral ng Pilipinas shall
establish an Islamic Bank and authorize the establishment of its branches in
the autonomous region.

The members of the board of directors or trustees of the Islamic
Bank shall be appointed by the President upon recommendation of the
Regional Governor. The persons recommended by the Regional Governor
shall possess educational qualifications and sufficient experience in the
management and operation of Islamic banking and shall be subject to
confirmation by the Regional Assembly before they are recommended to the
President. The board of directors or trustees of the bank shall elect from
among their members the chair, the vice chair and the president of the bank.
Other bank officials and employees shall be appointed by the president of the
bank.| THE ESTABLISHMENT OF ISLAMIC BANKS AND THEIR
BRANCHES WITHIN AND OUTSIDE THE AUTONOMOUS REGION
SHALL BE SUBJECT TO THE PRIOR APPROVAL OF THE
MONETARY BOARD.

AN ISLAMIC BANKING UNIT SHALL BE ESTABLISHED IN
THE BANGKO SENTRAL FOR THE PURPOSE OF SUPERVISING
ISLAMIC BANKS, WHICH SHALL INCLUDE QUALIFIED ISLAMIC
BANKING EXPERTS TO BE NOMINATED BY THE GOVERNOR OF
THE REGIONAL AUTONOMOUS GOVERNMENT AND WHOSE
APPOINTMENTS SHALL BE SUBJECT TO THE APPLICABLE
QUALIFICATION STANDARD OF THE BANGKO SENTRAL. THE
HEAD OF THE UNIT SHALL BE APPOINTED FROM AT LEAST
THREE (3) QUALIFIED PERSONS NOMINATED BY THE GOVERNOR
OF THE REGIONAL AUTONOMOUS GOVERNMENT, SUBJECT TO

THE APPLICABLE QUALIFICATION STANDARDS OF THE BANGKO
SENTRAL.

Sec. 30. Bangko Sentral Regional [Bank] OFFICE. — The Bangko
Sentral ng Pilipinas shall establish a Bangko Sentral Regional [Bank] OFFICE


with full banking services in the capital city or any suitable municipality in the
autonomous region within one (1) year from the approval of this Organic Act. The
Regional Governor shall submit a list of qualified persons to the appropriate
Bangko Sentral authority from which the staff of the regional office may be
chosen. The tights of the Bangko Sentral personnel who are occupying positions
in the Bangko Sentral Regional Office as of the date of the approval of this
Organic Act to continue as such shall be respected.”

SEC.8. Sections 3, 5(b) and (h) and 9, Article XIII of the same Act are hereby
amended to read as follows:

Boog Boed ax

Sec. 3. Law Governing Regional Police Force. — The Regional
Assembly shall enact laws to govern the Regional Police Force consistent with the
pertinent provisions of the Constitution and this Organic Act, TAKING INTO
CONSIDERATION OTHER APPLICABLE LAWS.

[The members of the Moro National Liberation Front who are
integrated into the Regional Police Force may be deployed in the autonomous
region or elsewhere in the Republic as may be determined by the proper
police authorities.

aax ax ax
See. 5. Powers and Functions of Regional Police Force. — The Regional

Police Force shall exercise within the autonomous region the following powers
and functions:

(a) xx sar xxx
(b) Maintain [law] PEACE and order and ensure public safety;
xxx xx ax

(h) Perform such other duties and exercise all other functions as may be
provided by law [enacted by Congress or by the Regional Assembly].

xxx ax ax

. ec. 7. Regional Police Framework and Organization. — The
philosophical framework and structural organization of the Regional Police Force
shall be as follow ;

(a) Itshall be «

ian in nature and character;

(b) The scope of its operations shall be regional. [The Regional Police Force,
its units or personnel may be deployed elsewhere in the Republic as
directed by the National Police Commission or when needed to suppress
lawless violence, pursue, and arrest criminal offenders or maintain law
and order. In such circumstances, the order to deploy must be signed by
the chairman of the National Police Commission and approved by the
President. The President may also order the said deployment on his own
authority;]

Bond ox ar

. [Sec. 9. Regional Police Directors. — The selection assignment, and
appointment of the Provincial and City Directors of the Regional Police
Force and the assignment of Moro National Liberation Front integrees shall



be done pursuant to Republic Act No. 6975, the Philippine National Police
Law and Republic Act No. 8551 the Philippine National Police Reform and
Reorganization Act of 1998.]

ax Baad xx

SEC.9. Sections 2, 3, 4, 5, 6, 7, 10, 18 and 20, Article XIV of the same Act are
hereby amended to read as follows:

“ARTICLE XIV
Education, Science and Technology, Arts, and Sports

sox xox sox
Sec. 2. Policies and Principles. — Consistent with the basic state policy

on education, the Regional Government shall adopt the following educational
policies and principles:

xxx wax aor
(i) Development of regional language. A regional language WHICH CAN BE
UNIVERSALLY ACCEPTED AND UNDERSTOOD may be evolved
and developed from the different dialects. in the region;

2x aor Bocd 3
(Kk) Teaching of Arabic LANGUAGE as subject. Arabic LANGUAGE shall be
taught as a subject in all grade levels as required for Muslims under existing laws
and optional, for non-Muslims;
sxx ar ar
(0) (1) Basic education structure.
sour ar soo
(6) Primary responsibility for learning aids and instructional materials.
The Regional Government shall have the primary responsibility to provide
learning aids and instructional materials to the schools in the autonomous
region in addition to those already prescribed AND SUPPLIED by the
central government or national government.

xxx xxx ax

(1) Responsibility for selection, recruitment, appointment, promotion,
and civil service protection of teachers and. non-teaching personnel.

ax ax aax

(b) The Regional Government may impose its regionally-defined
standards for the employment of teaching and non-teaching personnel in
its school system which, however, shall not be lower than the
NATIONAD standards of the Department of Education |, Culture and
ports}.

Axe xr sor


Sec. 3. Regional Educational Curricula. — The COMMISSION ON
HIGHER EDUCATION (CHED), THE TECHNICAL EDUCATION AND
SKILLS DEVELOPMENT AUTHORITY (TESDA) AND THE Regional
Department of Education, Culture and Sports shall develop curricula that are
relevant to the economic, social, political, cultural, moral, and spiritual needs of
the people in the autonomous region.

THE REGIONAL GOVERNMENT SHALL HAVE ITS
REGIONAL EDUCATION ACT FOR IT TO FOLLOW IN FRAMING A
CURRICULUM WHICH WILL BE APPROPRIATE, APPLICABLE AND
ACCEPTABLE TO THE WAY OF LIFE AND TO THE PEOPLE OF THE
REGION, PROVIDED THAT SUCH CURRICULUM, INCLUDING IT
CONTENT AND LEVEL OF COMPETENCIES ARE CONSISTENT
WITH AND ARE EQUAL TO THE NATIONAL STANDARDS OF
DEPED, CHED AND TESDA.

THE REGIONAL AUTONOMOUS GOVERNMENT EDUCATION
SYSTEM WILL ADOPT THE BASIC EDUCATION CORE COURSES IN
ENGLISH, MATHEMATICS, SCIENCE, FILIPINO AND MAKABAYAN
FOR ALL FILIPINO CHILDREN AS WELL AS THE MINIMUM
REQUIRED LEARNING, COMPETENCIES AND ORIENTATIONS
PROVIDED BY THE NATIONAL GOVERNMENT, INCLUDING THE
SUBJECT AREAS AND THEIR DAILY TIME ALLOTMENT.
TECAHING MATERIALS AND CURRICULUM CONTENTS SHALL
PROMOTE SOLIDARITY, UNITY IN DIVERSITY, FILIPINO AND
ISLAMIC VALUES.

Sec. 4. Education, Management, and Control of Education. — The
management, control, and supervision of the regional educational subsystem shall
be the primary concer of the Regional Government.

The Department of Education [, Culture and Sports], the Commission
on Higher Education, and the Technical Education and Skills Development
Authority, and other appropriate educational bodies of the central government or
national government shall [monitor compliance by the] COORDINATE
WITH regional educational subsystem [with national educational policies,
standards, and regulations}. The Department of Education, Culture and Sports,
the Commission on Higher Education, and the Technical Education and Skills
Development Authority of the Regional Government shall participate in policy
and decision-making activities of their counterparts of the central government or
national government in matters that affect the regional educational subsystem,

Educational Structure

__ Sec. 5. The Regional Assembly may, by law, create, support and maintain
a regional Department of Education, Culture and Sports, COMMISSION ON
HIGHER EDUCATION, TECHNICAL EDUCATION AND SKILLS
DEVELOPMENT AUTHORITY, EDUCATIONAL INSTITUTIONS AND
OTHER HIGHER EDUCATIONAL INSTITUTIONS OF LEARNING and
shall define [its] THEIR powers, functions and composition.

ax aux ee

Sec. 6. Private Schools Supervision.

Baad cor ee


(b) Private schools, including sectarian and non-sectarian institutions of
learning of whatever level, may organize themselves and shall have the
right to participate and be represented by three (3) representatives in the
deliberations of the Regional Department of Education[, Culture and
Sports], CHED, TESDA AND OTHER EDUCATIONAL
INSTITUTIONS on matters dealing with private schools.

(c) The representatives of the private schools to the Regional
Department of Education, Culture and Sports, CHED, TESDA AND
OTHER EDUCATIONAL INSTITUTIONS shall act for the sectarian
Christian schools, non-sectarian schools, and the schools of the lumads, if
any.

xxx sor ax

Sec. 7. Educational Subsystem Structure. — The organizational structure
of the regional educational subsystem shall follow the basic structure of the
educational system of the central government or national government. The
Regional Assembly may, however, create its own structures. It'shall prescribe the
same curricular years as those prescribed nationally. THE EDUCATIONAL
SUBSYSTEM STRUCTURE SHALL BE SPELLED OUT IN A REGIONAL
EDUCATION ACT THAT WILL BE FRAMED BY THE REGIONAL
ASSEMBLY.

2x xxx 2x

Sec. 10. [Tribal] INDIGENOUS BANGSAMORO University System. —
The Regional Assembly [may] SHALL create AN INDIGENOUS
BANGSAMORO [a tribal] university system within the autonomous region to
address the higher educational needs of the indigenous cultural communities in
the region.

axx aux axx

Sec. 18. Non-Formal Education. — The Regional Department of
Education, Culture And Sports shall institutionalize non-formal education in
scope and methodology, to include literacy, numeracy, and intensive skills
training of the youth and adults.

THE REGIONAL AUTONOMOUS GOVERNMENT
EDUCATIONAL SYSTEM SHALL DEVELOP THE FULL POTENTIAL
OF ITS HUMAN RESOURCES, RESPOND POSITIVELY TO THE
CHANGING NEEDS AND CONDITIONS OF THE ENVIRONMENT, AND.
INSTITUTIONALIZE NON-FORMAL EDUCATION TO INCLUDE
LIETERACY, NUMERACY AND INTENSIVE SKILLS TRAINING OF
THE YOUTH AND ADULT, TO ALLOW THEM TO PARTICIPATE
ACTIVELY AND PRODUCTIVELY IN THE MAINSTREAM OF
REGIONAL AND NATIONAL LIFE.

ax aux ax

__ Sec. 20. Scholarship Programs. — The Regional Government shall
provide scholarships to qualified poor but deserving students in all levels of
education. To this end, the Regional Government shall devote, [at least, fifteen
Percent (15%)] A SUBSTANTIAL PORTION of its regular budget for
education to support scholarships FOR THE POOR BUT DESERVING
CHILDREN OF SHUHADA (ACCREDITED MNLF MEMBERS) AND


OTHER DEPRIVED MEMBERS OF SOCIETY INCLUDING NEEDY
ORPHANS and shall endeavor to augment the funds for scholarships from other
sources of revenue, public or private.

‘The Regional Government shall administer the scholarship programs of
the Commission on Higher Education and the Technical Education and Skills
Development Authority scholarship programs, both local and foreign within the
region. The administrative and other details of this transfer of authority to
administer the scholarship programs shall be done within six (6) months from the
approval of this Organic Act.

xxx xxx xxx”
SEC. 10. Applicability and Repealing Clause. - All laws, presidential decrees,
executive orders, issuances, rules and regulations, and part thereof which are contrary to
or inconsistent with the provisions of this Act are hereby repealed, amended or modified

accordingly.

SEC. 11. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved.